"The two companies have come together to build and supply new generation advanced systems like the torpedo defence system, integrated anti-submarine warfare defence suite and mine counter measure equipment.
"Their offerings will also include anti-submarine warfare vessels, submarine safety equipment and sono-buoys, among others," Mahindra Defence said in a statement here.
The Mahindra Group firm did not disclose financial details of the agreement. The company also did not say whether these equipment will be manufactured in India.
Mahindra Defence Chairman S P Shukla said, "The Navy has been importing a major part of underwater war-fighting equipment. We expect to provide cutting edge technology to the Navy in this field in partnership with Ultra Electronics.
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"We also expect to address the requirement of specialised radios and other defence electronics for all the three wings of the armed forces."
Late last week, the company tied up with Airbus Helicopters to manufacture defence choppers in the country.
The joint venture between the European major and Mahindra Defence aims to become the "first private domestic helicopter manufacturer under the 'Make in India' initiative". It will act as prime contractor for military helicopter tenders.
Ultra Electronics is a defence, security, transport and energy company that manages a portfolio of specialist capabilities generating innovative solutions.