BAE, Mahindra Bid for India Army Project
A BAE Systems armored vehicle.
BANGALORE BAE Systems PLC's joint venture with Mahindra & Mahindra Ltd. is part of a consortium that has bid for a contract to develop a combat vehicle for the Indian Army, the chief executive of the U.K.-based company's India unit said.
"We are bidding as part of the Mahindra consortium for the FICV [Future Infantry Combat Vehicle]," Andrew Gallagher, also the managing director of BAE Systems India, said in an interview late Monday.
Mahindra, India's largest sport-utility vehicle maker by sales, leads the consortium that also includes Defense Land Systems India--Mahindra and BAE's joint venture--and Israel's Rafael Advanced Defense Systems Ltd.
Several consortia led by Indian companies are vying for the two-part contract--to first develop the FICV and then produce 2,600 such armored vehicles designed to transport troops in hostile terrain.
The contract is part of India's efforts to modernize its defense forces, which still heavily rely on Soviet-era equipment. The South Asian nation is developing and buying fighter jets, missiles, tanks and other arms as neighbors Pakistan and China expand their weaponry.
India is also increasingly involving the private sector in the modernization program, and companies such as Mahindra, Tata Motors Ltd. and Larsen & Toubro have been expanding their defense businesses.
Mr. Gallagher said he expects their consortium to be among the two bidders to be selected for developing the FICV. A decision on the first round is expected in the next few months, he added.
He didn't disclose the size of a potential deal or the other competitors for the contract.
"It would be an interesting opportunity. It would be an Indian product, India-designed and India-developed," he said, adding that this is precisely what the joint venture has been established to do.
Defence Land Systems, of which Mahindra holds 74% as per Indian regulations, was formed in 2009 to make defense products, including a mine-protected vehicle, for India's armed and paramilitary forces.
Mr. Gallagher said he hopes to get some orders for the mine-protected vehicle in the future.
He said that the U.K.-based defense and aerospace company is also looking to export the Axe high-mobility vehicle, the Rakshak bullet-proof vehicle and the Marksman light armored vehicle that have been made by the joint venture.
Mr. Gallagher said BAE Systems wants to develop India as a global hub for artillery. But that hinges on whether it gets orders from India for its FH77 B05 towed howitzers or the M777 ultra-light howitzers, he said.
The company is assessing the recently issued request for a proposal to sell 400 units of towed howitzers to the Indian Army.
Mr. Gallagher said the ultra-light howitzers underwent trials in India at the end of 2010 and had performed "extremely well." The initial order for the M777 ultra-light howitzer is likely to be for 145 units.
BAE Systems is also working with India's state-run Hindustan Aeronautics Ltd., or HAL, to find opportunities for working together in the global market, Mr. Gallagher said.
The two companies are working toward reaching a pact to support BAE's existing aircraft and also helping build new ones. BAE and HAL are already partners in a project to supply Hawk trainer jets to the Indian Air Force as part of a 2004 contract for supplying 66 jets and a 2010 follow-on order for more 57 such aircraft.
BAE, Mahindra Bid for India Army Project - WSJ.com
A BAE Systems armored vehicle.
BANGALORE BAE Systems PLC's joint venture with Mahindra & Mahindra Ltd. is part of a consortium that has bid for a contract to develop a combat vehicle for the Indian Army, the chief executive of the U.K.-based company's India unit said.
"We are bidding as part of the Mahindra consortium for the FICV [Future Infantry Combat Vehicle]," Andrew Gallagher, also the managing director of BAE Systems India, said in an interview late Monday.
Mahindra, India's largest sport-utility vehicle maker by sales, leads the consortium that also includes Defense Land Systems India--Mahindra and BAE's joint venture--and Israel's Rafael Advanced Defense Systems Ltd.
Several consortia led by Indian companies are vying for the two-part contract--to first develop the FICV and then produce 2,600 such armored vehicles designed to transport troops in hostile terrain.
The contract is part of India's efforts to modernize its defense forces, which still heavily rely on Soviet-era equipment. The South Asian nation is developing and buying fighter jets, missiles, tanks and other arms as neighbors Pakistan and China expand their weaponry.
India is also increasingly involving the private sector in the modernization program, and companies such as Mahindra, Tata Motors Ltd. and Larsen & Toubro have been expanding their defense businesses.
Mr. Gallagher said he expects their consortium to be among the two bidders to be selected for developing the FICV. A decision on the first round is expected in the next few months, he added.
He didn't disclose the size of a potential deal or the other competitors for the contract.
"It would be an interesting opportunity. It would be an Indian product, India-designed and India-developed," he said, adding that this is precisely what the joint venture has been established to do.
Defence Land Systems, of which Mahindra holds 74% as per Indian regulations, was formed in 2009 to make defense products, including a mine-protected vehicle, for India's armed and paramilitary forces.
Mr. Gallagher said he hopes to get some orders for the mine-protected vehicle in the future.
He said that the U.K.-based defense and aerospace company is also looking to export the Axe high-mobility vehicle, the Rakshak bullet-proof vehicle and the Marksman light armored vehicle that have been made by the joint venture.
Mr. Gallagher said BAE Systems wants to develop India as a global hub for artillery. But that hinges on whether it gets orders from India for its FH77 B05 towed howitzers or the M777 ultra-light howitzers, he said.
The company is assessing the recently issued request for a proposal to sell 400 units of towed howitzers to the Indian Army.
Mr. Gallagher said the ultra-light howitzers underwent trials in India at the end of 2010 and had performed "extremely well." The initial order for the M777 ultra-light howitzer is likely to be for 145 units.
BAE Systems is also working with India's state-run Hindustan Aeronautics Ltd., or HAL, to find opportunities for working together in the global market, Mr. Gallagher said.
The two companies are working toward reaching a pact to support BAE's existing aircraft and also helping build new ones. BAE and HAL are already partners in a project to supply Hawk trainer jets to the Indian Air Force as part of a 2004 contract for supplying 66 jets and a 2010 follow-on order for more 57 such aircraft.
BAE, Mahindra Bid for India Army Project - WSJ.com
