Bharat Forge subsidiary signs MoU with FN Herstal for local defence manufacturing
- Kalyani Strategic Systems signed an MoU with FN Herstal on September 3, 2026
- The partnership explores local manufacturing of small arms and C-UAS systems
- Parties will evaluate a dedicated production center and potential joint venture
- The deal aligns with India's Make in India policy and defence modernisation goals
*this image is generated using AI for illustrative purposes only.
Bharat Forge subsidiary Kalyani Strategic Systems Limited signed a Memorandum of Understanding with FN Herstal on September 3, 2026. The agreement aims to establish local manufacturing capabilities for small arms and counter-unmanned aerial systems in India.
The partnership brings together KSSL’s engineering scale with FN Herstal’s global expertise in weapon systems. The MoU outlines plans to evaluate a dedicated production center and a potential strategic alliance or joint venture.
Partnership Scope
Under the terms of the MoU, the parties will assess the feasibility of cooperation projects primarily targeting the Indian market. The scope includes:
- Small arms
- Integrated weapon systems
- Counter-unmanned aerial system (C-UAS) solutions
The initiative supports the Government of India’s Make in India policy by focusing on local manufacturing, technology cooperation, and value creation.
Strategic Implications
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, stated that the partnership combines FN Herstal’s portfolio with KSSL’s industrial scale. He noted the aim is to deliver advanced defence solutions from India for both domestic and global markets.
Julien Compere, Chief Executive Officer of FN Browning Group, described India as a strategic partner. He emphasized the goal of building long-term sovereign capacity for the Indian Armed Forces through local manufacturing.
About the Companies
Kalyani Strategic Systems Limited drives the defence business of the Kalyani Group. It delivers capability across land, marine, and unmanned domains, including artillery systems and armoured vehicles.
FN Herstal is the defence arm of FN Browning Group. Founded in 1889, it reported revenue exceeding EUR 1 billion in 2025. The company operates production sites across NATO and EU countries.
Historical Stock Returns for Bharat Forge
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.26% | -4.59% | -11.53% | +4.08% | +72.24% | +147.19% |
How might this partnership impact Bharat Forge's revenue mix and valuation multiples as it shifts focus toward high-margin defense exports?
What are the regulatory hurdles and timelines for obtaining necessary clearances from the Indian Ministry of Defence for local small arms manufacturing?
Could the establishment of a C-UAS production center in India position KSSL as a key supplier in the growing global counter-drone market beyond domestic needs?
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