The Hindu : Business : European missile major scouting for software developers

Online edition of India's National Newspaper
Thursday, Feb 10, 2005

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Business

European missile major scouting for software developers

By Sandeep Dikshit

BANGALORE, FEB 9. The European missile systems major, MBDA, plans to make India its fifth major centre of operations. The company already has a strong presence in France, Italy and the U.K. and its impending merger with a German company will give it a foothold in a fourth European country. India is the next country in its sights, said company officials.

As many as 30,000 MBDA's anti-tank missile Milan have been produced under licence by the state owned Bharat Dynamics Limited (BDL) and some have even been exported. While seeking to extend the partnership further, MBDA is also scouting for reputed software developers here to outsource some of the works it does in Europe, said MBDA official, Mati Hindrekus. In the long term that could even lead to the French company setting up a major software development centre in India.

"We formalised a long standing relationship with BDL by signing a memorandum of understanding two years back. With a good history of working with the local industry, we are looking to supply missile systems for the Navy's Bangalore class destroyers and if the deals go through, similarly equip Scorpene submarines and Mirage fighters. We also understand that the Indian Air Force is looking for air defence systems."

India is on the verge of finalising a $1 billion deal to make French Scorpene submarines in the country. It has also begun the process for importing 125 multi-role fighters and the French are offering an upgraded version of the Mirage-2000. Being a company with strong French roots, MBDA senses a long-term opportunity if the two deals go through. In that case, BDL could be licensed to make the missile systems.

Apart from scouting for business opportunities from the Indian armed forces, MBDA is also looking at outsourcing some sub-systems for its overseas clients but Mr. Hindrekus admits that the road will be rough because of Indian and Western sensibilities on arms exports. "It will not be carte blanche. Such cooperation is possible in some areas," he acknowledges. MBDA has also submitted proposals for joint research with the Defence Research & Development Organisation (DRDO). The areas include battle space modelling, guidance systems and emerging technologies such as smart materials.

"We are proposing a complete change of gear in our collaboration with India and the Indian industry. This collaboration will bring several advantages. MBDA will benefit from Indian software skills and lower cost base. India will get advanced guided weapons technology, which will give it autonomy in developing its current and long-term defence equipment capabilities," says India based official, Jean-Pierre Talamoni.

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