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Mahindra enters Indian aerospace market

7 February 2010

Mahindra & Mahindra (M&M), the Indian automobile manufacturer, has entered the aviation sector and plans to replicate the global success of Brazilian aircraft maker Embraer.

The company acquired a stake of more than two-thirds in two Australian aerospace companies last month, to expand its aircraft and aerospace component manufacturing business.

Speaking on the sidelines of a truck launch made by M&M at the Delhi Auto Expo, vice-chairman and managing director Anand Mahindra said: “We have our feet firmly planted on the ground, but we have our dreams and they are not limited. There have been instances abroad, like Embraer, who have made it big in the aviation space.”

“I don’t see a reason why any company from India cannot do what Embraer did,” Mahindra added.

M&M is looking at establishing itself as a premier aircraft manufacturer, as well as a supplier of high-precision aircraft components. It has formed a wholly-owned unit named Mahindra Aerospace for the purpose. The company has already built and delivered executive private aircraft, which can seat five people in comfort, to Jordan-based Seabird Aviation. Post the acquisition of the two recently acquired companies, M&M hopes to build 20-seater executive jets, with an aim of selling 25-30 such aircraft every month.

M&M executives say they hope to sell about 475 aircraft globally in the next five years.

Currently, M&M is undertaking various activities in aircraft development, from design and engineering to actual manufacturing. It has invested $10 million (Rs 46 crore) in setting up an aerospace facility at Malur in Karnataka and expects it to be operational by July.

National Aerospace Laboratories, in collaboration with M&M, is developing a five-seater turboprop aircraft. In addition, like most Indian automotive companies, M&M is eyeing multi-crore contracts arising from the offset clause made mandatory by the government on defence aircraft manufacturers when supplying fighter jets to the armed forces.

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