India Inc India Inc: Monday, 02 April 2012 14:15

Mahindra & Mahindra inks major defence JVs

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MahindraIndian automotive major, Mahindra & Mahindra, has announced two major joint ventures in the defence sector that will target revenues of around $1 billion over the next 10-year period.

The JV with Israel's Rafael Advanced Defense Systems will develop and manufacture naval systems at a factory in Pune, western India.

The new company will focus on the development and manufacturing of products such as Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armour Solutions and Remotely Operated Weapon Stations for Futuristic Infantry Combat Vehicles (FICV).

Mahindra & Mahindra vice-chairman and managing director Anand Mahindra said at the DefExpo 2012 in New Delhi this week: “Our joint venture with Rafael signals our strategic entry into a wide range of hi-tech defence solutions, which will enable the Mahindra Group become a leading defence systems integrator in India.”

The second major deal is with US-based Telephonics Corporation and covers Surveillance Radar Systems, Identification Friend or Foe (IFF) and Communication Systems. The new JV, which will also provide systems for air traffic management services, homeland security and other emerging surveillance requirements, plans to set up a new facility in Bangalore by early 2013.

It will be the first in India to manufacture air-borne and maritime radars utilising licensed technology.

The Indian partner will own 74 per cent stake in each JV, and the remaining 26 per cent will be with the respective international entities.

Mahindra & Mahindra also reported its highest ever monthly sales for March this week, with 47,001 units marking a massive 25 per cent increase compared to the corresponding period in 2011.

The Mumbai-based company’s exports jumped to 2,659 units during the month from 2,034 units in March last year.

Its overall exports have also grown by an impressive 70 per cent during this financial year.

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