TVS Supply Chain Solutions has entered India’s aerospace and defence supply chain market through a 51:49 joint venture with Italy’s ALA Group, aiming to generate over ₹2,000 crore in cumulative revenue by 2031.
The partnership will deliver integrated logistics and procurement services, positioning India as a key hub in the global aerospace ecosystem.
TVS Supply Chain Solutions announced the formation of a joint venture with Italy-based ALA Group, marking its entry into the aerospace and defence supply chain sector. The agreement gives TVS SCS a majority stake of 51 per cent, with ALA holding 49 per cent.
The collaboration is expected to generate cumulative revenues exceeding ₹2,000 crore by 2031, reflecting the scale of opportunities in India’s defence logistics market, which is projected to grow at a compound annual growth rate of 8.6 per cent.
The joint venture will initially concentrate on opportunities within India, while both partners will continue to evaluate prospects in select international markets. The venture will specialise in 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 delivery.
These services are designed to meet the mission-critical requirements of aerospace and defence customers, where procurement and inventory management are structurally higher-margin businesses with strong returns on capital employed.
TVS SCS and ALA Group had signed an initial pact earlier this year, during which they witnessed strong engagement and interest from multiple industry participants across the aerospace and defence ecosystem.
This momentum accelerated the decision to formalise the partnership through a dedicated joint venture platform. R Dinesh, Executive Chairman of TVS Supply Chain Solutions, described the initiative as a significant milestone, emphasising India’s emergence as one of the most important growth engines for the global aerospace and defence industry.
He highlighted localisation initiatives, strategic investments, and expanding international collaborations as key drivers of this growth.
Globally, aerospace and defence supply-chain solutions are characterised by specialised procurement, inventory optimisation, and mission-critical fulfilment capabilities.
Companies in this sector consistently deliver profitability metrics, with profit-before-tax margins in the range of 8 to 9 per cent, underscoring the high-value nature of the business.
Vittorio Genna, Vice President and Co-Founder of ALA Group, noted that India is one of the fastest-growing aerospace and defence markets, driven by defence modernisation programmes and expanding global partnerships.
He added that many global companies are actively evaluating and expanding their presence in India, creating significant opportunities for specialised supply chain services. Through this partnership, ALA Group will be well positioned to support the evolving requirements of its global customers in India.
TVS Supply Chain already has established operations in the defence and utility sectors in Europe, which account for over 30 per cent of its European business. The company has been supporting the UK Ministry of Defence and leading defence prime contractors for several years, demonstrating its capability in managing complex defence logistics.
ALA Group, with over 35 years of expertise, supports a wide range of aerospace and defence platforms across air, land, and naval domains. Its services include certified spare parts distribution, inventory optimisation, kitting, Direct Line Feed, consignment stock, and defence-grade logistics engineering.
The joint venture leverages TVS SCS’s extensive Indian network and digital capabilities alongside ALA’s established relationships with major global manufacturers such as Boeing and Airbus.
Leadership expects the platform to become profitable within its first year of operations, creating a scalable model for international companies to serve the Indian market.
This collaboration underscores India’s growing role in the global aerospace supply chain, aligning with government initiatives to boost domestic manufacturing and reduce import dependence.
PTI
