Mahindras choose Bangalore to kick-off aerospace plan

Bangalore: Mahindra & Mahindra has picked Bangalore to realise its dream of becoming a global aerospace OEM (original equipment manufacturer).
The automotive major will invest Rs 250 crore in a facility to make aircraft and components in the near term, Mr Anand Mahindra, Vice-Chairman and Managing Director of the Mahindra group, said here on Saturday.
It is scouting for land near Bangalore – where it has acquired an engineering and design base – to start manufacturing aircraft components first and assemble small general transport planes in two years, Mr Mahindra told newspersons.
Mahindra would gradually shift plane assembly and manufacturing to this facility from its 2009 Australian acquisition, Gippsland Aeronautics; the latter has built and globally sold 250 of the rugged 6-to 20-seater turboprops.
Mr Hemant Luthra, President, Mahindra Systech, which runs the group's aerospace wing, said, “We are looking at 20 acres with access to a runway. The aerospace SEZ (proposed near Devanahalli) is in early stages and we are in a hurry. We are trying to find something appropriate in Karnataka.” It already has 5 acres at Malur, 30 km away, through another acquisition of 2005, Plexion Technologies.
Mr Luthra added, “You won't see planes flying out for a couple of years but components coming out first in 12-18 months.”
M&M would invest Rs 100 crore in aircraft making and Rs 150 crore to make components. The facility would meet the needs of general aviation and rich offsets business from upcoming military contracts.
27/06/10 Business Line

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Categories: Foreign Jun 2010, Indian Aviation- In General Jun 2010, New Jun 2010