Under the agreement, the partners plan to produce around 500 torpedoes every year. The collaboration will also include the transfer of torpedo technology as part of the Union government's Make in India initiative.

A teaming agreement is a subcontracting arrangement in which a smaller company partners with a larger firm to handle part of a project.

Focus on heavyweight torpedoes for submarine fleet

The project will focus on manufacturing heavyweight torpedoes for the Indian Navy's submarine fleet. These torpedoes will be produced at VEM Technologies' facilities in Hyderabad.

VEM Technologies will procure raw materials and carry out fabrication, manufacturing and final assembly. Meanwhile, Atlas Elektronik, a subsidiary of TKMS, will transfer torpedo technology and provide the required software licences for production.

Michael Ozegowski, executive vice-president of Atlas Elektronik, said the technology transfer will strengthen India's defence manufacturing capabilities.

"The transfer of our torpedo technology enables VEM to make a decisive contribution to strengthening the Indian Navy and to India's technological independence," he said.

Pact follows earlier MoU signed in September 2025

Earlier, the two companies signed a memorandum of understanding in September 2025. The latest teaming agreement now moves the partnership into the implementation stage.

According to VEM Technologies representatives, the collaboration will allow the company to participate in the production chain of advanced naval weapon systems.

Joint venture likely in medium term

In the medium term, the partners may also set up a joint venture. The proposed venture will supply heavyweight torpedoes for the Indian market.

In addition, the companies may explore export opportunities in the future.

Senior executives from VEM Technologies and representatives from TKMS and Atlas Elektronik attended the signing ceremony.