VEM and TKMS executives after signing the agreement. (Photo: VEM-TKMS/Handout)
Hyderabad: German naval giant ThyssenKrupp Marine Systems (TKMS) has signed a teaming agreement with Hyderabad-based VEM Technologies Private Limited for the joint production of heavyweight torpedoes in India. The two companies describe as a significant step towards localizing a capability that the Indian Navy has long sourced from abroad.
The agreement, signed on Wednesday, builds on a memorandum of understanding (MoU) the two sides concluded in September 2025 and commits TKMS to transferring torpedo technology – including software licences – to VEM for manufacture in Indian facilities. In the near term, the partnership will focus on producing a heavyweight torpedo compatible with the Navy’s existing submarine fleet. The two companies have also indicated that their cooperation could extend to future torpedo programmes.
The medium-term objective is the creation of a joint venture between the two companies, which would supply the Indian market with high-quality heavyweight torpedoes on a sustained basis and potentially open export opportunities in third markets. TKMS will provide VEM with the technology and software licences necessary to ensure that production is carried out in Indian manufacturing facilities, in alignment with the government’s “Make in India” initiative for defence.
The agreement arrives at a moment of heightened urgency for India’s submarine arm. The Navy currently operates a fleet that includes Kilo-class submarines (designated Sindhughosh class) and Scorpene-class boats built under Project-75 at Mazagon Dock Shipbuilders in Mumbai. Heavyweight torpedoes remain among the most critical weapons carried by these vessels, yet India has historically depended on imports to meet the requirement.
The Navy has long operated the Russian-origin 53-65 and TEST-71 torpedoes on the Kilo-class boats, while the Scorpenes are equipped with DCNS-supplied Black Shark torpedoes of Italian origin, which are manufactured under licence.
New Delhi’s push to reduce this dependence has gained pace under successive defence acquisition policies that prioritize indigenous content. The Defence Acquisition Procedure 2020 introduced progressively higher domestic content thresholds, and the government has placed heavyweight torpedo development on its list of items reserved for domestic production. The TKMS-VEM arrangement is structured to address precisely this gap.
If the joint venture is realized, it would mark one of the more substantive technology transfers in the Navy’s underwater weapons domain. The agreement also has implications for Project-75I: any partner that can demonstrate a credible domestic torpedo supply chain is likely to hold an advantage in the broader submarine competition, given the Indian government’s insistence on high indigenous content in future contracts.
