Utility vehicle major Mahindra & Mahindra on Friday announced the formation of two separate joint ventures in defence sector with a targeted investment of Rs 200 crore in the two entities. The firm is aiming for a minimum turnover of $1 billion (Rs 5,000 crore) in the next ten years.
The joint ventures are with Rafael Advanced Defense Systems, which is owned by the government of Israel and with US-based Telephonics Corporation. Mahindra will own 74% stake in each of these ventures.
"If India wants to bring high technology... and armed forces to the symmetrical levels of our aspirations, this is the time to answer controversies by bringing in transparency and technology," said Anand Mahindra, vice chairman and MD, M&M. "What we are seeing Mahindra & Mahindra do is to focus on where India needs to go in future."
The JV with Rafael will focus on development and manufacturing of products such as Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armour Solutions and Remotely Operated Weapon Stations for Futuristic Infantry Combat Vehicles (FICV). A facility to manufacture these would also be set up in Pune.
"Over a period of ten years, we are looking at a turnover of $500 million from this JV and if we are selected for the supply of FICV by the government of India then we expect that the turnover would immediately become 1 billion dollars," Mahindra said.
{{/usCountry}}"Over a period of ten years, we are looking at a turnover of $500 million from this JV and if we are selected for the supply of FICV by the government of India then we expect that the turnover would immediately become 1 billion dollars," Mahindra said.
{{/usCountry}}With Telephonics Corporation, Mahindra would make surveillance radar systems, identification friend or foe (IFF) and communication systems.