Mahindras to make planes

Mumbai: The Mahindras are planning to make planes and allied aerospace components to serve the global market.
Mahindra & Mahindra (M&M), the Rs 13,364-crore automobile maker, today announced that it had picked up a 75.1 per cent stake in two Australian aerospace firms for Rs 175 crore, marking its strategic entry into the aerospace business.
In a joint acquisition with Kotak Private Equity, Mahindra Aerospace Pvt Ltd bought a majority stake in component maker Aerostaff Australia and general aircraft manufacturer, Gippsland Aeronautics.
“In the next five years, we believe that we could build as many as 475 aircraft in the 2- to 20-seater range and expect a peak revenue of about Rs 650 crore,” said Hemant Luthra, member of M&M’s group management board.
The Mahindras will retain the top management in both companies. They will also set up a plant in Bangalore to complement these acquisitions and provide dual shoring cost benefits to customers.
The market for turboprops is amongst the fastest growing segments in general aviation. Turboprops provide operational adaptability in environments with poor infrastructure and can serve the market at the lowest cost per passenger seat kilometre.
16/12/09 PTI/The Telegraph

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Categories: Foreign Dec 2009, Indian Aviation- In General Dec 2009, New Dec 2009