Mahindra & Mahindra (M&M) and BAE Systems have signed an agreement to create land systems focussed, joint venture defence company based in India.
Approved by the Foreign Investment Promotion Board (FIPB) earlier this year, the parent companies' initial investment will be $21.25 million over a three year period.
M&M will hold 74 per cent while BAE Systems will hold 26 per cent in the JV, according to guidelines on FDI in defence.
The joint venture company whose name is currently going through official certification process will be headquartered in New Delhi with manufacturing at a purpose built facility, south of Faridabad.
Initially, there will be 100 employees and existing projects include the Axe high mobility vehicle as well up armoured and bulletproof scorpios, Boleros, Rakshak, Rapid Intervention Vehicle and the Marksman light armoured vehicle.
