Mahindra & Mahindra Ltd., one of India’s leading business houses and Rafael Advanced Defense Systems Ltd., a manufacturer of high tech defence systems for air, land, sea and space applications, today signed a Memorandum of Understanding which will lead to the formation of a Joint Venture Company in India. The JV will develop and manufacture products such as Anti Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armouring Solutions and remotely operated weapon stations for Futuristic Infantry Combat Vehicles (FICV).
Simultaneously, the Foreign Investment Promotion Board (FIPB) has been approached for the creation of a 74:26 company.
Rafael will make investments in Mahindra’s existing Naval Systems division in Pune which will also be the location of a production facility which will be set up to meet the long-term requirements of the JV company.
Speaking on the occasion, Mr. Anand Mahindra, Vice Chairman & Managing Director, Mahindra & Mahindra Ltd. said: “Our Joint venture with Rafael signals our strategic entry into a wide range of high tech-defence solutions which will enable the Mahindra Group to become a leading defence systems integrator in India.”
Brig (Retd) KA Hai, Chief Executive, Mahindra Defence Systems, said “This JV will enable Mahindra Defence Systems to further leverage its innovative solutions in the maritime domain, enhance its product offerings, and present it with new avenues for growth. We intend to further expand into air, land, and aerospace defence solutions.”
Maj Gen (Retd) Ilan Biran, Chairman, Rafael said: “As part of our global strategy, we form alliances to develop military applications based on our proprietary technologies and in Mahindra we see a lot of synergy and opportunities for growth in new markets and especially in India which is a strategic market for us.”
Vice Admiral (Retd), Yadida Yaari, CEO, Rafael said “We see Mahindra as an ideal partner for expanding our business opportunities in India in sea, land and air domains. We have supported and will continue to support the Indian Ministry of Defence in gaining technological superiority and excellence.
Source: Mahindra & Mahindra Ltd.
Date: Apr 2, 2012