Mahindra acquires stake in Australian aerospace firms

Mumbai: Auto firm Mahindra & Mahindra (M&M) has forayed into the aerospace business. Its aerospace unit Mahindra Aerospace (MAPL) has picked up 75.1 per cent stake each in Australia-based component-maker Aerostaff Australia and general aircraft manufacturer Gippsland Aeronautics for Rs. 175-crore and planned to make aircraft and allied components to service the global market.

Mahindra will retain the existing managements of Gippsland Aeronautics and Aerostaff Australia . The two Victoria-based companies, on the will
hold 20-25 per cent equity in MAPL.

In the next five years M&M plans to develop 475 aircraft under the 2-20-seater range. The company is setting up a plant in Bangalore to undertake the project as part of it acquisitions and provide dual sharing and benefits to customers.

The company will initially manufacture sheet metal aero-structures and later, invest more to make components, sub-assemblies and eventually aircraft in India and Australia.