Both the companies will develop select range of products for the domestic market.
"Operating this new business model in India allows both the businesses to get close to their potential clients, while providing deeper insights into brand development opportunities," TIL said in a statement.
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TIL has 30-year experience in manufacturing leather for major brands globally as well as in India.
TIL Global Head Finished Leather Business Chris Hansen said: "We look forward to a successful partnership with Baron Leather. This is consistent with Tata International's focus on growing its presence in leather trade in domestic and international markets.
"This partnership will definitely make India self-reliant in superior upholstery leather manufacturing."
TIL's other key business lines include metals and minerals trading, distribution (auto and allied) and agri- trading.
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