Mahindra Establishes Two Defence Ventures with Us and Israeli Firms at Def-Expo 2012

April 02, 2012

http://www.defencenow.com/news/609/mahindra-establishes-two-defence-ventures-with-us-and-israeli-firms-at-def-expo-2012.html

At the recently concluded Def Expo India-2012, the 7th Land, Naval and Internal Security Systems Exhibition, private sector major Mahindra & Mahindra Limited has managed to initiate two joint ventures to cater the Indian defence sector. The first agreement has been to form a joint venture with Israel's Rafael Advanced Defense Systems and the other with Telephonics Corporation, subsidiary of the North America’s Griffon Corporation.

The first MoU between Mahindra & Mahindra and Israel’s Rafael will help establish the joint venture in India under which they will develop and manufacture naval systems at a factory in Pune in west India. The products which the venture will create include Anti Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armouring Solutions and remotely operated weapon stations for Futuristic Infantry Combat Vehicles (FICV).

According to Khutub Hai, Chief Executive at Mahindra Defence Systems, an investment of $19.8 million will go into the venture and operations will start off by July after receiving Indian government’s approval. The joint venture, which will be 74% owned by Mahindra and 26% by Rafael, is expected to post annual revenue of $50 million by 2015-16, he added. Besides, Mahindra and Rafael will also make weapons for the Indian army's future infantry combat vehicle program.

As for the second tie-up during Def Expo 2012, Mahindra has received approval from the Indian government to form a joint venture with U.S.-based Telephonics Corporation, a unit of Griffon Corporation to make airborne radar systems in India. Mahindra will hold a 74% stake in the joint venture and Telephonics will have the remaining 26% stake.

The joint venture between Mahindra and Telephonics will make the radar systems at a factory to be set-up in Bangalore. The first radar is likely to be made by 2013 and the aim of the venture is to provide the Defence Ministry and Civil sector with radar and surveillance systems, Identification Friend or Foe (IFF) devices and communication systems. In addition, the venture will make provisions for Air Traffic Management services, Homeland Security and other emerging surveillance requirements.

The joint venture will be setting up a plant to manufacture and service airborne radar systems that are already being supplied to state-run Hindustan Aeronautics Ltd (HAL). The venture will support airborne maritime surveillance systems for the Indian Navy and Coast Guard. In this venture, technology will be licensed from Telephonics which will be applied on products for defence applications.