Kalyani group and Bulgarian company Arsenal signed an MoU on Thursday to manufacture small arms and ammunition in India, according to a press release.
"Kalyani Strategic Systems Limited (KSSL) and Arsenal will be aggressively developing a manufacturing capability in India for the 'AR' 7.62 x 39mm assault rifle and the 'MG' 7.62 x 51mm machine gun series," it added.
KSSL is the defence arm of Pune-based Kalyani group and Arsenal is a joint stock company from Bulgaria.
The "strategic" alliance is also actively participating in the projects for meeting the Army's requirement of certain types of ammunition over a "10-year program", the release noted.
Arsenal's small arms have been in active operations in India for "decades" and have a "proven record" of performance, it mentioned.
Rajinder Singh Bhatia, Chairman, KSSL, said We are very excited to enter the small arms segment. This strategic alliance will combine Arsenal's proven technology, knowledge and experience as an OEM (original equipment manufacturer) with world class design, development and manufacturing capabilities of the Kalyani group.