Chennai: Mahindra & Mahindra is all set to give its fledgling aerospace business a major boost with the dismantling and relocation of its recently acquired Boeing plant in Melbourne, Australia, to Bangalore. Simultaneously, it has initiated talks for supply of components and services with some of the world's largest aviation companies, Mahindra Group's vice-chairman and managing director, Anand Mahindra has said.
Speaking at a Superstore launch ceremony here in Chennai on Wednesday, he said: ''We have asked the Karnataka government to allocate land close to the Bangalore airport.''
''We are also in conversation with some of the world's largest aviation companies to be providers of components and services. These opportunities will increase even further. We will be providing services and goods to aviation companies that sell to Air India,'' said Mahindra.
''Manufacturing out of India is inevitable and we are planning to manufacture here and we have designed, along with NAL (National Aeronautics), the NM 5. We will shortly undergo a trial flight and hope to be pioneers in aircraft manufacturing,'' said Mahindra.
With Rs8,000 crore worth of defence contracts signed in the past two years under the offset policy mandated by the government, Indian component suppliers will be looking forward to capitalise on these contracts that require goods and services between 30-50 per cent of the total value of these contracts to be sourced within the country.
Last year, Mahindra purchased 75.1 per cent stake in two Australian aerospace companies, Gippsland Aeronautics and Aerostaff Australia, for a total of around Rs175 crore.