Currently, Mahindra owns 74 percent of DLSI while BAE controls the remaining 26 percent which is in accordance with India’s foreign direct investment policy for defense businesses.
According to the article, both parties agreed with the buy-out of BAE, marking the end of a three-year old partnership.
“Building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India,” said Dean McCumiskey, BAE India managing director and CEO.
“We look forward to opportunities to collaborate with Mahindra and others to enhance the role of the private sector in the defence industry,” he added.
DLSI was established in 2009 to supply howitzers and anti-mine vehicles to the Indian military.
The joint statement explained there have been crucial changes in the Indian defense industry environment and in customer procurement frameworks which led BAE to review its participation in the DLSI business.
The opportunity for future collaboration by BAE and Mahindra will still be possible after the partnership ends.