indian_foxhound
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Mahindra and Mahindra today said it will acquire
26 per cent stake in its defence joint venture
with BAE Systems, ending their three-year old
partnership. 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 a part of the
Mahindra and Mahindra group has 74 per cent
stakes while the global defence major holds the
remaining 26 per cent. The Joint Venture company had plans of
supplying artillery howitzers and anti-mine
vehicles to the Indian armed forces. Since the establishment in 2009 of the Joint
Venture, DLSI, there has been
significant evolution in the Indian Land Systems
market. 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. Following that review, it has been jointly agreed
that Mahindra & Mahindra will acquire BAE
Systems 26 per cent shareholding in the entity. 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, it said. BAE said the decision will enable both companies
to consider each opportunity on a case by case
basis, including continuing to explore
opportunities for co-operating on specific
defence projects. Commenting on the development, Brigadier
(Retd) Khutub Hai, Chairman and Managing
Director, Mahindra Defence Systems, said In
keeping with the Indian defence acquisition
scenario and current market considerations, the
managements of Mahindra & Mahindra and BAE Systems have decided that Mahindras 100 per
cent subsidiary Mahindra Defence Systems will
acquire BAE Systems 26 per cent shareholding in
the Defence Land Systems India (DLSI) joint
venture. 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, he said. Dean McCumiskey, Managing Director and Chief
Executive, India, 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.
As per Indias FDI policy, foreign vendors can
invest only 26 per cent in the Indian defence
sector to develop military hardware indigenously.
http://idrw.org/?p=18457
26 per cent stake in its defence joint venture
with BAE Systems, ending their three-year old
partnership. 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 a part of the
Mahindra and Mahindra group has 74 per cent
stakes while the global defence major holds the
remaining 26 per cent. The Joint Venture company had plans of
supplying artillery howitzers and anti-mine
vehicles to the Indian armed forces. Since the establishment in 2009 of the Joint
Venture, DLSI, there has been
significant evolution in the Indian Land Systems
market. 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. Following that review, it has been jointly agreed
that Mahindra & Mahindra will acquire BAE
Systems 26 per cent shareholding in the entity. 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, it said. BAE said the decision will enable both companies
to consider each opportunity on a case by case
basis, including continuing to explore
opportunities for co-operating on specific
defence projects. Commenting on the development, Brigadier
(Retd) Khutub Hai, Chairman and Managing
Director, Mahindra Defence Systems, said In
keeping with the Indian defence acquisition
scenario and current market considerations, the
managements of Mahindra & Mahindra and BAE Systems have decided that Mahindras 100 per
cent subsidiary Mahindra Defence Systems will
acquire BAE Systems 26 per cent shareholding in
the Defence Land Systems India (DLSI) joint
venture. 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, he said. Dean McCumiskey, Managing Director and Chief
Executive, India, 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.
As per Indias FDI policy, foreign vendors can
invest only 26 per cent in the Indian defence
sector to develop military hardware indigenously.
http://idrw.org/?p=18457
