In view of the government altering its current foreign direct investment (FDI) limit in the defence sector from 26% to a higher percentage, the joint venture (JV) between L&T and Cassidian – defence and security division of European Aeronautic Defence & Space (EADS) – has included a provision that would automatically raise the foreign ownership as and when the new rule comes into force.
According to informed sources, who did not want to be named, it was on this assurance of subsequent relaxation of the FDI cap that Cassidian has agreed to invest in the JV.
Initially, the Franco-German defence and security company did not want to come in as a minority stakeholder in the JV.
“We are hoping things will change soon and the government will rethink on the 26% FDI cap in the defence sector. Also, when a foreign firm enters into a joint venture with a local company, the new entity automatically becomes an Indian company. So why put a cap of 26%,†K Sreekumar, who will be heading the L&T and Cassidian JV said.
11/02/11 Suparna Goswami Bhattacharya/Daily News & Analysis
Posts Tagged 'Cassidian'
L&T, Cassdian joint venture finally takes off
Published February 11, 2011 Uncategorized Leave a CommentTags: Cassidian, EADS, Europe, L&T
Cassidian opens defence engineering centre in Bangalore
Published February 9, 2011 Uncategorized Leave a CommentTags: Cassidian, Defence, EADS, Europe
Bangalore : With an aim to achieve an edge over its competitors, Cassidian, the defence and security division of European Aeronautic Defence & Space (EADS), has set up an engineering centre for its military aircraft, defence avionics and homeland security systems in Bangalore to develop products for the Indian market.
EADS already has an Airbus R&D and engineering centre for its civilian aircraft in the city that has been operational for around a year now.
While several companies have been off-shoring engineering work in difference disciplines to India, this is first instance of a foreign company opening its defence-oriented engineering centre in the country.
Stefan Zoller, CEO of Cassidian, said the move had been driven by the growing potential of India’s defence market and its emerging aerospace manufacturing ecosystem.
“The engineering centre goes to show our commitment to increase our industrial footprint in this rapidly growing country. It makes complete sense for a nation to develop its own product and export it,†he said.
The centre will be staffed largely by Indian engineers, Zoller said, adding that the company would raise the number of employees at the facility to 200 by the end of 2012 from the current 60.
09/02/11Â Suparna Goswami Bhattacharya/Daily News & Analysis
