Mumbai: Automotive major Mahindra today signed two aerospace deals with the simultaneous acquisition of majority stakes in two Australian companies - high precision components manufacturer and Aerostaff Australia and aircrsft design firm Gippsland Aeronautics, in each of which Mahindra will take a 75.1 per cent stake.

The acquisitions have been made in partnership with Kotak Private Equity with a total commitment of approximately Rs175 crore.

Aerostaff Australia is a component manufacturer of high-precision close-tolerance aircraft components and assemblies for large aerospace OEMs. AA's acquisition will help catapult M&M into the growing defence offset and commercial aviation market.

Gippsland Aeronautics is an established brand in general aviation and has delivered more than 200 FAR 23 certified planes in 32 countries. The FAR 23 certification is mandatory for carrying fare paying passengers and signifies the highest level of passenger safety.

The acquisitions are in keping with Mahindra's plans to enter into the global aerospace components and the general aviation markets. In 2005 M&M had acquired Bangalore-based engineering design company, Plexion Technologies.

Gippsland's acquisition indicates Mahindra's planned entry into the two- to 20-seater, turbo prop market, which the company says is amongst the fastest growing segments in general aviation. Turbo props provide operational adaptability in environments with relatively poor infrastructure and are noted for their ability to serve the market at the lowest cost per passenger seat kilometre.

Mahindra will retain the existing managements of GA and AA, securing the services of the founders who developed this technology.

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

Gippsland's product portfolio also complements the NM5, which is being jointly developed by Mahindra with the National Aeronautics Laboratory (NAL) - another first in public private partnership.

Anand Mahindra, vice chairman and managing director, Mahindra Group, said that M&M's move into the aerospace segment comes at a time renewed demand for economical air transportation around the world.

"Our investment in component capability addresses the growing needs of both the civil and defence markets,'' Mahindra said in a statement.

Stephen Roebuck, MD, Aerostaff Australia, and George Morgan, founding director, Gippsland Aeronautics, were jointly quoted in the company statement, ''Both organisations will benefit enormously as a result of their association with Mahindra, given its strong global brand, impeccable standards of corporate governance and its ability and willingness to expand both component facilities and the GA product line-up.''

Gippsland Aeronautics was formed in 1984 by George Morgan and Peter Furlong and has designed various aircrafts suited to international standards. GA is currently based in Latrobe valley, Australia.

It has IP / type certificate approvals for four aircraft and has successfully produced in excess of 200 aircrafts, which fly in 34 countries around the world, including USA, Australia, EU, etc. GA is a reputed aircraft producer and is the only one of its kind in the state of Victoria, Australia. Its aircraft design meets the latest international safety standards.

Melbourne-based Aerostaff Australia, formed in 1990, is a manufacturer of close tolerance high precision metal components and assemblies for aviation, defence and specialised sheet metal industries and currently exports to original equipment manufacturers in North America and Europe.