M&M signs MoU with Rafael to set up defense equipment JV

Mahindra & Mahindra Ltd and Rafael Advanced Defense Systems Ltd, a manufacturer of defence systems for air, land, sea and space applications, today agreed to form a Joint Venture in India to develop and manufacture products such as Anti Torpedo Defence Systems, Electronic Warfare Systems, Advanced Armouring Solutions and remotely operated weapon stations for Futuristic Infantry Combat Vehicles (FICV).

Rafael will make investments in Mahindra’s existing Naval Systems division in Pune which will also be the location of a production facility which will be set up to meet the long-term requirements of the JV company.

The companies have also approached the Foreign Investment Promotion Board (FIPB) for creation of a 74:26 company, the company statement said.

Anand Mahindra, Vice Chairman & Managing Director, Mahindra & Mahindra Ltd. said: “Our Joint venture with Rafael signals our strategic entry into a wide range of high tech-defence solutions which will enable the Mahindra Group to become a leading defence systems integrator in India.”

The JV will enable Mahindra Defence Systems to further leverage its innovative solutions in the maritime domain, enhance its product offerings, and present it with new avenues for growth. We intend to further expand into air, land, and aerospace defence solutions.

Maj Gen (Retd) Ilan Biran, Chairman, Rafael said: “As part of our global strategy, we form alliances to develop military applications based on our proprietary technologies and in Mahindra we see a lot of synergy and opportunities for growth in new markets and especially in India which is a strategic market for us.”