Mahindra & Mahindra Ltd.

Mahindra & Mahindra is looking at the defence sector as a strategic business interest

. The $7-billion Indian conglomerate is looking to grow this business through big-ticket global partnerships. M&M, which has already tied up with BAE for a land systems-specific joint venture, is reportedly talking to Lockheed Martin, as well as, BAE for a naval JV.

M&M has already spun off its land and naval businesses into wholly-owned subsidiaries of Mahindra Defence Systems, its defence business vertical. It will offer 26% in both subsidiaries to global partners.

The defence business ramp-up is part of M&M’s wider strategy to tap the sourcing market both globally and in India. The company wants to tap the offset business which is slated to be worth $10 billion in the next five years by government estimates. Also given that 30% of all Indian defence contracts have to be sourced locally, this is a huge opportunity.

FIPB has already approved $25 million for the JV with BAE for land systems. This JV will become operational by April and will cover both the existing Mahindra range of light armoured and bullet proof vehicles and the higher BAE range including artillery, mine protected vehicles, infantry combat vehicles, armour systems and armoured amphibious vehicles. crackcrack