Mahindra/BAE JV for Indian programmes

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Mahindra & Mahindra/BAE Systems outline investment plan for Indian JV

By Jon Grevatt

10 February 2010

Mahindra & Mahindra (M&M) and BAE Systems have announced a plan to invest USD21.25 million over three years to expand the capabilities of their new defence production joint venture (JV) in India.

Speaking to Jane's on 9 February, Brigadier Khutub Hai, chief executive of M&M's defence unit, Mahindra Defence Systems (MDS) - which will have prime responsibility for overseeing the running of the JV - said the planned investment is intended to boost the development and production capabilities of the JV, which is based in Faridabad, south of Delhi. He added that the JV - which has been named Defence Land Systems India - is expected to commence operations within two weeks.

Brig Hai said: "The money is being used to invest in research and development projects and to expand production facilities .... We plan to expand the factory in the very near future."

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Copyright © IHS (Global) Limited, 2010

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Mahindra-BAE Joint Venture Is Open for Business

By VIVEK RAGHUVANSHI

Published: 4 May 2010 16:07

NEW DELHI - Defence Land Systems India, the locally based defense joint venture between Britain's BAE Systems and domestic automobile major Mahindra and Mahindra, formally began operations May 4.

Anand Mahindra, vice chairman of the Mahindra Group, was elected chairman of the new company. Guy Griffiths, managing director of BAE's international operating group, was appointed vice chairman.

"The first new product of the JV, the Mine Protected Vehicle India (MPVI), was successfully blast-tested and was launched at the DefExpo in February," according to the news release from Delhi-based Mahindra. "MPVI will be offered for induction in the police, paramilitary forces and the Army."

Mahindra and Mahindra holds a 74 percent share of Defence Land Systems India, based here, and BAE holds the remaining 24 percent equity.

The company will manufacture light armored vehicles, specialist military vehicles, mine-protected vehicles, artillery systems and other selected land system weapons; provide support; and perform upgrades at its manufacturing base at Faridabad on the outskirts of New Delhi.

"Defence Land Systems India will play an important role in the BAE Systems bids for a number of artillery programs, such as FH77 B05 for the towed 155mm 52cal howitzer requirement," according to the Mahindra release.

The inaugural board meeting here also appointed Khutub Hai, a retired Indian Army brigadier, as the managing director and CEO, and Arne Berglund as the deputy CEO.