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What is the story about?
TVS Supply Chain Solutions on Thursday announced its entry into the aerospace and defence supply chain market with the formation of a 51:49 joint venture with the Italy-based ALA Group. The collaboration is expected to generate a cumulative revenue of over ₹2,000 crore by 2031, the company said.
The JV will initially focus on opportunities in India, while TVS SCS and ALA will continue to evaluate opportunities to support aerospace and defence supply-chain requirements across select international markets over time, said a company statement.
The joint venture, aimed at addressing opportunities in the domestic aerospace and defence sector, will specialise in end-to-end integrated supply chain solutions, including sourcing and supply of aerospace and defence components, kitting and sub-assembly operations, as well as consolidation, imports, warehousing and delivery, the company added.
India’s defence logistics market is expected to grow at a CAGR of around 8.6%, according to TVS Supply Chain.
Stating that the two JV partners had signed an initial pact earlier this year, the company said TVS SCS and Italian aerospace and defence supply-chain integrator ALA Group (during this period) witnessed strong engagement and active interest from multiple industry participants across the aerospace and defence ecosystem.
This momentum accelerated the decision to formalise the partnership through a dedicated JV platform, it 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 between India and key global aerospace and defence ecosystems,” said R Dinesh, Executive Chairman, TVS Supply Chain Solutions.
Aerospace and defence supply-chain solutions globally are characterised by specialised procurement, inventory management and mission-critical fulfilment capabilities, making them structurally higher-margin businesses with strong returns on capital employed (RoCE), according to the company.
Quality companies in this sector have consistently delivered strong profitability metrics, with PBT margins in the 8-9% range, reflecting the high-value nature of this segment.
”India is one of the world’s fastest-growing aerospace and defence markets, driven by increasing defence modernisation programmes and expanding global partnerships. We have strong customer relationships across the aerospace sector and many global companies in this sector are actively evaluating and expanding their presence in India, creating significant opportunities for specialised supply chain services,” said Vittorio Genna, Vice President and Co-Founder, ALA Group.
Through this partnership with TVS Supply Chain, he said, ALA Group will be well positioned to support the evolving requirements of its global customers in India.
TVS Supply Chain already has its defence and utility sector operations in Europe, which accounts for over 30% of the company’s European business.
The company has also been supporting the UK Ministry of Defence and leading defence prime contractors for several years, it said.
ALA Group supports a wide range of aerospace and defence platforms across the air, land, and naval domains, providing certified spare parts distribution, inventory optimisation, kitting, Direct Line Feed, consignment stock and defence-grade logistics engineering services.
Also Read: Intel CEO unveils AI innovations and partnerships at COMPUTEX 2026
The JV will initially focus on opportunities in India, while TVS SCS and ALA will continue to evaluate opportunities to support aerospace and defence supply-chain requirements across select international markets over time, said a company statement.
The joint venture, aimed at addressing opportunities in the domestic aerospace and defence sector, will specialise in end-to-end integrated supply chain solutions, including sourcing and supply of aerospace and defence components, kitting and sub-assembly operations, as well as consolidation, imports, warehousing and delivery, the company added.
India’s defence logistics market is expected to grow at a CAGR of around 8.6%, according to TVS Supply Chain.
Stating that the two JV partners had signed an initial pact earlier this year, the company said TVS SCS and Italian aerospace and defence supply-chain integrator ALA Group (during this period) witnessed strong engagement and active interest from multiple industry participants across the aerospace and defence ecosystem.
This momentum accelerated the decision to formalise the partnership through a dedicated JV platform, it 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 between India and key global aerospace and defence ecosystems,” said R Dinesh, Executive Chairman, TVS Supply Chain Solutions.
Aerospace and defence supply-chain solutions globally are characterised by specialised procurement, inventory management and mission-critical fulfilment capabilities, making them structurally higher-margin businesses with strong returns on capital employed (RoCE), according to the company.
Quality companies in this sector have consistently delivered strong profitability metrics, with PBT margins in the 8-9% range, reflecting the high-value nature of this segment.
”India is one of the world’s fastest-growing aerospace and defence markets, driven by increasing defence modernisation programmes and expanding global partnerships. We have strong customer relationships across the aerospace sector and many global companies in this sector are actively evaluating and expanding their presence in India, creating significant opportunities for specialised supply chain services,” said Vittorio Genna, Vice President and Co-Founder, ALA Group.
Through this partnership with TVS Supply Chain, he said, ALA Group will be well positioned to support the evolving requirements of its global customers in India.
TVS Supply Chain already has its defence and utility sector operations in Europe, which accounts for over 30% of the company’s European business.
The company has also been supporting the UK Ministry of Defence and leading defence prime contractors for several years, it said.
ALA Group supports a wide range of aerospace and defence platforms across the air, land, and naval domains, providing certified spare parts distribution, inventory optimisation, kitting, Direct Line Feed, consignment stock and defence-grade logistics engineering services.
Also Read: Intel CEO unveils AI innovations and partnerships at COMPUTEX 2026
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