Pipavav ties up with Airbus to enter MRO biz

Mumbai: Pipavav Shipyard, whose deal with Mazagon Dock for co-production of warships ran into rough weather, is foraying into the aviation business.
Headed by Nikhil Gandhi, the company on Wednesday announced a tie-up with aircraft maker Airbus to develop a maintenance, repair and overhaul (MRO) unit in India, with an initial investment of $100 million (Rs 450 crore). It signed a memorandum of understanding with SKIL Infrastructure and Airbus. Skill is a co-promoter of Pipavav.
Pipavav is yet to select a location for the unit, but has shortlisted five places, including airports at Kochi, Ahmedabad, Bangalore (HAL airport).
“EADS (the holding company of Airbus) will pick up a 26 per cent equity in the project and may further increase it to 49 per cent. Pipavav will hold a 51 per cent stake in the JV company. The MRO facilities and associated infrastructure will be used for civilian and military applications,” the company said in a statement to the Bombay Stock Exchange.
Over the next five-six years, the company expects $500 million a year in revenue from the business. The finalisation of site and signing of the shareholders agreement will be done in four months.
29/09/11 Business Standard

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

Categories: Indian Aviation- In General Sep 2011, New Sep 2011