CHENNAI: TVS Supply Chain Solutions on Thursday announced the formation of a joint venture with ALA Group, an Italy-based aerospace and defence supply-chain integrator, to address opportunities in India’s fast growing aerospace and defence sectors.
TVS SCS will hold a 51 per cent stake in the JV, while ALA will own the remaining 49 per cent. The JV is expected to emerge as a significant growth driver for TVS SCS in India, with cumulative revenues projected to exceed Rs 2,000 cr by 2031.
Following the signing of a Memorandum of Understanding earlier this year, TVS SCS and ALA Group saw active interest from multiple industry participants across the aerospace and defence ecosystem.
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.
R Dinesh, executive chairman, TVS Supply Chain Solutions, said, “This joint venture marks our entry into the high growth and globally significant aerospace and defence supply chain market."
He further added, “together, we are building a scalable and future ready platform for global aerospace and defence companies to serve Indian requirements for both the aerospace and defence sectors.”
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 programmes and expanding global partnerships. Through this partnership with TVS SCS, we will be well positioned to support the evolving requirements of our global customers in India.”
The joint venture will specialise in end-to-end integrated supply chain solutions including sourcing and supply of aerospace and defence components. India’s defence logistics market is expected to grow at a CAGR of around 8.6 per cent.