Tata Motors, India's biggest automotive company by revenue, has put up for sale its only race car project Racemo along with stakes in other group companies, to raise funds.
The Mumbai-based company has also written off the working capital of Rs 1,641 crore in some of the vehicle projects which it does not intend to carry into the future.
Racemo, a production-ready mini performance car, which was put on the backburner has now been put up for sale. The two-door sports car that carried the twin options of petrol and fully electric powertrain was the first product from TaMo, a ring-fenced start-up entity that specialised in future technologies.
The company also intends to sell stakes in Tata Technologies, Tata Hitachi and 'small shareholdings in other group companies'.
Tata Motors pulled out of the 43-percent stake sale process with Warburg Pincus last year in a deal that was valued at Rs 2,320 crore.
It has already begun sale process of TAL Manufacturing Solutions and parts of its defence business even as it is winding up businesses of Tata Hispano and Tata Precision Industries.
"Strategic review is underway for a few other (business assets) to be updated in due course," said the company in a statement.
Senior executives of the company said the write off of working capital is a one time feature and won't recur.
"Significant disruptions in the auto industry necessitating a review of our product development costs capitalisation policy. One time charges taken for those projects that are not being taken forward for affordability check," the company stated.
Nearly 60 percent of the written off amount belongs to Tata Motors and the balance is from Jaguar Land Rover.
No timeline for the sale or expected proceeds from the sale was shared by the company.
Meanwhile, Tata Motors gave an EBIT (earnings before interest and tax) guidance of 7-9 percent post FY21 and 4-7 percent between FY19-21 for Jaguar Land Rover. EBIT guidance for Tata Motors is 5-7 percent post FY21 and 3-5 percent between FY19-21.
JLR will see an investment of 4.5 billion pounds through the current financial year.
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