Cassidian Electronics, the new name of EADS Defence & Security and Engineering major Larsen & Toubro (L&T) have formed a jointly venture for defence electronics with the budget of $20 million.

At present, L&T earns its 80% revenue from the engineering and construction segment and expects to earn 10% revenue from defence segment in coming five years. The company has announced today that this year, it had earned a very small fraction of revenue from defence segment but is optimistic about future revenue from this segment.

M V Kotwal, president of heavy engineering at L&T, said defence segment is gaining growth in India because of the increasing domestic defence needs, involvement of private sectors and foreign majors.

Before May 2001, defence sector was preserved for public undertakings only but soon after May 2001, government opens defence sector for 100% Indian private sectors with FDI permissible up to 26%, the growth in this segment rises.

Last year L&T had net sales of Rs 37,035 crore.

He further added that India has plenty of engineering talent leading to collaboration with foreign partners.

Cassidian Electronics joint venture with L&T is based in Talegaon and Banglore where L&T has developed its defence facilities. The joint venture will cover manufacturing, designing, engineering, distribution and marketing in the fields of electronic warfare, radars, avionics and mobile systems for military applications.