TVS Supply Chain Solutions (TVS SCS) announced a joint venture with Italy-based ALA Group, marking its entry into India’s aerospace and defence supply chain sector. TVS SCS will hold a 51% stake in the venture, while ALA Group will own the remaining 49%. The companies expect the partnership to generate cumulative revenue of over Rs 2,000 crore by 2031.
TVS Supply Chain Solutions will make the investment through its wholly-owned subsidiary, TVS Packaging Solutions. The company plans to invest up to Rs 10.19 crore in the venture, while ALA will invest up to Rs 9.80 crore. The transaction is expected to be completed by September 30.
JV to offer end-to-end aerospace and defence supply chain services
The joint venture will provide end-to-end supply chain solutions for the aerospace and defence sectors. Its services will include sourcing and supplying components, kitting and sub-assembly operations, imports, warehousing and deliveries.
TVS Supply Chain Solutions said the aerospace and defence supply chain business typically offers higher margins and stronger returns compared with traditional logistics segments.
The partnership follows a memorandum of understanding (MoU) signed earlier this year. According to the companies, they witnessed strong interest from several participants across the aerospace and defence ecosystem, prompting them to formalise the collaboration.
TVS SCS bets on India’s aerospace growth story
R Dinesh, Executive Chairman of TVS Supply Chain Solutions, said, “This joint venture marks our entry into the high growth and globally significant aerospace and defence supply chain market. 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.”
He added, “ALA brings deep domain expertise, strong global customer relationships and proven capabilities in specialised aerospace and defence supply chain solutions, which complement TVS SCS’ extensive network, digital capabilities and execution strength.”
Venture expected to turn profitable within a year
Vikas Chadha, Global Chief Executive Officer of TVS Supply Chain Solutions, said the sector requires stringent certification, compliance and traceability standards, creating demand for specialised supply chain capabilities.
“Given the specialised and high-value nature of this business, we expect the venture to become profitable within its first twelve months of operations and be a meaningful contributor to our growth and profitability in India,” he said.
About TVS Supply Chain Solutions
TVS Supply Chain Solutions, part of the TVS Mobility Group, is an India-based multinational company. It operates in 26 countries and serves more than 100 Fortune Global 500 customers. The company also has extensive experience in defence logistics through its work with the UK Ministry of Defence and leading defence contractors. The company claims that for the last two decades, they has managed large and complex supply chains across multiple industries in India and in key global markets through customised tech-enabled solutions.
About ALA Group
ALA Group brings more than 35 years of experience in aerospace and defence supply chain management. The Italian company supports global aerospace and defence programmes and serves customers across 40 countries through a network of more than 1,500 suppliers.
The companies said the joint venture will initially focus on India while evaluating opportunities in select international markets over time.
TVS Supply Chain Solutions share price
The share price of TVS Supply Chain Solutions ended at Rs 22.75, up 4.96% in the Wednesday trade. The stock has increased 15.64% in past six months.