Indian vehicle manufacturer Mahindra & Mahindra and British defence company BAE Systems today singed an agreement to launch a joint venture company to focus on manufacturing land systems for security forces.
The proposal, approved by the Foreign Investment Promotion Board (FIPB) earlier this year, would have an initial investment of USD 21.25 million (around Rs 100 crore) over three years, a release from the two companies said here.
The JV's equity would be split into 74 per cent in favour of the domestic company and 26 per cent in favour of the foreign investor, as per the Foreign Direct Investment (FDI) regulation for the defence sector.
To be headquartered here, the JV company, whose name is currently going through official certification process, would have a purpose-built manufacturing facility at Faridabad near Delhi.
Initially, the JV would have 100 employees and existing projects would include the Axe high mobility vehicle, as well as up-armoured and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and Marksman light armoured vehicles, the release said.
In anticipation of the new JV, the two companies have been progressing a new project to develop mine protected vehicle specifically designed to meet the needs of the Indian armed forces, it added.
![[:)]](https://www.theautomotiveindia.com/forums/images/smilies/Smile.gif "Smile [:)]")
