Demerger to secure synergies across biz verticals, says Tata Motors Chairman N Chandrasekaran
demerger of existing automotive businesses into two listed entities will help in securing synergies across its PV and JLR verticals in areas of EVs and autonomous vehicles, Tata Motors Chairman N Chandrasekaran said on Monday. Speaking at the auto major's 79th AGM, he noted that the initiative will lead each company to deliver a superior experience for customers, better growth prospects for employees and enhanced value for shareholders.
«This (demerger) will also help secure the considerable synergies across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software,» Chandrasekaran said.
In March this year, Tata Motors announced the demerger of its commercial and passenger vehicle segments into two separate listed entities to better capitalise on growth opportunities.
As part of the initiative, the CV business and its related investments would be housed in one entity, while the passenger vehicle business, including electric vehicles, Jaguar Land Rover and its related investments, will come under a separate listed entity.
Informing shareholders, Chandrasekaran noted that going ahead all three businesses will continue to focus on improving their financial strength and enhancing customer experience.
The strategies they will adopt will get more differentiated, sharpened and refined in line with their market position, brand strength and growth aspirations, Chandrasekaran stated.
Elaborating specifically on the PV business, he said that the vertical will focus on market-beating
