Mahindra and BAE Systems’ $22m JV to target land systems, artillery programs alone worth US$8 billion
08 Feb 2010 8ak/Mahindra/BAE PR: Buoyed by an almost certain win of the US$647m M777 ultra light howitzer deal, BAE systems and Mahindra today announced their proposed JV (to be set up in the near future) which has the ambition to become an artillery centre of excellence in India that covers not just manufacturing but development, testing and support. As per a recent industry report, India proposes to spend over US$8 billion on purchasing about 2,814 artillery guns of various types. Besides the manufacture, the spares and service of these guns will in itself be a huge market.
Defence Land Systems India will be headquartered in New Delhi with manufacturing at a purpose built facility South of Faridabad, just outside of Delhi. Initially there will be about 100 employees and existing projects include the Axe high mobility vehicle as well as up-armored and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and the Marksman light armored vehicle. A key project is the development of a mine protected vehicle specifically designed to meet the needs of the Indian armed and paramilitary forces.
Approved by the Foreign Investment Promotion Board of the Government of India (GoI), the parent companies' initial investment will be US$21.25 million over a three year period. The company’s equity split will be 74% Mahindra and 26% BAE Systems, in accordance with the current defence sector Foreign Direct Investment regulations of the GoI.
Mr. Deepak Chhibba and Mr. Arne Berglund will be Defence Land Systems India’s CEO and Deputy CEO respectively. Deepak Chhibba was earlier EVP International Operations Mahindra & Mahindra and has over 32 years industrial experience. The newly appointed Deputy CEO, Arne Berglund, was previously a director at BAE Systems, Global Combat Systems, in the UK. Arne and has also worked in Singapore, Canada, Sweden and the United States with various BAE Systems and other joint venture companies.
In unrelated news, BAE systems has agreed to pay over $400m to settle bribery allegations - covered in Wall Street Journal.
Well, I am glad not to the the Russians in there. BAE is a good companies with high quality products, we entrust our troops with them in the US.
Posted by: Jason Verdugo | 09 February 2010 at 10:14 PM
It is sad that the war there and that many countries that are at war have to invest so much money to go war artillery.thanks for the information. I like very much your blog.
Posted by: foreplay tricks | 04 May 2010 at 11:38 PM
very very congratulation to mahindra and BAE Systems’ $22m JV to achieve target
Posted by: Anonymous | 11 June 2010 at 11:00 PM