TVS Supply Chain Solutions Ltd (TVS SCS), the Chennai-headquartered global supply chain solutions provider and part of the TVS Mobility Group, has formed a joint venture with Italy-based aerospace and defence supply-chain integrator ALA Group to tap opportunities in India’s $28 billion rapidly growing aerospace and defence sectors.
Under the agreement, TVS SCS will hold a 51% stake in the joint venture, while ALA Group will own the remaining 49%. The venture is expected to become a significant growth driver for TVS SCS, with cumulative revenues projected to exceed ₹2,000 crore by 2031.
The partnership combines TVS SCS’ logistics network, digital capabilities and execution expertise with ALA Group’s specialised aerospace and defence supply-chain experience and global customer relationships.
Focus on aerospace and defence
The joint venture will initially focus on opportunities in India, while the partners will also explore opportunities to support aerospace and defence supply-chain requirements in select international markets over time.
The venture will provide end-to-end integrated supply chain solutions, including sourcing and supply of aerospace and defence components, kitting and sub-assembly operations, consolidation, imports, warehousing and last-mile delivery.
“This joint venture marks our entry into the high-growth and globally significant aerospace and defence supply chain market,” said TVS Supply Chain Solutions Executive Chairman R. Dinesh.
“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. Together, we are building a scalable and future-ready platform for global aerospace and defence companies to serve Indian requirements,” he said.
Riding India’s defence growth
The partnership comes amid rising investments in defence modernisation and increasing participation of global manufacturers in India’s aerospace ecosystem. India’s defence logistics market is estimated to grow at a compound annual growth rate of about 8.6%.
“India is one of the world’s fastest-growing aerospace and defence markets, driven by increasing defence modernisation programmes and expanding global partnerships,” said ALA Group Vice President and Co-Founder Vittorio Genna.
“Through this partnership with TVS SCS, we will be well positioned to support the evolving requirements of our global customers in India,” he added.
The joint venture is expected to strengthen supply-chain infrastructure for aerospace and defence manufacturers while supporting India’s efforts to expand domestic manufacturing capabilities and improve operational efficiencies across the sector.