Tata Group looks set to double its defence revenue in the next 5-7 years

Tata group's revenue from defence & aerospace is about Rs.2650 crore, an increase of 7.5% from last year The Dollar Business Bureau

Tata Group looks set to double its revenue in next 5-7 years

Last week, Tata Group signed agreements with Bharat Forge and General Dynamics Land Systems (GDLS) to manufacture FICVs (Fighting Infantry Combat Vehicle) for the armed forces

With the government making attempts to reduce arms imports and boost defence manufacturing in the country under the Prime Minister-led Make in India initiative, Tata Group - one of India’s major defence manufacturers and exporters – looks set to more than double its revenue to about $1 billion over the next five to seven years. Tata group, which forayed into defence manufacturing business in 1958, has been able to achieve a limited success. But after the government brought back its focus on domestic defence manufacturing with an aim to cut down its import bill, Tata’s defence segment looks to cash on the opportunities suddenly available in the Indian defence industry. The company’s revenue from its defence segment has cloaked a CAGR (Compound Annual Growth Rate) of 18% in the last five years, and a growth of 7.5% since 2014. “Tata group’s revenue from the defence and aerospace business has grown at a compound rate of 18% in the last 5 years,” Tata Group said in a tweet on Wednesday. “Tata group's revenue from defence & aerospace (is) about Rs.2650 crore, an increase of 7.5% from last year,” it said in a series of tweets. India, currently the world’s largest importer of defence equipment, intends to modernise its defence sector with an investment of $100 billion. The government has reiterated that it would prefer to invest this amount in the domestic market rather than import ships, planes and weapons. Tata Group has so far cooperated with many domestic and international companies including Boeing, Sikorsky and Honeywell to develop high-end defence articles. Last week, the company signed agreements with Bharat Forge and General Dynamics Land Systems (GDLS) to manufacture FICVs (Fighting Infantry Combat Vehicle) for the armed forces. Tata group companies currently engaged in the defence and aerospace sector are TAL Manufacturing Solutions, Tata Advanced Materials, Tata Advanced Systems Ltd (TAS) and its subsidiaries, Tata Consultancy Services Ltd., Tata Elxsi Ltd., Tata Motors Ltd, Tata Power Strategic Engineering Division, Tata Steel Ltd. and Tata Technologies. Its defence segment focuses on aerospace, electronic warfare systems, homeland security systems, integration of C4I (command, control, communications, computers and intelligence), manned and unmanned platforms, missiles, mobility solutions and radars. In 2014, India had increased foreign direct investment (FDI) limit in defence sector to 49% from its earlier 26%.

March 17, 2016 | 04:10pm IST

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The Dollar Business Bureau - Mar 17, 2016 10:36 IST

Tata Group looks set to double its defence revenue in the next 5-7 years

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