Carmaker is investing in components, hunting for new markets

Bangalore:

Mahindra & Mahindra Limited, India’s biggest maker of sport-utility vehicles and tractors, plans to invest Rs2.5 billion (Dh198.2 million) in its aerospace business as part of a push to expand into new markets.

“We are planning to invest Rs1.5 billion for manufacturing components and roughly Rs1 billion in manufacturing aircraft,” Vice Chairman Anand Mahindra said at a news conference in the southern Indian city of Bangalore.

The carmaker entered the aerospace industry last year by purchasing majority stakes in Aerostaff Australia, a component manufacturer, and Gippsland Aeronautics, a maker of turboprop aircraft. It has also been in talks with Boeing Company and Airbus seeking orders for aviation components.

Mahindra said in a statement on Friday it is in the final stages of setting up a plant.

The company is spending $10 million (Dh36.7 million) to set up a facility in Bangalore to produce aircraft parts, Hemant Luthra, head of the company’s autoparts division, said in December

source: http://www.gulfnews.com / Bloomberg / Jun 27th, 2010