M&M Gains on Aerospace Deal With Airbus

Sharemasterindia.com: Shares of Mahindra & Mahindra (M&M) gained on Tuesday after its subsidiary clinched a contract from aircraft manufacturer Airbus at the Paris Air Show.

Mahindra Group subsidiary Mahindra Aerospace bagged a multi-year contract to manufacture aero-components. The value of the contract was not disclosed. The Mahindra group had set up its utility aircraft and aerostructure manufacturing operation with Mahindra Aerospace in 2008.

"This is significant as a vote of confidence in Make in India...as well as a vote of confidence in Mahindra," said Anand Mahindra, chairman and managing director of M&M. "Getting such a contract is a lengthy process which takes a lot of cooking and brewing and this implies Mahindra is now in the inner circle of suppliers," he said.

The contract will involve a variety of Mahindra-produced metallic components to be fitted into several Airbus aircraft programmes.

At 9:33 a.m., M&M shares were up 0.60 per cent as compared to a 0.30 per cent decline in Sensex.