MUMBAI: The auto components arm of Indian utility vehicle maker Mahindra & Mahindra is in advanced talks with two Australian aerospace companies to make small aircrafts, the Mint reported on Tuesday.
The newspaper said Mahindra Systech is looking to acquire one aircraft component firm and is seeking a joint venture with the other to build eight and 14 seater planes, citing a senior group official.
"If we get it right, aerospace can do for Mahindra what Scorpio did," the paper quoted Hemant Luthra, president, systems and technologies at Mahindra & Mahindra as saying.
Scorpio is Mahindra's sport utility vehicle.
Luthra declined to name the Australian firms, but said one of them has been supplying components to Airbus and Boeing Co.
"If this deal goes through we will actually have something in hand that we can show the Boeings and Airbus of the world that this is our off-set capability," he told the paper.
Under India's off-set policy, foreign firms are required to source locally at least 30 percent of the value of defence equipment contracts exceeding 3 billion rupees, it said.
Luthra said the acquisition would be finalised in the first half of 2009, while the joint venture could be decided in a few weeks.
Mahindra & Mahindra could not be immediately reached for comment.