NEW DELHI, Jan 29: Tata Motors intends to utilise Rs 7,500 crore, which it plans to raise via rights issue, to fund various activities, including introduction of more than 100 new commercial vehicles over next three years and passenger vehicles on new modular platform from FY 2016-17.
The company, which is seeking shareholders’ approval through a postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares, also intends to use the funds to expand in international markets.
“The Rights Issue proceeds are expected to be utilised to finance a portion of the ongoing capital expenditure, including product development expenses; invest in subsidiaries to support future growth opportunities in India and abroad,” Tata Motors said in a filing to the BSE.
The funds would also be used to strengthen capital structure by deleveraging the balance sheet to build financial flexibility; partly correct the accumulated mis-match between the long term sources and application of funds; meet issue expenses; and general corporate purposes, it added.
Elaborating on the new product development plans in the commercial vehicle (CV) space, the company said major actions planned include “over 100 new products/variants for domestic and international markets over the next three years, launch of the Ultra range of trucks and broadening the Prima portfolio for market competitiveness.”
Besides, the company is looking to develop a product portfolio in the passenger vehicles segment until 2020, with the introduction of two or three new products each year.
Other initiatives planned include eight improved and enhanced vehicles across five key brands over next two or three years and “products offered on a new modular platform from FY 2016-17”.
The company is also looking to enhance purchase experience at dealerships and improved service quality.
The Mumbai-based company is also looking to add more than 40 new products over the next five years in the Jaguar Land Rover (JLR) business.
Further, it aims to increase JLR manufacturing capacity in the UK, expand operations in China, Brazil and potentially other markets and de-risking the business by setting up its own engine plant in the UK.
Besides, the company is looking at expansion of commercial and passenger vehicle operations in Thailand, Indonesia and South Korea as well as penetration of new export markets for India business, including Australia, Philippines and Vietnam.
(AGENCIES)
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