BAE Systems wants to build 40% of M777 in India
And they'd like a Request For Proposal for a follow-on order, please

A U.S. Marine Corps M777 Lightweight 155mm howitzer being fired by Bravo Battery, 3rd Battalion, 11th Marine Regiment at Marine Corps Air Ground Combat Center, Twentynine Palms, California, in 2017 | Image: U.S. Department of Defense/U.S. Marine Corps/Cpl. Aaron S. Patterson

British-American defence manufacturer BAE Systems wants to increase the scale of its sourcing from India for its M777 Ultra Lightweight Howitzer, of which 120 are being produced in India for the Indian Army.

A company spokesman told StratPost at DefExpo 2020 in Lucknow last month, “The aspiration is to set up an increased content in India that – if the Indian artillery would like to buy some more guns, which we think they will because its the perfect gun for the environment that they’re going to be used in. Rather than them have to go down a buy global route again, and buy out of India, we’ve listened to Prime Minister Modi’s Make in India — we’ve looked at capable suppliers out there and we’re finding capable suppliers, so we’re establishing a supply chain footprint that could do a minimum of forty percent of a future buy.”

BAE Systems has already been working to establish an Indian element to its global supply chain for its manufacturing activities and, as of 2018, had evaluated around 40 Indian suppliers to join the global supply chain of the M777. The army had ordered a total of 145 howitzers in 2016 for which the company has to execute offset contracts worth USD 221 million.

“Under the agreement, 120 ULH systems are being assembled, integrated and tested in India by Mahindra Defence Systems Ltd. (MDSL), as part of the Make in India programme. To date, BAE Systems has produced and delivered 25 guns to the Indian Army, with another 70-plus planned for 2020,” he said.

BAE Systems is building the howitzer in country in partnership with India’s Mahindra Defence Systems Limited after setting up an Assembly, Integration and Test Facility in Faridabad, Haryana.

“Not only will it help a future buy, but it also helps the long term sustainment of the hundred and forty five guns that have already been bought here. The last thing that the Indian Army want to do after the warranties run out is then have to buy all its spares from a foreign OEM,” explained the company representative, adding the caveat, “There will always be some spares that they’ll have to buy outside India, but we want to increase the level of long-term support capability in India. And part of that is through spare parts and part of it is through some of the larger manufacturing pieces.”

Breaking down the manufacturing of the howitzer, he explained, “So if you take the gun by cost, the majority of that cost is in raw materials. And the largest proportion of raw materials is steel for the barrel and titanium for the gun. There are obviously other electronic and mechanical components in it, but by increasing the percentage of those raw materials and the value added to those raw materials in India – although the forgings from India is also further value-added by the work that’s done by some of the Indian supplier, the partnership between BAE Systems and the supplier is continuing to add that value. So, it’s not just an economic value to India, it’s a capability growth value to India. The aspiration is to then set that up that would then allow the procurement authorities in the Indian Army wider choices. They don’t just then have to buy from the foreign OEM.”

A 155mm ULH Titanium cast Cadle cap at the BAE Systems exhibit at DefExpo 2020 manufactured in India by PTC Ltd, a Lucknow-based company | Image: BAE Systems

The army’s listening, he said, “We’ve had a lot of interest. We’ve been talking about this for about six months, but the show was the ideal opportunity to actually demonstrate to people that we weren’t just talking about it. Physically. You can see the castings that are there. The company that made those castings is down the road in Lucknow.”

“So I think we’ve had some very, very positive feedback that this isn’t just something that you’re going to do at some point in the future, and what would be an ideal situation for BAE Systems this year is if the Indian Army, without any commitment, was to put a request for a proposal out,” he said, adding, “So ask us. BAE Systems would like a request for a proposal for more Ultra-Lightweight Howitzers but we’d like to see a minimum of forty percent made in India.”

The company, he said, is trying to do something similar with their pitch for the Mk 45 naval gun.

“So the FMS case that’s out there for the Mk 45 naval gun at the moment, we’re already buying parts – we’ve got prices and parts in India from Indian suppliers now — they’re going to go on U.S. Mk 45 ships. So we’re already doing exactly the same things in principle for the Mk 45 naval gun. We’re committed to doing a minimum of fifty percent of that in country as well,” he said.