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Saab to establish Carl-Gustaf Weapon System plant at Reliance MET city, first 100% FDI in defence manufacturing

Business Tuesday 05/March/2024 08:08 AM
By: ANI
Saab to establish Carl-Gustaf Weapon System plant at Reliance MET city, first 100% FDI in defence manufacturing

Gurugram : A milestone was achieved by MET City, a wholly-owned subsidiary of Reliance Industries Limited, as it becomes home to Saab's first manufacturing facility of the famous Carl-Gustaf Weapon System in India.

Saab is a Swedish defence major and has a wide array of defence products and their relationship with India is not new.

As per a release, it is a significant development for India to become Aatmanirbhar in defence manufacturing as this will be India's first 100 per cent FDI in defence.

This signing of an agreement between the two companies and subsequent groundbreaking today by Saab FFVO India to start construction of the plant in Haryana also marks a new addition of the defence sector to the already existing wide array of sectors operating from Reliance MET City, opening doors to new and expanding opportunities.

Reliance MET City already hosts companies from nine different countries in various sectors. As one of the rapidly expanding business hubs in North India, it stands out as a preferred destination for industries across defence, engineering, electronics, auto components, medical devices FMCG, footwear, plastics, and consumer products, among others.

It is one of India's largest IGBC Platinum Rated Integrated Smart City and stands as the sole Japan Industrial Township (JIT) in Haryana, accommodating six Japanese companies from electronics to auto-components to medical devices sectors. The project also has six companies from South Korea and multiple companies from Europe, including Sweden.

"We are deeply honoured to be the first global defence company to secure approval for 100% foreign direct investment in India," said Mats Palmberg, Chairman and Managing Director, of Saab India Technologies and Member of the BoD of Saab FFVO India.

"Partnering with Reliance MET City to establish our manufacturing plant in India underscores our strong commitment to the Make in India initiative and our close collaboration with the Indian Defence Forces. We chose Reliance MET City due to its strategic location, well-developed infrastructure and availability of trained manpower," Palmberg said.

SV Goyal, CEO and Whole Time Director, MET City, said Saab as India's first 100 per cent FDI approved defence manufacturer will not only strengthen our resolve to deliver best-in-class infrastructure but will also establish MET City as a preferred location for doing business for global companies.

"It is a pioneering project in sustainable development, with over Rs 8,000 Crore investment already committed. Presently, MET City holds licenses for over 2,200 acres, and the project has already provided employment to more than 40,000 individuals," said Goyal.

MET City (METL) is a 100 per cent subsidiary of Reliance Industries Limited, which is developing a world-class Greenfield Smart city on over 8,000 acres land in the district of Jhajjar near Gurugram in the state of Haryana.

More than 480 companies including some of the best national and international corporates have set up their bases in MET City.