SMPP and KNDS have signed a teaming agreement to manufacture advanced loitering munitions and drone systems domestically under the Make in India initiative.
The partnership will initially target the Army's growing demand for precision-strike and battlefield reconnaissance capabilities through the VELOCE, RODEUR and ISTAR systems.
The agreement includes technology transfer and local manufacturing, supporting India's broader push to expand indigenous defence production and reduce import dependence.
India Eyes Next-Gen Battlefield Capability With New Loitering Munitions Deal
The partnership will see Indian defence manufacturer SMPP and European defence giant KNDS produce advanced loitering munitions and drone systems in India, supporting the country's push for defence self-reliance and precision-strike capabilities
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Indian defence manufacturer SMPP has signed a teaming agreement with European defence major KNDS to manufacture advanced loitering munitions in India, marking another step in the country's efforts to strengthen indigenous defence production and reduce reliance on imports.
The agreement was signed at the Eurosatory defence exhibition in Paris on Wednesday and will see SMPP, through its subsidiary SMPP Ammunition, manufacture the systems domestically under the government's Make in India and Atmanirbhar Bharat initiatives.
The partnership will initially focus on meeting the Indian Army's growing requirement for loitering munitions, which have emerged as a critical battlefield capability in modern warfare due to their ability to conduct precision strikes against high-value targets.
Under the collaboration, SMPP and KNDS will offer the French defence group's VELOCE and RODEUR loitering munition systems, along with its ISTAR family of drones.
The companies said the integrated platform would provide advanced "search-and-destroy" capabilities for military operations.
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The systems are equipped with a hybrid navigation architecture combining multi-constellation Global Navigation Satellite System (GNSS) receivers and Inertial Navigation Systems (INS), enabling them to operate in complex and contested environments.
The fire-and-forget capability allows operators to engage strategic targets with greater accuracy while reducing operational risks.
A key component of the agreement is technology transfer, which is expected to help build domestic manufacturing capabilities and strengthen India's defence industrial ecosystem.
The latest partnership builds on an earlier agreement signed by SMPP and KNDS at the Milipol exhibition in Paris in November 2025 to manufacture the KATANA 155-mm precision-guided artillery munition in India. The KATANA system is designed for long-range, high-precision strikes and forms part of the armed forces' ongoing modernization efforts.
SMPP currently manufactures ballistic protection systems, ammunition, drones, counter-drone solutions and other defence technologies.
KNDS, formed through the merger of France's Nexter and Germany's Krauss-Maffei Wegmann, is among Europe's largest land-defence companies and supplies military equipment to more than 40 armed forces worldwide.
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The agreement comes as India accelerates efforts to expand domestic defence manufacturing capabilities.
According to the Ministry of Defence the country's defence production reached a record ₹1.78 lakh crore in FY26, up 15.6% from ₹1.54 lakh crore in the previous year.
Indigenous defence production has nearly quadrupled since FY14, reflecting growing private-sector participation and sustained policy support aimed at building a self-reliant defence industry.
The SMPP-KNDS partnership is expected to further support that objective by bringing advanced precision-strike technologies and manufacturing expertise to India.