Chennai: TVS Supply Chain Solutions (TVS SCS), one of India’s leading integrated supply chain companies, has announced the formation of a joint venture with ALA Group, an Italy-based aerospace and defence supply-chain integrator, to capitalize on opportunities emerging in India’s rapidly expanding aerospace and defence sectors.
Under the partnership, TVS SCS will hold a 51% stake in the joint venture, while ALA Group will own the remaining 49%.
The companies expect the venture to become a significant growth driver for TVS SCS in India, with cumulative revenues projected to exceed ₹2,000 crore by 2031.
The joint venture follows a Memorandum of Understanding signed earlier this year between TVS SCS and ALA Group.
Following the agreement, both companies witnessed strong engagement and active interest from multiple participants across the aerospace and defence ecosystem, accelerating the decision to establish a dedicated joint venture platform.
The aerospace and defence supply-chain sector is characterized by specialized procurement, inventory management, and mission-critical fulfilment capabilities.
These factors contribute to structurally higher-margin business models with strong returns on capital employed (RoCE).
Companies operating in this segment have historically delivered profit-before-tax margins in the range of 8-9%, highlighting the value-driven nature of the industry.
Initially, the joint venture will focus on opportunities in India. Over time, TVS SCS and ALA Group will also evaluate opportunities to support aerospace and defence supply-chain requirements across selected international markets.
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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.”
Vittorio Genna, Vice President and Co-Founder of 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 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.”
Vikas Chadha, Global Chief Executive Officer, TVS Supply Chain Solutions, highlighted the complexity of the sector and 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 operations and be a meaningful contributor to our growth and profitability in India.”
Mauro Romano, CEO of ALA MENA, added, “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 between TVS SCS and ALA Group will specialize in end-to-end integrated supply chain services, including sourcing and supply of aerospace and defence components, kitting and sub-assembly operations, consolidation, imports, warehousing, and delivery solutions.
India’s defence logistics market is expected to grow at a CAGR of around 8.6%, creating substantial opportunities for specialized service providers.
Building on Proven Defence and Utilities Credentials
TVS SCS brings extensive experience from its long-standing defence and utility sector operations in Europe, which account for more than 30% of its European business.
Meanwhile, ALA Group brings over 35 years of experience as a specialized aerospace and defence supply-chain integrator.
Headquartered in Italy, ALA Group supports leading OEMs, MROs, and defence programmes across Europe, North America, and other international markets through a global network of commercial offices and advanced logistics and kitting facilities.
The company supports major aerospace and defence platforms and programmes globally. Key industry players served by the sector include Airbus, Boeing, Dassault Aviation, Safran Group, Rolls-Royce, Collins Aerospace, and Thales Group.
Many of these organizations continue to expand partnerships and joint ventures with Indian companies as part of their localization and manufacturing strategies in India.
ALA Group supports a wide range of aerospace and defence platforms across air, land, and naval domains, providing certified spare-parts distribution, inventory optimization, kitting, Direct Line Feed services, consignment stock management, and defence-grade logistics engineering solutions.
Its operations adhere to stringent quality, security, compliance, and operational readiness standards, enabling the delivery of scalable and compliant aerospace and defence supply-chain solutions across multiple geographies.
The company is also investing significantly in cybersecurity and advanced security infrastructure.
Notably, ALA Group is the only company in the aerospace and defence sector to track and certify products with legally binding value through its patented Instant Automatic Certification (IAC) technology, reinforcing its leadership in innovation and supply-chain traceability.
