DCNS, the French defence major has signed a partnership sub-contract with SEC Industries for the manufacture of Scorpene submarine components. The deal is worth €50 million (approx Rs 310 crore).

This is a significant win for the Hyderabad-based, private sector manufacturer of key defence components. In addition to executing the contract, SEC Industries will benefit from the transfer of technology from the French company.

DCNS, is one of Europe's leading shipbuilders. The over 350-year-old company, has bagged a huge contract from India to supply six Scorpene attack submarines, which are under construction at the Mazagon Dock Ltd (MDL), Mumbai.

SEC Industries has upgraded its facilities near Hyderabad to meet the needs and standards of DCNS for the components and assemblies that it will manufacture for the naval submarine. The first batch of a dozen employees (total 40 employees) from the company is in France to get trained at the facilities of DCNS , said Mr D. Vidyasagar, Managing Director of SEC Industries.

“We have to execute the contract in four years. We will gain in technology terms, infrastructure and trained manpower,” he told Business Line.

Defence Offsets

SEC Industries, which is over 50 years old, is also well equipped to take advantage of the defence offset clauses which provide big opportunities to Indian industry. It is already in partnership with IAI of Israel for manufacturing a number of products like shipping containers, ground data terminal trailers, refuelling carts, hook arresting systems etc.

During the last two years, exports to Israel from the company have been over Rs 20 crore, said Mr Vidyasagar.

The company has signed agreements to make equipment for heavy duty launchers from Belarus and other defence products from Ukraine to tap the offset and defence export market, he added.

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