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Mahindra Acquires majority stake in two Australian Aerospace companies Print E-mail
Written by Ganesh   
Wednesday, 16 December 2009
Plant is being set up in Bangalore to complement these acquisitions.

Mumbai: Mahindra has acquired a majority stake in two Australian companies, Aerostaff Australia and Gippsland Aeronautics. The acquisitions have been made jointly with Kotak Private Equity with a total commitment of approximately Rs. 175 crores.

Aerostaff Australia (AA) is a component manufacturer of high-precision close-tolerance aircraft components and assemblies for large aerospace OEMs.

Gippsland Aeronautics (GA) is an established brand in general aviation and has delivered more than 200 FAR 23* certified planes in 32 countries.

Mahindra will retain the existing managements of GA and AA, securing the services of the founders who developed this technology. A plant is being set up in Bangalore to complement these acquisitions and provide dual shoring cost benefits to customers.

“M&M’s move into the Aerospace segment is deliberate, bold and timely, and 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 civil and defence markets,” said Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group.

Hemant Luthra, President, Systech Sector and Member of the Group Management Board, Mahindra & Mahindra, added, “I am delighted that the M&M Board has endorsed our strategy to extend our Art to Part  strategy from Systech to a promising new vertical.”

Gippsland Aeronautics’s (GA) acquisition signals Mahindra’s entry into the 2 - 20 seater, turbo prop market, which is amongst the fastest growing segments in general aviation. Turbo props provide operational adaptability in environments with relatively poor infrastructure and are noted for their ability to serve the market at the lowest cost per passenger seat kilometre.

GA’s product portfolio also complements the NM5, which is being jointly developed by Mahindra with the National Aeronautics Laboratory (NAL) – another first in public private partnership.

"Both organizations will benefit enormously as a result of their association with Mahindra, given its strong global brand, impeccable standards of corporate governance and its ability and willingness to expand both component facilities and the GA product line-up," Stephen Roebuck, MD, AA, and George Morgan, Founding Director, GA said.

*The FAR 23 certification is mandatory for carrying fare paying passengers and signifies the highest level of passenger safety.

Gippsland Aeronautics (GA) was formed in 1984 by George Morgan and Peter Furlong and has designed various aircrafts suited to international standards. GA is currently based in Latrobe valley, Australia. It has IP/type certificate approvals for four aircraft and has successfully produced in excess of 200 aircrafts, which fly in 34 countries around the world, including USA, Australia, EU etc.

Aerostaff Australia (AA) was formed in 1990 and is based in Melbourne, Australia. It is a manufacturer of close tolerance high precision metal components and assemblies for aviation, defence and specialized sheet metal industries and currently exports to North America and Europe. AA is AS 9100 accredited quality system certified.

This acquisition signals Mahindra’s strategic entry into the global aerospace components and the general aviation markets, and continues the commitment it made to this industry in 2006, with the acquisition of Engineering Design Company, Plexion Technologies. 

 
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