Tata Motors Says to Double Defence Revenues Over Next Three Years

Tata Motors, part of Tata Group, generated about 20 billion rupees ($316 million) in revenue from defence over the last three years, about 3 percent of the company\'s total revenues.

Published: 10th July 2015 05:06 PM  |   Last Updated: 10th July 2015 05:06 PM   |  A+A-

Tata Motors

A visitor speaks on his mobile phone in front of Tata Motors' Kestrel, an armoured personnel carrier, at a defence exhibition in New Delhi. |Reuters

MUMBAI: Tata Motors Ltd<TAMO.NS> plans to double the revenue from its defence business over the next three years to $600 million, betting on the government's push for more local defence manufacturing, a top company official said on Friday.

Indian companies are investing billions to build anything from armoured trucks, to guns and submarines, as they race to win a share of the roughly $100 billion in defence deals New Delhi has said it will ring-fence for domestic firms over the next decade.

Prime Minister Narendra Modi has vowed to modernise the country's poorly-equipped military by turning India into a defence manufacturing hub that would end its status as the world's largest arms importer.

Tata Motors, part of Tata Group, generated about 20 billion rupees ($316 million) in revenue from defence over the last three years, about 3 percent of the company's total revenues.

"A year after the present government came into power and files started moving, there was a very quick acceleration of orders," Vernon Noronha, Vice-President, Defence & Government Business, told journalists at an event on Friday.

Tata said it had won an order from the Indian army, worth about 9 billion rupees, for more than 1,200 multi-axle vehicles for loading and unloading ammunition.

The company has a defence order book for about 15 billion rupees, and it would compete for 700 light armoured multi-roll vehicles and 100 wheeled armoured personnel carriers that the military has said it wants to procure, Noronha said.

The push to get local firms making more has struggled in the past: opaque procedures, unrealistic quality requirements and slow decision-making have discouraged companies from bidding, forcing the government to look overseas for 70 percent of its arms.

Defence Minister Manohar Parrikar has pledged to unveil production policies to address the concerns of private firms investing in defence, which include Mahindra Group, Reliance Group and Larsen and Toubro <LART.NS>.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp