Following approval from the Government of India’s Foreign Investment Promotions Board, Mahindra & Mahindra and BAE Systems will set up a Joint Venture in India focused on land systems for the Indian market. This approval is a key step in setting up the joint venture, and in accordance with current Foreign Direct Investment regulations, the equity split will be 74 percent with Mahindra & Mahindra and 26 percent with BAE Systems. The two companies will now finalise detailed planning and structural arrangements with a view to commencing joint venture operations as early as Q2 2009. Headquartered in Delhi, with manufacturing in Faridabad, the joint venture will initially employ 50 to 60 people.
Ian King, chief executive of 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. The ever strengthening relationship between Mahindra & Mahindra and BAE Systems is an excellent basis on which to develop a company that is founded with the express purpose of serving the Indian armed forces and the Indian economy through the creation of high quality jobs, the development of innovative technologies and system integration skills, and the leadership of two world class companies.”