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Tata Group defence business records 7.5% growth

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

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).

At annual group leadership conference in 2014, chairman, Cyrus Mistry, identified defence and aerospace as one of four growth clusters for the group. This brought several group companies operating in allied spaces, work collaboratively.

"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 their customers," said Mukund Rajan, director, Tata Sons.

In the last five years the defence business of the group has seen compounded annual growth of 18%. Currently Tata Advanced Systems has the largest defence order book of Rs 4,400 crore in the group. It has partnered with global original equipment manufacturers for both local and overseas businesses. Over the last year, the company has achieved deliveries for customers like 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 has collaborated with TERMA to integrate and deliver surface surveillance radars for the Indian Navy.

Tata Power's Strategic Engineering Division has another large chunk of Rs 1,900 crore defence order in the group. The company has evolved into one of the largest Indian 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 which has mobility solutions from logistics to combat support for Indian army. The company currently has Rs 900 crore order book.