Article Posted on : - Aug 29, 2012

MUMBAI (PTI): Leading global defence firm SAAB Technology AG will invest 250 million Swedish krona (over Rs 210 crore) in Pipavav Defence and Offshore Engineering Company and provide technology to the Indian company.

In a BSE filing, Pipavav said it has signed a technology partnership agreement with SAAB and the tie up will "bring in world class military technology, which will hugely benefit the on-going demand of the Indian armed forces on a competitive and time bound basis".

It added that the agreement also includes investment of 250 million Swedish Krona in Pipavav, which will be done after Foreign Investment Promotion Board's approval.

"Investment from SAAB will be invested to enhance Pipavav's infrastructure capability for building and maintenance of military hardware for the Indian Army and the export market in the military segment," it added.

The company, however, did not disclose whether it would be divesting part of its stake to SAAB against the investment and technology tie up.

SAAB and Pipavav will also be targeting global markets besides meeting the demand of Indian and Swedish requirement for the specific military segment, it said, adding that the partnership will help the Indian firm in accessing European markets particularly.

SAAB Technology is the part of Wallenberg group, which owns companies including ABB, SKF, AstraZeneca and Ericsson.

Early this month, Pipavav had bagged two international orders worth Rs 1,192 crore from a West African client for building two offshore patrol vessels.

According to the company, after the order its current order book size has increased by 20 per cent, although it did not reveal the total order book size.