Tata Motors sells defense portfolio to Tata Advanced Systems Ltd

Date: 2018-05-06   Author: Saipriya Iyer  Category: #industry

Tata Motors sells defense portfolio to Tata Advanced Systems Ltd

The Board of directors at Tata Motors have apparently declared that they have approved the sale of the company’s defense unit to Tata Advanced Systems (TASL). The sale deal however will not be including civilian vehicles, claim authentic sources.

According to The Economic Times, Tata Motors has delivered nearly 1.5 lakh vehicles to the Indian Army. Reportedly, the company is expected to accrue proceeds worth nearly INR 100 crore from the transaction. Furthermore, the Board has also approved the sale of its stake in the wholly-owned segment of TASL referred as TAL Manufacturing Solutions at an estimated amount of INR 625 crore. As per the terms & conditions of its sale deal with TASL, Tata Motors is likely to obtain the non-aerospace business of TAL for INR 10 lakh – in alignment with Tata Motors’s plan of promoting Turnaround 2.0.

The company’s current move is expected to help the Tata Group expand its defense activities by influencing the economies of scale and reinforcing the aviation & defense unit at the group level. The firm is forecast to use the proceeds from the deal to monetize non-core assets, thereby minimizing the overall debt.

Guenter Butschek, the Managing Director of Tata Motors, has proclaimed that the firm has been a key partner of the Defense Ministry of India and will continue to provide it with civilian logistics vehicles. He further stated that the recent defense portfolio had limited scope and it was the need of the hour to upscale the same, which has led to the firm’s decision of selling its defense segment to TASL.

The key officials of Tata Motors Limited (TML) are of the view that TASL has the ability to handle bigger & more complicated defense projects and is highly competitive across the defense market in India. The MD of TML asserted that the firm’s decision to divest from TAL Aerospace was based on the fact that the latter’s business activities were non-core to Tata Motors



About Author


Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

Hemoglobin Testing Devices Market by Growth Factors Analysis and Opportunities Analysis to 2025

Author: Rahul Varpe

A highly analytical qualitative as well as quantitative evaluation of the Hemoglobin Testing Devices Market has been covered in this report. The study evaluates the myriad aspects of this industry by taking into consideration its historical and fo...


Rat Model Market to 2028 - Development Status and Application Analysis

Author: Rahul Varpe

An extremely definite evaluation of the Rat Model Market in terms of qualitative as well as quantitative analysis has been covered in this report. The myriad aspects of this industry, having considered its historical and forecast data have been en...


Electrosurgical Generators Market - Regional Outlook and Competitive Strategies to 2025

Author: Rahul Varpe

The report overall depicts the potential opportunities for the Electrosurgical Generators Market till the year 2025 based on SWOT analysis, growth strategies by the major vendors prevalent in the current scenario, surveys highlighting the current ...