Tata Group defence business expected to have 7.5% growth

Chairman Cyrus Mistry identified defence and aerospace as one of four growth clusters for the group

Tata Group said its revenue from defence and aerospace business is expected to have a 7.5 per cent annual increase to Rs 2,650 crore by the end of current financial year.

A significant number of Tata companies are currently engaged in defence and aerospace sector. These include – Tata Advanced Systems, Tata Advanced Materials, Tata Motors, Tata Power Strategic Engineering Division (SED), TAL Manufacturing Solutions, Tata Technologies, Tata Consultancy Services, Tata Steel, Tata Elxsi and Titan Company (Precision Engineering Division).

Read more from our special coverage on "TATA GROUP"

• Four Tata Group companies to raise $2.5 bn via foreign loans

At the annual group leadership conference in 2014, Chairman, Cyrus Mistry, identified defence and aerospace as one of the four growth clusters for the group. “As reflected in the cluster approach for the defence and aerospace sector, several of these companies already work collaboratively to provide convergent defence solutions and thus meet multiple requirements of customers,” said Mukund Rajan, director, Tata Sons.

In the past five years, the group's defence business has seen a compounded annual growth of 18 per cent.

Currently, Tata Advanced Systems has the largest defence order book of Rs 4,400 crore. It has partnered with global original equipment manufacturers for both local and overseas businesses. In last year, the company has achieved deliveries for Lockheed Martin, Sikorsky, Boeing, Pilatus, Cobham, RUAG and Rolls-Royce.

It has also partnered with Airbus defence & space to manufacture a complete fly-away C295 aircraft, and collaborated with TERMA to integrate and deliver surface surveillance radars for the Navy.

SED has another large chunk of Rs 1,900 crore defence order in the group. The firm has evolved into one of the largest private sector prime contractors with eligibility to participate in all MAKE and Make-like programmes of the Ministry of Defence.  

Another company, Tata Motors has established itself as a player having mobility solutions from logistics to combat support for the Army. The company has Rs 900 crore order book.