Tata Motors officially splits into passenger, commercial vehicle companies
Tata Motors is officially splitting its passenger vehicle (PV) and commercial vehicle (CV) businesses, with each getting its own CEO.
The demerger, approved on Friday, means the two will operate as separate companies from October 1—Tata Motors Passenger Vehicles Ltd for passenger vehicles and TML Commercial Vehicles Ltd for commercial vehicles.
Focus on sharper growth paths
This move is all about sharper focus and unlocking value. By running separately, each unit can chase its own growth path and attract investors who are into either passenger vehicles or commercial vehicles.
Shareholders get one share of the new CV company for every Tata Motors share they hold, plus ₹2,300 crore in non-convertible debentures moves to the CV side.
New leadership for the 2 companies
Girish Wagh is stepping up as MD & CEO of the new commercial vehicles company.
For the passenger vehicles side, Shailesh Chandra takes over as MD & CEO starting October 1.
Dhiman Gupta will become Tata Motors Group CFO from November 17.
Board reshuffling also brings in new independent director
P B Balaji will leave his CFO role on November 17 to head Jaguar Land Rover in the UK but stays on Tata's board.
Some board reshuffling also brings in finance expert Sudha Krishnan as an independent director at Tata Motors.