Krishna Defence and Allied Industries Limited has executed a joint venture agreement with Netherlands-based VABO Composites B.V. to form a new joint venture company in India focused on manufacturing composite solutions for the defence and maritime sectors. The agreement follows an earlier memorandum of understanding announced in July 2024.
The joint venture entity will be incorporated in India and will be held in a 51:49 shareholding structure by Krishna Defence and VABO Composites, respectively. The joint venture is intended to manufacture advanced composite products tailored for defence and maritime applications.
The scope of business of the joint venture will include the design, development, manufacture, marketing, distribution, and servicing of composite ship doors, hatches, and related products. Technical inputs will be provided by VABO Composites, while infrastructure and operational support will be contributed by Krishna Defence within the agreed territory.
The joint venture company is yet to be incorporated and will have an initial paid-up capital of INR 100,000, divided into 10,000 equity shares of INR 10 each. The board of directors of the joint venture will comprise two directors, with one nominated by Krishna Defence and one by VABO Composites.
Upon incorporation, the joint venture will be classified as a related party as it will be a subsidiary of Krishna Defence. The company stated that there is no issuance of shares by Krishna Defence as part of the arrangement, and no loans or financial assistance are involved under the agreement.
Krishna Defence stated that the collaboration is aligned with its strategy to expand its product portfolio and market reach, including in India and the Association of Southeast Asian Nations region. The partnership aims to combine Krishna Defence’s market presence with VABO Composites’ manufacturing capabilities and technical expertise.
Krishna Defence and Allied Industries Limited is engaged in the defence manufacturing sector, supplying a range of products and solutions to defence and allied applications.
