Swedish defence contractor Saab is set to invest further in India with its purchase of shares in naval defence company Pipavav, the company announced on Monday.
Saab signed a memorandum of understanding with the Indian company last summer, and has now purchased 250 million kronor ($38 million) worth of shares in Pipavav Offshore and Defence Engineering Ltd.
"After the investment, Saab holds approximately 3.3 per cent of the capital and votes in the company," the Swedish defence company said in a statement.
Saab noted that while Pipavav is already well-known in the Indian naval domain, the company had set its sights on expansion, which a technical tie-up with the Swedes will allow them to do. The deal also gives market access for Saab in India.
"The investment offers a solid platform for growth for us on the Indian market and Pipavav strengthens their competitive position through Saab's technology," Saab India market head Lars Olof Lindgren said.
"India is an important market for us and the investment will further reinforce Saab's strong position on the global defence and security market."
The two companies have already worked together in an engineering group that looks at naval combat system design and architecture. Together, they will plot ahead with looking at potential technological upgrades for the Indian navy and coast guard.
