A recently-signed “technology partnership agreement’’ between the Swedish company SAAB Technology and Pipavav Defence and Offshore Engineering will see the Swedish company investing Rs 210 crore in the Indian company.
SAAB is a part of the Wallenberg group of Sweden and ranks among the world’s leading defence, aerospace and security companies.
“Investment from SAAB will be invested to enhance Pipavav’s infrastructure capability for building and maintenance of military hardware for the Indian army and export markets,” says a Pipavav notice to the stock exchanges.
Calling the agreement a “significant development”, Pipavav said that the Swedish company would bring world-class military technology which will benefit hugely Indian armed forces.
The Wallenberg group, to which SAAB belongs, owns several well-known global companies such as ABB, SKF, AstraZeneca, Ericsson and Electrolax.
For 2011-12, Pipavav Defence reported a turnover of Rs 1,867 crore and a net profit of Rs 18.52 crore. In the first quarter of the current year, the company achieved a turnover of Rs 572 crore and a net profit of Rs 2 crore. Each share earned 3 paise.
On the BSE today, the Pipavav Defence share is currently trading at around Rs 61.75.
ramesh.m@thehindu.co.in