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Home arrow Defence arrow Defence Land Systems India to invest US$ 21.25 million over 3 year period
Defence Land Systems India to invest US$ 21.25 million over 3 year period Print E-mail
Written by Anand   
Tuesday, 09 February 2010
Mumbai: The land system focused Joint Venture of Mahindra & Mahindra Ltd. and BAE Systems, which has now been named ‘Defence Land Systems India’, will make an initial investment of US$ 21.25 million over a three year period.

Defence Land Systems India will be headquartered in New Delhi with manufacturing at a purpose built facility South of Faridabad, just outside of Delhi. Initially there will be about 100 employees and existing projects include the Axe high mobility vehicle as well as up-armored and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and the Marksman light armored vehicle.

The investment by the parent companies has been approved by the Foreign Investment Promotion Board of the Government of India (GoI). The company’s equity split will be 74% Mahindra and 26% BAE Systems, in accordance with the current defence sector Foreign Direct Investment regulations of the GoI.

The company also announced the appointment of Mr. Deepak Chhibba and Mr. Arne Berglund as Defence Land Systems India’s CEO and Deputy CEO respectively. Deepak Chhibba was earlier EVP International Operations Mahindra & Mahindra and has over 32 years industrial experience. The newly appointed Deputy CEO, Arne Berglund, was previously a director at BAE Systems, Global Combat Systems, in the UK.  Arne and has also worked in Singapore, Canada, Sweden and the United States with various BAE Systems and other joint venture companies.

Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group, said: “As a fully operational joint venture, Defence Land Systems India will bring real and lasting value to India's growing defence industry.  BAE Systems is the global number one land systems defence company. We are proud to have them as a partner in this joint venture and are confident of addressing the unique requirements of Indian defence and security forces with world class product offerings.”

Guy Griffiths, Group Managing Director International, BAE Systems, said: “This Company is founded with the express purpose of serving the Indian armed forces and the Indian economy through the creation of high quality jobs, the development of innovative technologies and system integration skills, and benefits from the leadership of two world class companies. We firmly support the Indian Government’s aim of procuring 70% of defence equipment domestically and see the establishment of this company as a major contribution towards this objective.

It is expected that the company will be up and running as a joint venture in the near future.

Defence Land Systems India will highlight an extensive portfolio of defence products and services at India's DefExpo 2010, Feb. 15-18 in New Delhi. A key project is the development of a mine protected vehicle specifically designed to meet the needs of the Indian armed and paramilitary forces. In addition, it is anticipated that Defence Land Systems India will be involved in a number of future artillery programmes, with the ambition to become an artillery centre of excellence in India that covers not just manufacturing but development, testing and support.

 
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