SAAB, the Swedish aerospace and defence company, is currently navigating a challenging situation in its efforts to establish a local manufacturing base for the Gripen fighter jet in India. The company previously entered into a joint venture with the Adani Group, which was aimed at supporting its bid for India's Multi-Role Fighter Aircraft (MRFA) program. However, this partnership has recently ended, leaving SAAB without a local partner to facilitate the production of Gripen jets in India.

End of Partnership With Adani Group

The collaboration between SAAB and the Adani Group was formalised in 2017, but it was mutually decided not to renew their Memorandum of Understanding (MoU) in 2019. This decision has now left SAAB seeking new partnerships to fulfil its ambitions of manufacturing the Gripen locally.

Despite losing its local partner, SAAB remains committed to indigenizing the Gripen platform. The company has expressed confidence that it can establish full-scale production in India, which would encompass not only the airframe but also systems and software. SAAB aims to achieve significant indigenous content within three years of receiving an order from the Indian Air Force (IAF).

SAAB has emphasised its willingness to transfer technology fully to India if awarded the contract for the MRFA. This includes integrating Indian systems and weapons onto the Gripen platform, which is seen as a critical factor for Indian defence procurement strategies.

Need For New Partnerships

With the dissolution of its agreement with Adani, SAAB must quickly identify and establish new partnerships with Indian firms to meet the requirements set by the Indian government for local manufacturing. The Indian defence procurement model encourages foreign companies to collaborate with domestic firms under initiatives like "Make in India" and "Atmanirbhar Bharat" (self-reliance).

Competition From Other Manufacturers

SAAB faces stiff competition from other global defence manufacturers such as Lockheed Martin and Boeing, who have already established strong partnerships within India. These competitors have demonstrated their ability to integrate local capabilities into their supply chains, which could give them an edge over SAAB as it seeks new alliances.

SAAB is eager to proceed with its Gripen fighter jet program in India and has plans for rapid indigenization and technology transfer, it currently lacks a local partner following its split from Adani. Establishing new partnerships will be crucial for SAAB's success in this competitive landscape.

Agencies