India’s Mahindra group is planning to acquire 30% stake in Pipavav Defense as it plans to make a foray into defense sector.
Pipavav is India’s largest shipyard in the private sector. Larson and Tubro (L&T) and another major corporate were in the race to buy stake in Pipavav but Mahindra made it due to its renewed focus in the sector, Business Standard reported Today.
“Both Pipavav and Mahindra promoters will be meeting in the next few days and will hold equal stake and an open offer to shareholders of Pipavav will be made,” BS quoted a banking source as saying. Mahindra representatives will also join the board of the company.
The Pipavav Defence shares were trading at Rs 56 apiece as on Wednesday.
Tatas, Mahindra and Hero MotoCorp are all eyeing to get into the defense sector since Prime Minister Narendra Modi’s government has made Make-In-India program as an opportunity for corporates to enter the sector.
Pipavav constructs war ships, patrol boats and cargo ships for customers across the world. For the fiscal 2014, the company reported revenue of INR 2,278 crore ($365 million) and its profits were INR 8.36 crore ($1.3 million).
Indian domestic companies are vying orders for trucks, jeeps, submarines, frigates, and aircraft carriers, offshore patrol vessels, corvettes, missile systems and other military hardware as well as software. India has depended on foreign suppliers for the same till date.
Mahindra currently provides armored vehicles serve the Indian Army, Air Force, and Paramilitary and State Police Forces and an entire range of light combat and armored vehicles for defense and security forces.
Prime Minister Narendra Modis ‘Make in India (MII) call seems to have rung a bell with the global aviation majors, who have military manufactures in their portfolio. They, 330 of them, have bought space at the venue of the tenth Aero India 15, Hindustan Aeronautics Ltd (HAL) own air field
Aero India 2015 is likely to choose Prime Minister Narendra Modis ‘Make in India campaign as its theme. The biennial show will focus on Indian firms signing up MoUs with foreign companies during the show and utilizing defense offsets to create a vibrant domestic defense industrial base
Contrary to expectations of international arms suppliers of a rise in defence imports following a change in government in New Delhi, Prime Minister Narendra Modis ‘Make in India call may slow down direct foreign purchases. The focus of the new government has shifted to defence equipment being manufactured at home for exports and domestic use rather than imports
Major deals for defense co-operation between Moscow and New Delhi are likely to be signed during Russian President Vladimir Putins visit to India, Russias ambassador to India, Alexander Kadakin said in an interview with Sputnik Saturday. Putin is expected to visit India on December 10-11 for the 15th Annual India-Russia Summit
Mahindra Groups subsidiary, Mahindra Aerospace has won a large aero-components production contract from Airbus Groups Premium AEROTEC of Germany. Deliveries are scheduled to commence this year, announced in a press release Monday
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