New Delhi: Delhi-based defence equipment manufacturer SMPP Limited and the Philippines’ Asia Defence and Firepower Corporation (ADFC) have signed a memorandum of understanding (MoU) to establish a strategic joint venture corporation (JVC) in the Philippines.
The agreement was finalised during Philippines’ President Ferdinand R. Marcos Jr’s first state visit to India earlier this month, which marked the 75th anniversary of diplomatic relations between the two countries.
According to a joint statement issued Monday, the proposed JVC will be headquartered in the Philippines and will manufacture, assemble and distribute SMPP’s defence products tailored to support the Philippines government’s Self-Reliant Defence Posture (SRDP) initiative. Under the agreement, SMPP will supply its proven, ‘Made-in-India’ technology along with manufacturing and quality assurance systems, while ADFC will manage local operations, from recruitment to skill development, with an aim to eventually establish a Filipino-led manufacturing and research capability.
SMPP, which produces ammunition components, bulletproof jackets, ballistic helmets and armour kits for vehicles and aircraft, has been a supplier to the Indian armed forces for over a decade. Last month, the company announced an order worth more than Rs 300 crore under emergency provisions, covering the supply of 27,700 bulletproof jackets and 11,700 advanced ballistic helmets to the Indian Army.
Meanwhile, ADFC operates primarily as a Filipino defence integrator and developer, partnering with international manufacturers to localise production and build domestic manufacturing capability.
“This joint venture represents the best of Indian defence innovation meeting the needs of a friendly partner nation,” said SMPP CEO Ashish Kansal. “By sharing our proven technology and know-how, we’re enabling the Philippines to build a resilient, self-reliant defence ecosystem.”
The JVC will be majority-owned—at least 60 percent—by Filipino stakeholders, in accordance with local ownership regulations, the statement said. This arrangement, it added, ensures compliance with Philippine law and also makes the venture eligible for substantial benefits under the country’s Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. These incentives include multi-year tax holidays, duty-free import of capital equipment and expedited government approvals.
The statement further noted that, by qualifying as a locally incorporated defence manufacturer, the JVC can take advantage of provisions that allow the Department of National Defence to award contracts directly, without the need for public bidding, to meet urgent or strategic requirements.
During Marcos’s visit, the two countries announced a strategic partnership with defence collaboration at its core and voiced concerns over “coercive and aggressive actions” in the South China Sea.
Manila is also the first to procure the BrahMos supersonic cruise missile system from India, signing a $375 million contract in January 2022 for three shore-based batteries. The deal included training for operators and an integrated logistics support package, with the first battery delivered in April 2024 and the second in April 2025.
The joint venture also aligns with the government’s push to expand India’s defence manufacturing footprint into Southeast Asia.
(Edited by Amrtansh Arora)
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