India approves Mahindra & Mahindra and BAE Systems joint venture

January 7, 2009, New Delhi, India: Following approval from the Government of India's Foreign Investment Promotions Board, Mahindra & Mahindra and BAE Systems will set up a Joint Venture (JV) in India focused on land systems for the Indian market. This is a key step in setting up the JV, and in accordance with current Foreign Direct Investment regulations, the equity split will be 74% with Mahindra & Mahindra and 26% BAE Systems. Mahindra & Mahindra and BAE Systems will now finalise detailed planning and structural arrangements with a view to commencing JV operations as early as Q2 2009. Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra, said: "Our JV with BAE Systems is a strategic initiative by the Mahindra Group to achieve a leadership position in the land systems defence domain. I am certain that our companies are an excellent and complementary fit and the co-operation with a leader like BAE Systems will indeed help us design and develop cutting edge products. These solutions will provide greatly enhanced capability for our Indian land forces and open up export markets not previously within our reach". Ian King, Chief Executive, BAE Systems, said: "This is an exciting opportunity and is the first step in BAE Systems' plans to grow long term businesses in India in multiple sectors across the breadth and depth of the company's global capabilities in land, sea, air and security. The ever strengthening relationship between Mahindra & Mahindra and BAE Systems is an excellent basis on which to develop a company that is founded with the express purpose of serving the Indian armed forces and the Indian economy through the creation of high quality jobs, the development of innovative technologies and system integration skills, and the leadership of two world class companies".