Mahindra Aerospace to focus on turboprop aircraft market

[Justin Joseph]

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Mahindra Aerospace to focus on turboprop aircraft market

The Mahindra Group, which recently completed the acquisition of two Australian companies — Gippsland Aeronautics, a manufacturer of small aircraft, and Aerostaff, an aircraft component manufacturer — on Saturday announced its intention to “become a significant player in the market for turboprop aircraft.

Speaking at an event to welcome the arrival in Bangalore of the GippsAero GA8-TC Airvan, a single-engine aircraft, which is circumnavigating the globe, Vice Chairman of the group Anand Mahindra reiterated the group's commitment to become “the Indian equivalent of Embraer,'' the Brazilian aircraft manufacturer.

Pointing out that the Airvan is the first aircraft manufactured in Australia to circumnavigate the world, Mr. Mahindra said the company would “lend its brand, reach and provide finance to GippsAero to reach markets in many countries.” The company would invest about Rs.150 crore in Aerostaff and about Rs.100 crore in GippsAero in the next couple of years, he said.

Mr. Mahindra said offset stipulations for defence contracts, which specify that a portion of the value of contracts be sourced from entities in India, “provide a key revenue underpinning for Indian companies.”

He said the acquisitions would enable his group to take “advantage of these opportunities.”

Mahindra Systech President and member of the Mahindra Group Board Hemant Luthra said the Airvan had the “highest lift to cost ratio in its class.”

Mahindra Aerospace would like to use GippsAero's facilities to manufacture 8/10/14-seater turboprop aircraft, he said. “Turboprops are economical and cost-effective on short hauls,” he said.

“On short hauls such as Mumbai to Nashik, they may be cheaper than travelling by a Mercedes Benz,” he remarked.

Mr. Luthra said GippsAero had already received “type certification” for its 18-seater aircraft from the Australian Civil Aviation Safety Authority.

He said GippsAero had an order book of about 20 planes a year, mainly 10-14-seaters.

While Kotak Private Equity and Mahindra Aerospace Pvt. Ltd. hold 75 per cent of the equity in GippsAero, the two entities will be in full control of Aerostaff, which manufactures sheet metal components and assemblies for aircraft.

Mr. Luthra said the acquisitions provided “a $5 billion opportunity” for the Mahindra Group.

Mahindra Aerospace was jointly developing a five-seater in association with the National Aerospace Laboratory, Mr. Luthra said. Asked if the group plans to establish a unit at the aerospace SEZ near Bangalore airport, Mr. Luthra said, “It makes more sense for us to be in Hyderabad because the SEZ here is not yet ready.”

The Hindu : Business News : Mahindra Aerospace to focus on turboprop aircraft market

[jha]

Well..then TATA should focus on Turbojet aircrafts...in that way we will have two great companies to keep NAL,HAL and ADA on its toes..

[SpArK]

Great post.

I foresee a big take over by Mahindra someday in defense industry for sure.

[SpArK]

Mahindra Aerospace to set up plant in Karnataka

Mahindra Aerospace to set up plant in Karnataka | mydigitalfc.com


Sun 26 2010 , Bangalore

Mahindra Aerospace is looking for about 20 acre land in Karnataka to set up a plant to manufacture aerospace components and planes with an investment of over Rs 200 crore. The company already has a 5 acre facility in Malur, Karnataka. The company said it is in a hurry and is looking for land at places other than Aerospace SEZ (Karnataka), which is in the early stage of development.

Once the plant is up and running, Mahindra Aerospace plans to roll out aerospace components in 12-18 months and planes in 2 years.

According to the company, the USP of its planes is that they can land and take off from unpaved fields – short or long, planes that can be used for disaster relief, pilgrimage, corporate travel – at costs per seat kilometer that approach road transport and are half of jet travel.

Hemant Luthra, President, Mahindra Systech, said, “A leading OEM and a leading Tier 1 supplier have recognized the Mahindra's commitment to the space and are asking us to quadruple the facility. We now have approval to do so and believe that the combination of Offset and the General Aviation market represents a $5 billion opportunity. The opportunity makes economic sense too, as we are focused on components and turbo prop aircrafts that can be used for economical hub and spoke air transportation which can be alternative to the poor highway infrastructure in India.”

Mahindra & Mahindra acquired majority stakes in Gippsland Aeronautics Australia and Aerostaff Australia recently. Gippsland makes eight seater, ten seater and fourteen seater aircrafts that are sold in more than 30 countries with FAR 23 certification that signifies the highest level of safety.

[salvation]

Its good to see defense sector in india is finally opening up foe private players. This was a long due step. This will ensure the competition between indian companies as well and will result in better products at lesser costs.

[XiNiX]

This has to be perfect time for collaboration between govt. & pvt. entities , benefiting the indian aerospace further.

Jai Ho.

[atyagi]

Excellent news. what a perfect start of the day.....Go India Go
Jai Hind

[jha]

Hey atyagi..thats my copyright avatar..

[Sasan]

Positive news

[atyagi]

Hey atyagi..thats my copyright avatar..

I like it too....

[sam27]

Great post.

I foresee a big take over by Mahindra someday in defense industry for sure.

My friend, they already have. Two Australian companies.

India Shares Investment Blog Mahindra acquires 2 Australian Aerospace companies

[Arjun MBT]

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Mahindra has started With turbo prop Aircraft, where as On the Other hand TATA would be Opening Its Business In the Field of helicopters...

Very Much of an Interesting News For India