Thursday, December 17, 2009

Mahindra Buys Two Australia Aerospace Firms

Mahindra & Mahindra and India's Kotak Private Equity had bought majority stakes in component firm Aerostaff Australia and aircraft maker Gippsland Aeronautics for 1.75 billion rupees ($37.5 million). Aerostaff supplies components to companies such as Boeing, Airbus, but the firms were not in a position to scale up their operations.

Australian firms would get a small upfront payment, some shares in the group's aerospace unit, and be eligible for milestone payments. Mahindra coming in with capital, they will have the ability to scale up and able to duplicate the facilities in India.

Mahindra are eyeing a potential $100 billion Indian defence market over the next 10 years.

Click to read the full Report: Mahindra Eyeing Offsets

Brigadier(Retired) Sukhwindar Singh
http://www.svipja.com/
(A Global Solution for Offsets)
Credit: Reuters India.

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