Tatas look for bigger pie in defence sector

[SpArK]

Tatas look for bigger pie in defence sector


NEW DELHI, JAN 29:

Armed with the capability to produce drones, wheel-armoured amphibious vehicles and other sophisticated equipment, diversified Tata group is gearing up for a bigger play in the defence segment.

The group that garnered a revenue of Rs 1,700 crore in FY’13 is aiming for about 40 per cent growth in the ongoing fiscal to touch about Rs 2,300-2,400 crore.

“We believe, as a group, we are ready to enter into any defence sector that the government opens up,” Mukund Rajan, Member - Group Executive Council and Brand Custodian, Tata Sons told reporters here.

Out of the over 100 operating companies that the group has, 14 entities, including Tata Motors, Tata Advanced Systems and Tata Power (Strategic Engineering Division), are currently suppliers for various Indian defence requirements.

“The order book size is in the excess of Rs 8,000 crore and these are to be fulfilled in the next one to four years,” Rajan added.

Highlighting the advancement that the group has achieved in various areas of defence sector, he said some of the group companies have become exclusive suppliers to global original defence equipment makers apart from playing strategic roles in India’s missile programmes.

Tata Advanced Systems has been selected as supplier for mini unmanned aerial vehicle (UAVs) by Northern Command of Indian Army.

It is addressing RFPs (request for proposal) for Indian Ministry of Defence, including infantry RFP opportunity, Tata Advanced Systems Director Sukaran Singh said.

“We would need to have a separate unit, possibly expansion at our existing facility in Bangalore, to produce the UAV,” he said.

The group’s other major firm Tata Motors, which has been supplying vehicles to Indian defence sector for nearly 60 years, is also looking for a major leap in the segment.

“Our aim is to operate in the entire range, from back up logistics vehicle segment to the battle front with frontline armoured vehicles,” Tata Motors Vice-President (Defence & Government Business) Vernon Noronha said.

He said the company is working on a DRDO funded project for wheel-armoured amphibious platform, which will be ready in about two years.

This is a modular vehicle with interchangeable snap-in modules, powered by a 600 horse power engine coupled to automatic transmission, he added.

Noronha said the company is also ready with a light armoured multi-role vehicle, which is used mostly in recce missions.

When asked if the Land Rover’s platform could be brought for use in Indian defence sector, Noronha replied in the negative saying the specifications do not match and the company is not considering it as of now.

(This article was published on January 29, 2014)


Tatas look for bigger pie in defence sector | Business Line

 

[hunter_hunted]

Tata Trucks, Tata cars, Tata bikes ,Tata buses and now Tata Tejas

 

[banvanaxl]

Tata Tejas

 

[Mir Shahzain]

This is a very good step for a private group and local companies....

 

[Water Car Engineer]

Yeeessss, smell that money and deliver the goods.

He said the company is working on a DRDO funded project for wheel-armoured amphibious platform, which will be ready in about two years.

This is a modular vehicle with interchangeable snap-in modules, powered by a 600 horse power engine coupled to automatic transmission, he added

Let's hope this goes well!

 

[bloo]

“The order book size is in the excess of Rs 8,000 crore and these are to be fulfilled in the next one to four years,” Rajan added.

That really gets my hopes up.
But what we really need is more R&D.

 

[cloud_9]

Tatas to bag Rs 1k cr Army contract to supply heavy duty trucks, Tatra trucks’ monopoly to end

NEW DELHI: Tata Motors is in the final stages of concluding a Rs 1,000 crore contract with the Ministry of Defence for the supply of 1,239 heavy duty trucks, in a move that will herald the end of a decades-long monopoly Czech-made Tatra trucks enjoyed in supplying the military's high-end vehicles.

The deal for the so-called six-wheel-drive high mobility vehicles (HMV), fitted with material handling cranes, has the option of a follow-on order for 600 more units, a senior company executive said. This deal is among the three procurement projects the defence ministry kicked off last year involving specialized trucks.

"We have been out of this category for 30 years. We had to get into this. This is the future," said Vernon Noronha, vice president, defence and government business at Tata Motors.

He said the company expected to conclude the deal in a few days. In November last year, the company had emerged as the lowest bidder, beating three other contenders—Vehicles Factory Jabalpur with Ashok Leyland, Force Motors with MAN SE and BEML with Tatra.

In April last year, ET reported that a consortium of Larsen and Toubro and Ashok Leyland had emerged the lowest bidders in a Rs100 crore contract to procure 100 multi-barrel rocket launchers (meant to replace the Grad BM21 truck-mounted rocket launchers). That deal is still with the contract negotiation committee (CNC), which is the final stage in all defence procurement.

The defence ministry is currently holding trials for two other con tracts involving trucks—eight-wheel-drive high mobility trucks and a specialised platform called the Field Artillery Tractor (FAT).

Tata Motors is participating in both. The eight-wheel-drive HMV contract is for 255 units and has an approximate value of Rs 400 crore, while the FAT contract is for 100 units with an approximate total value of Rs 80 crore.

A defence ministry spokesperson declined to comment. An analyst who closely tracks the ministry's finances said it was unlikely that the ministry will sign any new contract this fiscal as the finance ministry had made revisions to the defence budget, moving Rs 7,800 crore from capital expenditure to revenue expenditure category. This means the MoD is left with little money to spend on acquisitions.

"It's unlikely that the contract will be signed before 31 March. But it is a welcome move. It was a huge anomaly that a country with aspirations of building a nuclear submarine and a fourth generation fighter jet and intercontinental ballistic missiles continued to import trucks. This should have happened 20-30 years ago.

This is happeneing now due to the Tatra controversy," said Laxman Kumar Behera, a research fellow with the Institute for Defence Studies and Analyses.

Behera was referring to the federal investigation into Indian army's purchase of more than 7,000 Tatra trucks from the state-owned BEML since 1986.

The controversy erupted after the former army chief General VK Singh said that he had been offered bribes to continue buying trucks made by Tatra.