Mahindra targets $18 bn revenue from supply of defence equipment
& Mahindra Sunday said it is eyeing a revenue of up to USD 18 billion in
the next 8-10 years through the supply of various defence equipments in India.
Mahindra Group is looking at a revenue of about USD 15-18 billion through its
land, aerospace and naval equipments in the next 8-10 years in India,"
Mahindra Defence Systems CEO Khutub Hai told media.
Some of the revenues
will start accruing from next fiscal, he said, adding that as of now, the
group's revenue from the defence supply business is very insignificant.
As per an estimate,
the Ministry of Defence has earmarked a capital expenditure of about USD 100
billion on equipment purchases over the next 7-8 years.
At present, 70 percent
of the country's defence equipment is imported, Hai said.
"What we envisage
is that going forward, with Indian companies developing capabilities, supply of
defence equipment from domestic sources can account about 50 percent of the
requirement," he added.
Mahindra is looking to develop infantry combat vehicles and artillery systems
under its product portfolio expansion plans.
The group is also in
advanced stages of forming a joint venture with a multi-national player for the
supply and manufacture of naval defence equipment.
However, Hai declined
to comment on the investment required to meet the target revenues, saying that
most of the capital requirement was only finalised after getting orders from
At present, the
investments were mainly being made on human resources training overseas and
The group is also
looking to become a leader in the global market for aerospace components,
assemblies and completed aircraft over the next few years.
Recently, the company
handed over six Mine Protected Vehicle-India (MPV-I) units that were developed
by Defence Land Systems India -- a JV between Mahindra & Mahindra and BAE
Systems Plc -- to the Jharkhand Police to mark the commencement of serial
production of landmine protected vehicles from its Prithla plant, near
The company is looking
to sell about 100 MPV-Is next fiscal, as it expects to bag big orders from the
Home Ministry for the CRPF and other state police forces.