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BAE Systems and Mahindra & Mahindra shake hands
And Defence Land Systems India is born

 
 
 
By Sangeeta Saxena Published: April 2010
 
 
 
 
 

New Delhi. The recession is finally over and one does not need an expert to explain that the defence market in India is the most level playing field. It takes just a moment for reality to dawn upon you that the world defence majors are seeking strong footholds in this lucrative market. And nothing better than forming a joint venture.

 

Indian giant Mahindra & Mahindra Ltd. and UK based BAE Systems, did just that and the new born was named Defence Land Systems India. It has been developed specifically t o meet the needs of the Indian armed and paramilitary forces.

Approved by the Foreign Investment Promotion Board of the Government of India (GoI), the parent companies' initial investment will be US$21.25 million over a three year period. The company’s equity split will be 74% Mahindra and 26% BAE Systems, in accordance with the current defence sector Foreign Direct Investment regulations of the Government of India.

Brig (Retd) K A Hai, Chief Executive, Mahindra Defence Systems, told India Strategic that the joint venture could bid for potential contracts of $4 billion in five to seven years to supply defense vehicles and artillery guns to the Indian armed forces.

Trials for the howitzer are expected to start by the end of this month. He said the joint venture could bid for potential contracts of $4 billion in five to seven years to supply defense vehicles and artillery guns to the Indian armed forces. Andrew Gallagher, President, BAE Systems India said, "We are extremely proud to unveil the joint venture's very first product which has been tailor made for the Indian armed forces. The MPVI is based on BAE Systems' three decades of protection experience that resulted in the highly successful RG 31 which has a proven track record and is currently in service with US, Canadian, UAE and a number of other forces including the United Nations."

Speaking to India Strategic he observed, “This is not about filling factories. It is about creating new capabilities and we are committed to the transparency requirements of the Government of India. We are confident in our partner, in the products that we offer and that we will be able to work as per the system here.

” Brig Hai after unveiling the vehicle said, “An intense amount of interest has been shown on the MPVI by the home ministry and they might probably be wanting to procure it for CRPF. The state police forces have also made queries about this all terrain , 265 HP with a very high torque, 18 seater, 14 ton combat vehicle.”

“ India has successfully blast tested the MPVI last week. Designed to save the lives of our defence forces when they encounter mines and roadside bomb attacks, the Mine Protected Vehicle India will be our first new product offering from the joint venture company. Using technology proven in BAE Systems' RG series of vehicles and Mahindra's expert knowledge of Indian requirements and conditions, we are proud to provide the Indian defence sector with advanced yet affordable technology," he added.

Marksman , India's first armoured capsule based light bullet proof vehicle was also displayed. It is designed to provide protection to Para Military and Police forces against small arms fire and under belly grenade attacksand can be used in counter terrorist and anti Naxal operations as well as in more conventional roles such as armed reconnaissance and convoy protection.

Another important exhibit was Up Armoured Scorpio . This 'discreetly protected' Scorpio is ideal for VIP protection as it offers both security and comfort. The Up-Armoured Scorpio is already being used by the Indian Armed Forces and other Security Forces of India as well as by foreign countries for VIP protection.

Mahindra Axe – The Mahindra Axe Fast Attack Vehicle (FAV) is a lightweight, high mobility, high payload combat vehicle, designed for use by Special Forces and for varied operational requirements. It is an advanced technology vehicle with all wheels independent suspension giving high battlefield mobility to the Special Forces for surgical strikes.

Anand Mahindra , Vice President Mahindra&Mahindra said, “ We are extremely proud to be marketing the Bofors gun in India. The gun was innocent and served us well.”

Two of the world’s most powerful howitzers FH77 B05 towed howitzer, and M777 ultralight howitzer are both proud exhibits of BAE Systems . The BAE Systems FH77 B05 is bidding for the Indian Army requirement for towed 52 calibre 155mm howitzersAn upgraded howitzer, the FH77 B05, has all-round greater performance, including increased range over the 39 calibre FH77 B02 that is in service with the Indian Army and which performed admirably during the 1999 Kargil war with Pakistan.

Defence Land Systems India will be headquartered in New Delhi with manufacturing at a purpose built facility South of Faridabad, just outside of Delhi. Initially there will be about 100 employees and existing projects include the Axe high mobility vehicle as well as uparmored and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and the Marksman light armored vehicle. A key project is the development of a mine protected vehicle specifically designed to meet the needs of the Indian armed and paramilitary forces.

Deepak Chhibba and Arne Berglund have been appointed Defence Land Systems India’s CEO and Deputy CEO respectively. Deepak Chhibba was earlier EVP International Operations Mahindra & Mahindra and has over 32 years industrial experience. The newly appointed Deputy CEO, Arne Berglund, was previously a director at BAE Systems, Global Combat Systems, in the UK. Arne and has also worked in Singapore, Canada, Sweden and the United States with various BAE Systems and other joint venture companies. And the baby seems to be in competent hands.

 
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