Lockheed Martin Corporation (LMT) and Tata Advanced Systems Limited have joined forces to bolster India’s defense and aerospace prowess through a strategic teaming agreement centered around the C-130J Super Hercules tactical airlifter. This alliance signifies a deepening of India-U.S. strategic relations and aims to propel India’s defense sector forward.
The agreement lays out a roadmap for establishing a Maintenance, Repair, and Overhaul (MRO) facility within India. This facility will provide essential support for the Indian Air Force’s fleet of 12 C-130Js and other Super Hercules aircraft globally. Furthermore, the partnership contemplates expanding C-130J manufacturing and assembly in India for the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) program, contingent upon approvals from both the U.S. and Indian governments.
While Lockheed Martin will continue to oversee C-130J production for the U.S. government and international operators at its existing Marietta, Georgia facility, the additional production and assembly capabilities would be established in India if Lockheed Martin secures the MTA contract. The IAF is looking to acquire up to 80 medium transport aircraft and issued a request for information (RFI) last year. Lockheed Martin has responded with the C-130J-30 Super Hercules, which they believe aligns perfectly with the IAF’s requirements.
Sukaran Singh, CEO and Managing Director of Tata Advanced Systems, emphasized the significance of this agreement, stating, “The current announcement is also significant as it marks the entry of Tata Advanced Systems into the defense MRO space in India for large aircraft platforms. This also helps towards a deeper relationship between the two companies, adding to the aerostructure work by Tata Advanced Systems for Lockheed Martin platforms.”
Rod McLean, Vice President and General Manager of the Air Mobility and Maritime Missions line of business at Lockheed Martin, highlighted the global impact of the C-130J, saying, “The C-130J is known as the world’s workhorse, not just for its large global presence, but also for its international supply chain partners including the single source provider of empennages — Tata Lockheed Martin Aerostructures Limited in Hyderabad.”
He further emphasized Lockheed Martin’s commitment to India’s self-reliance, stating, “This teaming agreement between Lockheed Martin and Tata Advanced Systems further demonstrates Lockheed Martin’s commitment to a self-reliant India and the degree of confidence that exists in our relationships with our partners in India and the Indian industry at large.”
In August, Lockheed resumed deliveries of the F-35 jets to the U.S. military after a months-long pause, but the U.S. government is withholding the final $5 million payment per jet until a long-delayed technology upgrade, known as Technology Refresh 3 (TR-3), is fully implemented.
Investors seeking exposure to the defense sector can explore Global X Funds Global X Defense Tech ETF (SHLD) and First Trust Exchange-Traded Fund First Trust Indxx Aerospace & Defense ETF (MISL).
As of Tuesday’s closing bell, LMT shares were down 0.19% at $575.49.
