Swedish defence firm Saab signs deal to invest in India

New Delhi, Aug 24 (IANS) Swedish defence and security company Saab has signed a memorandum of understanding (MOU) regarding a $38-million strategic investment in the Indian company Pipavav Defence and Offshore Engineering Company Limited.

In conjunction with this MOU, the two companies have signed a technical partnership agreement (TPA), which is a continuation of an ongoing cooperation between them and covers details about the format for further cooperation and relevant projects, according to a release from Saab here.

"These agreements are a step in Saab's strategy to increase the presence in an important and large market and offer business possibilities for several parts of the organisation. The MOU covers an investment by Saab of approximately Swedish Krona 250 million ($38 million) through a suitable structure, subject to all necessary approvals, during coming months," the release said.

"Saab has a long-term strategy to grow in India and this new agreement is one important step in that direction," said Saab's president and CEO Hakan Buskhe.

Pipavav is a key Indian private player in the naval domain and has ambitions also in other defence areas. It, therefore, fits well into Saab's product portfolio, the release added.

"This agreement has the potential of offering new business opportunities for Saab's naval offer and we welcome the possibilities this presents to further develop our offering to a global market," Saab's Jan Widerstrom said.

The two companies had earlier jointly formed the Combat System Engineering group, which analyses naval combat system design and architecture. The companies are also exploring next generation combat management systems for the Indian navy and coast guard.