Diversified Tata Group today said it expects to close fiscal 2016 with a 7.5 per cent growth in revenue from the defence and aerospace sector at Rs. 2,650 crore and with the government focusing on localising the sourcing, it affirmed the commitment to invest in the space.
“For fiscal 2015-16, Tata Group’s estimated revenue from defence and aerospace is Rs. 2,650 crore, which is an increase of 7.5 per cent over the last year,” Tata Sons group executive member Mukund Rajan, said.
In the remarks that come a fortnight ahead of the biennial land, naval and internal homeland security systems exhibition, the Defence Expo, he over the last five years the group’s revenue from the space have seen a compounded annual growth rate of 18 per cent.
“We are committed to make the appropriate investments to enhance India’s defence capabilities in the long run,” Mr. Rajan said at the press meet where Tata group companies showcased the work they do in the sunrise sector.
There has been a greater thrust on local sourcing of defence systems, which helps economy through the trickle—down effect and also strategically through the low reliance on imported solutions. With the greater focus on electronics in warfare, the need to localise has only grown.
The government’s plan involves increasing the reliance on the private sector for co-development and production of the systems and a slew of corporates, including both the Ambani brothers, the Mahindra Group, Larsen and Toubro and Bharat Forge, have increased their play in this sector.
