The Indian Govt. had put an offset clause on a $15 b, 111 aircraft deal signed in 2005 by national carrier Air India with Boeing and European manufacturer Airbus. Boeing also last year signed a $2 bn deal with the Govt. to supply eight long-range maritime recce and anti-submarine warfare P-8I aircraft to the Indian Navy with offset clause.
In 2009, Mahindra had purchased 75.1% stake in two Australian aerospace companies--Gippsland Aeronautics and Aerostaff Australia--for a total of 1.75 b INR($37.9 m) to expand its aircraft and aerospace-component manufacturing capabilities in Australia.
The company plans to establish an aerospace facility in India, possibly in the South Indian State of Karnataka.
Mahindra Systech's component manufacturing units include Mahindra Aerospace Pvt. Ltd, as well as Mahindra Forgings Ltd, Mahindra Composites Ltd and Mahindra Ugine Steel Co Ltd.
Read the full Report: Boeing-Mahindra Deal for Aerospace Components