Thales, Kalyani Strategic Systems Sign Alliance to Make 70-mm Rockets in India

Thales and Kalyani Strategic Systems Limited (KSSL), the wholly owned defence subsidiary of Bharat Forge Limited, have entered into a Strategic Alliance Agreement to set up indigenous manufacturing in India for 70-mm rocket systems used by the Indian Armed Forces. The arrangement covers both unguided and laser-guided variants already in service with Indian military aviation platforms, and the first fully assembled rocket made in India is targeted for early 2027.

The agreement was signed on September 3, 2026, during Belgian Prime Minister Bart De Wever’s official visit to India, and is part of a wider set of industrial and defence understandings between the two countries. Beyond the immediate production plans, the pact is intended to build local capability across the supply chain, with the two companies framing it as a step toward both domestic self-reliance and export potential.

Under the alliance, Thales will bring its established experience in 2.75-inch/70-mm rockets and launchers developed at its Belgian facilities. KSSL will contribute its manufacturing, integration and testing infrastructure, including an upcoming energetics facility in Andhra Pradesh, to produce and integrate components sourced from Thales’ qualified supply chain while maintaining international quality standards.

The collaboration is designed to cover technology transfer, local production, distribution and related equipment. The companies plan to develop a domestic ecosystem that can support Indian requirements and, over time, position the country as a manufacturing and export hub for these systems. Belgian officials have also described the arrangement as reciprocal: India gains production capacity, while Thales secures an additional source of supply for international orders, which they say supports European security of rocket supply as well.

The rocket family in question includes the FZ275 laser-guided rocket and the FZ90 unguided Folding Fin Aircraft Rocket. Both have been operational with the Indian Army and the Indian Air Force since the 2010s. They are integrated on rotary-wing platforms including the HAL Rudra (ALH-WSI) and the Prachand Light Combat Helicopter. Thales says its 70-mm family has been delivered in more than eight million units to 70 armed forces across 55 countries and can be used from air, land and maritime platforms. The company also says newer variants are increasingly being used for counter-drone missions.

Speaking on the partnership, Ankur Kanaglekar, Vice-President – India at Thales, said: “Thales has partnered with India for decades and this collaboration with KSSL is a testament to our deep and long-standing engagement with the local defence ecosystem. By combining our combat-proven 70mm rocket expertise from Belgium with KSSL’s engineering and manufacturing strengths, we are co-creating capabilities that will enhance India’s operational readiness and advance its vision of self-reliance in critical defence technologies.”

Neelesh Tungar, Chief Executive Officer of Kalyani Strategic Systems, said the partnership would help lay the foundation for indigenous production of next-generation rocket systems. “By combining Thales’ proven technologies with Kalyani Strategic Systems’ advanced industrial ecosystem including our upcoming Energetics facility in Andhra Pradesh, this strategic partnership lays the foundation for indigenous production of next-generation rocket systems. Beyond strengthening the operational readiness of the Indian Armed Forces, it advances the vision of ‘Make in India for the World,’ positioning India as a globally competitive hub for advanced defence technologies,” he said.

The new agreement also extends a pattern of Thales engagement with Indian industry around the same product family. Earlier memoranda or agreements were signed with Bharat Dynamics Limited in 2023 and Adani Defence and Aerospace in 2024. With KSSL now added to that list, Thales has broadened its network of potential Indian industrial partners for meeting recurring domestic demand and exploring exports.

The initiative fits within India’s Atmanirbhar Bharat and Make in India objectives by localising a combat-proven munition already fielded on indigenous helicopters. It also deepens India-Belgium defence-industrial ties at a time when global demand for 70-mm rockets remains high. The partners expect production of the first Indian-assembled unit in early 2027, after which output is expected to scale for both Indian armed forces requirements and overseas customers.