Mahindra & Mahindra (M&M) and BAE Systems today announced the naming and corporate structure for their land system focused joint venture defense company. Based in India, the company will be known as `Defense Land Systems India`. It is expected that the company will be up and running as a joint venture in the near future.

Deepak Chhibba and Arne Berglund will be Defense Land Systems India`s CEO and Deputy CEO respectively. Deepak Chhibba was earlier EVP International Operations Mahindra & Mahindra and has over 32 years industrial experience. The newly appointed deputy CEO, Arne Berglund, was previously a director at BAE Systems, Global Combat Systems, in the UK.Arne and has also worked in Singapore, Canada, Sweden and the United States with various BAE Systems and other joint venture companies.

Defense Land Systems India will highlight an extensive portfolio of defense products and services at India`s DefExpo 2010, Feb. 15-18 in New Delhi. A key project is the development of a mine protected vehicle specifically designed to meet the needs of the Indian armed and paramilitary forces. In addition, it is anticipated that Defense Land Systems India will be involved in a number of future artillery programs, with the ambition to become an artillery centre of excellence in India that covers not just manufacturing but development, testing and support.

Anand Mahindra, vice chairman and managing director, Mahindra Group, said, ``As a fully operational joint venture, Defense Land Systems India will bring real and lasting value to India`s growing defense industry.BAE Systems is the global number one land systems defense company. We are proud to have them as a partner in this joint venture and are confident of addressing the unique requirements of Indian defense and security forces with world class product offerings.``

Guy Griffiths, group managing director International, BAE Systems, said, ``This company is founded with the express purpose of serving the Indian armed forces and the Indian economy through the creation of high quality jobs, the development of innovative technologies and system integration skills, and benefits from the leadership of two world class companies. We firmly support the Indian Government's aim of procuring 70% of defense equipment domestically and see the establishment of this company as a major contribution towards this objective.``

Defense Land Systems India will be headquartered in New Delhi with manufacturing at a purpose built facility South of Faridabad, just outside of Delhi. Initially there will be about 100 employees and existing projects include the Axe high mobility vehicle as well as up-armored and bulletproof Scorpios, Boleros, Rakshak, Rapid Intervention Vehicles and the Marksman light armored vehicle.

Approved by the Foreign Investment Promotion Board of the Government of India (GoI), the parent companies` initial investment will be USD 21.25 million over a three year period. The company`s equity split will be 74% Mahindra and 26% BAE Systems, in accordance with the current defense sector Foreign Direct Investment regulations of the GoI.

Shares of the company gained Rs 6.7, or 0.68%, to trade at Rs 993.60. The total volume of shares traded was 166,647 at the BSE (1.56 p.m., Monday).