The salt to software conglomerate Tata Group plans to consolidate its various businesses in the aerospace and defence sector under one unit—Tata Aerospace & Defence (Tata A&D)—a move it feels will help the group better target opportunities in the sector, and also execute larger projects.
Tata A&D proposes to leverage its full range of experience and capabilities, from across group companies related to land mobility solutions, aerospace, weapon systems, sensors and command, control, communication, computers and intelligence, it said on Tuesday.
The move is part of a broader plan to simplify the management and organisational structure of the Tata Group, as outlined by N. Chandrasekaran, who took charge as the chairman of Tata Sons in February 2017.
"The formation of Tata A&D, a single unified entity, will allow us to better target emerging opportunities in aerospace and defence, and engage holistically with customers both in India and globally," said Chandrasekaran.
Currently, several Tata Group companies are engaged in aerospace and defence as a part of their individual businesses.
Tata A&D will combine synergies from Tata Motors' defence division, TAL Manufacturing Solutions, Tata Power strategic engineering division, Tata Advanced Materials and Tata Advanced Systems.
"Tata A&D will be better equipped to execute larger and more complex projects, and be more globally competitive as a part of the global supply chain," said Banmali Agrawala, president infrastructure and defence and aerospace at Tata Sons.
Tata A&D plans to be deeply invested in the development of indigenous platforms for India's armed forces,which the company says is central to its long-term strategy.
It aims to bring together over 6,000 employees and have production facilities in Maharashtra, Telangana, Karnataka and Jharkhand.