(Image source from: Mahindra Defence)

Mahindra Defence and Airbus Helicopters have taken forward a memorandum of understanding signed in July, 2015. A pact was now signed between the firms to form a joint venture to produce military helicopters in India.

Representatives of both the companies have signed a statement of intent in the presence of Prime Minister Narendra Modi and Francois Hollande, French President.

According to Mahindra and Mahindra Group President for Aerospace and Defence S P Shukla, "We have made significant progress in setting up the joint venture and together the companies are creating a world-class advanced helicopter production facility in India."

Already, steps were being taken by the companies to work on the production of helicopter parts locally, besides defining additional work packages to be industrialized in the country. Both the parties are assessing the potential industrial sites besides screening the existing local supply chain. They are even proceeding with while moving ahead with the plan to set up of the JV.

Guillaume Faury, President and CEO of Airbus Helicopters, said that, "Through this partnership, we target building several of our globally leading helicopter models in India. This will lead to the transfer of state-of-the-art technologies, development of manufacturing activities and creation of high-skilled jobs in India."

A final assembly line in India is being considered to set up by the companies, besides the development of tier-1 and tier-2 suppliers and extensive transfer of technology. The intention behind this is the ultimate achievement of 50% indigenous content.

According to Airbus Group India President Pierre de Bausset, "Mahindra Defence and Airbus Helicopters have agreed on a blueprint that can put India on the world map for military helicopter manufacturing,"

The JV formation will be subject to customary regulatory approvals.

Devendra Bhatnagar, CEO of Mahindra Defence Naval Systems, said, "The helicopters we are proposing are of proven designs. We are laying the groundwork with the objective to ramp up quickly."

-Sumana