France’s Naval Group Seeks Lucrative Deals During PM Modi’s Paris Visit

When Indian Prime Minister Narendra Modi comes to Paris next month, the head of the French company that makes submarines, Naval Group, sees it as a chance to show off its technologies and make more deals.

“It’s an opportunity to talk about what we’re doing,” CEO Pierre Éric Pommellet told Bloomberg Television on Tuesday.

India is getting six diesel-powered Scorpene submarines from Naval Group. As part of the deal, Naval Group and Mazagon Dock Shipbuilders Ltd. will share technology. Five have already been given to their owners, and the last two, as well as the sixth, will have been built in the country from start to finish.

Pommellet said, “We are ready to talk with our customer about new technology we can add to the submarines and whether or not the program will continue.” “India is a very important partner for France and a very important customer for Naval Group.”

PM Modi will go to Paris on July 14 for the annual Bastille Day celebrations. French President Emmanuel Macron wants to strengthen political and business ties with developing countries and build a global alliance to hold Russia accountable for its invasion of Ukraine.

Most of the time, mutual deals are announced after visits by state leaders. Germany wants to be a competitor to France in the defense business.

During German Defense Minister Boris Pistorius’s trip to India last week, Thyssenkrupp AG’s marine division and Mazagon said they plan to work together to build submarines for the Indian navy. India is looking to order six diesel-electric submarines, which are expected to cost $5.2 billion.

Germany wants to be a competitor to France in the defense business. During German Defense Minister Boris Pistorius’s trip to India last week, Thyssenkrupp AG’s marine division and Mazagon said they plan to work together to build submarines for the Indian navy. India is looking to order six diesel-electric submarines, which are expected to cost $5.2 billion.

As of Dec. 31, 2018, 62% of Naval Group was owned by the French government and 35% was owned by defense company Thales SA. In 2019, Australia canceled a $58 billion deal for a fleet of 12 diesel-powered submarines to join a defense partnership with the US and the UK called AUKUS. This was a blow to Naval Group.

After that, Canberra decided to pay €555 million in compensation, which Pommellet thought was “fair.”
The shipbuilder is also looking at the Netherlands and Brazil for possible new orders.