Tata Motors subsidiaries to merge

Two Tata Motors subsidiaries, HV Transmissions and HV Axles, are set to merge to form TML Drivelines, in order to harness synergies and become a total driveline solutions provider. Tata Motors holds a stake of 85 per cent and Tata Capital 15 per cent in each of the companies. The two boards have decided to amalgamate, enabling pooling and more efficient utilisation of resources.

The merger, subject to statutory approvals of the shareholders, will be effective from April 1, 2011. The merger will not result in any redundancies.

The facilities of the companies, which make gear boxes, gear box parts, axles and axle parts for medium and heavy commercial vehicles, are located within the Tata Motors’ plant complex in Jamshedpur.