Photo Credit: TKMS
Germany’s ThyssenKrupp Marine Systems (TKMS) and Hyderabad-based VEM Technologies Pvt. Ltd. have signed a teaming agreement to jointly produce heavyweight torpedoes in India, marking a significant step in Indo-German defence industrial collaboration.
The agreement, announced on March 10, 2026, represents the next phase of cooperation between the two companies after they signed a memorandum of understanding (MoU) in September 2025 to explore collaboration in submarine weapon systems and underwater defence technologies.
The partnership aims to support the operational capabilities of the Indian Navy’s submarine fleet while strengthening India’s domestic defence manufacturing ecosystem.
Local manufacturing of heavyweight torpedoes
Under the teaming agreement, the companies will collaborate on the production of modern heavyweight torpedoes for the Indian Navy’s existing submarine fleet.
The programme will involve the transfer of torpedo technologies and software licences from German defence systems specialist ATLAS ELEKTRONIK, a subsidiary of TKMS, enabling the systems to be manufactured in India.
As part of the collaboration, VEM Technologies will undertake procurement of raw materials, fabrication, manufacturing, assembly and testing of the torpedoes in India, contributing to the localisation of advanced naval weapon systems.
The initiative aligns with India’s efforts to expand indigenous capabilities in the defence sector while reducing reliance on imported equipment.
Technology transfer supports Make in India
The partnership has been positioned as part of India’s Make in India initiative, which encourages global defence manufacturers to collaborate with Indian industry and localise production.
Michael Ozegowski, Executive Vice President of the ATLAS ELEKTRONIK segment at TKMS, described the agreement as a key milestone in the partnership.
“With this Teaming Agreement, we are completing the next important milestone in our strategic partnership with VEM and underlining our commitment to the Make-in-India initiative.”
He added that the transfer of torpedo technology would enable VEM Technologies to contribute to strengthening India’s naval capabilities while supporting the country’s ambition for technological self-reliance.
Possible joint venture and export opportunities
Beyond the immediate production programme, the collaboration could evolve into a broader industrial partnership.
According to TKMS, the agreement may lead to the creation of a joint venture between TKMS and VEM Technologies in the medium term, focused on supplying modern heavyweight torpedoes for the Indian market.
Such a venture could also open up potential export opportunities, positioning India as a manufacturing base for advanced underwater defence systems.
Strengthening Indo-German defence industrial ties
The agreement highlights the growing scope of India–Germany defence cooperation, particularly in naval technologies and advanced manufacturing.
TKMS is a global leader in submarine construction and maritime defence systems, while VEM Technologies is an Indian defence and aerospace engineering company engaged in the design and manufacturing of advanced weapon systems.
By combining German naval technology expertise with India’s expanding defence manufacturing capabilities, the partnership is expected to support the Indian Navy’s operational requirements while reinforcing the Make in India programme in the defence sector.
