Airbus to build naval military choppers with Mahindra

Bids are expected to be issued in the next three-four months and media reports peg the contract value at $1.5-$2 bn

Airbus and Mahindra Group have teamed up to manufacture and supply helicopters for the Indian armed forces. The joint venture will bid for 100 naval utility helicopters and other procurement projects.

Last year, the defence ministry had issued a request for information from Indian companies to build and supply 100 naval utility helicopters in partnership with original equipment manufacturers. Bids are expected to be issued in the next three-four months and media reports peg the contract value at $1.5 billion to $2 billion.

Airbus had expressed interest to tie up with six Indian companies, including Tatas, Reliance and Bharat Forge, before selecting Mahindra Defence as partner. The joint venture was announced on Friday.

Textron and Hindustan Aeronautics are also in the fray for the utility helicopter contract.

“We have extensive expertise in engineering, automotive and fixed-wing sectors and have made substantial investments in aero components manufacturing, while Airbus Helicopters offers best-in-class rotorcraft platforms. Together, we will produce India’s next-generation helicopters that will not only answer our country’s defence needs but also have the potential for exports in the future,” said S P Shukla, group president (aerospace and defence), and chairman, Mahindra Defence Systems.

“Both companies will now get into discussions to finalise the formation of the joint venture, which will act as the prime contractor for India’s military helicopter tenders including the reconnaissance and surveillance helicopter, the naval utility helicopter and the naval multi-role helicopter procurement programmes,” the companies announced on Friday.

This is the second deal between the Mahindra Group and Airbus in the past two months. At the Paris air show, the groups said Mahindra would supply aero components to an Airbus subsidiary. These will be produced at the Mahindra facility at Narasapura near Bengaluru.