Brazil’s CBC and India’s SSS Defence joint venture to take off in 2021

South-South Cooperation: High-level defence delegation from Brazil to visit India in 2021

Ambassador Reddy also urged the Indian industries to look at Brazil’s divisional market for technological partnerships and joint ventures.

Production of ammunition under the joint venture between Companhia Brasileira de Cartuchos (CBC) Brazil, the world’s second-largest ammunition manufacturer, and Stumpp Schuele & Somappa India (SSS Defence) will take off in August 2021. Sharing this information, Fernando Saim, of CBC, said, “The SS-CBC India Ammunition project is set to start operations in August 2021, in Andhra Pradesh. The joint venture will focus on not only the Indian market but will also reach out to the region.”

The joint venture between the two companies was inked in January this year.

In India, no private sector company has ever manufactured ammunition of military-grade for the small arms. As has been reported earlier, the South American company plans to manufacture multiple ammunition and for different calibres which include — the 9 mm, 7.62×39 mm,7.62×51 mm, .338 Lapua and 12.7 mm.

The ammunition which will be manufactured in India will be open to exports to other countries, once the Indian military and para-military forces requirements are fulfilled.

India-Brazil Defence Cooperation

Highlighting the `Make in India’ as an extraordinary opportunity, ambassador of Brazil to India, Andre Aranha Correa do Lago, says “The defence and security are central components of the Plan of Action of our strategic partnership with India. Our two countries are complementary in this area.”

He was addressing 150 participants including officials and representatives from India and Brazil during a webinar “Indian Defence Industry Global Outreach for Collaborative Partnerships: Webinar and Expo.”

This Plan of Action for the Brazil-India strategic partnership was signed earlier this year at the end of talks between Prime Minister Narendra Modi and President Jair Bolsonaro, who was the Chief Guest at the Republic Day Parade. The two countries have a multifaceted relationship which is based on values and a convergence of views on many global issues. Both countries are cooperating bilaterally and multilaterally at various foras including the United Nations, BRICS, IBSA, G20, and ISA.

Supported by the missions of Brazil & India, the webinar was organized by the Society of Indian Defence Manufacturers (SIDM) & the Brazilian Association of Defence and Security Materials Industries (ABIMDE).

The focus of the Indian envoy to Brazil, Suresh K Reddy, was on the “Triple-Helix” approach which is followed by the South American nation which lay emphasis on innovation and R&D for its army, navy and air force.

Ambassador Reddy also urged the Indian industries to look at Brazil’s divisional market for technological partnerships and joint ventures.

While Dr Marcus Degaut, Secretary for Defence Products, Ministry of Defense of Brazil announced that a high-level delegation from Brazil will visit India in February 2021 for AeroIndia, Dr Roberto Gallo, President, ABIMDE, stated that “the collaboration between Indian and Brazilian industries has the potential to reach out to the world.”

In his address Anurag Bajpai, Joint Secretary, Department of Defence Production talked about the FDI cap which has been raised to up to 74 per cent through automatic route and up to 100 per cent through government route in the defence sector.

“It is time to develop mutually beneficial ties in the defence sector and the scope for collaboration in this sector must be explored,” said Rajat Gupta, Chairman of the SIDM Committee on International Exports.

Joint Ventures in Defence Present In India

Besides CBC of Brazil, the world’s second-largest ammunition manufacturer, and SSS Defence, there is another joint venture another Brazilian company Taurus Armas S.A., and Jindal Defence.

The JV was inked earlier this year on the sidelines of the 1st Brazil–India Defence Industry Dialogue of the India-Brazil Business Forum (IBBF), which organized by the Ministry of External Affairs and Indian industry chambers.

And, the JV Company will be set up at Hisar (Haryana) with equity participation from both in the equity ratio of 51:49. Small arms will be manufactured under Transfer of Technology from Taurus, and in accordance with the Defence Procurement Procedures (DPP).

Indian Defence Company In Brazil

The only Indian company present in Brazil is UP based MKU Ltd. The company has been in Brazil for some years now and has executed defence contracts with Federal police, Military Police & Army. They have a contract with Policia Militar do Estado de Sao Paulo for 14,500 pieces vest, Brazilian Army commission Night vision monocular.