Mahindra forays into aerospace, to make planes, acquires 2 Oz cos

MUMBAI: Marking its foray into the aerospace segment, Mahindra group on Tuesday said it plans to manufacture aircraft in the two-to-twenty-seater range and also announced acquiring majority stake in two Australian companies.

Mahindra Aerospace Pvt Ltd (MAPL), belonging to Mahindra group, plans to invest Rs 175-crore over the next 4-5-years to manufacture 475 aircraft in the two-to-twenty-seater range and expects a peak turnover of Rs 650 crore from the segment.

The Anand Mahindra-led conglomerate also announced the acquisition of two Australian companies--Aerostaff Australia and Gippsland Aeronautics.

Mahindra will hold a 75.1 per cent stake in each company, Systech Sector and Member of the Group Management Board, M&M, Hemant Luthra, told reporters here.

A plant is being set up in Bangalore to complement these acquisitions and provide dual shoring and benefits to customers, he added.