Tata Motors to sell defence, aerospace business to Tata Advanced Systems

Also Tata Motors holding in TAL Aerospace Solutions will be  sold to TASL at an enterprise value of Rs 625 crore. The operating revenue of the aerospace business in FY17 was Rs 228.8 crore while its net worth during the same year stood at Rs 82.4 crore.

Guenter Butsheck, managing director and chief executive officer, Tata Motors said, “On our transition to a full range combat vehicle player, we realised that our current portfolio is small and we need scale to unlock its true potential. We believe Tata Advanced Systems will be better equipped to execute larger and more complex projects and be more globally competitive as part of the larger Tata Group."

“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.

This is in line with Tata Motors’ plan to drive Turnaround 2.0, take necessary steps to further its defence 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, Tata Motors said in a statement