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IOL Signs Agreement with France’s Safran to Manufacture Advanced Defence Systems in India

Written by: Team Angel OneUpdated on: 23 Dec 2025, 5:06 pm IST
IOL has signed a collaboration agreement with Safran to manufacture 2 combat-proven defence systems in India.
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India Optel Limited (IOL), a Mini Navratna defence public sector undertaking, has signed a collaboration agreement with Safran Electronics & Defense for the production of 2 defence systems in India.  

The agreement was executed in New Delhi on December 22, 2025, in the presence of officials from the Ministry of Defence, as per the reports. 

Systems Included in the Arrangement 

The agreement covers the SIGMA 30N Digital Ring Laser Gyro Inertial Navigation System and the CM3-MR Direct Firing Sight. SIGMA 30N is used in artillery guns, air defence systems, missiles, and radar platforms.  

The CM3-MR Direct Firing Sight is intended for use in artillery systems and anti-drone applications. 

Manufacturing and Support Responsibilities 

As part of the collaboration, IOL will undertake manufacturing, final assembly, testing and quality control of both systems within India.  

The company will also provide full life-cycle support, including servicing and maintenance, to meet the operational requirements of the Indian Army.  

Safran Electronics & Defense will provide production-related technical support under the agreement. 

Link to Earlier Understanding 

The collaboration builds on a memorandum of understanding signed by the 2 companies in January 2024.  

While the earlier MoU focused on exploring manufacturing cooperation, the current agreement confirms the transfer of production for the two systems and outlines responsibilities for manufacture and support. 

Operational Use of the Systems 

According to details shared by the Ministry of Defence, the SIGMA 30N system is already in use across multiple platforms for navigation and positioning.  

The CM3-MR Direct Firing Sight supports targeting functions in artillery operations and counter-drone roles, contributing to accuracy during deployment. 

The agreement forms part of plans to expand domestic defence manufacturing capacity. Local production and life-cycle support are expected to improve availability and maintenance timelines for the systems currently in service with the armed forces. 

Signing Details 

The agreement was signed by Tushar Tripathi, Chairman and Managing Director of India Optel Limited, and Alexandre Ziegler, Head of the Defence Global Business Unit at Safran Electronics & Defense. Sanjeev Kumar, Secretary (Defence Production), Government of India, was present at the signing ceremony. 

Read More: Centre Approves Financial Aid for Chhattisgarh Semiconductor and Electronics Hubs! 

Conclusion 

The IOL–Safran agreement formalises the local production and support of 2 operational defence systems, adding to the list of defence equipment being manufactured and maintained within the country. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 23, 2025, 11:36 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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