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Tata Motor’s Defence Arms

Tata Motors has approved the sale of its defence business to group company Tata Advanced Systems Ltd (TASL) for an upfront payment Rs.100 crore and a deferred consideration of 3% of the revenue generated from identified specialized defence projects for up to 15 years from FY20 subject to a maximum of Rs.1,750 crore. The board has also approved the sale of its shareholding in its wholly-owned subsidiary TAL Manufacturing Solutions to TASL at an enterprise value of Rs.625 crore. However, the pure civilian vehicles business will stay with Tata Motors and Tata Motors will acquire the non-aerospace business from TAL for Rs.10 lakh.

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