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The global trend toward mine-resistant patrol vehicles actually added India back in the late 1990s, when it began to buy used South African Casspir vehicles. India ended up buying 165 Casspirs from 1999-2001, and they have seen extensive use in Jammu and Kashmir. The Casspir can be thought of with some justification as “the original MRAP,” and still serves with a number of national armies (South Africa, Djibouti, India, Indonesia, Namibia, Peru) as well as with private firms like Mechem De-mining.
The Casspirs India bought began production in 1979-1980, however, and many have served for a long time now. Even refurbished vehicles won’t last forever, and India’s Maoist Naxalites have demonstrated both signs of both informal co-belligerency with Islamist terrorists, and signs of cooperation further up the supply chain. With bomb-making skills spreading globally, and IED land mines a growing choice around the world, might there be an opening for an Indian MRAP program? BAE Systems thought so, hence its DLSI joint venture with Mahindra.
Contracts & Key Events
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It isn’t hard to see why BAE Systems would regard this as a win-win scenario. The firm also sells the more advanced RG-33 family and the FMTV-derived Caiman vehicles under the US MRAP program, and the RG-32M is in service with Sweden, the UN, Egypt, et. al. The danger of market cannibalization was low, while a partnership with India offered the prospect of new markets for its Casspir and RG-31 technology.
Unfortunately, there weren’t a lot of announcements focused on orders or market success. Hence the shutdown of the joint venture arrangement. Mahindra will be able to continue selling vehicles it has developed, and will also be free to explore other partnerships and opportunities in the military land vehicle market.
Feb 8/13: JV dissolved. Defence Land Systems India is dissolved by mutual agreement. Mahindra:
“Following [the strategic review], it has been jointly agreed that Mahindra & Mahindra will acquire BAE Systems’ 26 per cent shareholding in the entity. This decision is a reflection of the shareholders’ belief that they can best meet emerging customer requirements and address the opportunities in this dynamic market with a flexible, tailored approach that was not easily facilitated by the structure of the existing Joint Venture entity.
This decision will enable both companies to consider each opportunity on a case by case basis, including continuing to explore opportunities for co-operating on specific defence projects.”
End of the DLSI JV
Jan 23/13: Under review. Mahindra:
“Since the establishment in 2009 of the Mahindra & Mahindra (74%) and BAE Systems (26%) Joint Venture, Defence Land Systems India (DLSI), both shareholders recognise that significant evolution has occurred in the Indian Land Systems market. Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to institute a strategic review of the business. This review will assess any changes necessary to address the evolving market and to meet emerging customer requirements. No decision has yet been taken on the way forward.”
Aug 25/11: The Defence Land Systems India joint venture between Mahindra & Mahindra and BAE Systems Plc hands over 6 “Mine Protected Vehicle India” (MPV-I) to Jharkhand’s Police, marking the beginning of serial production of the blast-resistant vehicles from its Prithla plant, near Faridabad.
The joint venture reportedly expects to sell 20-25 vehicles this fiscal year, and another 100 or so next year, with police forces as their main customer. India’s Naxalite (Maoist) insurgency doesn’t get a lot of attention, but it’s a very widespread and serious problem, and is arguably ahead of even Islamic terrorism in driving security requirements within India.
Beyond MPV-I (Casspir Mk6) sales, DLSI was 1 of 4 companies identified for the Indian Army’s future infantry combat vehicle, and is “looking at design and development of artillery systems.” Mahindra & Mahindra | India’s Business Standard | India’s Economic Times.
MPV-I delivery
Aug 17/11: Casspir Mk6. BAE Systems Land Systems OMC unveils the Casspir Mark 6. Unlike previous Casspirs, the MK6 uses the engine, transmission, transfer box and the rear part of the chassis of the Russian Gaz Ural truck. This was an Indian idea, and reportedly cuts the price by 33%, while retaining the Casspir’s protective design. The basic MK6 also moves to 6-wheel drive from 4-wheel drive, though it also comes in a smaller 4×4 model.
The MK6 will be produced by the Defence Land Systems India (DLSI) joint venture, and will be known as the Mine Protected Vehicle – India (MPV-I) there. The MPV-I is actually slightly different in its internal layout, and is aimed primarily at the police forces of the various Indian states. South Africa’s Engineering News.
Jan 7/09: JV. Following approval from the Government of India’s Foreign Investment Promotions Board, Mahindra & Mahindra and BAE Systems announce a Joint Venture (JV) in India focused on land systems for the Indian market. In accordance with current Foreign Direct Investment regulations, the equity split will be 74% for Mahindra & Mahindra and 26% for BAE Systems.
The firms will now finalize detailed planning and structural arrangements, with a view to commencing JV operations as early as Q2 2009. The firm will be headquartered in Delhi, with manufacturing in Faridabad and an initial staff of 50-60 people. The release mentions that initial work is likely to include the up-armoring of Rakshak vehicles and Axe vehicle production, but adds that the firms are expected to begin developing a mine resistant ambush protected vehicle suitable for India BAE release.
The “Axe” is a light, all-terrain jeep with open sides and little mine protection, developed by Mahindra & Mahindra and marketed to India and Israel [Ma’ariv report, in Hebrew] as a special forces vehicle. The Rakshak is another Mahindra vehicle, developed for protected police and paramilitary type work, and up-armored by Israeli armor firm Plasan Sasa.
JV established
Feb 12/08: Discussions begin. BAE Systems announces that it is in discussions with Mahindra Defence to jointly develop an Indian mine protected vehicle based on BAE Systems’ RG-31 mine protected vehicle.
The RG-31 also serves with many militaries around the world, and over 1,000 have been ordered by the USA as part of its MRAP program and earlier efforts.
