3 May, 2018
Tata Motors Ltd (TML), a leading global automotive company providing smart mobility solutions across commercial and passenger vehicles, announced today that its Board has approved, subject to the requisite regulatory and other approvals, the following:
This is in line with Tata Motor’s plan to drive Turnaround 2.0, take necessary steps to further its defense business by leveraging the scale and strengths of the unified aerospace and defense entity at the Group level, while monetizing its non-core assets to reduce net-debt.
Speaking on the two strategic deals, Guenter Butschek, CEO & MD, Tata Motors said, "Tata Motors has been a strategic partner to the Indian Ministry of Defence in defence mobility solutions for several decades. We will continue providing civilian logistics vehicles to the Defence customers. On our transition to a full range combat vehicle player, we realized that our current portfolio is small and we need scale to unlock its true potential. We believe Tata Advanced Systems Limited will be better equipped to execute larger and more complex projects and be more globally competitive as part of the larger Tata Group. Therefore we have decided that it is in our best interests to sell this part of the business to Tata Advanced Systems Limited and participate in the future growth of this business through a revenue share agreement.’
"Also, TAL Aerospace Solutions is a non-core business to Tata Motors. We have been working on charting our next phase of growth and would like to use the opportunity of consolidation at Group level to monetize our investment in this area." added Guenter.
Tata Motors Defence
Tata Motors has been associated with the country’s off-road defence and security forces, since 1958 and has supplied over 1,50,000 vehicles to the Indian Military and Paramilitary forces, so far. The company offers products and services that not only meet the needs of the domestic market, but are also positioned to meet most stringent requirements across the world. Tata Motors exports its range of specialized defence vehicles to the SAARC, ASEAN and African regions. With Tata Motors’ rich portfolio in multi-axle range like 12×12, 8×8 & 6×6, the company has started supplying to leading Missile OEMs across the world. The company has also established itself as a supplier of specialist vehicles for UN peacekeeping missions. Tata Motors’ range of off-road vehicles are also being procured by the agencies involved in AID & Development, across the world like GSA, KBR, Oxfam, RONCO, RA International & Riders.
TAL Aerospace Solutions
TAL, a TATA Enterprise, is a wholly owned subsidiary of TATA Motors and is one of the leading companies in India, wherein its automotive and heavy engine range business has been successfully delivering manufacturing solutions for over 40 years to customers and more recently, to Robotics, Aerospace and Defence sectors. TAL has been structured to deliver solutions through its three business units: a) Aerospace Business Unit – with a focus on manufacture of precision components including exotic materials and composites and assemblies for aero-structures, b) Robotics And Automation – Robots and cost effective automation solutions and c) Manufacturing Solutions – Integrated Manufacturing Systems Division, Machine Tool Division and Hydraulic Solutions (b & c collectively – the non aerospace business). Telco Automation Limited (TAL) was formed in 2000, by merging two mother divisions of TATA Motors – Machine Tools and Growth. The ones that designed and built the machines, equipment and automation requirements of TATA Motors, during its setup of manufacturing facilities. This model was followed by TATA Motors in the 1960’s and 70’s, to ensure lower cost of capital acquisition by minimizing imports of such machines and equipment and thereby build vehicles at prices that were affordable to Indian customers.
About Tata Motors
Tata Motors Limited, a USD 42 billion organisation, is a leading global automobile manufacturer of cars, utility vehicles, buses, trucks and defence vehicles. As India’s largest automobile company and part of the USD 100 billion Tata group, Tata Motors has operations in the UK, South Korea, Thailand, South Africa, and Indonesia through a strong global network of 76 subsidiary and associate companies, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. In India, Tata Motors has an industrial joint venture with Fiat. Engaged in engineering and automotive solutions, with a focus on future-readiness and a pipeline of tech-enabled products, Tata Motors is India’s market leader in commercial vehicles and among the top in passenger vehicles with 9 million vehicles on Indian roads. The company’s innovation efforts are focused on developing auto technologies that are sustainable and well suited. With design and R&D centres located in India, the UK, Italy and Korea, Tata Motors strives to pioneer new products that fire the imagination of GenNext customers. Abroad, Tata cars, buses, and trucks are being marketed in Europe, Africa, the Middle East, South and South East Asia, South America, Australia, CIS, and Russia.