Mahindra forges Two Big Partnerships

It’s two more big foreign joint ventures for Mahindra! First, in another emphatic move into the defence space by the Indian private sector firm, and making use of Defexpo as a platform, Mahindra & Mahindra Ltd and Israel’s Rafael Advanced Defense Systems Ltd., today entered into a memorandum of understanding which will lead to the formation of a joint venture in India that will develop and manufacture advanced military systems, including anti torpedo defence systems, electronic warfare systems, advanced armouring solutions and remotely operated weapon stations for futuristic infantry combat vehicles (FICV).

The company announced that the Foreign Investment Promotion Board (FIPB) had already 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 that will be set up to meet the long-term requirements of the brand new JV company.

“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 India,” said Anand Mahindra, Vice Chairman & Managing Director, Mahindra & Mahindra Ltd.

Brig (Retd) K.A. 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, Rafae,l 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 said “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.”

PACT WITH TELEPHONICS. In its second big announcement on Day 2 of Defexpo, Mahindra announced that it was forming a joint venture with Telephonics Corporation, 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 to provide the Indian Ministry of Defence (M-oD) and the Indian civil sector with radar and surveillance systemsidentification 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. With major platform development underway in the country and the acquisition of several new assets, the company sees a clear business opportunity in this advanced space. The JV will be the first in India to manufacture air borne and maritime radars utilizing licensed technology. Nearly 100 per cent indigenous capability is expected to be achieved in the near future in civil and military applications.

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

The companies have been in the process of negotiating definitive agreements and approval has been sought from the FIPB for the establishment of the JV in accordance with the current defence sector FDI regulations. 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. Telephonics has also developed secure communication systems which may be deployed on a variety of ground and airborne systems.

Themobile surveillance system (MSS) and advanced radar surveillance system (ARSS) are rapid deployment ground surveillance systems which can detect human and vehicular movement both in the day and the night. Through networking, a central command and control system can effectively watch a large area for vehicular and human movement. Nearly 4,000 of these systems are already being used by 10 countries for their homeland security applications.

Telephonics has an established presence in the Indian defence and civil markets. For example, Telephonics supplies RDR-1400 weather avoidance radar systems for helicopters being built in Bangalore, India. It is also contracted to supply Boeing with APS - 143C (V) 3 multi-mode radars (MMR) for India’s P-8i Maritime Surveillance aircraft, and is responsible for installation of a sophisticated intercommunication system for the C-17 Globemaster contracted for by the Indian Air Force.