This will be India's first 100% FDI in Defence Manufacturing Sector
FinTech BizNews Service
Mumbai, March 4, 2024: A significant 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. It is a significant development for India in becoming Aatmanirbhar in defence manufacturing as this will be India’s first 100% FDI in defence, thus starting a new chapter in making India self-reliant in key defence technologies. Saab is a Swedish defence major and has wide array of defence products and their relationship with India is not new.
This signing of agreement between the two companies and subsequent ‘Ground Breaking’ today by Saab FFVO India to start construction of the plant in Haryana also marks a new addition of 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 9 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, consumer products, and many 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 6 Japanese companies from electronics to auto-components to medical devices sectors. The project also has 6 companies from South Korea and multiple companies from Europe, including Sweden.
Quotes on the signing of the sale deed and ground breaking ceremony:
"We are deeply honoured to be the first global defence company to secure approval for 100% foreign direct investment in 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,” says Mr. Mats Palmberg, Chairman & Managing Director, Saab India Technologies and Member of the BoD of Saab FFVO India.
Mr. S. V. Goyal, CEO & Whole Time Director, MET City, said, “We are thrilled to welcome Saab to Reliance MET City, marking a significant milestone in our journey of inviting key global companies to the MET city. Saab as India's first 100% FDI approved defence manufacturer will not only strengthen our resolve for delivering best-in-class infrastructure but will also establish MET City as a preferred location for doing business for global companies. With its Plug-n-Play infrastructure, IGBC Platinum rated certification and companies hailing from 9 different countries, MET City has emerged as a premier business destination of India attracting companies from diverse sectors. It is a pioneering project in sustainable development, with over Rs. 8,000 Crore investment already committed. Presently, MET City holds licenses for over 2200 acres, and the project has already provided employment to more than 40,000 individuals.”
Mr. Vaibhav Mittal, VP & Head – Business Development, MET City, said, “We are very excited to have a global defence manufacturer like Saab at MET City. This shows are unwavering commitment to encourage global companies to invest in India and in Haryana. With this MET City will now be visible across the globe as a key location for defence manufacturing thus paving way for overall growth of the region. As India becomes self-reliant in defence technologies, this plant will go a long way in being a pioneer for many others to follow.”
