M&M announces R100-cr JV with Israeli defence firm to develop naval systems

Written by fe Bureau | New Delhi | Updated: Mar 31 2012, 06:09am hrs
Sports utility vehicle major Mahindra & Mahindra on Friday announced a R100-crore joint venture partnership with Israel's Rafael Advanced Defence Systems to develop naval systems.

The venture is expected to begin its operations by July, Kutub Hai, the chief executive of Mahindra Defence Systems, said at the Defence Expo 2012, adding that the factory will be built in western India.

Elaborating on the nature of the partnership, Anand Mahindra, managing director, M&M, said, If we are selected for the Futuristic Infantry Combat Vehicles (FICV) programme, we would be able to treble our revenue target of $50 million by 2015.

Mahindra is one of the four companies which have received expression of interest to supply around 2,000 units of the combat vehicle.

Meanwhile, as the company thrashes out the shareholding agreement in which it would hold the majority 74% and the balance will be held by the Israeli company, M&M also spoke of its second joint venture with Telephonics Corporation, a designer, developer and manufacturer of hi-technology integrated informations, communication and sensor system. We had signed the MoU in November last year and we are now in the process of getting regulatory clearances, Hai said. The company outlined an investment of R100 crore in the JV and the same equity pattern of a 74% stake with M&M and the balance with Telephonics.

With these two companies, M&M's presence in the defence sector has increased to three companies, the first being a two-year-old R100-crore joint venture with BAE Systems, christened Defence Land Systems.