Mahindra Defence In Jv Talks With Uk Firm

Mahindra Defence Systems (MDS), the defence division of Mahindra & Mahindra, has initiated talks with an UK-based firm for manufacturing small arm simulators to train the armed forces in handling hi-tech arms.

The company is also looking at a string of tie-ups, including joint ventures, with global defence manufacturers for production of defence-related components and materials, so far a no-entry field for the private sector.

Brigadier Khutub Hai, head of MDS, said that the company would make "proactive efforts" to market the simulators once the tie-up is finalised.

The company's infotech solutions division has started a pre-market survey in various defence circles to gauge the requirements. However, he declined to give further details citing strategic reasons.

"We are also looking at import substitution of defence-related components quite seriously. We have identified 6-7 items so far, and are conducting a feasibility study at the moment. We are willing to go in for strategic tie-ups or even joint ventures for the purpose. We will leverage our parent company's long relationship with the defense forces to emerge as a leading player in this sector," Brig Hai said.

M&M currently supplies over 2,500 military vehicles a year to the armed forces, including soft-tops, ambulances and special vehicles. The company also supplies bullet-proof vehicles to the police in a few states.

MDS, which was formed into an independent division in June last year, already has an alliance with Ramta, a division of the Israeli aircraft industry, for manufacturing light armoured, multi-role vehicles. In addition, the company is in an advanced stage of talks with Elta, another division of the Israeli defence industry, to produce highly specialised border surveillance vehicles.

The Centre recently opened up the defence sector for private sector participation, with a 26 per cent cap on foreign direct investment.