– The JV is targeting cumulative revenues in excess of ₹2,000 Cr. by 2031
Chennai, India – TVS Supply Chain Solutions (TVS SCS), a leading global supply chain solutions provider and one of India’s largest and fastest-growing integrated supply chain companies, today announced the formation of a joint venture with ALA Group, an Italy-based aerospace and defence supply-chain integrator, to address opportunities in India’s fast growing aerospace and defence sectors. TVS SCS will hold a 51% stake in the JV, while ALA will own the remaining 49%. The JV is expected to emerge as a significant growth driver for TVS SCS in India, with cumulative revenues projected to exceed ₹2,000 Cr by 2031.
(L to R) Vittorio Genna, Vice President and Co-Founder, ALA Group and Mr. R. Dinesh, Executive Chairman, TVS Supply Chain Solutions, exchanging the JV agreement
Following the signing of a Memorandum of Understanding earlier this year, TVS SCS and ALA Group witnessed strong engagement and active 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.
Aerospace and defence supply-chain solutions globally are characterised by specialised procurement, inventory management and mission-critical fulfilment capabilities, making them structurally higher-margin businesses with strong returns on capital employed (RoCE). Quality companies in this sector have consistently delivered strong profitability metrics, with PBT margins in the range of 8-9%, reflective of this high-value segment.
The JV will initially focus on opportunities in India, while TVS SCS and ALA will continue to evaluate opportunities to support aerospace and defence supply-chain requirements across select international markets over time.
(L to R) Mr. Mauro Romano, CEO of ALA MENA, Vittorio Genna, Vice President and Co-Founder, ALA Group, Mr. R. Dinesh, Executive Chairman, TVS Supply Chain Solutions, Mr. Ravi Viswanathan, MD, TVS Supply Chain Solutions, Mr. Vikas Chadha, Global CEO, TVS Supply Chain Solutions
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.”
Vittorio Genna, Vice President and Co-Founder, ALA Group, added, “India is one of the world’s fastest-growing aerospace and defence markets, driven by increasing defence modernization 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.
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 deep 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.”
Says Vikas Chadha, Global Chief Executive Officer, TVS Supply Chain Solutions, “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 operations and 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 joint 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, as well as consolidation, imports, warehousing and delivery. India’s defence logistics market is expected to grow at a CAGR of around 8.6%.
