Following approval from the Government of India’s Foreign Investment Promotions Board, Mahindra & Mahindra and BAE Systems will set up a Joint Venture (JV) in India focused on land systems for the Indian market. This is a key step in setting up the JV, and in accordance with current Foreign Direct Investment regulations, the equity split will be 74% with Mahindra & Mahindra and 26% BAE Systems. Mahindra & Mahindra and BAE Systems will now finalise detailed planning and structural arrangements with a view to commencing JV operations as early as Q2 2009.

Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra, said “Our JV with BAE Systems is a strategic initiative by the Mahindra Group to achieve a leadership position in the land systems defence domain. These solutions will provide greatly enhanced capability for our Indian land forces and open up export markets not previously within our reach.”

Ian King, Chief Executive, BAE Systems, said “This is an exciting opportunity and is the first step in BAE Systems’ plans to grow long term businesses in India in multiple sectors across the breadth and depth of the company’s global capabilities in land, sea, air and security.”

Headquartered in Delhi, with manufacturing in Faridabad, the JV will initially employ 50-60 people. Initial work is likely to include the up-armouring of Rakshack vehicles, Axe vehicle production, and starting the process of developing a mine resistant ambush protected vehicle suitable for India.