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Tata Motors plans future growth strategy

KOLKATA - Fresh from acquiring Daewoo Motors' truck unit, Tata Motors Limited has chalked out a Rs60 billion (US$1.32 billion) capital expenditure and product development program as a part of its future growth strategy and vision to be a global automobile player.

"As a part of future growth strategy for the domestic markets as also to seek a meaningful presence in the global markets, the company is planning to incur about Rs60 billion over the next five years towards capital expenditure and product development programs," a senior company official said.

The company was also looking for other meaningful growth opportunities through mergers, acquisitions and strategic alliances in respect to its commercial vehicles and passenger cars.

Tata Motors, which had acquired Daewoo Commercial Vehicle Company at an enterprise value of $102 million from internal accruals and direct-lending facilities, was examining the option to refinance this acquisition through an alternate long-term funding exercise.

It has already decided to raise $500 million to partially finance future development programs, the official said.

(Asia Pulse/PTI)

Mar 19, 2004

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