Mumbai (Maharashtra) [India], April 2 (ANI): Tata Motors Ltd (TML) has completed the transfer of its defense business to Tata Advanced Systems Ltd (TASL) for an initial consideration of € 227.7 million.
The transfer was completed through a downward sale according to the settlement plan approved by the National Company Law Court (NCLT) in Mumbai and Hyderabad.
TML has been in the defense sector for several decades and currently has a wide portfolio of logistics, combat support and armored vehicles for defense forces, paramilitaries and state police.
In recent years, the company has also focused on the development of platforms and armored platforms, such as amphibious wheeled armored vehicles, mine-protected vehicles and light armored multifunctional vehicles.
TML has partnered with the Indian Defense Establishment in various strategic programs such as MRSAM, Aakash, Agni and BrahMos. It also exports a range of defense vehicles to SAARC, ASEAN and African countries.
TASL, a wholly owned subsidiary of Tata Sons, focuses on providing integrated solutions for aerospace, defense and national security.
The sale of defense businesses to TASL is in line with the Tata Group’s strategy of consolidating defense businesses under a single entity to provide scale and synergy.
TML said it will continue to play a significant role in the value chain by supplying chassis and aggregates to TASL to develop specialized defense applications, while continuing to supply civilian passenger and commercial vehicles directly to the defense forces.
TASL will invest in improving design and development capabilities to expand the global footprint and provide specialized and high value-added futuristic solutions to defense clients inside and outside India.
The consolidation will generate benefits in the form of operational and financial synergies, which will help to provide better value for both entities. Over the next few months, TML and TASL will work closely to ensure a smooth transition from the defense business. (ANI)