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A Hyderabad-based defence company, VEM Technologies Private Ltd, has signed a teaming agreement with German naval systems major ThyssenKrupp Marine Systems (TKMS) to manufacture heavyweight torpedoes for the Indian Navy as part of India’s indigenisation push.
Under the agreement, around 500 torpedoes are expected to be produced annually in India. The arrangement also includes the transfer of torpedo technology to VEM under the government’s Make in India initiative.
A teaming agreement typically involves a smaller company partnering with a larger firm to execute parts of a project. In this case, VEM will undertake procurement of raw materials, fabrication, manufacturing and final assembly at its facilities in Hyderabad.
The project will focus on producing heavyweight torpedoes for the Navy’s existing submarine fleet. Germany’s Atlas Elektronik, a subsidiary of TKMS, will provide the torpedo technology and associated software licences required for production.
Michael Ozegowski, executive vice-president of Atlas Elektronik, said the transfer of technology would enable VEM to contribute to strengthening India’s naval capabilities while supporting greater technological self-reliance besides and corresponding software licenses to ensure production in Indian manufacturing facilities.
The teaming agreement builds on a memorandum of understanding signed by the two companies in September 2025 and marks the next phase of cooperation in torpedo development and production.
Company officials said the partnership would allow VEM to become part of the supply chain for advanced naval weapon systems. Over the medium term, the collaboration could lead to the formation of a joint venture between TKMS and VEM to supply heavyweight torpedoes for the Indian market and potentially pursue export opportunities.
Team BharatShakti
