Mahindra & Mahindra will set up a Joint Venture (JV) with a global defence and aerospace company BAE systems on land systems for the Indian market, after being approved by the Indian Foreign Investment Promotions Board. As per the Foreign Direct Investment regulations, Mahindra will hold equity of 74% and BAE systems will have the remaining 26%. The two companies plan to commence the JV operations in the early part of the second quarter of 2009.
Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra, said: "Our JV with BAE Systems is an initiative by the Mahindra Group to achieve a position in the land systems defence domain.†Headquartered in Delhi, with manufacturing in Faridabad, the JV will initially employ 50-60 people. Initial work is likely to include the up-armouring of Rakshak vehicles, Axe vehicle production, and starting the process of developing a mine resistant ambush protected vehicle suitable for India.
