Mumbai: Auto components supplier BF Utilities Ltd, a Kalyani Group company, has signed a joint venture agreement with Singapore Technologies Kinetics Ltd (ST Kinetics), Singapore. The agreement was signed in Singapore by BN Kalyani, chairman, Kalyani Group and Sew Chee Jhuen, president, ST Kinetics.

ST Kinetics, the land systems and specialty vehicles arm of Singapore Technologies Engineering (ST Engineering), is one of Asia's largest security services companies with a growing portfolio of products and services in the defence, homeland security and commercial markets.

The Singapore-based ST Engineering reported revenues of S$3.34billion (US$2.1b) in FY 2005.

ST Kinetics is involved in the design and development, systems integration, production, operation and support and life cycle management of a wide range of specialty vehicles and defence equipment. It is a global operator in the defence and integrated engineering sectors providing solutions and services in the aerospace, electronics, land systems and marine sectors.

With a market capitalisation of over S$8 billion (about $5.13b), it ranks among the largest companies listed on the Singapore Exchange. ST Engineering has over 100 subsidiaries in 20 countries and 35 cities and about 16,000 employees worldwide.

The Kalyani Group will hold majority stake in the joint venture. The JV is an effort to further private-public partnership (PPP) and largely compliment the research and development arm of the Government of India, such as the DRDO, and the manufacturing efforts of Indian ordnance factories.

The JV will be engaged in the design, engineering & manufacture of high technology and critical systems for the Indian defense market.

The JV will offer Kalyani Group an access to ST Kinetics' growing portfolio of products and services for the defence market, while Kalyani Group will leverage its full service supply capability on the basis of its technology, product design and product development expertise.

"The government of India is encouraging the corporate sector to adopt a greater role in India's defence sector," said Kalyani Group chairman, BN Kalyani. "The Kalyani Group has taken giant steps in that direction by signing the joint venture with ST Kinetics. The joint venture will offer synergy both in terms of technology and design & development. We hope to significantly contribute in the indigenisation of the Indian defense sector. The joint venture will reiterate our strong commitment to providing world-class products & solutions to the defence sector in India and also demonstrate our technology leadership", he added.