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Mahindra enters RAK armored cars venture
Demand for secure vehicles continues to grow across Middle East, Africa and Central Asia.
June 19, 2010 10:18 by Samuel Potter
Indian conglomerate Mahindra & Mahindra will hold a 51 percent stake in a joint venture in Ras Al Khaimah that sells armored cars to the region, reports Gulf News.
Ras Al Khaimah Transport Investments and Arabia Holdings has signed an agreement with M&M subsidiary Mahindra Overseas Investment Company Mauritius to provide armouring services to African, West Asian and Central Asian markets, the paper says.
M&M, through its mahindra defence division, brings years of experience in the design and development of ballistic kits for vehicle protection. The conglomerate itself is a big hitter, with an estimated value of around $7 billion.
The new company will cater to the “high potential markets of West and Central Asia as well as Africa”, the firms said. Ras Al Khaimah was chosen as the venture’s base as it provides a low cost of manufacturing in the free zone and is geographically close to the Gulf countries, Africa and the Asian sub-continent, thus ensuring easy access to these markets, the company said.
The Gulf News says that the Middle East, Africa and Central Asia have all witnessed growing demand for armored vehicles for commercial and personal use. International brands such as Mercedes, Renault and Rolls-Royce make good incomes from retailing custom made vehicles for security conscious individuals. Demand for cash delivery vehicles has also been rising since 2001.