Bharat Electronics, France's Safran To Build HAMMER Air-To-Surface Missiles

India's state-run defence manufacturer Bharat Electronics Ltd. and France's Safran Electronics and Defence on Monday signed a joint venture cooperation agreement (JVCA) for the production of smart air-to-ground weapons in India.

The firms will build a "Highly Agile Modular Munition Extended Range (HAMMER) Smart Precision Guided Air-to-Ground Weapon in India", according to a press release.

The JVCA was inked by Bharat Electronics' Chairman and Managing Director Manoj Jain and Safran's Executive Vice President Alexandre Ziegler in New Delhi.

The agreement formalises the intent expressed in the MoU signed between BEL and SED on Feb. 11, 2025 during Aero India, reaffirming the willingness of both sides to incorporate a potential joint venture company in India, the release said.

The JVC will be formed as a private limited company with 50:50 shareholding. It will localise the manufacturing, supply and maintenance of HAMMER to meet the operational needs of the Indian Air Force and the Indian Navy.

The indigenisation level will progressively increase up to 60% with key sub-assemblies, electronics and mechanical parts being manufactured locally. The transfer of production is set to take place in a phased manner with BEL leading final assembly, testing and quality assurance.

HAMMER is a combat-proven, precision-guided weapon system known for its high accuracy and modular design, making it adaptable for multiple platforms, including the Rafale and Light Combat Aircraft Tejas, according to the release.

"This JVCA underscores BEL’s commitment to strengthening India’s defence industrial base and aims at leveraging SED’s extensive experience in manufacturing of smart precision guided air-to-ground weapon," it added.

Shares of Bharat Electronics closed 3.23% lower at Rs 402.90 apiece on the NSE, compared to a 0.42% fall in the benchmark Nifty. The stock has risen 37.75% on a year-to-date basis.

Out of 32 analysts tracking the company, 26 have a 'buy' rating on the stock, three recommend 'hold' and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 15.8%.