The group's chief of strategy, Shiprakash Shukla said its small aircraft is ideal to take smaller groups of tourists looking for quick and easy access to destinations.
Mahindra Aerospace, the aircraft manufacturing arm of the Mahindra group has five, eight and ten seat single engine light aircraft already operate in the Middle East and Australia.
"Tourism industries all over the world go for smaller aircraft. Smaller aircraft doesn’t mean small range," Shukla said.
"Very often you have smaller groups of five, eight or ten people who may wish to go from place A to B or even within South Asia from southern India to Sri Lanka or from Sri Lanka to Maldives.
"A large aircraft is not economical as you may not have a group of 100 to 150 to ferry in one go," he said.
Mahindra Aerospace's GA8 Airvan, made by its Australia based unit GippsAero has already made inroads into Sri Lanka with the island's Deccan Aviation taking delivery of the first aircraft.
The company says the aircraft ruggedly built and can land on unpaved runaways. The piston-engined aircraft is competing in a market niche, just below slightly larger and more expensive turboprop aircraft.
The model has been put to many uses including as air-ambulances and for adventure activities like parachuting and skydiving.
The company is currently working on two turbo prop configured models, the GA10, a turboprop derivative of the GA10, and GA18 based on a different design, which have higher seat capacity.
Sri Lanka's Deccan Aviation has already taken delivery of the first Mahindra built GA8 Airvan, an 8 seat rugged aircraft which can land on unpaved runways.
Gipps Aero has appointed Ideal Favourite Aviation in Sri Lanka as the marketing and sales agent in Sri Lanka.
"The government is now pursuing an open sky policy and putting together infrastructure for domestic airlines and airports," Nalin J Welgama, chairman, Ideal group said.
"These aircrafts are completely duty free, so a Mercedes Benz or a BMW car which attracts a 300 percent duty would probably cost more," Welgama said.
The 15.4 billion dollar Mahindra group which has a presence in Sri Lanka's automobile and agrarian sector also announced its plans to foray into two-wheelers and vehicle finance.
Mahindra says it enjoys a market share of over 50 percent for its pick up category of Bolero single cab flat bed, Bolero Maxxi truck, Scorpio double cab and single cab.
Mahindra's Maxximo mini truck has a market share of over 40 percent, the company said.