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.
Find this article at: http://www.labnol.org/india/corporate/tata-motors-to-unlock-value-from-profitable-subsidiaries/811/
web: http://www.labnol.org/ email: amit@labnol.org
Reader Comments
I PURCHASED YOUR NEW PRODUCT TATA WINGER MAXI VAN AND FIXED IT FOR PERSONAL USE THIS VEHICLE HAVE TO MANY PROBLEMS LIKE HIS AVERAGE IS NOT INCREASES FROM 6 L/KM . AND WHILE PURCHASING THE DISEAL TANK IS LEAK AND THE SUPPLIER FIXED IT M SEAL AND DELVER TO US , AFTER 1000 KM THERE WAS KNOCKING SOUND IN ENGINE AND 2ND GARE AND REVERSE GEAR WERE SLEEP AND WHILE ON SERVICING THIS PROBLEMS WERE NOT PERMENENT SOLVED AND AFTER 1200 KM THIS PROBLEM WAS AGAIN STARTED , TODAY THIS VEHICLE WAS TWO MONTHS OLD BUT WE GO TO SERVICE STATION FOR MORE THAN 8 TIMES , SO I THINK THIS TATA WINGER MAXI VAN HAS SO MANY PROBLEMS . SO I THINK THIS IS UN SUCCESS .
Written by dhananjay nair on 04.27.08