The Hindu : Business : Tata Motors plans listing in New York

Online edition of India's National Newspaper
Thursday, Jul 29, 2004

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Business

Tata Motors plans listing in New York

By Our Staff Correspondent

MUMBAI, JULY 28. The directors of Tata Motors have approved a proposal to list the company's outstanding Global Depository Receipts (GDRs) on the New York Stock Exchange (NYSE) in the form of American Depository Receipts (ADRs) during this financial year. The company is not issuing new shares or raising new capital as part of the NYSE listing. Tata Motors would be the first Indian company in the automobile and engineering sector to be listed on the NYSE.

Net profit doubles

The company's sales for the quarter were at Rs. 4,244.93 (Rs. 2,924.22 crores). The net profit has more than doubled to Rs. 223.36 crores from Rs. 100.31 crores. The operating profit was at Rs. 429.44 crores (Rs. 331.57 crores).

During the quarter, the company produced 45,600 (25,856) Commercial Vehicles and sold 39,877 (26,643 units). The company also produced 42,191 (31,673) passenger cars and utility vehicles and sold 40,781 (30,118 units).

Export turnover for the period was at Rs. 212.18 crores (Rs. 69.93 crores). The market share of commercial vehicles improved from 57.1 per cent to 59.6 per cent and that of passenger vehicles to 17.4 per cent from 15.6 per cent.

Following the acquisition of Daewoo Commercial Vehicle Co. Ltd. (DWCV) in March 2004, the name of the company has been changed to Tata Daewoo Commercial Vehicle Company (TDWCV). In June, TDWCV introduced `Novus' in the Korea market — the first Korean Euro III designed and manufactured truck range.

Higher exports

In commercial vehicles, the company launched the LPT 909 EX Truck in May marking Tata's entry into the six-tonne payload category of the LCV haulage segment. A phased nation-wide roll out is underway. CV exports were up 105 per cent during the quarter with strong growth in exports of pick-ups to Europe and South Asia.

Ravi Kant, Executive Director, CV unit, Tata Motors said, ``although there was an increase of 1.5-2 per cent increase in impact on CVs due to higher input costs, these were not passed on. We are working on the rationalisation of manufacturing with the moving of medium and heavy commercial vehicles to Jamshedpur and of LCVs to Pune.''

V.Sumantran, Executive Director, PV unit, Tata Motors said ``there is a pause in shipments of the City Rover to the UK. We were ready to launch the Left Hand Drive model in continental Europe, but we had to cater to the increased demand for Indica and Indigo."

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