Tata Motors Limited (TML) has completed the transfer of its defence business to Tata Advanced Systems Limited (TASL) for an advance of Rs 227.7 crores. The transfer has been completed through a slump sale as per the scheme of arrangement approved by the National Company Law Tribunal (NCLT) at Mumbai and Hyderabad.
TML has been in defence sector for a long time and has an extensive holding of logistics, combat support, and armoured vehicles for the defence and paramilitary forces. The company has also channelised its focus on developing armoured carriers and platforms like wheeled amphibious armoured fighting vehicles, mine-protected, and light armoured multi-role vehicles.
TASL is a completely-owned subsidiary of Tata Sons and 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 amassing the defence businesses under a single entity to bring scale and synergy.
This will yield benefits in the form of operational and financial synergies, helping deliver better value for both entities. Over the next several months, TML and TASL will work in tandem to ensure a smooth transition of the defence business.