L&T Technology Services, a wholly-owned subsidiary of Larsen & Toubro Limited (L&T), has purchased 74% of the equity capital of Thales Software India Pvt. Ltd., the Indian subsidiary of Thales, the global technology leader in aerospace, transportation and defence and security markets.
With this transaction, L&T Technology Services will now manage and oversee the management control, operations and delivery of services of the new joint venture.
The joint venture brings together the strategic strengths of both the groups. By retaining 26% equity stake, Thales will help the company develop the latest trends in the avionics industry, one of its core businesses. This collaboration adds to L&T Technology Services’ growing competencies by enhancing its expertise in high-end avionic software.
The joint venture capitalises on the existing strong relationship between the two groups, L&T and Thales, and ensures a long term partnership in the engineering services domain. Furthermore, the transaction should enable Thales to select this new group as its Indian Offset Partner, resulting in inflow of Offset related revenues in the joint venture.
Dr Keshab Panda, Chief Executive, L&T Technology Services, expressed his confidence in this association: “This Joint Venture represents each organisation’s strong commitment to provide customers with a single source of best services in avionics industry,” he said. “We as an organisation are at an interesting phase of our journey where we are streamlining our expertise and strengthening our knowledge. In such a phase joining hands with Thales adds to our proficiency in the market,” he added.
Commenting on the joint venture, Mr Eric Lenseigne, Managing Director of Thales in India said: “This JV is a reflection of our commitment to India and our objective to strengthen our industrial footprint in the country. In addition, this collaboration with L&T Technology Services brings on-board a seamless integration of all elements and assures our customers quality service and the highest level of long-term, local product support. We are sure that together we would build on our expertise and provide our customers with world-class technology and services.”
Source: Thales Group (Paris: HO.PA)
Date: Jun 26, 2014