Anand Mahindra, Managing Director and Vice Chairman of the Mahindra group said that the company is planning to invest Rs. 2.5 billion in the aerospace business. He was making this announcement in Bangalore while inaugurating the newly built Mahindra & Mahindra (M&M) plant.

The new plant has been developed so as to manufacture New Mahindra Scorpio.

Anand also said that the out of the total money kept aside for the aerospace venture, Rs. 1.5 billion will be spent in the aircraft component manufacturing side while the rest of it will go for the aircraft manufacturing business. All these, he said, are the ways in which M&M wants to grow in this venture through the inorganic route.

While talking to the media, Anand Mahindra said that inorganic growth has never been out of preview and whenever apt opportunities have shown themselves, the company has grabbed them. And now, they are going the consolidation way.

It was in December that M&M bought majority stake in two Australian firms that dealt in aerospace component making. It did so along with Kotak Private Equity. Name of the two firms was- Aerostaff Australia and Gippsland Aeronautics.