Article Posted on : - Mar 31, 2012

Officials of Mahindra & Mahindra & Rafael signing MoU at Defexpo 2012. A Mahindra photo.

NEW DELHI (BNS): India's leading business house Mahindra & Mahindra and Rafael Advanced Defense Systems have signed a Memorandum of Understanding which will lead to the formation of a Joint Venture Company in India.

The MoU was singed at the ongoing Defexpo 2012. The JV will develop and manufacture products such as Anti Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armouring Solutions and remotely operated weapon stations for Futuristic Infantry Combat Vehicles (FICV).

According to the Company, the Foreign Investment Promotion Board (FIPB) has been approached for the creation of a 74:26 company.

Israel's Rafael Company will make investments in Mahindra's existing Naval Systems division in Pune where a production facility will be set up to meet the long-term requirements of the 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.

Maj. Gen (Retd) Ilan Biran, Chairman, Rafael 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."