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Make in India isn’t just about import substitution, Anand Mahindra says

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Airbus to increase India sourcing to $2 billion by 2020

MUMBAI: Anand Mahindra-led $17 billion Mahindra Group gained a first-mover advantage by forging a tie-up with Airbus to manufacture defence choppers as the government readies to place $10 billion worth of helicopter orders for reconnaissance, surveillance and naval utility.Under the joint venture between Mahindra Defence , a subsidiary of Mahindra Group, and Airbus Helicopters , Airbus can pick up a maximum 49% stake, according to the current permissible FDI limit, to manufacture helicopters under the ‘Make in India’ initiative. “We have an unparalleled track-record of successful industrial collaborations with local partners across the world. We are convinced that with Mahindra we will not only have a mutually rewarding association but one which will offer immense benefits to India,” said Guillaume Faury, Airbus Helicopters, president & CEO, adding that the tie-up is in line with its intent to develop an indigenous industrial ecosystem dedicated to helicopters.Both companies will now get into discussions to finalize the joint venture which will act as the prime contractor for India’s military helicopter tenders. With this move, Mahindra Group has beaten its peers such as the Reliance Group, Adani Group, Bharat Forge and the Tata Group to tap the business opportunity in the defence sector. “This arrangement between the two established and trusted industrial players will create a formidable partnership,” said S P Shukla, group president, aerospace and defence sector and chairman, Mahindra Defence Systems.“This will create hundreds of high-tech jobs locally and lead to a flow of cutting-edge technologies to India should it be selected in the governmental helicopter tenders,” he said. Shares of Mahindra & Mahindra, the flagship company of the Mahindra Group, closed flat at Rs 1,312 in a flat Mumbai market on Friday.