Indian car company Mahindra & Mahindra has announced that it has purchased controlling stakes in Gippsland Aeronautics and Aerostaff Australia to better position itself for the defence offsets market in Australia.
According to media reports, the Indian company has paid nearly $38 million to take majority holdings in the two companies in association with Kotak Private Equity to increase its presence in the aerospace sector.
“M&M’s move into the aerospace segment is deliberate, bold and timely, and is supported by a renewed demand for economical air transportation around the world,” said the company’s managing director Anand Mahindra. “Our investment in component capability addresses the growing needs of both the civil and defence markets.”
Aerostaff Australia is a component manufacturer of precision close-tolerance aircraft components and assemblies for large aerospace OEMs, while Gippsland Aeronautics manufactures the GA8 Airvan utility aircraft, and also has plans to restart manufacturing the former GAF Nomad twin turboprop. However, the company was forced to restructure during 2009 as a result of the global financial crisis and was known to have been seeking an equity infusion to see it through the challenging times.
Indian based Mahindra is primarily involved in manufacturing cars and farm machinery, but also has businesses involved in the financial services, IT, tourism and logistics sectors. The company employs over one million staff around the world.