Swedish firm Saab to make latest rocket launchers in India under 100% FDI

New DelhiI: Swedish defence firm Saab will next year begin manufacturing the Carl-Gustaf M4 shoulder-launched weapon system in India at its new facility in Haryana’s Jhajjar district, whose groundbreaking ceremony was held on Monday, company officials said.
This venture, Saab FFVO India Pvt Ltd, is the first case of 100 % foreign direct investment (FDI) in the country’s defence sector. India normally allows 74% FDI in defence, with 100% FDI approved only on a case-by-case basis.
Saab FFVO will manufacture the latest rocket launchers in the country for the Indian armed forces along with components for users of the weapon system around the world.
“We are proud to start constructing our first facility outside Sweden for Carl-Gustaf, a product that has a long history with the Indian armed forces. We look forward to starting production of our excellent product, now engineered and made in India”, said Gorgen Johansson, senior vice president and head of Saab’s business area dynamics.
The Carl-Gustaf weapon system has been in service with the Indian Army since 1976, and its earlier M2 and M3 variants have been licence-produced in India. It will be Saab’s first manufacturing facility for the Carl-Gustaf M4 weapon system outside Sweden.
“Today is an important milestone for Sweden and India. Saab’s factory will be the first foreign fully owned defence production facility in India. It is a testament to the strong bilateral relationship between our countries,” says Hakan Jevrell, state secretary for foreign trade, Sweden.
The facility will be spread over 3.6 acres at the Reliance MET City near Jhajjar.
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Saab will partner with Indian suppliers and will fully meet the requirements of Make in India for the systems manufactured in the facility, the company said in a statement. “At the new factory, Saab will deploy complex technologies including the latest sighting technology and advanced carbon fibre winding to manufacture Carl-Gustaf M4 for the Indian armed forces, and components which may be included in other users’ systems,” it said.
The M4 weapon system is capable of firing a variety of ammunition, including anti armour and illumination rounds, with the maximum range being 1,500 metre. The new system comes with several advancements over the M3 variant, including a new sighting system, ballistic computer, improved optics and provision for night vision clip-ons, Johansson said. At 7 kg, the M4 is three kgs lighter than the M3.
A few Carl-Gustaf M4 rocket launchers have already been inducted by the Indian Army.
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Saab will continue its partnership with Munitions India Limited (MIL) and Advanced Weapons and Equipment India Limited (AWEIL) (two of the seven firms carved out of the erstwhile Ordnance Factory Board) to manufacture the earlier M3 variant and ammunition.