Thursday, May 29, 2008

Tata mulls Rs 10,000-cr capex

Tata mulls Rs 10,000-cr capex
Press Trust of India ,Thursday,May 29,2008(Mumbai)

Tata Motors, has drawn up a Rs 10,000-crore capex plan over the next three years. It also expects to complete the Jaguar and Land Rover acquisitions by June and launch its small car, Nano, this fiscal, a top company official said.
“We have finalized a Rs 10,000-crore capital expenditure plan for the next three years, which includes launching 100 new products/variants, streamlining of existing production facilities and setting up four new greenfield units,” said Ravi Kant, Tata Motors' Managing Director.

“We are in the process of completing the Jaguar and Land Rover deals in the current quarter,” he added.

Tata Motors had agreed to buy the premium brands from Ford Motor Co for $2.3-billion in March.

Tata will begin selling its 623-cc Nano this year at a price expected to be around Rs 1 lakh this year.

“The Rs 10,000-crore capex would be funded through debt and internal accruals,” said Tata Motors' Chief Financial Officer, C Ramakrishnan.

The company said it was raising Rs 7,200 crore to finance its Jaguar and Land Rover acquisitions through three simultaneous but unlinked rights issues. It also proposed to raise about $500 or 600 million through an appropriate issue of securities in overseas markets on terms to be decided at a later date.

Tata had already raised $3 billion by way of a bridge loan from banks for 15 months and it plans to replace this by selling stakes in units, Ramakrishnan said, adding that it is yet to decide on listing on the Tokyo Stock Exchange.

Ravi Kant said that the company hoped to improve its market position by launching 100 new products/variants in the next 3-4 years. It has also received permission to manufacture an eco-friendly car in a joint venture at Thailand. The company's focus will be on fuel efficient new products both in utility vehicles as well as passenger vehicles.

The company plans to streamline its facilities at Pune and Lucknow and set up four new greenfield facilities at Uttarakhand, Singur, Dharwad and Ranjangaon, Ravi Kant said.

Commenting on pressure on the company's bottomline, Ravi Kant said, the Indian automobile industry is passing through a tough time due to an unprecedented increase in input costs amid difficult global economic conditions. Our margins were under pressure due to rising interest rates and constraints in availability of vehicle financing from outside sources.

Asked about the company's Singur plant which had come under attack from political parties, Ravi Kant said that "we are working whole-heartedly to meet our deadline (of launching the Nano car)."

1 comment:

Unknown said...

Sir
Really Thankful to you for having published such a info on the net.
I am a proud dharwadi