Mahindra set to form JV with Telephonics Corporation

Mahindra & Mahindra Ltd., one of India’s leading business houses and Telephonics Corporation, a leading designer, developer and manufacturer of high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide and a subsidiary of Griffon Corporation (NYSE:GFF), announced the  impending formation of  a Joint Venture (JV) Company which will provide the Indian Ministry of Defence (MOD) and the Indian Civil sector with radar and surveillance systems, Identification Friend or Foe (IFF) devices and communication systems.  In addition, the JV intends to provide systems for Air Traffic Management services, Homeland Security and other emerging surveillance requirements.

The project envisages establishing a plant in India which would manufacture and service airborne radar systems that are already being supplied to Hindustan Aeronautics Ltd (HAL) and support airborne maritime surveillance systems for the Indian Navy and Coast Guard. The JV will license technology from Telephonics for use on a wide range of products that have both defence and civil applications.

Subsequent to the signing of a Memorandum of Understanding (“MoU”) in October 2011, the companies have been in the process of negotiating definitive agreements and approval has been sought from the Foreign Investment Promotion Board of the Government of India (GoI) for the establishment of the JV in accordance with the current defence sector Foreign Direct Investment regulations of the GOI. The approval for this is expected soon.

Backed by strong R&D, Telephonics has developed a state-of-the-art three channel IFF MK-XII system which has the capability to integrate with civil/military aircraft and ground or sea based IFF systems. Telephonics’ experience with respect to these systems in other countries will provide a platform for the JV to meet the emerging Indian customised civil/military requirements of a National IFF Program. Telephonics has also developed secure communication systems which may be deployed on a variety of ground and airborne systems.

The Mobile Surveillance System (MSS) and Advanced Radar Surveillance System (ARSS) are rapid deployment ground surveillance systems which can detect human and vehicular movement both in the day and the night. Through networking, a central command and control system can effectively watch a large area for vehicular and human movement. Nearly 4000 of these systems are already being used by 10 countries for their homeland security applications.

The JV will be the first in India to manufacture air borne and maritime radars utilizing licensed technology. Nearly 100 per cent indigenous capability is expected to be achieved in the near future. The JV will also be strategically poised to develop future technologies for civil and military applications.

Telephonics has an established presence in the Indian defence and civil markets. For example, Telephonics supplies RDR-1400 weather avoidance radar systems for helicopters being built in Bangalore, India. It is also contracted to supply Boeing with APS - 143C (V) 3 Multi-Mode Radars (MMR) for India's P-8i Maritime Surveillance aircraft, and is responsible for installation of a sophisticated intercommunication system for the C-17 Globemaster contracted for by the Indian Air Force.

Source: Mahindra & Mahindra Ltd.
Date: Apr 2, 2012