Anand Mahindra, Managing Director, Mahindra & Mahindra has announced that the company plans to invest Rs 250 crore ($54 million) into the aerospace business.
While the company will invest Rs 150 crore into aircraft component manufacturing, the rest Rs 100 crore will be invested in aircraft manufacturing. Mahindra added that the group is open to inorganic opportunities to grow its aerospace business.
“Clearly inorganic strategies are not out of our purview. It makes sense given our growth opportunities to look at inorganic ... but as of now we want to consolidate what we have acquired,” he said.
In December 2009, Mahindra along with India’s Kotak Private Equity bought controlling stakes in two small Australian firms, aerospace component maker Aerostaff Australia and aircraft maker Gippsland Aeronautics.
Mahindra also mentioned that due diligence on the cash-strapped Korean SUV maker Ssangyong Motor was on and the group will decide on bidding for the company by July 2010. M&M is competing with France's Renault and Indian major Ruia Group among others, to acquire Ssangyong.
“Right now we are in a due diligence phase. Once we have completed, we will make our decision whether to put in a bid. Sometime in July we will have to make a decision,” he said.