In August 2012 defence and security company Saab announced that a memorandum of understanding (MoU) had been signed concerning a strategic investment in the listed Indian company Pipavav Offshore and Defence Engineering Ltd (Pipavav).

An investment of MSEK 250 has now been made in shares. After the investment, Saab holds approximately 3.3 per cent of the capital and votes in the company. The investment will be financed from Saab’s own readily available resources. “We are pleased to announce this partnership and our strategic investment in Pipavav. The investment offers a solid platform for growth for us on the Indian market and Pipavav strengthens their competitive position through Saab’s technology. India is an important market for us and the investment will further reinforce Saab’s strong position on the global defence and security market,” says Lars Olof Lindgren, Head of Market Area, Saab India.

Saab and Pipavav have previously also 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.