Mahindra Defence Systems, under the speciality business portfolio of the Mahindra Group, has received an expression of interest for supply of boats to marine police. Confirming the same, Brigadier (retired) Khutub A Hai, CEO, Mahindra Defence Systems, said, “We are in talks with shipyards for supply of boat for marine police.” He said that the company will help the newly formed JV company of the group – Mahindra Ocean Blue – in selling boats to marine police. On Tuesday, Mahindra Group announced its entry into boat manufacturing with formation of a JV with a Mumbai-based company Ocean Blue. Mahindra will hold 51% in the JV and the remaining will be with Ocean Blue.

On what role the once hived off naval systems of Mahindra Defence Systems into a wholly-owned subsidiary would play, Hai said, “The subsidiary can look into a range of products. We will see what synergies can be shared with Mahindra Ocean Blue.” The group is in the process of transferring the naval systems currently under Mahindra Defence Systems into a separate wholly-owned subsidiary and is scouting for an international partner for it. Mahindra Ocean Blue will look into manufacturing fibreglass power boats under the brand name Mahindra Odyssea in the range of 20 to 40 feet. While the JV firm plans to target individuals and institutional clients for its product, it sees immediate demand arising from the paramilitary and defence forces. Initially, the JV will focus on domestic market and then look at exports.

Said Zhooben Bhiwandiwala, executive VP, MandM, “We plan to use group expertise in making the foray possible.” He added that the group in early 2008 had planned to enter the venture with a greenfield plant but now considering the overall economic situation will be using the existing group facilities for manufacturing boats. Mahindra Finance will help in financing of the products while Mahindra Composite and Mahindra Engineering Services under Mahindra Sytech will help in manufacturing. He said that the group’s existing vendor base comes handy. Currently, the company will be importing engines (75 to 250 hp) for the boat from Evinrude. It would later look at in-house manufacturing. For the other components, he said it can look at sourcing globally or procure it indigenously. On dealerships, he said the existing dealers may find the venture interesting and join hands. The company will have two proto-types of boats at display at the upcoming Samira Mumbai international Boat Show (February 19-22).

Make sure that you get to see India’s best guarded secret after the Tata Nano at the Mumbai International Boat Show ‘09…

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