The country's largest automaker Tata Motors has initiated an analysis of its multitude subsidiaries and joint ventures that are spread across the globe. The move – a first of its kind – is an attempt by the car-to-CV maker to identify the core and non-core subsidiaries and JV's. CNBC-TV18's Ronojoy Banerjee reports.
At present Tata Motors has 62 subsidiaries and joint ventures — clearly highest for any Indian auto company. While have it has its own share of advantages — for instance, it ensures that a company has institutional presence in various countries — a big disadvantage is: what do you do when the times are not good?
The core business of Tata Motors is suffering, which as of June 30, had an overall consolidated debt of over Rs 58,000 crore. These are some of the questions that the strategy team will be looking at.
One of the first changes Karl Slym had introduced when he took over as the managing director was to go about and initiate a sort of a management rejig. Slym has sort of setup a vertical, which was going to be called specifically strategy, and that he roped in a former General Motors head Ankush Arora, where Karl earlier worked with, to head it. This strategy vertical is going to look at various options.
What finally the company is going to do that is something that Karl Slym is not at this point in time revealing. He in fact also ruled out exiting from any of these subsidiaries but all those options are being looked at.