Pipavav Defence mulling strategic tie up with European companies

Two days after the Narendra Modi led NDA-2 govt opened up the defence sector to FDI upto 49 percent, an Indian defence major is mulling a strategic tie up with some European defence manufacturing companies.

Zee Media Bureau/Amartya Sinha

New Delhi: Two days after the Narendra Modi led NDA-2 govt opened up the defence sector to FDI upto 49 percent, an Indian defence major is mulling a strategic tie up with some European defence manufacturing companies.

Pipavav Defence, which is one of the largest heavy industry companies of the country has recently bagged an order from the Indian military establishment for the construction of a warship. According to latest reports, the company is planning to acquire a 24% state in an European defence major for raising Rs.900 crores for the project.

Currently the company has an order list totalling to Rs.6,600 crore out of which 60 percent of the orders are defence related.

If everything goes as per plan, then Pipavav Defence will become one of the fewest companies in India which will set the ball rolling for other domestic defence product manufacturing companies to seek big ticket strategic tie ups with foreign multinationals for technology transfer and for raising equities for various projects.