Mahindra & Mahindra (M&M) has forayed into aerospace segment by acquiring majority stakes in two Australian companies - Aerostff Australia and Gippsland Aeronautics. With this move, M&M has entered into the global aerospace components and the aviation markets.
The acquisitions of majority stake has been done jointly with Kotak Private Equity with a total commitment of about Rs 175 crore.
Anand Mahindra, vice chairman and managing director of the Mahindra Group, said, "M&M's move into the aerospace segment is supported by a renewed demand for economical air transportation around the world. Our investment in component capability addresses the growing needs of both the civic and defence markets."
Aerostaff Australia (AA) is a component manufacturer of high-precision close-tolerance aircraft components and assemblies for large aerospace OEMs. AA's acquisition will help M&M in the burgeoning defence offset and commercial aviation market.
Where as Gippslan Aeronautics (GA) is an established brand in general aviation and has delivered planes in over 30 countries. Acquiring stake in GA signals M&M entry into the 2-20 seater, turbo prop market, which is among the fastest growing segments in general aviation.
M&M will retain the existing management of both the companies. In line with this acquisition, the Indian auto major is setting up a plant in Bangalore to provide dual shoring cost benefits to customers.
On the Bombay Stock Exchange, shares of M&M were trading at Rs 1039.65, up 0.24 % at IST 1448.
