Tata to consolidate its defence, aerospace business under Tata A&D
The move is in line with Tata Sons chairman N. Chandrasekaran’s business restructuring plans to simplify the holding structure of the group and allocate capital more efficiently
Mumbai: Tata Sons Ltd has said it is consolidating its various businesses across the aerospace and defence verticals under Tata Aerospace and Defence (Tata A&D).
The firm is currently in the process of obtaining the necessary statutory and regulatory approvals, Tata Sons said in a note on Wednesday, 11 April.
Tata A&D proposes to leverage the full range of expertise, experience, and capabilities from across the group, related to land mobility solutions, aerospace, weapon systems, sensors, and command, control, communication, computers and intelligence (C4I), it added.
The range of integrated solutions provided by Tata A&D would include land mobility solutions, airborne platforms and systems, weapon systems, sensors and computers and intelligence.
“Subsequent to the consolidation, Tata A&D will draw synergies from entities across the group, including Tata Motors Ltd’s defence division, TAL Manufacturing Solutions Ltd (a subsidiary of Tata Motors), Tata Power’s strategic engineering division, Tata Advanced Materials Ltd, and Tata Advanced Systems Ltd,” the note said.
In February, Mint had reported, citing a person with direct knowledge of the matter, that Tata Sons Ltd chairman N. Chandrasekaran planned to consolidate the group’s disparate defence businesses into a single entity called Tata Defence, which was expected to emerge as the country’s largest defence firm.
Tata Defence, instead of just supplying products to the armed forces, will provide complete solutions including attire and gear, the Mint report said.
“It is proposed that Tata A&D will also be deeply invested in the development of indigenous platforms uniquely suited for the Indian defence forces, which is central to Tata A&D’s long-term strategy,” the company statement said.
“In addition to the growing list of joint ventures and collaborations with leading global equipment manufacturers, Tata A&D proposes to bring together over 6,000 employees, and have production facilities in the states of Telangana, Karnataka, Jharkhand, and Maharashtra,” it added.
The steel-to-autos conglomerate plans to classify group companies into 7-8 sectors rather than the over 100 operating companies right now.
The move is in line with Chandrasekaran’s objective of simplifying the holding structure of the group and allocating capital more efficiently.
The plan will help the 150-year-old conglomerate which boasts of an expansive presence from steel and automobiles to technology and infrastructure, to become more agile and strengthen its presence in the existing segments.
“The formation of Tata A&D, a single unified entity, will allow us to better target emerging opportunities in Aerospace and Defence, and engage holistically with customers both in India and globally,” Chandrasekaran said in the statement.
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