Mahindra Signs Boeing Deal

Mumbai: Mahindra & Mahindra Ltd. has signed a deal to buy aircraft parts-making machinery from Boeing Co.'s plant in Melbourne, Australia, a senior executive from the Mumbai-based company said.
"I believe the equipment will be shipped to India by the end of this (calendar) year," Hemant Luthra, president of Mahindra Systech--a group entity that incorporates all of Mahindra's component manufacturing units--, told Dow Jones Newswires recently.
The company hopes the deal between unit Mahindra Aerospace Pvt. Ltd. and Boeing will boost orders as it will likely help improve the quality of aircraft parts it produces and attract clients that need to fulfil their offset obligations in India.
Under Indian law, foreign companies selected for government defense contracts have to source about 30% of the project value from local vendors if the project is worth 3 billion rupees or more.
The Indian government put an offset clause on a $15 billion, 111 aircraft deal signed in 2005 by national carrier Air India with Boeing and European manufacturer Airbus, so about 30% of the ongoing project will have to sourced locally.
17/09/10 Anirban Chowdhury/Wall Street Journal

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Sep 2010, New Sep 2010