India's Mahindra Acquires 2 Australian Firms
NEW DELHI - Indian automobile producer Mahindra & Mahindra (M&M) has acquired two Australian companies to position itself in the $10 billion defense offsets market.
The approximately $38 million purchase of Aerostaff Australia and Gippsland Aeronautics will help M&M in the burgeoning defense offset and commercial aviation market, an M&M executive said. Aerostaff Australia is a component manufacturer of high-precision aircraft components and assemblies for large aerospace original equipment manufacturers. Gippsland Aeronautics builds single-engine utility aircraft.
M&M's own defense arm, Mahindra Defence Systems [MDS], is a leading provider of high mobility and light bulletproof vehicles to the armed forces, paramilitary and police forces.
Early this year, MDS forged a joint venture with BAE Systems for land-based weaponry. The partnership has an equity capital of $20 million, with MDS owning a majority stake of 74 percent and BAE owning 26 percent.
MDS is also setting up a special military vehicles facility in Faridabad near New Delhi. MDS has been granted an industrial license to produce light armored multirole vehicle, simulators for weapons, mobile surveillance platforms, sea mines, small arms, and up-armored vehicles.
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