Mahindra signs JV agreement with Rafael Advanced Defence Systems at DEFEXPO 2012

March 31, 2012 - PRLog -- Mahindra & Mahindra Ltd, one of India’s leading business houses and Rafael Advanced Defense Systems Ltd, a manufacturer of high tech defence systems for air, land, sea and space applications, yesterday signed a Memorandum of Understanding which will lead to the formation of a Joint Venture Company in India.

The joint venture will develop and manufacture products such as Anti Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armouring Solutions and remotely operated weapon stations for Futuristic Infantry Combat Vehicles (FICV).

Simultaneously, the Foreign Investment Promotion Board (FIPB) has been approached for the creation of a 74:26 company.Rafael will make investments in Mahindra’s existing Naval Systems division in Pune which will also be the location of a production facility which will be set up to meet the long-term requirements of the JV company.

Speaking on the occasion, Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra said: “Our Joint venture with Rafael signals our strategic entry into a wide range of high tech-defence solutions which will enable the Mahindra Group to become a leading defence systems integrator in the country".

Brig (Retd) KA Hai, Chief Executive, Mahindra Defence Systems, said: “This JV will enable Mahindra Defence Systems to further leverage its innovative solutions in the maritime domain, enhance its product offerings, and present it with new avenues for growth. We intend to further expand into air, land, and aerospace defence solutions".

Maj Gen (Retd) Ilan Biran, Chairman, Rafael said: “As part of our global strategy, we form alliances to develop military applications based on our proprietary technologies and in Mahindra we see a lot of synergy and opportunities for growth in new markets and especially in India which is a strategic market for us".

Vice Admiral (Retd), Yadida Yaari, CEO, Rafael pointed out: “We see Mahindra as an ideal partner for expanding our business opportunities in India in sea, land and air domains. We have supported and will continue to support the Indian Ministry of Defence in gaining technological superiority and excellence".

JV with Telephonics Corporation

Meanwhile, Mahindra and Telephonics Coporation, a leading designer, developer and manufacturer of high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide and a subsidiary of Griffon Corporation, announced the impending formation of a Joint Venture (JV) Company which will provide the Indian Ministry of Defence (MOD) and the Indian Civil sector with radar and surveillance systems, Identification Friend or Foe (IFF) devices and communication systems.  In addition, the JV intends to provide systems for Air Traffic Management services, Homeland Security and other emerging surveillance requirements.

The project envisages establishing a plant in India which would manufacture and service airborne radar systems that are already being supplied to Hindustan Aeronautics Ltd (HAL) and support airborne maritime surveillance systems for the Indian Navy and Coast Guard. The JV will license technology from Telephonics for use on a wide range of products that have both defence and civil applications.

Subsequent to the signing of a Memorandum of Understanding (MoU) in October 2011, the companies have been in the process of negotiating definitive agreements and approval has been sought from the Foreign Investment Promotion Board of the Government of India (GoI) for the establishment of the JV in accordance with the current defence sector Foreign Direct Investment regulations of the GOI. The approval for this is expected soon.

Backed by strong R&D, Telephonics has developed a state-of-the-art three channel IFF MK-XII system which has the capability to integrate with civil-military aircraft and ground or sea based IFF systems. Telephonics’ experience with respect to these systems in other countries will provide a platform for the JV to meet the emerging Indian customised civil-military requirements of a National IFF Program. Telephonics has also developed secure communication systems which may be deployed on a variety of ground and airborne systems.  For a full report, visit automotivehorizon.sulekha.com/mahindra-inks-joint-venture-agreement-with-rafael_newsitem_4231