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DCNS, the 400-year-old French naval shipbuilding giant, wants to forge strong partnerships with Indian companies to grow its presence and bid for contracts in the country.
The objective is not to grow big as a company in India, but to provide technology and outsource production development to Indian entities.
The company has screened over 100 companies, is in discussion with 30 and has signed contract with three.
DCNS, based in Paris, is implementing a multi-million dollar contract from the Indian Navy to build six Scorpene submarines.
The submarines are being built and integrated at the Mazagon Docks Ltd(MDL), with the technological and financial support of DCNS.
The first of the six Scorpene submarines will be ready by end of 2013. By end of 2012, the main pressure hull will be completed. The contract was signed in 2005. After delays, it is now expected to be implemented by 2018.
Indigenous procurement
DCNS has signed contracts worth $75 million for indigenous procurement of components and systems for the submarine so far, said Bernard G. Buisson, Managing Director of DCNS India Ltd. “Our strategy is to get one company per category of the major parts of the submarine to indigenise,” he added.
To enhance expertise in domestic companies, it has already tied up with SEC Industries, Hyderabad and Flash Forge, Visakhapatnam. The indigenisation programme would begin from the third submarine.
“We will also help MDL to qualify companies to buy directly in future. For example the batteries. MDL has to buy. Its not part of our contract. DCNS is helping it to identify the right companies making batteries for the submarine,” he said.
Partnership with Pipavav
One major partnership the French giant has forged recently is with Pipavav.
The initiative is to build modern warships for India. One of the proposals is to build a LPD (Landing Platform Deck), with capacity to have 1,400 personnel.
The big ship, weighing 21,000 tonnes can transport a battalion of 900 and some helicopters. The duo is offering three ships of this type to the Indian Navy. DCNS had bagged a contract from the Russian Navy for two such ships valued at $1.1 billion.
Big ships
The company has built two such ships for France. With Pipavav the scope of the partnership will be decided on project basis, beginning as a technology provider, said Bernard Planchais, Vice-President and Chief Operating Officer of DCNS, France. There is a possibility to offer more products such as a large ship (100-300 mts length) with capacity to carry aircraft as well.
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