Bharat Forge 's defence arm, Kalyani Strategic Systems Limited (KSSL), signed a Strategic Alliance Agreement with Thales Belgium on September 3, 2026. The partnership aims to assemble 70 mm rocket systems in India, targeting the first fully India-produced rocket by early 2027.

Deal highlights

The alliance expands beyond simple assembly to include technology transfer and local production of both unguided and laser-guided variants. The agreement leverages Thales' combat-proven technologies and KSSL's manufacturing capabilities to support domestic requirements and global export opportunities.

Key details of the arrangement are as follows:

Strategic context

The collaboration was announced during the Belgian state visit to India, reinforcing India-Belgium defence cooperation. Thales will contribute its global expertise in 2.75-inch / 70-mm rockets developed in Belgium, while KSSL will utilize its local manufacturing facilities, including an upcoming Energetics facility in Andhra Pradesh.

Neelesh Tungar, CEO of Kalyani Strategic Systems Ltd., stated that the partnership lays the foundation for indigenous production of next-generation rocket systems. Ankur Kanaglekar, Vice-President – India at Thales, noted that the collaboration enhances India's operational readiness and advances its vision of self-reliance in critical defence technologies.

The 70-mm solutions are already in use by the Indian Armed Forces, supporting multi-role mission flexibility across air, land, and maritime domains, including integration with the Advanced Light Helicopter (ALH-WSI) and Light Combat Helicopter (LCH).

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.