Mahindras to make foray in aerospace industry

Bangalore, June 27 (ANI): India's auto major Mahindra and Mahindra is all set to make its presence felt in the skies since it is making a foray in the aviation sector.

Addressing media here, Mahindra and Mahindra's Managing Director Anand Mahindra, said the company is investing 2.5 billion rupees into aerospace business.

Mahindra mentioned the company would invest 1.5 billion rupees into aircraft component manufacturing, and another one billion rupees in aircraft manufacturing.

Mahindra said the group is open to inorganic opportunities to grow its aerospace business.

"Well, we started with an acquisition, as you know with aero staff, so, clearly inorganic strategies are not out of the...out of our purview, given that we are starting from a clean sheet," Mahindra said.

"I think it makes sense, given our growth ambitions to look at inorganic. As of now, I think, right now, we want to consolidate what we acquire," he added.

In December 2009, Mahindra along with Kotak Private Equity bought majority stakes in two small Australian firms, aerospace component maker Aerostaff Australia and aircraft maker Gippsland Aeronautics.

He added that there are immense opportunities in the aerospace industry.

"Unlimited, it's the next frontier for Mahindra. We are, as you know, in all forms of transport, in every element of the value chain," Mahindra said.

He said due diligence on the troubled Korean SUV maker Ssangyong Motor was on and the group will make a decision on bidding for the company by July.

Mahindra is competing with France's Renault and four others to acquire Ssangyong.

Earlier this month, Ssangyong-owned 10 percent by China's SAIC Motor Corp -- said it had short listed six out of seven firms that had submitted letters of intent to buy the carmaker, under a court-led restructuring since early 2009. (ANI)