By Santanu Choudhury
NEW DELHI-Airbus Helicopters has agreed to form a joint venture
with India's Mahindra Defence to produce military helicopters in
the south Asian country.
The new company, which is still being established, will act as
the primary contractor for Airbus and Mahindra in future military
helicopter tenders in India, they said in a joint statement
Friday.
India plans to spend tens of billions of dollars in the coming
years to acquire new military helicopters to modernize and expand
its fleet.
The tenders include India's procurement programs for
reconnaissance and surveillance helicopters, naval utility
helicopters and naval multirole helicopters.
Airbus and Mahindra didn't specify the size of the stake each
partner would own in the new company or how much they plan to
invest. Foreign companies are permitted to hold up to 49% stakes in
defense ventures.
Airbus Helicopters is a wholly owned unit of Airbus Group SE,
best known as a maker of passenger jets. Mahindra Defence is part
of India's diversified Mahindra Group.
The joint venture will seek to tap the Indian government's push
to produce more high-technology products locally. If it wins
helicopter tenders, the joint venture would also create hundreds of
high-tech jobs and lead to inflow of high-end technologies into
Indian industry, the companies said.
Write to Santanu Choudhury at santanu.choudhury@wsj.com
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