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Mahindra-BAE joint venture to support Indian modernisation effort
Mahindra's Marksman is an armoured capsule-based light vehicle.
06:59 GMT, August 28, 2009 CS Monitor reports that the biggest threat to U.S. soldiers in Afghanistan is roadside bombs or improvised explosive devices (IEDs). In Afghanistan, 230 IED incidents in July 2007 killed 12 soldiers. In July 2009 there were already 828 incidents that killed 49 soldiers. In response, the Pentagon is sending 5,000 mine protected vehicles and doubling the number of bomb disposal experts.
India is facing similar problems in Naxal-controlled* areas - crude bombs killing police and soldiers. Hence there is an urgent need to deploy more mine protected vehicles. In this light, Manu Sood, Editor of the India-based online news service 8ak (8ak - Indian Defence News), a media partner of defpro.com, interviewed Brigadier (ret.) Khutub Hai, Chief Executive of Mahindra Defence Systems (MDS) about their mine protected vehicles and their business in general.
8ak: Can you please tell us about Mahindra Defence Systems divisions?
Khutub Hai: We have a Land Systems Company which will form a joint venture with BAE Systems for products such as tank upgrades, howitzers and armoured multi-role vehicles. The Naval Systems division handles decoys, decoy launchers, torpedo launchers, components for sea mines etc. MDS also has a Homeland Security division that provides Security & Risk Consulting. Finally and our sister companies Tech Mahindra and Mahindra-Satyam will do all the software based design, simulation systems, C4I systems, and much more.
8ak: What defence products is MDS focusing on?
Hai: With the spreading Naxal problem, we believe that besides the army, the homeland security agencies like the police forces in each state will need mine/IED-protected vehicles (MPVs). Recently, the Maharashtra Police bought 10 of our Marksman armoured vehicles. We have offered our mine protected vehicles to the Ministry for Home Affairs for unsolicited testing. This new version is being launched in December.
Further, India's artillery systems requirement alone is worth 20,000cr (US$4 billion) that our joint venture with BAE Systems is focusing on. They have the best, combat-proven gun including the possibility for transfer of technology; Mahindra will proudly produce these in India.
8ak: Can you tell us a little more about the need for MPVs?
Hai: Currently, it is common for Indian soldiers to go in to Naxal affected areas in open, unprotected jeeps or even motorcycles without even basic protection. The Naxals are skilled at making cheap weapons especially roadside bombs/IEDs which have been responsible for police and army casualties and for making entire areas inaccessible. With mine protection and all around armouring, Mahindra believes that the MPV is a good solution. Besides the Marksman, MDS also has the Rakshak and BAEs globally popular RGV-31 MPV.
Mahindra has set-up an international supply chain for our range of products. The chassis is based on our popular Scorpio model but the rest of the body is made-to-spec at our purpose-built factory in Faridabad.
8ak: How about competition from the public sector undertakings (PSUs)?
Hai: OFB Medak manufactures a MPV. I think the market is large enough to have another MPV player in the country.
8ak: If a small company with innovative technologies wants to approach Mahindra, are you open to such partnerships? What kind of companies or technologies are you looking for?
Hai: We are always open to inorganic growth. We could, for instance, be looking at companies in the field of defence electronics.
8ak: What are your biggest challenges?
Hai: Mahindra has access to technology and the resources to meet the needs of the Indian Armed Forces and can become a net exporter of systems and components. To achieve this some changes in the acquisition & licensing procedure are required.
The immediate need is for the government to go-ahead with its stalled plan of granting RUR (Raksha Udyog Ratna) status on private sector companies. The aim of this is to ensure that we are treated equally as the PSUs. Secondly, the Foreign Direct Investment (FDI) cap of 26 per cent has not worked for India; this urgently needs to be raised to 49 per cent.
The immediate need is for the government to go-ahead with its stalled plan. Indian Armed forces need to modernise across the board and adequate funds are available. However, the acquisition process will not be able to handle all the purchases as there are several choke points. Unless the government completely reforms the acquisitions process, especially the DPP 2008, most of these opportunities will drag on indefinitely, and become liabilities for companies involved in the tendering process.
8ak: How effective are the various industry associations in getting the private sector's voice heard in defence sectors?
Hai: I have been involved with the Confederation of Indian Industry (CII) for the past ten years. The CII has been an extremely effective platform in formulating and conveying industry views to the Ministry of Defence.
Mahindra's Marksman is an armoured capsule-based light vehicle.
06:59 GMT, August 28, 2009 CS Monitor reports that the biggest threat to U.S. soldiers in Afghanistan is roadside bombs or improvised explosive devices (IEDs). In Afghanistan, 230 IED incidents in July 2007 killed 12 soldiers. In July 2009 there were already 828 incidents that killed 49 soldiers. In response, the Pentagon is sending 5,000 mine protected vehicles and doubling the number of bomb disposal experts.
India is facing similar problems in Naxal-controlled* areas - crude bombs killing police and soldiers. Hence there is an urgent need to deploy more mine protected vehicles. In this light, Manu Sood, Editor of the India-based online news service 8ak (8ak - Indian Defence News), a media partner of defpro.com, interviewed Brigadier (ret.) Khutub Hai, Chief Executive of Mahindra Defence Systems (MDS) about their mine protected vehicles and their business in general.
8ak: Can you please tell us about Mahindra Defence Systems divisions?
Khutub Hai: We have a Land Systems Company which will form a joint venture with BAE Systems for products such as tank upgrades, howitzers and armoured multi-role vehicles. The Naval Systems division handles decoys, decoy launchers, torpedo launchers, components for sea mines etc. MDS also has a Homeland Security division that provides Security & Risk Consulting. Finally and our sister companies Tech Mahindra and Mahindra-Satyam will do all the software based design, simulation systems, C4I systems, and much more.
8ak: What defence products is MDS focusing on?
Hai: With the spreading Naxal problem, we believe that besides the army, the homeland security agencies like the police forces in each state will need mine/IED-protected vehicles (MPVs). Recently, the Maharashtra Police bought 10 of our Marksman armoured vehicles. We have offered our mine protected vehicles to the Ministry for Home Affairs for unsolicited testing. This new version is being launched in December.
Further, India's artillery systems requirement alone is worth 20,000cr (US$4 billion) that our joint venture with BAE Systems is focusing on. They have the best, combat-proven gun including the possibility for transfer of technology; Mahindra will proudly produce these in India.
8ak: Can you tell us a little more about the need for MPVs?
Hai: Currently, it is common for Indian soldiers to go in to Naxal affected areas in open, unprotected jeeps or even motorcycles without even basic protection. The Naxals are skilled at making cheap weapons especially roadside bombs/IEDs which have been responsible for police and army casualties and for making entire areas inaccessible. With mine protection and all around armouring, Mahindra believes that the MPV is a good solution. Besides the Marksman, MDS also has the Rakshak and BAEs globally popular RGV-31 MPV.
Mahindra has set-up an international supply chain for our range of products. The chassis is based on our popular Scorpio model but the rest of the body is made-to-spec at our purpose-built factory in Faridabad.
8ak: How about competition from the public sector undertakings (PSUs)?
Hai: OFB Medak manufactures a MPV. I think the market is large enough to have another MPV player in the country.
8ak: If a small company with innovative technologies wants to approach Mahindra, are you open to such partnerships? What kind of companies or technologies are you looking for?
Hai: We are always open to inorganic growth. We could, for instance, be looking at companies in the field of defence electronics.
8ak: What are your biggest challenges?
Hai: Mahindra has access to technology and the resources to meet the needs of the Indian Armed Forces and can become a net exporter of systems and components. To achieve this some changes in the acquisition & licensing procedure are required.
The immediate need is for the government to go-ahead with its stalled plan of granting RUR (Raksha Udyog Ratna) status on private sector companies. The aim of this is to ensure that we are treated equally as the PSUs. Secondly, the Foreign Direct Investment (FDI) cap of 26 per cent has not worked for India; this urgently needs to be raised to 49 per cent.
The immediate need is for the government to go-ahead with its stalled plan. Indian Armed forces need to modernise across the board and adequate funds are available. However, the acquisition process will not be able to handle all the purchases as there are several choke points. Unless the government completely reforms the acquisitions process, especially the DPP 2008, most of these opportunities will drag on indefinitely, and become liabilities for companies involved in the tendering process.
8ak: How effective are the various industry associations in getting the private sector's voice heard in defence sectors?
Hai: I have been involved with the Confederation of Indian Industry (CII) for the past ten years. The CII has been an extremely effective platform in formulating and conveying industry views to the Ministry of Defence.
