Tata Motors Limited (TML) announced the complete transfer of its Defense business with effect from 1 April 2021 to Tata Advanced Systems Limited (TASL) Ltd for an upfront consideration of INR 227.7 Crores. The move is in line with the Tata Group’s strategy of consolidating the defense businesses under a single entity. TASL, a wholly owned subsidiary of Tata Sons Pvt., is focused on providing integrated solutions for aerospace, defense and homeland security.
“TML has been in the defense 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 state-of-art armoured carriers & platforms such as Wheeled Amphibious Armoured Fighting Vehicles, Mine Protected and Light Armoured Multi-Role Vehicles. TML has partnered the Indian defense establishment in various strategic programs such as MRSAM, Aakash, Agni, BrahMos, etc. TML also exports its range of defense vehicles to SAARC, ASEAN, and African nations,” says the TML release.
TML will now be confined to supplying chassis and aggregates to TASL for developing specialized defense applications. However, Tata Motors while continuing to supply pure civilian Passenger Vehicles’s and Commercial Vehicles’s to defence forces directly.
On 8thMarch, TML had announced hiving off its Passenger Vehicle business unit to TML Business Analytics Services Ltd. TATA’s plan to bring in a strategic partner in order to help the unit secure its long-term viability.