DTN News - DEFEXPO 2012 INDIA: Firms Flock To Delhi To Woo World's Top Arms Importer

DTN News - DEFEXPO 2012 INDIA:  Firms Flock To Delhi To Woo World's Top Arms Importer
Source: DTN News - - This article compiled by Roger Smith from reliable sources TOI - The Times of India
(NSI News Source Info) TORONTO, Canada / NEW DELHI, India - March 28, 2012: The message is embarrassing but clear: with India failing to get its act together to build a strong defence-industrial base (DIB) unlike China, it will continue to be the world's largest arms importer in the foreseeable future.
 
So, gleeful global armament giants are again lining up to hard-sell their aircraft, helicopters, drones, submarines, howitzers, futuristic infantry combat vehicles, missiles, assault rifles and carbines at India's biennial arms jamboree here.

There are going to be 232 foreign firms, mainly from the US, Russia, France, Israel, the UK and Germany, and 60 official delegations in town this week for the four-day "DefExpo-2012' that begins on Thursday.

Over 335 Indian exhibitors, including major ones like Tatas, Punj Lloyd, L&T and Mahindra, will also be there to explore tie-ups and joint ventures with foreign companies as well as DRDO, defence PSUs and domestic shipyards.

"We understand fully well that indigenization cannot happen through only defence PSUs...we have taken several steps to encourage the private sector," said Shekhar Agarwal, secretary (defence production).

The defence ministry has been pushing for JVs and technology transfers to strengthen the DIB, albeit in a haphazard manner, even as it continues to restrict FDI to only 26% in the defence production sector.

Foreign vendors who bag arms deals over Rs 300 crore, of course, have to plough back at least 30% of the contract value into India as "offsets" in the defence industrial, civil aerospace, homeland security and training sectors.

The gigantic $20 billion MMRCA (medium multi-role combat aircraft) project to acquire 126 fighters, in fact, has a 50% offset clause. Offset contracts worth over Rs 50,000 crore are set to materialize over the next two to three years, say officials.

But India, with its fledgling DIB, still remains far away from reversing the current trend of being forced to import 70% of its military hardware and software. This also leaves it vulnerable to supply lines being choked in times of conflict.

Just earlier this month, Swedish think-tank SIPRI dubbed India the world's largest arms importer, accounting as it did for 10% of global arms imports in the 2007-2011 timeframe to display China. With an aggressive DIB, often propelled by "reverse engineering", China is becoming a major arms exporter to countries like Pakistan.

But if India inked arms deals worth $50 billion mainly with foreign vendors in the decade after the 1999 Kargil conflict, it will spend well over double that amount in the current decade.

The Army has pointed at huge operational gaps in fields ranging from artillery, aviation, air defence and night-fighting to ATGMs (anti-tank guided missiles), PGMs (precision guided munitions) and specialized tank and rifle ammunition.

After taking it up with defence minister A K Antony, the force now wants to brief the PM since it will need around Rs 41,000 crore to make up just its existing "critical hollowness'' in ammunition and equipment, say sources.

Indian arms bazaar

Aircraft:
-- India in final commercial negotiations with French Dassault Aviation for the $20 billion MMRCA project to acquire 126 fighters.

-- Over $1.5 billion contract for six new mid-air refueling aircraft in final stage between AirbusMilitary's A330 MRTT and Ilyushin IL-78MK tankers.

-- Acquisition of 75 Swiss Pilatus PC-7 trainer aircraft for over Rs 3,000 crore awaiting final nod.

-- Three major "follow-on" deals with US companies in pipeline: Six more C-130J "Super Hercules" tactical airlift planes (over $1.2 billion), four P-8I long-range maritime patrol aircraft (over $1 billion) and six C-17 Globemaster-III strategic airlift aircraft (over $2.4 billion).

Helicopters:
Army, Navy, IAF and Coast Guard on course to induct over 600 helicopters, ranging from heavy-lift and attack to maritime multi-role and light utility ones, the majority from foreign companies, for over Rs 20,000 crore in the coming decade.

Submarines:
Global tender for over Rs 50,000 crore `Project-75 India' to construct six advanced diesel-electric stealth submarines, armed with both land-attack missile capabilities and air-independent propulsion (AIP), to be issued soon.

Artillery:
Over Rs 20,000 crore 155mm artillery modernization programme to acquire 1,580 towed guns, 814 mounted gun systems, 180 self-propelled wheeled guns, 100 self-propelled tracked guns and 145 air-mobile ultra-light howitzers. 


 
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DTN News - INDIA DEFENSE NEWS: Helicopter Makers Such As Boeing, Sikorsky Aircraft Corp, Bell Helicopter Eye Indian Military Deals

DTN News - INDIA DEFENSE NEWS: Helicopter Makers Such As Boeing, Sikorsky Aircraft Corp, Bell Helicopter Eye Indian Military Deals
Source: DTN News - - This article compiled by Roger Smith from reliable sources Economic Times
(NSI News Source Info) TORONTO, Canada - March 5, 2012:  A raft of helicopter makers such as Boeing, Sikorsky Aircraft Corp, Bell Helicopter, Eurocopter andAgustaWestland are hovering over the civil market in India. But they are also eyeing a bigger prize: military deals. The Indian armed forces are upgrading their ageing fleet and that means big orders and big money, running into billions of dollars, for these companies. 

According to Reuters, Indian Navy plans to induct 50 light helicopters. First off the block is an order for 16 multi role helicopters. Indian Army has a joint requirement for about 400 light helicopters along with the Air Force. Some companies are upbeat about the recent contact to buy war planes worth $15 billion that the government awarded to France's Dassault Rafale. 

Mick Maurer, president of Sikorsky Military Systems, says the procurement process in India is getting better. "It is more rigorous and more transparent. We believe that suits us very well." Maurer says in the long term, Sikorsky sees a 3:1 ratio vis-a-vis the military and commercial sales in terms of the size of the market. But he says both are very complementary markets. Many of the machines can be used for commercial and quasi-defence activities. 

If the civil copter market in India has come alive, it is thanks to the armed forces. Foreign companies in the defence market are bound by what is called offset obligations. India's defence procurement policy rules that foreign companies require that win contracts of 300 crore or more must procure equipment worth at least 30% of the deal amount from local suppliers to boost the homegrown arms industry. 

The Indian military has also become smarter, according to foreign company executives. "Sometimes manufacturers give a special price on aircraft, but raise the price on the support side. India has become aware of this and now looks at the total lifecycle costs in deals," says Maurer. 

The upshot is that companies like Sikorsky and Eurocopter have partnered Indian counterparts to set up base in India. Sikorsky has formed two joint ventures with the Tatas to make helicopter cabins and aircraft components. Eurocopter, which formed an Indian unit in 2010, has tieups with the Mahindras, the Tatas and governmentowned Hindustan Aeronautics Limited. AgustaWestland, the helicopter unit of Finmeccanica SpA of Italy, has a joint venture with the Tatas called Indian Rotorcraft. 

All these companies plan to expand in India. Textron, the parent company of Bell Helicopter, has opened a new global technology centre in Bangalore with more than 400 engineers. Bell plans to expand the workforce there over the next year, says the company's India head, BS Singh Deo. An AgustaWestland spokesman says the company recently opened a new larger office in Delhi. Copter makers are also expanding the customer support network by establishing authorised service centres along with a posse of engineers and technicians. 

All this bodes well for the commercial market. The AgustaWestland spokesman says construction work is about to start on the Indian Rotorcraft's facility in Hyderabad , which will produce the company's eight-seat utility helicopter AW119. Sikorsky eventually plans to produce helicopters that are virtually "100% done here" . "We are already a local company," says Maurer. 

 
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Aero India 2011 - DTN News: Mahindra Aerospace Makes Debut At Aero India 2011

Aero India 2011 - DTN News: Mahindra Aerospace Makes Debut At Aero India 2011

Source: DTN News - - This article compiled by Roger Smith from reliable sources The Economic Times

(NSI News Source Info) BANGALORE, India - February 9, 2011: Mahindra Aerospace (MAPL), a part of the $US 7.1 billion Mahindra Group, made its debut at Aero India 2011, Asia’s premier Air Show, which is being held at the Yelahanka Air Force Base in Bangalore from February 9 to 13, 2011.

The centrepiece of the MAPL stall is the recently launched GA8 TC-320 Airvan which has been designed and built by GippsAero, an Australian company acquired by Mahindra in 2009. “We are extremely proud to participate in Aero India for the very first time and showcase the GA8 TC-320 Airvan for aviation companies from across the globe. It has generated a great deal of interest amongst visitors and potential buyers who have been impressed by its reliable operations platform and low maintenance cost. In fact, it was flown from Australia to Bangalore for the Show, a clear validation of its strength and ruggedness,” said Mr. Arvind Mehra, Executive Director and CEO, Mahindra Aerospace Private Limited. The Airvan is a unique 8-seat multi-role aircraft that can readily be converted to carry freight or passengers. Its global clientele find the aircraft ideal for a variety of operations including humanitarian relief, charter, tourism, medevac, aerosports (parajumping), surveillance, freight, and training. With robust metallic construction and powered by the reliable Lycoming family of engines, the Airvan is available in either normally-aspirated or turbocharged variants. Both models offer unbeatable costs per seat-mile, ensuring an economical, low maintenance and reliable operations platform. In 2010, two Australian pilots, Ken Evers and Tim Pryse, undertook a historic flight across the globe in the Airvan to raise funds for malaria awareness. The Airvan, thus, became the first Australian designed and manufactured aircraft to circumnavigate the globe. Mahindra Aerospace is the aircraft and aero-structure manufacturing division of Mahindra Systech, and a new global player in the delivery of aircraft, aero-structures and aircraft development services. With its acquisitions of two Australia-based aviation companies, Aerostaff Australia, producer of aerospace components for the world’s OEMs, and GippsAero, producer of the Airvan family of utility aircraft, Mahindra Aerospace has laid the foundations towards achieving its goals.

*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News, contact: dtnnews@ymail.com

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DTN News: Navistar Reaches Another Milestone In Its Global Growth Strategy; First Mahindra-Navistar Trucks Roll Off Assembly Line In India

DTN News: Navistar Reaches Another Milestone In Its Global Growth Strategy; First Mahindra-Navistar Trucks Roll Off Assembly Line In India

• 25-ton MN25 Rolls Out of Chakan Plant • Plant Has 50,000-truck Capacity • Other Mahindra-Navistar Variants to Roll Out in the Months Ahead

Source: DTN News / Navistar

(NSI News Source Info) PUNE, India - June 26, 2010: After unveiling its entire range of high-performance trucks at the Indian Auto Expo in Delhi earlier this year, Mahindra-Navistar Automotives Ltd. (MNAL) today announced the start of production as its first truck offering, the 25-ton capacity MN25, rolled off the assembly line in Chakan, Pune, India.

“The launch of the MN25 truck is a major step in the direction of making us a full range commercial vehicle player and the first step in materializing our vision to become the most trusted commercial vehicle brand in India,” said Rakesh Kalra, MNAL managing director. “In line with our philosophy to deliver outstanding value for our customers, the competitively priced, high-performance MN25 is one of the most powerful, fuel-efficient, rugged and comfortable 25-tonners to launch in India.”

According to Phil Christman, president, Navistar Global Truck Operations, the MNAL trucks are set apart from the competition by their quality, accessibility and heritage—each one designed from the ground up in India with that country’s terrain in mind.

The MN25 comes with a world-class cabin, which is spacious and ergonomically designed to suit Indian drivers for continuous long hauls. Powered by Navistar’s MaxxForce® 7.2-liter diesel engine, the truck delivers high performance and outstanding fuel efficiency.

“We promised that ‘OK will no longer be OK,’ and that the MN25 would revolutionize the industry,” said Nalin Mehta, chief operations officer, MNAL. “Today, with the first MN25 truck rolling off the line, every aspect of the truck symbolizes this philosophy and will help our customers outperform and prosper in their businesses and life. Delivering outstanding value coupled with far superior product performance will help customers to earn higher profits and better returns on their investments.”

“Honk OK Please,” is a phrase often found on the back of Indian trucks to let other motorists know to use the horn before passing the vehicles, as MNAL’s competitors’ trucks lack power and visibility. This inspired the MNAL truck launch campaign headline: “OK is No Longer OK.”

State-of-the-Art Manufacturing Facility

“Rolling out the high performance Mahindra-Navistar trucks is one of the finest manifestations of the state-of-the-art facility in Chakan,” said Dr. Pawan Goenka, president, Automotive and Farm Sector (AFS), Mahindra & Mahindra. “The Chakan plant is one of the most modern manufacturing plants in India, with a capacity of 50,000 trucks per year, and is set to create new benchmarks in automotive excellence.” The Chakan plant has a high-speed, fully automatic press line and is one of the three plants in the world of its kind. Beyond the production of the MN25, the remainder of the MNAL truck line-up will also be produced at the Chakan plant in the months ahead.

Sales and Distribution

With production underway, MNAL continues to secure orders and finalize its sales and service network. “We’re executing on our global strategy,” said Christman. “The launch of the MN25 will set a new benchmark for India by delivering trucks that raise the bar on craftsmanship, performance and power through a world-class dealer channel.” “The company is well on its way in setting up its infrastructure through exclusive dealerships on a massive scale which itself is a unique step for the trucking industry in India,” Kalra added. “Additionally the huge Mahindra network will be deployed for the after sales support of the trucks. Having started the production, we are gearing up for start of sales in the next two to three months and are moving rapidly to the pipelines with our products.”

About Mahindra-Navistar Automotives Ltd. (MNAL)

Mahindra-Navistar Automotives Ltd. (MNAL) is a joint venture between Mahindra & Mahindra Ltd. (M&M) and Navistar, Inc., North America’s largest combined commercial truck, school bus and mid-range diesel engine manufacturer. The joint venture will manufacture the entire spectrum of commercial vehicles (including trucks and buses) from 3.5-ton GVW to 49-ton GVW. The new product range will be engineered to meet Indian requirements with the technological support of Navistar. The new range will be manufactured at M&M's new Greenfield plant at Chakan, near Pune, which is spread across 700 acres.

Contact;

Media Contact (Navistar): Steve Schrier, 630-753-2264

Media Contact (MNAL): Roma Balwani, Phone: (+91-22) 2490 1441

balwani.roma@mahindra.com

Investor Contact: Heather Kos, 630-753-2406

Web site: www.Navistar.com/newsroom

DTN News: Automobile News May 8, 2010 ~ India's Mahindra Pickups Could Hit U.S. In Under 90 Days

DTN News: Automobile News May 8, 2010 ~ India's Mahindra Pickups Could Hit U.S. In Under 90 Days Source: DTN News / Auto News (NSI News Source Info) MUMBAI, India - May 8, 2010: Plagued by a series of setbacks, delays, and that little thing called "the chicken tax," Mahindra has yet to receive EPA Tier 2 Bin 5 federal emissions certification for its TR20 and TR40 pickups. But man, they must be getting really close. Right? John Perez, CEO of Global Vehicles USA, Mahindra's exclusive U.S. distributor, says that all the emissions testing on the trucks has been completed and the paperwork is being submitted to the EPA for final approval. Approval itself is expected to take about 30 days. At that point, Global Vehicles could begin importing the trucks to the United States. They'd arrive on our shores 30 to 60 days later. By our math, that sounds like we could have Mahindra pickup trucks on U.S. roads before the end of August, but neither Perez nor Mahindra's corporate offices are talking sale dates yet. Experience has probably taught them not to make predictions, but with 330 dealers signed up and raring to go, we're sure that official sales date can't come soon enough for any of the parties involved. When they eventually go on sale, Mahindra pickups will be offered in two configurations: a two-door regular cab, the TR20, and a four-door crew cab, the TR40. Both will offer Mahindra's slightly modified version of the mHawk 2.2-liter inline-four-cylinder diesel engine. Official EPA numbers obviously haven't been determined yet, but the trucks are expected to have fuel economy ratings around 30 miles per gallon on the highway. Not too shabby considering their 1.3-ton hauling capability. Pricing is expected to start around $22,000

DTN News: Mahindra Buys 2 Australia Aerospace Firms

DTN News: Mahindra Buys 2 Australia Aerospace Firms *Source: DTN News / Defense News....for link click here (NSI News Source Info) - December 16, 2009: Mahindra & Mahindra has bought two small Australian firms to build its aerospace capacity so it can compete for large orders from airline manufacturers modernising Indian defence forces. The company on Tuesday said it and India's Kotak Private Equity had bought majority stakes in component firm Aerostaff Australia and aircraft maker Gippsland Aeronautics for 1.75 billion rupees ($37.5 million). Hemant Luthra, a Mahindra group management board member, said the Australian firms would get a small upfront payment, some shares in the group's aerospace unit, and be eligible for milestone payments. Most of the investment would go towards a new plant in south India, he said. Aerostaff supplies components to companies such as Boeing, Airbus, said Luthra, but the firms were not in a position to scale up their operations. "They have now got somebody like Mahindra coming in with the capital. They have the ability to scale up, able to duplicate the facilities in India," he said. India's defence policy mandates that foreign contractors source components and systems from local vendors for at least 30 percent of the value of the orders they get. The offset opportunity is $750 million a year for the next 10 years with Indian defence forces likely to modernise their airline fleet at a cost of nearly $25 billion, Luthra said. Companies such as Mahindra are eyeing a potential $100 billion Indian defence market over the next 10 years. Last month, the chief executive of Mahindra's defence unit told Reuters it was looking to bid for $3.5 billion defence deals and expected to ramp up revenues to $430 million by 2016. (Reporting by Narayanan Somasundaram; Writing by Janaki Krishnan; Editing by John Mair)

DTN News: Mahindra, BAE Systems Ink Military Vehicles’ JV / BAE Systems, Mahinda Form Joint Defense Venture

DTN News: Mahindra, BAE Systems Ink Military Vehicles’ JV / BAE Systems, Mahinda Form Joint Defense Venture *Source: DTN News / Int'l Media (NSI News Source Info) MUMBAI, India - December 1, 2009: BAE Systems PLC, the world's No. 2 defense contractor, said Monday it has signed a deal with Mahindra & Mahindra Ltd. to create a joint venture defense company based in India and focused on land systems. BAE said the parent companies' initial investment will be $21.25 million, with an equity split of 74 percent to Mahindra and 26 percent to BA Systems -- in line with Indian government regulations on foreign investment. The pair already work together on existing projects including the Axe high mobility vehicle as well as armored and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and the Marksman light armored vehicle. In anticipation of the new company, the two companies have been developing a mine-protected vehicle specifically designed for the Indian army and paramilitary forces. "We are already working together and the benefits for all parties, including the Indian defense and security forces, are clear," said Anand Mahindra, the vice chairman and managing director of Mahindra Group. "We look forward to making a major contribution both to the security and economy of India." The joint venture will initially have around 100 employees.

DTN News: Mahindra-BAE Joint Venture On Marksman Light Armoured Vehicle To Counter Insurgency

DTN News: Mahindra-BAE Joint Venture On Marksman Light Armoured Vehicle To Counter Insurgency

*Source: DTN News (NSI News Source Info) TORONTO, Canada - August 29, 2009: India's leading military vehicle producer, Mahindra Defence Systems (MDS), has opened a 6-acre facility in Faridabad near here, where it will produce specialized vehicles for defense applications. Mahindra Marksman is India’s first armoured capsule based light bullet proof vehicle to provide protection to the personnel of Defence, Para Military and Police forces against small arms fire and under belly grenade attacks. It has capability to be used in counter terrorist as well as conventional roles. "The Mahindra Special Military Vehicles Facility will manufacture specialized vehicles for the armed forces, paramilitary forces and police and is also designed to undertake vehicle development, armoring and conversions," said Khutub Hai, chief executive of Mahindra Defence Systems.

The factory initially will build armored versions of Scorpio and Bolero special utility vehicles and Rakshak bulletproof vehicles, Mahindra said. Later, it will produce the Axe military vehicle as well as a mine-resistant vehicle that is part of Mahindra's joint venture with Britain's BAE Systems. The joint venture, which the Indian partner controls, is scheduled to begin production by June. Aside from manufacturing, Hai said, the plant has an advanced facility for research and development, product development, design and prototyping of vehicles to meet specific customer requirements - a first for the Indian defense industry's private sector. The new plant will include a prototype shop, a 40,000-square-foot armored vehicles production floor, and a fabrication area. It will roll out 500 uparmored vehicles per year, including bulletproof Scorpios, Boleros, Rakshaks, Tourister Buses, riot intervention vehicles and Marksman light armored vehicles. Mahindra Defence Systems, a division of the $6.7 billion Mahindra Group, is India's leading provider of high-mobility and light bulletproof vehicles to the Indian military, paramilitary and police forces.

Mahindra Opens Special Military Vehicles Plant

Mahindra Opens Special Military Vehicles Plant

(NSI News Source Info) MUMBAI, India - March 25, 2009: Mahindra Defence Systems, a division of the Mahindra Group, has inaugurated the Mahindra Special Military Vehicles (MSMV) facility in Faridabad near New Delhi today. Spread across six acres, the new plant has facilities for specific military manufacturing applications. Mahindra Group Managing Director Anand Mahindra, right, and Mahindra Defense Systems Chief Executive Khutub Hai pose for photographs during the inauguration of Mahindra Special Military Vehicles facility at Prithla in Faridabad, India, Tuesday, March 17, 2009. "The defence space is going at an exponential rate, creating opportunities for manufacture of world class products. With this technologically advanced manufacturing capability, MSMV will help Mahindra Defence Systems harness the potential in this space," said Anand Mahindra, vice chairman and managing director, Mahindra Group. The MSMV will manufacture specialised vehiciles for the armed forces, paramilitary forces and police and is also designed to undertake vehicle development, armouring and conversions. The plant will have a capacity of 500 uparmoured vehicles per year and will roll out uparmoured vehicles such as bulletproof Scorpios, Boleros, Rakshak, bulletproof tourister bus, riot intervention vehicles and the Marksman light armoured vehicle. The plant also has an advanced facility for R& D, product development, design and prototyping of special vehicles to meet specific customer requirements.

Mahindra Mahindra And BAE Systems Joint Venture Approved By India

Mahindra & Mahindra And BAE Systems Joint Venture Approved By India

(NSI News Source Info) NEW DELHI - January 7, 2009: India has approved 34 foreign direct investment proposals worth 16.15 billion rupees ($332.3 million), including that of vehicle maker Mahindra and Mahindra Ltd, the finance ministry said on Wednesday.

The government, however, again deferred a proposal by News Corp-controlled Dow Jones Co to publish facsimile editions of newspapers, including the Wall Street Journal, in the country, the ministry said in a statement.

Mahindra's proposal to set up a joint venture for land defence systems, with foreign investment of 289.4 million rupees was approved, it said.

The Indian firm and BAE Systems have a joint venture to build such equipment in the country.