TATA Motors Limited (TML) has completed the transfer of its Defence business with effect from 1 April 2021 to TATA Advanced Systems Limited (TASL) for an upfront consideration of Rs 228 Crores. 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. TASL, a wholly-owned subsidiary of TATA Sons which primarily focuses on providing integrated solutions for aerospace, defence, and homeland security.
TML has been in the defence sector for several decades having a wide portfolio of logistics, combat support, and armored vehicles for the Defence, Paramilitary, And State Police Forces. It will continue to play a significant role in the value chain by supplying chassis and aggregates to TASL for developing specialized defence applications.