Tata Advanced Systems Limited (TASL) and Tata Motors Limited (TML) will work together over the next several months to ensure smooth transfer of defence business to the former.
TML has completed the transfer of its defence business with effect from April 1, 2021 to TASL for a consideration of Rs 227.7 crore, which is subject to closing the balance sheet adjustments.
The transfer has been completed through a slump sale as per Scheme of Arrangement approved by National Company Law Tribunal (NCLT) at Mumbai and Hyderabad.
TASL, a wholly owned subsidiary of Tata Sons Pvt, is focused on providing integrated solutions for aerospace, defense and homeland security. The sale of its defence business to TASL is in line with Tata Group’s strategy of consolidating the defense businesses under a single entity to bring scale and synergy. TML will continue to play a significant role in the value chain by supplying chassis and aggregates to TASL for developing specialized defense applications, while continuing to supply pure civilian PVs and CVs to defense forces directly.
TASL will invest in enhancing design & development capabilities for expanding the global footprint and providing specialist, high value-added, futuristic solutions to defense customers in and outside India. The consolidation will yield benefits in the form of operational and financial synergies helping deliver better value for both the entities.
Tata Motors has been in the defence sector for several decades and currently has a wide portfolio of logistics, combat support and armoured vehicles for the defense, paramilitary and state police forces. In recent years, TML has also focused on developing modern armoured carriers and platforms such as Wheeled Amphibious Armoured Fighting Vehicles, Mine Protected and Light Armoured Multi-Role Vehicles.
TML has partnered the Indian defence establishment in various strategic programmes such as MRSAM, Aakash, Agni, BrahMos, etc. TML also exports its range of defence vehicles to SAARC, ASEAN, and African nations.
TASL is engaged in the strategic aerospace and defence sector. It has some key strategic engagements with some of the leading aerospace companies such as Boeing. With facilities near the Hyderabad International airport, it has engagements in missile, radar systems, aerospace and aero-structures, Unmanned Aerial Systems, and will now further expand its production capabilities.