Tata Motors sells defense business to Tata Advanced Systems for $31m
Tata Motors Limited (TML) has wrapped up the sale of its defense business to Tata Advanced Systems Limited (TASL) for INR2.27 billion ($31 million).
The transfer of the business was executed via a slump sale as per scheme of arrangement approved by National Company Law Tribunal.
Tata Motors has been active in the defense sector for a number of years, and presently it has a portfolio of logistics, combat support, and armored vehicles for the defense, state police, and paramilitary forces.
The Indian automotive manufacturer in recent years has also concentrated on developing armored carriers and platforms like wheeled amphibious armored fighting vehicles, mine protected and light armored multi-role vehicles.
On the other hand, Tata Advanced Systems, a fully-owned subsidiary of Tata Sons, delivers integrated solutions for aerospace, defense, and homeland security.
Tata Motors sells defense business to Tata Advanced Systems for $31m. Photo courtesy of Tumisu from Pixabay.
Tata Motors stated: “The sale of Defense 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.”
Tata Advanced Systems is expected to invest in improving the design and development capabilities for growing the global presence and offering futuristic solutions to defense customers in India and overseas.