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In a significant development in the defence industry, Swedish defence firm Saab is set to open a 100% Saab-owned production line for the Carl-Gustaf M4 shoulder-fired weapon system in India. This strategic move involves an investment of nearly 500 crores to establish a new manufacturing facility under the banner of Saab FFV India. This facility will not only produce the latest rocket launchers for the Indian armed forces but also manufacture components for users of the weapon system worldwide.

The Carl-Gustaf weapon system has a rich history of service with the Indian Army since 1976. Its earlier M2 and M3 variants have been license-produced in India, underlining the nation’s longstanding association with Saab’s advanced defence technology.

Saab’s dynamics-business chief, Gorgen Johansson, emphasized that setting up a production facility for the Carl-Gustaf M4 in India is a natural progression, given Saab’s close relationship with the Indian Army, which is one of the foremost users of this exceptional weapon system.

The company is exploring avenues for establishing this new venture, considering both the 100% foreign direct investment (FDI) route and the 74% FDI option with an Indian partner. India allows 100% FDI in the defence sector only on a case-by-case basis, and Saab is among the first companies to receive clearance for 100% FDI.

Collaborating with Indian suppliers, Saab FFV India will fully align with the Make in India initiative, ensuring that the systems manufactured at this facility meet the program’s requirements. This endeavour will deploy complex technologies, including the latest sighting technology and advanced manufacturing techniques, to produce the Carl-Gustaf M4 weapon system, enhancing India’s defence capabilities and reinforcing Saab’s commitment to the nation’s defence industry.

With this initiative, Saab’s strong partnership with India is poised to reach new heights, further solidifying its position as a trusted defence solutions provider for the country.

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