The auto components arm of Indian utility vehicle maker Mahindra & Mahindra is in advanced talks with two Australian aerospace companies to make small aircrafts. Mahindra Systech is looking to acquire one aircraft component firm and is seeking a joint venture with the other to build eight and 14 seater planes. One of the companies is supplying components to Airbus and Boeing Co.
'If we get it right, aerospace can do for Mahindra what Scorpia did,' said Hemant Luthra, president, systems and technologies at Mahindra & Mahindra. Under India's off-set policy, foreign firms are required to source locally at least 30 percent of the value of defence equipment contracts exceeding 3 billion rupees. Further, Luthra said the acquisition would be finalised in the first half of 2009, while the joint venture could be decided in a few weeks.