Delhi-based Jindal Defence, part of O P Jindal Group, has forayed into small arms manufacturing via a joint venture (JV) agreement with Taurus Armas of Brazil. As per the agreement a plant will be set up at Hisar in Haryana.
The project will see an initial investment of USD five million and will be developed in phases. The venture has equity participation from Jindal Defence and Taurus Armas in the equity ratio of 51:49.
The JV company will make small arms in India based on transfer of technology from Taurus Armas to achieve localisation of production in accordance with the Defence Procurement Procedures.
The partnership aims to maximise the existing domestic opportunities in the small arms manufacturing sector and provide significant support to the ongoing and future modernisation plans of the Armed Forces, particularly the Indian Army, the Para-Military, and the State Police Forces.
While production of the arms will take place in Hisar, the JV is expected to come up with its production by September 2020.