Pipavav Defence and Offshore Engineering Company Limited (formerly known as Pipavav Shipyard Limited), its parent company SKIL Infrastructure Limited and Airbus Industry, France, have signed a memorandum of understanding (MoU) to develop state-of-the-art maintenance and repair (MRO) facilities and associated infrastructure in India.
Towards this the companies plan to set up a joint venture with equity participation from EADS, a pan-European aerospace and defence corporation and the parent company of Airbus Industries.
EADS will pick up 26 per cent equity in the joint venture initially and may raise it to 49 per cent later, while Pipavav Defence will hold the remaining 51 per cent equity stake, the company said in a filing with the Bombay Stock Exchange (BSE).
The first phase of MRO facilities and associated infrastructure are likely to cost $100 million, the company said.
The MRO and its associated infrastructure will be used for both civilian and military applications, the company added.
EADS, with revenue upwards of $30 billion, is the global leader in defence and aerospace equipment and a valuable partner for the joint venture, the company said.