India’s Foreign Investment Promotion Board (FIPB) has issued approval on August 14 for Mahindra Telephonics Integrated Systems (MTIS) to increase Telephonics Corporation’s equity stake from 26% to 49%.
Steps are being taken by both the partners to implement the transaction, Mahindra company announced today.
The US$ 16.9 billion Mahindra Group and Telephonics Corporation (USA), a subsidiary of Griffon Corporation, formed their joint venture, Mahindra Telephonics Integrated Systems Ltd. (MTIS) in March 2013. At that time, Mahindra Defence Systems (MDS) took a 74% stake in the JV with Telephonics taking the remaining 26%.
Mahindra Telephonics was the first Defence Aerospace joint venture company to address the growing need for defence electronics & RF Systems in India with a particular focus on airborne radars.
MTIS has a state of the art production facility near Faridabad in Haryana where it currently manufactures airborne weather radars systems.
"We are delighted to announce that MTIS has transitioned successfully into an operational defence electronics company." Mr. S P Shukla, Group President - Aerospace & Defence Sector, Mahindra Group and Chairman of MTIS said.
Mr. Joseph Battaglia, President and Chief Executive Officer, Telephonics Corporation, said, "Telephonics is excited about the growth prospects for the aerospace and defense electronics markets in India. We are committed to our joint venture, MTIS, which is crucial to our continued efforts to expand and service this key growth market with our proven mission critical radar and electronic communications products."