Mumbai: Engineering procurement and construction company Punj Lloyd will enter the defence equipment manufacturing business, for which it has signed an agreement with Singapore Technologies Kinetics Ltd (ST Kinetics).
Under the agreement, Punj Lloyd and ST Kinetics will also pool their resources for executing supply contracts for the ministry of defence, Punj Lloyd said in a filing with the Bombay Stock Exchange.
Punj Lloyd has a received a licence from the Government of India for the manufacture of guns, rockets and missile artillery systems and other related equipment.
The company, however, did not disclose financial details of the deal.
ST Kinetics is the land systems and specialty vehicles arm of Singapore Technologies Engineering Ltd and is one of Asia's leading defence and specialty vehicles companies. The company clocked sales of 1.18 billion Singapore dollars in 2007.
''Punj Lloyd is confident of leveraging its dynamism and adaptability together with its speed of decision making, to penetrate the defence sector. With its vast global reach, experience in diverse functions and its reputation for reliability, Punj Lloyd is well poised to take a significant position in this industry.'' said Atul Punj, chairman of the company.
ST Kinetics delivers integrated land systems, specialty vehicles and their related through life support for defence, homeland security and commercial applications. Its defence products are used in more than 30 countries around the world.
Among its strong portfolio of acclaimed defence products are the Ultimax 100 (world's lightest and lowest recoil light machine gun), the SAR 21 (world's first assault rifle with integrated laser and patented protection plate), the FH2000 (world's first 52 calibre 155mm howitzer fielded), the SRAMS (120mm mortar with high sustained rate of fire and lowest recoil force), Pegasus (world's first heli-portable 155mm 39 calibre and self-propelled howitzer) and Bronco (all-terrain articulated vehicle with highest payload). It is also widely regarded as the world's leading provider of 40mm solutions (weapons and ammunition), including automatic and lightweight launchers, high and low velocity rounds, less-than-lethal rounds, insensitive, airburst and self-destruct munitions, the statement added.