BAE Systems and Mahindra have signed an agreement to form a joint venture, land systems focused, defense company to be headquartered in India. The new venture will be headquartered in New Dehli and possess a manufacturing capability nearby.
The venture will work on several existing projects surrounding ground based vehicle systems. The government of India’s Foreign Investment Promotion Board recently approved the joint venture, with the equity split 74% to 26% between Mahindra and BAE Systems respectively.
Guy Griffiths, Group Managing Director International at BAE Systems, said “The skills and knowledge of the two companies are an excellent fit, and the values and vision which we share will allow this venture to prosper and innovate. India recently became BAE Systems’ seventh home market; this new company is a central part of that strategy.”
Anand Mahindra, Vice Chairman and Managing Director of Mahindra Group, said “BAE Systems is the global number one land systems defence company and we couldn’t have a better partner for this venture. We are already working together and the benefits for all parties, including the Indian defence and security forces, are clear. We look forward to making a major contribution both to the security and economy of India.”