BEML, a Public Sector Undertaking, under Ministry of Defence and Larsen & Toubro (L&T), India's leading engineering, technology, and construction conglomerate today signed a Memorandum of Understanding (MoU) to jointly capitalise on the emerging opportunities in the domestic and export markets for defence products and systems.

The cooperation between the two organisations is aimed to leverage on 'Make in India' initiative for increased value addition within the country in development/manufacturing and long-term support for defence and export business in identified areas/projects/programs, thus synergising their combined strengths.

Deepak Kumar Hota, Chairman & Managing Director, BEML said, "PPP model is the way forward to meet the growing demands of the Defence Industry. With the vast experience and expertise in Defence Sector of BEML and L&T, I am confident that together we can address the needs of the Indian Defence Market as well as explore export markets of various Products/ systems of mutual interest."

Jayant D. Patil, Whole-time Director (Defence) and Member of L&T Board, said, "This MoU paves the way for Public-Private sector partnership between two industry leaders. By synergising capabilities of each other in system design and integration, manufacturing and marketing, the companies look forward to enhancing product range, evolve new products and improve business prospects."

BEML and L&T have collaborated and partnered on co-development and production of significant subsystems involving complex technologies and advanced engineering equipment such as Sarvatra Bridging Systems and various other vehicular platform-based systems for the Indian MoD.

Shares of the Larsen & Toubro declined Rs 11.5, or 0.89%, to settle at Rs 1,282.60. The total volume of shares traded was 67,904 at the BSE (Monday).

Shares of the BEML declined Rs 32.75, or 4.08%, to settle at Rs 770.05. The total volume of shares traded was 71,546 at the BSE (Monday).