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BAE Systems, M&M to form Rs 100 crore joint venture

01 Dec 2009 Evaluate

Mahindra & Mahindra and the UK-based BAE Systems will together invest $21.25 million (close to Rs 100 crore) over a three-year period in a joint venture to make defence vehicles. Both the companies formally signed an agreement to form the land systems-focused joint venture.

 

The 74:26 joint venture received Foreign Investment Promotion Board (FIPB) approval earlier this year. The name of the joint venture company is going through the official certification process. The new company will have ‘purpose built manufacturing facility' in Faridabad.

 

The company will initially employ 100 people in its projects including Axe, the high mobility vehicle as well as up-armoured and bullet-proof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and the Marksman light armoured vehicle.

 

The companies have worked in partnership to produce a prototype of a mine-protected vehicle. The joint venture company will be involved in a number of future artillery programmes including M777 light weight howitzer and the FH77B 155 mm howitzer.

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