Electronics major Samtel has informed that it has inked an agreement to launch a joint venture with the French defense and aerospace major Thales to manufacture a high-end cockpit helmet mounted displays and other avionics for fighter aircraft in the domestic market.

Under the new JV agreement, Samtel will hold 74 per cent stake in the joint venture company, while the remaining equity will be held by Thales, in line with the Government’s equity cap on foreign direct investment in the defense sector.

The JV christened Samtel Thales Avionics Pvt. Ltd plans to invest Rs 60 crore for the initial foray into cockpit helmet mounted displays and plans to step up funding as it takes up more projects. The JV will develop, produce, sell and maintain Helmets Mounted Sight and Display (HMSD) and other avionic systems.

Both companies are already partnering the supply of head mounted sight and display for Indian Navy’s MiG 29K fighters. The first batch of the fighter is expected to arrive around September this year.