24-11-2017, 11:36 AM
24-11-2017, 02:26 PM
Tata Motors, the largest car company in India by revenue, plans to increase its capital expenditures by Rs. 10,000 crore per year in its effort to make a strong comeback in the domestic market. The average annual capital expenditure in the last three years has been around Rs 25,000 crore-30,000 crore, which is expected to increase to Rs 40,000 crore in the coming years. While Tata Motors will see its average annual capital expenditure at Rs 1,000 crore to Rs 4,000 crore, JLR, its wholly-owned subsidiary, will infuse an additional Rs 9,000 crore over the next two and three years at 3.5-3.75 billion pounds (Rs. 32,000 cr to 35,000 Rs CR).
In informing the stock exchanges about their proposed rights of Rs 7.5 billion rupees, Tata Motors said on Thursday it will use the funds for new products, global expansion and investment in subsidiaries for future growth in India and abroad. In a statement to BSE on Thursday, the company said: "Considering the company's future growth and expansion plans globally, it is expected that the total capital outlay will remain high in the short term for India's business and JLR. "
The company also plans to launch more than 100 new products or variants for the domestic and international markets over the next three years through its ultra-light truck range, as well as expand the Prima range of medium and heavy trucks.