and Italy’s ALA Group have partnered to build an & defence supply chain platform in India. In the JV, the Chennai-based TVS SCS will have a 51 per cent stake and the rest will be held by the Italian company, and start with an investment of €2 million, said R Dinesh, Executive Chairman, TVS SCS.
TVS Packaging Solutions Private Limited, a subsidiary of TVS SCS and has insignificant turnover, will be revived and used to undertake the projects for the newly formed JV, said sources.
The proposed investment of around ₹10 crore in TVS Packaging is intended to support business expansion initiatives and execution of definitive agreements with A.L.A Corporation for collaboration and development of opportunities in India’s aerospace and defense sectors, says a stock exchange filing
The JV is targeting cumulative revenues in excess of ₹2,000 crore in 3-5 years, Dinesh told newspersons on Thursday.
The JV announcement was following the signing of a Memorandum of Understanding earlier this year with TVS SCS and ALA Group witnessing strong engagement and active interest from multiple industry participants across the aerospace and defence ecosystem, said Dinesh.
The JV will initially focus on opportunities in India, while TVS SCS and ALA will continue to evaluate opportunities to support aerospace and defence supply-chain requirements across select international markets over time, said Dinesh, Executive Chairman, TVS Supply Chain Solutions.
The JV also marks TVS SCS’ entry into the high growth and globally significant aerospace and defence supply chain market, which is estimated at around $12 billion. India is emerging as one of the most important growth engines for the global aerospace and defence industry, driven by localisation initiatives, strategic investments and expanding international collaborations between India and key global aerospace and defence ecosystems, he added.
Dinesh said TVS supply chain has a strong focus in the UK in the defence business with around 30 per cent of revenues coming from that sector in the UK. “As we were looking at how we expand and how we grow in the Indian context, the aerospace sector was something which was a very good sector for us to look at. The JV will help us in this,” he said.
Vittorio Genna, Vice President and Co-Founder, ALA Group, added, “India is one of the world’s fastest-growing aerospace and defence markets, driven by increasing defence modernisation.
ALA Group as a specialised aerospace and defence supply-chain integrator, supporting leading OEMs, MROs and defence programmes across Europe, North America and selected international markets. ALA operates a global network of commercial offices and logistics and kitting facilities, supporting major global aerospace and defence platforms and programmes. The various players in this sector are, Airbus, Boeing, Dassault Aviation, Safran Group, Rolls-Royce, Collins Aerospace and Thales Group, said Genna. “Through the JV, we are entering the Indian market, which is one of the most significant markets,” he added.
ALA is the only company in the Aerospace & Defence sector to track and certify products with legally binding value using patented Instant Automatic Certification technology worldwide, he added.
Genna said ALA reported revenues of Euro 350 million with a significant portion of it coming from Europe followed by the US and South East Asia.