Swedish defence major Saab announced on Tuesday (27 September) that it will set up a manufacturing facility in India for production of its new Carl-Gustaf M4 rocket launcher.

An older version of the rocket launcher, the 84 millimetre Carl-Gustaf M3, have been used by the Indian Army since 1976. These rocket launchers were manufactured in India by the Ordinance Factory Board.

The new M4 comes with a longer range of 1,500 metres. It also has a new sighting system, making targeting easier for the crew operating it. To be operated by a crew of two, the system weighs just 7.5 kilogram, significantly lower than 11 kg of the M3 version.

The M4 can be used in anti-armour, anti-structure and anti-personnel roles, Saab's website says, adding, "Having this single-weapon system for all situations increases tactical flexibility while reducing the amount of equipment to carry."

"The Carl-Gustaf weapon system is designed to give troops the tactical advantage in any combat scenario, including neutralising armoured tanks, enemy troops in defilade, clearing obstacles and engaging enemies in buildings," a description of the weapon on the company's website reads.

The production unit to be set up in India will be Saab's first manufacturing facility for the Carl-Gustaf M4 outside Sweden. The production of the shoulder-fired weapon will start in 2024, said Gorgen Johansson, Saab's senior vice president.

Saab's new facility will produce the weapon system for the Indian Army and for export to other countries, the company said.

Moreover, the Business Standard reports that Saab is looking to set up a subsidary with 100 per cent ownership.

However, government has mandated a 74 per cent cap on foreign ownership of defence firms and allows a 100 per cent ownership only on a case-by-case basis, including when there the incoming unit promises to introduces cutting edge technology.

Saab believes it's proposed facility will meet this requirement, the daily's report adds.

“The new company Saab FFV India, currently under registration, will make the latest generation of the state-of-the-art [rocket launcher] in India. Saab will also be partnering with Indian sub-suppliers and the systems manufactured in the facility will fully meet the requirements of ‘Make in India’, Saab has said in a statement.

The company would look at the 74 per cent FDI option with an Indian partner if its existing proposal doesn't go through.

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