By A Correspondent

New Delhi: India’s SMPP Limited has signed a Memorandum of Understanding (MoU) with the Philippines’ Asia Defence and Firepower Corporation to establish a joint venture in the Southeast Asian nation for manufacturing defence products for the Philippine armed forces.

The joint venture MoU was signed during Philippines President Ferdinand Marcos Jr.’s visit to India last week, according to an official statement from the two companies on Aug. 11.

“In a move that reinforces Prime Minister Narendra Modi‘s vision of ‘Make in India, Make for the World‘ and India’s growing role as a global defence manufacturing hub, SMPP Limited, a leading Indian defence technology company, signed a landmark Memorandum of Understanding (MoU) with Asia Defence and Firepower Corporation (ADFC) of the Philippines to establish a strategic joint venture corporation (JVC),” the statement said.

President Marcos Jr.’s first state visit to India last week resulted in multiple deals across various sectors, including defence, healthcare, education, renewable energy, and more.

The proposed JVC will be headquartered in the Philippines and focus on manufacturing, assembling, and distributing a range of SMPP’s advanced defence products, tailored to support the Philippine government’s Self-Reliant Defence Posture (SRDP) initiative under Republic Act No. 12024.

“This partnership not only marks SMPP’s expansion into Southeast Asia but also showcases India’s ability to export indigenous defence solutions and technology, promoting regional stability and self-reliance in defence manufacturing,” the statement said.

“This joint venture represents the best of Indian defence innovation, meeting the needs of a friendly partner nation. It is a proud moment for us as we take our homegrown technologies and capabilities overseas, in the true spirit of ‘Atmanirbhar Bharat‘,” SMPP Limited’s chief executive officer, Ashish Kansal, said. “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 (minimum 60%) by Filipino stakeholders, ensuring full compliance with local laws and enabling eligibility for substantial incentives under the Philippines’ CREATE Act, including tax holidays, duty-free capital imports, and streamlined approvals.

“Importantly, under Republic Act No. 12009, Sections 15 and 16, the Philippine Department of National Defence (DND) is empowered to directly award contracts to in-country enterprises like the proposed JVC, bypassing public bidding and technical prequalification. This provision will enable long-term supply contracts with the DND, positioning the JVC as a key contributor to national defence needs.

As part of the agreement, SMPP will offer its indigenously developed proven technology along with manufacturing and quality assurance systems, which have enabled SMPP to deliver consistent quality products, playing a crucial role in saving many precious lives of Indian Armed Forces personnel for over a decade, the statement said.

ADFC will spearhead local operations, including talent development and recruitment, to ensure a Filipino-led manufacturing and Research & Development capability soon. A Filipino-majority board will oversee the JVC’s governance alignment with national priorities.

“This collaboration will not only give the Armed Forces of the Philippines access to advanced defence technologies but will also generate employment, enhance local skills, and boost indigenous industrial capacity,” ADFC president and chief executive officer, Jeruel D. Sanchez, said. “It’s a true reflection of the SRDP’s vision and a catalyst for the Philippines’ defence self-reliance.”

Through this JV, SMPP underscores India’s emergence as a reliable defence technology partner globally, strengthening its strategic footprint in Southeast Asia while enabling allied nations to build sovereign defence production capabilities with Indian support.

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