The Foreign Investment Promotion Board (FIPB) has given its nod to Bharat Forge’s proposal to sell 26 per cent equity stake in its defence venture to Elbit Systems Land and C41 Ltd, an Israeli company.
Bharat Forge would hold 74 per cent equity in BF Elbit Advanced Systems, its defence subsidiary set up last year.
BF Elbit Advanced Systems would develop, assemble and manufacture defence systems, particularly artillery guns, mortar gun systems and ammunition and would supply them to the Defence Ministry or other entities for defence, internal security, homeland security, informed sources said here.
Baba Kalyani-promoted Bharat Forge is a global forging conglomerate with capacity of 750,000 tonnes per annum, and has been a defence supplier for a long time.
The Israeli company would bring in technology and system integration capabilities. The cooperation between Elbit and Bharat Forge would address Indian defence requirements.
Bharat Forge has been in the domestic defence business for the past three decades.
With the BF Elbit production facility in its fold, the group would manufacture artillery systems, including naval guns, and upgrade armoured systems, including change of barrels and ordnance, and manufacture various ammunition shells.
Will sell 26 per cent equity stake in its defence venture to Elbit Systems
Land and C41 Ltd, an Israeli company