Tata Motors on Tuesday announced its foray into the combat vehicle space for the defence sector with the launch of its first mine protected vehicle. The company is looking to expand its defence business and eyeing tie-ups with technology partners to diversify its portfolio.
Ashok Leyland, Mahindra and Mahindra and Larsen and Toubro were some of the other companies that announced expansion plans in the defence sector. While Leyland and M&M launched their first mine protected vehicles, L&T tied up with US’ Raytheon to upgrade the Indian Army’s T72 tanks.
The defence equipment sector is currently valued at Rs 87,400 crore ($ 19 billion) and is projected to grow to Rs 1,38,000 crore ($30 billion) by 2012 and Rs 46,00,000 crore ($ 100 billion) by 2020.
“Our aim is to participate in the entire defence value chain,” said P.M. Telang, managing director, India operations, Tata Motors. “While we will consolidate our traditional supplies, we will also participate in creating vehicles and equipment specific to the defence sector and offer our expertise in upgrades and life extension programmes.”