Mahindra and Mahindra to acquire 26% stake in defence JV with BAE Systems
basis, including continuing to explore opportunities for co-operating on specific defence projects.
Commenting on the development, Brigadier (Retd) Khutub Hai, Chairman and Managing Director, Mahindra Defence Systems, said" "In keeping with the Indian defence acquisition scenario and current market considerations, the managements of Mahindra & Mahindra and BAE Systems have decided that Mahindra's 100 per cent subsidiary Mahindra Defence Systems will acquire BAE Systems' 26 per cent shareholding in the Defence Land Systems India (DLSI) joint venture."
"This is a strategic decision and will enable both the companies to approach opportunities individually and to offer customised solutions to meet the needs of the Indian defence land systems domain," he said.
Dean McCumiskey, Managing Director and Chief Executive, India, BAE Systems, said, "Building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India.
"We look forward to opportunities to collaborate with Mahindra and others to enhance the role of the private sector in the defence industry."
As per India's FDI policy, foreign vendors can invest only 26 per cent in the Indian defence sector to develop military hardware indigenously.
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