TVS Supply Chain and Italy's ALA Group Form Joint Venture to Enter Aerospace and Defense Logistics

TVS Supply Chain Solutions has made a significant strategic move by entering the aerospace and defense supply chain sector through a newly formed joint venture with Italy-based ALA Group. The deal marks the company's formal push into one of the most specialized and fastest-growing segments of the global logistics landscape.

Under the terms of the agreement, TVS Supply Chain will hold a controlling 51% stake in the venture, with ALA Group retaining the remaining 49%. The two companies project the joint venture will generate cumulative revenues exceeding Rs 2,000 crore by 2031. Initially, the focus will be on capturing opportunities within India, with both partners actively exploring potential expansion into international markets.

The new entity is designed to offer comprehensive, end-to-end supply chain services tailored specifically for aerospace and defense companies. Its service portfolio will cover sourcing and supplying components, kitting and sub-assembly operations, warehousing, import management, consolidation, and last-mile delivery — all capabilities that demand a high degree of precision and compliance.

India's defense logistics market is forecast to grow at a compound annual growth rate of approximately 8.6%, according to TVS Supply Chain. This trajectory is expected to open up considerable opportunities for providers with the specialized expertise to serve the sector's exacting requirements.

The two companies had signed an initial agreement earlier this year. Since then, both have witnessed strong and growing interest from businesses operating across the aerospace and defense ecosystem, which ultimately prompted them to formalize the relationship through a dedicated joint venture structure.

R Dinesh, Executive Chairman of TVS Supply Chain Solutions, described the move as a deliberate step into a high-value global market.

He noted that India is increasingly being recognized as a critical growth engine for the global aerospace and defense industry, driven by localization initiatives, strategic investments, and deepening international collaborations with key global ecosystems.

Aerospace and defense supply chains are widely regarded as more complex — and more profitable — than conventional logistics. These operations demand highly specialized capabilities in procurement, inventory management, and mission-critical fulfillment. Industry leaders in this space typically report profit-before-tax margins in the range of 8 to 9%, reflecting the premium nature of the work involved.

Vittorio Genna, Vice President and Co-Founder of ALA Group, highlighted the scale of India's growth potential in this sector. He pointed to accelerating defense modernization programs and expanding global partnerships as key drivers of demand, adding that many international companies are actively evaluating or increasing their footprint in India. He also noted that the partnership with TVS Supply Chain will strengthen ALA Group's ability to serve its global customers with operations in the country.

TVS Supply Chain is not entering this space without prior exposure. Through its European operations, defense and utility-related work already accounts for more than 30% of the business. The company also holds an established relationship with the UK Ministry of Defence and supports several leading defense contractors on the continent.

ALA Group, for its part, brings deep domain expertise spanning air, land, and naval platforms. Its capabilities include certified spare parts distribution, inventory optimization, kitting, consignment stock management, and defense-grade logistics engineering — a set of competencies that complement TVS Supply Chain's operational scale and reach.

As India continues to invest in and expand its aerospace and defense industrial base, the new joint venture is positioning itself to become a preferred supply chain partner for both domestic manufacturers and global industry players seeking reliable, specialized logistics support in the Indian market.