Mahindra forays into aerospace; acquires Australian company

Marking its foray into the aerospace segment, Mahindra group today said it plans to manufacture aircraft in the two-to-twenty-seater range, and also announced acquiring a majority stake in two Australian companies.

Mahindra Aerospace Pvt Ltd (MAPL), belonging to Mahindra group, plans to invest Rs175 crore over the next 4-5 years to manufacture 475 aircrafts in the two-to-twenty-seater range, and expects a peak turnover of Rs650 crore from the segment.

The Anand Mahindra-led conglomerate also announced the acquisition of two Australian companies – Aerostaff Australia and Gippsland Aeronautics.

Mahindra will hold a 75.1% stake in each company, Systech Sector and Member of the Group Management Board, M&M, Hemant Luthra, told reporters here.

A plant is being set up in Bangalore to complement these acquisitions and provide dual shoring and benefits to customers, he added.