India’s Mahindra Group, a $6.6 billion industrial conglomerate, simultaneously acquired majority stakes in two Australian defence and aerospace companies, Aerostaff Australia and Gippsland Aeronautics. Aerostaff Australia is a component manufacture of high-precision close-tolerance aircraft components and assemblies for large aerospace companies. Gippsland Aeronautics is a manufacturer of small segment turbo-prop aircrafts. The acquisition of the companies, valued Rs. 175 crores, will propel Mahindra to expand its interests in defence beyond the land based systems. It announced to set up a joint venture with UK’s largest defence company BAE Systems to manufacture land-based system in November 2009.1

• 1. Mahindra, “Mahindra soars into the defence segment, acquires majority stake in two Australian companies”, Press Release, December 15, 2009, http://www.mahindra.com/Admin/tmpupload/GA%20and%20AA%20Acquisition_Dec1...