Vem Technologies-TKMS contract signing ceremony.
VEM Technologies-TKMS Ink Landmark Torpedo Pact: HYDERABAD — In a significant development for India’s maritime defence capabilities, VEM Technologies has entered into a strategic teaming agreement with German naval major ThyssenKrupp Marine Systems (TKMS) through its subsidiary ATLAS ELEKTRONIK to jointly produce heavyweight torpedoes in India.
The agreement, signed in Hyderabad, represents a major step forward in India’s effort to build indigenous defence manufacturing capacity and reduce reliance on imported underwater weapon systems. The deal marks the formal progression of a partnership that began with a memorandum of understanding signed in September 2025 and now evolves into a concrete industrial collaboration focused on local production and technology transfer.
Officials from both companies described the pact as a strategic milestone that will support the Indian Navy’s submarine fleet while strengthening India’s long-term ambitions in naval weapons manufacturing.
Subsurface capability roadmap for the Indian Navy
The agreement outlines a phased plan to develop India’s capacity to manufacture advanced heavyweight torpedoes domestically. In its initial stage, the partnership will focus on producing torpedoes for the Indian Navy’s existing submarines, a critical capability given the strategic importance of underwater warfare in the Indo-Pacific region.
The collaboration rests on several key pillars designed to create a sustainable defence manufacturing ecosystem.
The first component is a comprehensive technology transfer from ATLAS ELEKTRONIK to VEM Technologies. This includes the transfer of critical engineering know-how, intellectual property, software licenses and production processes required to manufacture modern torpedo systems.
The second pillar is localized manufacturing. The torpedoes will be produced at Indian facilities operated by VEM Technologies, directly supporting the national Make in India program aimed at strengthening domestic defence production.
A third element of the agreement envisions the creation of a long-term joint venture between the partners. In the medium term, the companies intend to establish a dedicated joint venture entity that could supply the Indian Navy and potentially explore export opportunities in international defence markets.
Speaking during the signing ceremony, Michael Ozegowski, Executive Vice President at ATLAS ELEKTRONIK, highlighted the strategic importance of the collaboration.
“With this Teaming Agreement, we are completing the next important milestone in our strategic partnership,” Ozegowski said. “The transfer of our torpedo technology enables VEM to make a decisive contribution to strengthening the Indian Navy and to India’s technological independence.”
Senior leadership from both sides attended the ceremony, including V Venkata Raju, Chairman and Managing Director of VEM Technologies, and Ajay Singh, Senior Vice President of TKMS India and a retired Commodore of the Indian Navy. Their presence underscored the strategic importance attached to the project by both partners.
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Boost for India’s defence manufacturing ecosystem
The agreement positions VEM Technologies as a key player in India’s underwater warfare systems landscape. Known for its expertise in weapon systems, aerostructures and defence manufacturing, the Hyderabad-based company has increasingly expanded its role in high-technology defence programs.
By combining German engineering expertise with Indian industrial capacity, the partnership aims to reduce India’s dependence on imported naval ammunition while building domestic capabilities in a highly specialized segment of defence technology.
Heavyweight torpedoes are among the most complex weapons used by submarines. They incorporate advanced propulsion systems, acoustic sensors, guidance electronics and sophisticated targeting software. Domestic production of such systems is widely seen as essential for maintaining operational independence during conflict scenarios.
Industry analysts note that the collaboration also reflects a broader trend in India’s defence sector, where foreign technology providers increasingly partner with Indian companies to establish local manufacturing and engineering capabilities.
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The companies behind the collaboration
The agreement brings together three specialised entities with complementary strengths.
VEM Technologies, headquartered in Hyderabad, has built a reputation for developing and manufacturing advanced defence hardware including weapon systems, missile components and aerostructures.
ThyssenKrupp Marine Systems, based in Germany, is one of the world’s leading naval system suppliers and a global leader in submarine technology. The company has more than 9,000 employees and operates major shipyards in Kiel, Wismar and Itajaí in Brazil.
Its Kiel facility alone employs around 3,300 people and represents the largest shipyard complex in Germany.
Through ATLAS ELEKTRONIK, the group also provides sophisticated maritime electronics, sonar systems and torpedo technologies used by naval forces worldwide.
With a heritage spanning more than 185 years, TKMS has supplied submarines, naval vessels and maritime defence technologies to numerous countries and remains a key player in the global naval industry.
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Toward indigenous underwater warfare capabilities
Defence experts say the VEM–TKMS partnership could lay the foundation for future indigenous torpedo programs in India. Beyond meeting immediate operational requirements of the Indian Navy, the collaboration could eventually position India as an exporter of advanced underwater weapon systems.
If successful, the project could also strengthen India’s broader ambitions to develop a self-reliant defence industrial base capable of designing, manufacturing and exporting high-end military technologies.
For India’s naval planners, the agreement represents more than a procurement arrangement. It is part of a long-term effort to build technological independence in critical military domains, ensuring that the country’s underwater combat capabilities remain resilient in an increasingly contested maritime environment.
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