Tata Power to sell defence business to Tata Advance Systems for ₹2,230 crore

The sale to the Tata Group’s aerospace and defence arm comes at a time when the salt-to-software conglomerate is mulling ways to cut cross holdings in various group companies to consolidate the business.

Tata Power Ltd said on Thursday it will sell its defence business to Tata Advance Systems for ₹2230 crore ($342.21 million), as part of plans to monetise its non-core assets to improve the balance sheet.

Chairman N Chandrasekaran recently told an internal company magazine that many group companies needed to be streamlined, without losing their entrepreneurial spirit. (Aniruddha Chowdhury/Mint)

Tata Power’s defence unit, Strategic Engineering Division, manufactures and assembles missile launchers, and electronic warfare equipment, night vision devices and gun systems.

The sale to the Tata Group’s aerospace and defence arm comes at a time when the salt-to-software conglomerate is mulling ways to cut cross holdings in various group companies to consolidate the business.

Recently, Chairman N Chandrasekaran told an internal company magazine that many group companies needed to be streamlined, without losing their entrepreneurial spirit.