Indian Navy Explores Thyssenkrupp's Offer for Six Submarines

In a recent meeting, Pistorius had the opportunity to engage with his counterpart Rajnath Singh. The meeting took place at a crucial juncture, as India is currently focused on strengthening its domestic defence manufacturing capabilities in order to address the increasing influence of China in the Indian Ocean region.

‘We talked about a concrete cooperation in military procurement. That could be six submarines from TKMS,’ Pistorius said, in reference to the marine division of the company. ‘That could be a lighthouse project.’

According to a source familiar with the matter, Thyssenkrupp's marine division is anticipated to finalise the agreement with the Indian company on Wednesday.

Back in February, a report was published, indicating that Thyssenkrupp had expressed its intention to participate in the $5.2-billion project aimed at replacing the Indian Navy's outdated submarine fleet. This move by Western military manufacturers seeks to reduce New Delhi's reliance on Russian equipment.

As per the initial report by German newspaper Frankfurter Allgemeine Zeitung, an MoU (Memorandum of Understanding) between Thyssenkrupp and India's Mazagon Dock Shipbuilders (MAZG.NS) is set to be signed on Wednesday. The estimated value of this agreement is around 7 billion euros.

In March, India sanctioned a budget of 560 billion rupees ($6.8 billion) for its navy. The Indian Navy currently possesses a fleet of 16 conventional submarines, out of which 11 are over two decades old. Additionally, the fleet includes two domestically built nuclear-powered submarines.

In a statement, without referring to the submarines, Singh said, ‘India’s skilled workforce and competitive costs along with Germany’s high technologies and investment can further strengthen ties.’

Mazagon Dock has not provided an immediate response to the request for comment, whereas Thyssenkrupp has declined to comment on the matter.

Following the news, shares of Mazagon Dock experienced a surge, reaching a record high with an increase of up to 7.7%.