L&T Cassidian tie-up in venture for defence equipment

11 Feb 2011

Cassidian Electronics, earlier EADS Defence & Security, and engineering major L&T, have joined hands in a new joint venture for defence electronics.

The joint venture, based in Talegaon and Bangalore that have L&T's defence facilities would cover manufacturing, design, engineering, distribution and marketing of electronic defense equipment, including radars, avionics and mobile systems for military applications.

The initial investment in the joint venture is to be around $20 million.

 Larsen & Toubro (L&T), whose revenues are derived mostly from the engineering and construction, with a fraction from the defence business, expects the defence segment to grow to over 10 per cent of revenues in the next 5 years.

Over 80 per cent of the company's revenues come from the engineering and construction at present.

Last fiscal, the company grossed a sales turnover of Rs37,035 crore.