PARIS, — June 18, 2026 : Indian defence and aerospace company SMPP has signed a strategic teaming agreement with European land systems group KNDS to jointly manufacture advanced loitering munitions and drone systems in India. The agreement was signed at the Eurosatory 2026 defence exhibition in Paris and will be executed through SMPP’s subsidiary, SMPP Ammunition.
The partnership covers the production of KNDS’ VELOCE and RODEUR loitering munition systems, along with the ISTAR (Intelligence, Surveillance, Target Acquisition and Reconnaissance) family of drones. The programme combines technology transfer with local manufacturing and supports India's Make in India and Aatmanirbhar Bharat initiatives.
Focus on Indian Army Requirements
The collaboration is aimed at meeting the Indian Armed Forces’ growing requirement for advanced loitering munitions and precision-strike systems. The Indian Army has been pursuing the acquisition of such systems across multiple payload and range categories.
The requirement gained momentum after the Defence Acquisition Council (DAC) granted an Acceptance of Necessity (AoN) in December 2025 for an initial procurement programme valued at approximately ₹2,000 crore. The importance of these systems was further highlighted following Operation Sindoor in May 2025.
Under the agreement, SMPP and KNDS will initially focus on providing the Indian Army with an integrated search-and-destroy capability designed to engage high-value targets in contested environments.
VELOCE and RODEUR Systems
The MV-100 VELOCE, developed by KNDS and EOS Technologie, is a fixed-wing loitering munition designed for anti-armour and medium-range missions. Launched by catapult and powered by a turbine engine, it offers speeds between 200 km/h and 400 km/h, an endurance of 30 minutes, and a range of up to 100 kilometres. It carries a 2.5 kg Explosively Formed Penetrator (EFP) warhead optimized for top-attack engagements against armoured vehicles.
The RODEUR loitering munition is designed for long-range strike missions, offering an endurance of up to five hours and a strike range of up to 500 kilometres. It is also equipped with an EFP warhead.
The agreement additionally includes KNDS’ ISTAR drone family, which provides intelligence, surveillance, target acquisition and reconnaissance capabilities.
Both VELOCE and RODEUR use a hybrid guidance architecture combining Global Navigation Satellite System (GNSS) receivers with an Inertial Navigation System (INS), allowing operation in electronically contested environments. A single command-and-control system can manage up to 30 munitions simultaneously.
Expanding Defence Cooperation
The agreement marks the second major collaboration between SMPP and KNDS within seven months. In November 2025, the two companies signed an agreement at the Milipol exhibition in Paris to manufacture the KATANA 155 mm precision-guided artillery munition in India.
SMPP is an Indian manufacturer specializing in ammunition, ballistic protection systems and unmanned technologies. KNDS, formed through the merger of Nexter and Krauss-Maffei Wegmann (KMW), is one of Europe’s leading land systems companies.
The localisation of VELOCE, RODEUR and ISTAR production is expected to strengthen India’s defence manufacturing base and reduce reliance on imported tactical munitions while supporting the operational requirements of the Indian Armed Forces.
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