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Mahindra's association with the defense services dates back to 1947 and continues to support the Make in India efforts of the Government of India. Mahindra is one of the largest private sector suppliers to the government, fortifying and safeguarding India with a portfolio of armored vehicles, land and naval systems, defense electronics and communication systems. India has the third largest armed forces in the world, and with INR 250 billion of investments earmarked for the next eight years, there is a growing need for technological upgrades and achieving economies of scale in the defence sector. It is a requirement that Mahindra seeks to fulfill with honor and humilitys.

A US$16 billion multinational group based in Mumbai, India, Mahindra employs more than 155,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries. In 2012, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world.

The Mahindra Group was founded in 1945 as a steel trading company in Mumbai, India. In 1947, the Group entered automotive manufacturing to bring the iconic Willys Jeep onto Indian roads. The Groups founding brothers, J.C Mahindra and K.C. Mahindra believed that new modes of transportation held the key to India's prosperity; one of their first goals was to build durable, rugged vehicles that could handle the rough Indian terrain. Mahindra grew from that point to being the largest manufacturer of ag tractors in the world. Mahindra engineering has built machines that will last and endure the toughest environments; while creating the highest standards of integrity in manufacturing.

In the 1950s and 1960s, the Group diversified into businesses like steel, tractors and more. Over time, the Group consolidated its position in automobiles, tractors and steel and entered promising sectors like IT, hospitality, financial services, components aerospace and logistics, led by the goal of providing products and services that support prosperity.

Defence Land Systems is focused on the manufacture of up-armored light vehicles, specialist military vehicles, mine protected vehicles, artillery systems and other selected land system weapons, support and upgrades. The company intends to become a centdr of excellence for artillery systems, and its existing business includes products such as the up-armored Scorpio, the Axe, the Marksman and the Rakshak.

As a further step in BAE's strategy of developing India as a home market, in NOvember 2009 the business entered into a joint venture arrangement with Mahindra & Mahindra Limited to create a new land systems-focused joint venture defence company based in India. The skills and knowledge of the two companies were an excellent fit, and the values and vision which they shared promised that this venture would prosper and innovate. India was made the BAE Groups seventh home market during the year.

Automobile major Mahindra & Mahindra said February 09, 2013 it had bought out the entire 26 per cent stake of BAE Systems in their defence joint venture - Defence Land Systems India (DLSI). M&M had wanted 49 per cent foreign shareholding in the joint venture. However, due to the FDI cap of 26 per cent in the defence sector, this could not transpire. In a joint statement, they said that they have decided to end their three-year old partnership in the Indian defence sector with M&M set to acquire 26 per cent stakes of its partner in the joint venture company Defence Land Systems India (DLSI). In DLSI, Mahindra Defence Systems (part of the Mahindra and Mahindra group) had 74 per cent stake while the global defence major had the remaining 26 per cent.

"Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business," BAE Systems said in the statement. "This decision is a reflection of the shareholders' belief that they can best meet emerging customer requirements and address the opportunities in this dynamic market with a flexible, tailored approach that was not easily facilitated by the structure of the existing joint venture entity," the statement added. Dean McCumiskey, chief executive (India) of BAE Systems, said, "Building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India. We look forward to opportunities to collaborate with Mahindra and others to enhance the role of the private sector in the defence industry."

Commenting on the development, Brigadier (Retd) Khutub Hai, chairman and MD of Mahindra Defence Systems, "This is a strategic decision and will enable both the companies to approach opportunities individually and to offer customised solutions to meet the needs of the Indian defence land systems domain."

February 12, 2013 Mahindra & Mahindra Ltd. (M&M) and Navistar International Corporation announced today that Mahindra has completed its purchase of the Navistar Groups stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL). The deal has received regulatory approval in India and Mahindra has now taken complete ownership of operations and continues to sell MNAL and MNEPL products. Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindras Truck and Engine businesses continuing to play a critical role in helping us achieve this goal, said Dr. Pawan Goenka, president, Automotive and Farm Equipment Sectors, Mahindra & Mahindra Ltd.

Navistar announced in December 2012 its intention to exit the joint ventures as part of its Drive to Deliver turnaround strategy, which is focused on strengthening its North American core businesses and pursuing near-term initiatives to improve the companys return on invested capital (ROIC) performance.

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Page last modified: 17-08-2016 17:23:02 ZULU