India’s largest automotive company, Tata Motors may divest its stake in its well performing divisions into separate subsidiaries to derive business synergies and unlock shareholder value through IPO.
Tata Motors has 30 subsidiaries in India and abroad, out of which 21 are profit making. These subsidiaries contributed to Rs.6453.67 crore revenue out of the total consolidated revenue of Rs.37,000 crore.
Key subsidiaries of Tata Motors are Tata Construction, Tata Daewoo Commercial Vehicle (TDCV) and Telco Construction Equipment Company (TELCON), a 60:40 JV between Tata Motors and Hitachi.
TDCV is the largest subsidiary in sales terms while TELCOM is the highest profit making subsidiary, as such these two may be first one to get listed.
Tata hived its automotive technology and R&D division into Tata Technologies which services engineering and design requirement of automobile and aerospace industry.