Mahindra Defence Naval Systems has partnered with Ultra Electronics UK for the development of underwater warfare equipment for the Indian Navy.
The new collaboration will build and deliver new-generation advanced systems, including the new torpedo defence system (NTDS), integrated anti-submarine warfare defence suite (IADS), and mine counter-measure (MCM) equipment.
The companies will focus on other programmes, including systems for anti-submarine warfare (ASW) vessels, submarine safety equipment, sonobuoys, and underwater ranges.
Mahindra Defence Naval Systems chairman SP Shukla said: "The Indian Navy has been importing a major part of underwater war fighting equipment from abroad to service its needs.
"We expect to provide cutting edge technology to the Indian Navy in this field in partnership with Ultra Electronics."
The partnership will also address the requirement of specialised radios for the Indian Army's tactical communication systems.
In a separate development, Ultra Electronics' Staffordshire-based PMES business secured £18m a contract from Rolls-Royce for the design and development of reactor control and cooling systems for the UK Royal Navy submarines.
The new contract will support Rolls-Royce in its delivery of the next-generation propulsion power system for the future submarine fleet.
Recently, Mahindra Defence agreed to collaborate with Airbus Helicopters to manufacture helicopters domestically to meet India's military requirements.
As part of this development, both firms will establish a new joint venture company, which would become the first private Indian helicopter builder under the country's 'Make in India' initiative.
The JV is expected to act as the prime contractor for the country's military helicopter tenders, including the reconnaissance and surveillance helicopter, the naval utility helicopter and the naval multirole helicopter procurement programmes.