No intention to sell majority stake in TTL: Tata Motors

Tata Motors today said it has no plan to sell majority/strategic stake in Tata Technologies Ltd (TTL), the auto designer arm of the company, as it considers the Pune-based firm as strategically important to
"Tata Motors considers TTL as strategically important for its business. There is no intention of TML to sell majority/strategic stake in TTL and reports of divestment of the 90 per cent stake are incorrect," the country's largest automotive firm said in a filing to the BSE.
Tata Motors along with its subsidiary holds 72.32 per cent stake in TTL and 15.47 per cent stake is held by rest of the Tata Group, it added.

The homegrown auto major was responding to reports that it along with Tata group's private equity fund Tata Capital were looking to sell their 90% stake in TTL.
Elaborating further, Tata Motors said it continually explores opportunities for optimising its capital deployment through various measures including improving operating cash flows and better working capital management.
The company keeps looking at ways to optimise its capital deployment via encashment of non-core assets, value realisation from some part of its investments including in TTL, as well as capital raising initiatives like the current rights offering, it added.

Tata Motors is in the process of raising Rs 7,500 crore via rights issue which it intends to utilise 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.

TTL started as a design company in 1994 for Tata Motors' automotive business. It now earns one third of its revenue from North America, Europe and Asia Pacific.
Nearly 65 per cent of its business comes from the automotive sector, 12 per cent from aerospace and the rest from industrial machinery and other businesses.
Tata Motors is the country's largest automobile company, with consolidated revenues of Rs 2,32,834 crores in 2013-14.
Tata Motors shares closed at Rs 561.55 apiece on the BSE, up 0.27 per cent from previous close.