TVS SCS and ALA Group form JV for aerospace defence logistics

TVS Supply Chain Solutions (TVS SCS) has entered into a joint venture with Italy-based ALA Group to develop an aerospace and defence supply chain platform in India, targeting cumulative revenues of more than ₹20 billion by 2031. Under the arrangement announced on June 4, TVS SCS will hold a 51% stake in the venture while ALA Group will own the remaining 49%.

The joint venture follows a Memorandum of Understanding signed earlier this year between the two companies. According to the companies, interest from participants across the aerospace and defence ecosystem accelerated the move to establish a dedicated platform focused on serving the sector.

The venture will initially focus on opportunities in India, where increasing localisation efforts, defence modernisation programmes and international partnerships are driving demand for specialised supply chain services. The companies said they would also assess opportunities in selected international markets over time.

R. Dinesh, Executive Chairman, TVS Supply Chain Solutions, 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."

He further added, “ALA brings deep domain expertise, strong global customer relationships and proven capabilities in specialised aerospace and defence supply chain solutions, which complement TVS SCS’ extensive network, digital capabilities and execution strength. Together, we are building a scalable and future-ready platform for global aerospace and defence companies to serve Indian requirements for both the aerospace and defence sectors.”

The joint venture will provide integrated supply chain services covering sourcing and supply of aerospace and defence components, kitting and sub-assembly operations, consolidation, imports, warehousing and delivery. The companies noted that aerospace and defence logistics requires specialised procurement, inventory management and mission-critical fulfilment capabilities, supported by stringent quality, compliance and traceability standards.

Vittorio Genna, Vice President and Co-Founder, ALA Group, said, “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."

He added, “Through this partnership with TVS SCS, we will be well positioned to support the evolving requirements of our global customers in India. In TVS SCS, we have found a partner with profound market understanding, a strong domestic network, proven execution capabilities and a trusted brand. Their strong operational and technology-led execution capabilities, combined with extensive supply chain infrastructure, make them an ideal partner to build a scalable and differentiated aerospace and defence logistics platform.”

TVS SCS expects the venture to contribute to its growth and profitability in India. The company said the specialised nature of aerospace and defence logistics, combined with compliance and certification requirements, creates opportunities for value-added services.

Vikas Chadha, Global Chief Executive Officer, TVS Supply Chain Solutions, said, “The industry is characterised by stringent certification, compliance and traceability requirements, creating a need for specialised supply chain capabilities. Our strong presence in India, extensive supply chain infrastructure and experience in working with complex customer and regulatory ecosystems, together with ALA's global aerospace and defence expertise, create a compelling platform to help customers navigate these complexities more efficiently. Given the specialised and high-value nature of this business, we expect the venture to become profitable within its first twelve months of operation and to be a meaningful contributor to our growth and profitability in India.”

Mauro Romano, CEO of ALA MENA, said, “Our experience across global aerospace and defence programmes has demonstrated the growing importance of integrated procurement and inventory management solutions. India represents a strategically important market for long-term growth, and this partnership provides a strong platform to support customers with localised and globally integrated supply chain solutions.”

The venture brings together TVS SCS’s experience in defence and utility sector logistics and ALA Group’s aerospace and defence supply chain expertise. TVS SCS said its defence and utility operations account for more than 30% of its European business. The company currently supports the UK Ministry of Defence and defence prime contractors, managing about 250,000 NATO Stock Numbers and fulfilling around one million defence demands annually through a supplier network of more than 1,000 vendors. Its operations support land, sea and air platforms and include digitally enabled logistics systems designed to improve visibility and operational readiness.

ALA Group, headquartered in Naples, Italy, has more than 35 years of experience as an aerospace and defence supply chain integrator. The company supports OEMs, MROs and defence programmes across Europe, North America and other international markets. It operates commercial offices and logistics facilities across multiple regions and serves customers in 40 countries through a supplier network exceeding 1,500 companies.

The company supports aerospace and defence programmes across air, land and naval domains through services including spare-parts distribution, inventory optimisation, kitting, Direct Line Feed, consignment stock and logistics engineering. ALA said it has also invested in cybersecurity and developed its patented Instant Automatic Certification technology to track and certify products across regulated supply chains.

India’s defence logistics market is expected to expand at a compound annual growth rate of about 8.6 per cent, providing a backdrop for the joint venture’s growth ambitions as global aerospace and defence companies deepen manufacturing and localisation partnerships in the country.