Mumbai (Maharashtra) [India], April 2 (ANI): Tata Motors Ltd (TML) has completed the transfer of its defence business to Tata Advanced Systems Ltd (TASL) for an upfront consideration of Rs 227.7 crore.
The transfer has been completed through a slump sale as per scheme of arrangement approved by National Company Law Tribunal (NCLT) at Mumbai and Hyderabad.
TML has been in the defence sector for several decades and currently has a wide portfolio of logistics, combat support and armoured vehicles for the defence, paramilitary and state police forces.
In recent years, the company has also focused on developing armoured carriers and platforms like wheeled amphibious armoured fighting vehicles, mine protected and light armoured multi-role vehicles.
TML has partnered with Indian defence establishment in various strategic programmes like MRSAM, Aakash, Agni and BrahMos. It also exports a range of defence vehicles to SAARC, ASEAN and African nations.
TASL, a wholly-owned subsidiary of Tata Sons, is focused on providing integrated solutions for aerospace, defence and homeland security.
The sale of defence business to TASL is in line with Tata Group's strategy of consolidating the defence businesses under a single entity to bring scale and synergy.
TML said it will continue to play a significant role in the value chain by supplying chassis and aggregates to TASL for developing specialised defence applications while continuing to supply pure civilian passenger and commercial vehicles to defence forces directly.
TASL will invest in enhancing design and development capabilities for expanding the global footprint and providing specialist, high value-added, futuristic solutions to defence customers in and outside India.
The consolidation will yield benefits in the form of operational and financial synergies, helping deliver better value for both the entities. Over the next several months, TML and TASL will work closely to ensure smooth transition of the defence business. (ANI)