|FINANCIAL PERFORMANCE ON A STANDALONE BASIS
The financial information discussed in this section is derived from the Company's Audited Standalone Financial Statements.
As explained in the business section, the domestic economic environment deteriorated further, in the current fiscal. As a result, the automotive industry shrunk significantly.
Revenues (net of excise duty) were Rs.44,765.72 crores in FY 2012-13, as compared to Rs.54,306.56 crores, representing a decrease of
17.6%. As explained above, the total number of vehicles sold during
the year decreased by 11.9%. The domestic volumes decreased by
11.3% to 765,557 vehicles from 863,248 vehicles in FY 2012-13 and
export volumes decreased by 19.3% to 50,938 vehicles from 63,105
vehicles in FY 2011-12. The sale of spare parts/aggregates increased
by12.5% to Rs.3,273.80 crores from Rs.2,910.61 crores in FY 2011-12.
Significant volumes reduction, adverse product mix, more
particularly in the commercial vehicles, and intense competition
amongst all product segments, impacted the operating margin,
recording a level of 4.8% of sales (8.1% for FY 2011-12). As a
result. the Profit after tax was Rs.301.81 crores, as compared to
Rs.1,242.23 crores in FY 2011-12. The analysis of performance is
||Percentage to Revenue from operations
|Revenue from operations net of excise duty
|Cost of material consumed (including change in stock)
|Manufacturing and other expenses (net)
|Profit before Exceptional Items, Depreciation, Interest and Tax
|Depreciation and Amortisation (including product development/engineering expenses written off)
|Exceptional Item – Loss
|Profit before Tax
|Cost of materials consumed (including change in stock):
||(Rs. in crores)
|Consumption of raw materials and components
|Purchase of product for sale
|Change in Stock-in-trade, finished goods and Work-in-progress
|% of revenue
The increase in terms of % to revenue, from 73.1% to 73.6% was mainly due to adverse product mix.
Employee Cost: There was an overall increase to Rs.2,837.00
crores from Rs.2,691.45 crores in FY 2011-12 (5.4% over last year).
The increase was mainly attributable to normal yearly increases,
promotions, wage agreements (one of the major unit) . The
Company has taken steps to contain the manpower cost, by
reduction in head count both permanent and temporary. Due to
lower volumes, the employee cost to revenue has increased from
5.0% to 6.3%.
Manufacturing and Other Expenses: These expenses relate to manufacturing, operations and incidental expenses other than raw materials and employee cost. This expenditure mainly included job work charges, advertisement & publicity and other selling and administrative costs. The expenses were Rs.7,773.65 crores during current fiscal, as compared to Rs.8,405.51 crores for FY 2011-12, representing 17.4% of revenue for FY 2012-13 (15.5% for FY 2011-12).
- There been decrease in expenses in terms of absolute terms on account of lower volumes and cost reduction initiative taken by the Company.
- Increase is partly attributable to write off of items held in work in process product development projects of Rs.169 crores and IT costs.
Amount capitalised represents expenditure transferred to capital and other accounts allocated out of employee cost and other expenses incurred in connection with product development projects and other capital items. The expenditure transferred to capital and other accounts increased to Rs.953.80 crores from Rs.907.13 crores of FY 2011-12, and mainly related to ongoing product development for new products and variants.
Other Income was Rs.2,088.20 crores (Rs.574.08 crores for FY 2011-12). For FY 2012-13, it included dividends from subsidiary companies of Rs.1,583.58 crores (including dividend from JLR), as compared to Rs.113.83 crores for FY 2011-12. Other income also include interest income of Rs.383.64 crores), as compared to Rs.363.67 crores for FY 2011-12. (The dividend from subsidiary companies is eliminated in the consolidated income statement, being income from subsidiaries).
Profit before Exceptional Item, Depreciation, Interest and Tax(PBDIT) was Rs.4,231.94 crores in FY 2012-13, compared to Rs.4,985.88 crores in FY 2011-12. Lower volumes and adverse product mix, resulted in lower operating profit. This was partly offset by dividend from JLR and higher dividend from other subsidiaries.
Depreciation and Amortization (including product development/engineering expenses written off) increased by Rs.402.39 crores (21.9% increase over last year) to Rs.2,243.38 crores from Rs.1,840.99 crores in FY 2011-12.
- Depreciation increased by Rs.72.13 crores, reflecting impact of additions to fixed assets towards plant and facilities for expansion and new products introduction.
- Amortization increase by Rs.138.75 crores related to product development projects capitalized for products launched in recent years.
- Product development/engineering expenses written off increased by Rs.191.51 crores to Rs.425.76 crores in FY 2012-13.
Finance Costs increased to Rs.1,387.76 crores from Rs.1,218.62 crores in FY 2011-12. The increase reflects increase in rates and borrowing levels, mainly due to lower cash from operations. Post redemption of CARS and repayment of fixed deposits, the weighted average borrowing cost (gross) has increased to 7.25% from 6.09% in FY 2011-12.
- During FY 2012-13, the Company further provided Rs.245 crores
for the loan given to a subsidiary company, Hispano Carrocera
SA. Impairment triggered by continuous under performance,
mainly attributed to extremely difficult market conditions in
Spain. The Company is in the process of evaluating various
options and business prospects of Hispano.
- As per the accounting policy followed by the Company the
exchange gain/loss on foreign currency long term monetary
items, is amortised over the tenor of such monetary item. The
net exchange loss including on revaluation of foreign currency
borrowings, deposits and loans and amortisation, was Rs.263.12
crores for the year (last year Rs.455.24 crores).
- The Company sold forge division at Jamshedpur, to one of its
subsidiary on a slump sale basis, at a profit of Rs.82.25 crores.
Profit before Tax (PBT) of Rs.174.93 crores represented a steep reduction of Rs.1,166.10 crores from Rs.1,341.03 crores in FY 2011-12. The reduction of PBT was mainly attributable to lower M&HCV volumes and severe contraction of passenger car volumes, resulting in lower operating margin, increase in depreciation/amortization. Further there was write off of product development costs/items. The loss from operation was offset by increased dividend form subsidiary companies, lower exchange loss (net) in respect of foreign currency borrowings, deposits and loans and profit on sale of division.
Tax expenses-There was tax credit of Rs.126.88 crores as compared to tax expense of Rs.98.80 for FY 2011-12. The tax expenses was after considering the tax benefit on R&D expenditure, provision of disallowances and tax treatment of foreign exchange differences.
Profit After Tax (PAT) decreased to Rs.301.81 crores from Rs.1,242.23 crores in FY 2011-12. Consequently, basic Earnings Per Share (EPS) decreased to Rs.0.93 as compared to Rs.3.90 for the previous year for Ordinary Shares and to Rs.1.03 as compared to Rs.4.00 for 'A' Ordinary Shares for the previous year.
|Standalone Balance Sheet
Shareholders' funds were Rs.19,134.84 crores and Rs.19,367.66 crores as at March 31, 2013 and 2012, respectively.
Reserves decreased to Rs.18,496.77 crores as at March 31, 2013 from Rs.18,732.91 crores as at March 31, 2012, reflecting a reduction of Rs.236.14 crores
- The PAT for the current year was of Rs.301.81 crores and Rs.141.81 crores (net) were added to the Securities Premium account by way of premium on shares issued on conversion of convertible notes/securities (net of utilization for debt issue cost, etc.).
- Dividend was proposed (including tax thereon) of Rs.724.23 crores.
||As at March
|As at March
||( Rs. in crores)
|Long term borrowings
|Short term borrowings
|Current maturities of long term borrowings
During FY 2012-13, the Company repaid fixed deposits from public
and shareholders Rs.1,747.12 crores and CARS Rs.2,406.74 crores. These were offset by increase in the short term borrowing by way of commercial paper of Rs.1,986.56 crores as at March 31, 2013 (as compared to Rs.131.27 crores as at March 31, 2012) and net increase in loan, cash credit, overdraft accounts by Rs.1,905.48 crores in FY 2012-13, to support the funding needs. The debt/equity ratio after considering cash/investment in mutual fund was 0.85 as compared to 0.74 as at March 31, 2012. Due to significant reduction in volumes, the Company had to deploy short term funds to support critical long term finance needs, The Company is in the process of taking appropriate steps to increase the long term funds.
Trade payables were Rs.8,455.02 crores as at March 31, 2013 as compared to Rs.8,705.53 crores as at March 31, 2012.
Provisions (current and non-current) as at March 2013 and 2012 were Rs.2,200.77 crores and Rs.3,640.12 crores, respectively. The provisions are mainly towards warranty, employee retirement benefits, premium payable of redemption of debentures/FCCNs, delinquency and proposed dividends. The reduction mainly comprise (i) lower dividend provision of Rs.739.49 crores; and (ii) payment of redemption premium of CARS Rs.886.95 crores in FY 2012-13.
Fixed Assets: The tangible assets (net of depreciation and including capital work in progress) increased from Rs.13,656.77 crores as at March 31, 2012 to Rs.13,795.55 crores. The intangible assets (net of amortisation, including the projects under development), increased from Rs.5,399.42 crores as at March 31, 2012 to Rs.6,412.99 crores. The intangible assets under development were Rs.3,244.96 crores as at March 31, 2013, which relate to new products planned in the future.
Investments (Current + Non-current) decreased to Rs.19,934.39 crores as at March 31, 2013 as compared to Rs.20,493.55 crores as at March 31, 2012.
- There was redemption of 6.25% Cumulative Redeemable Preference Shares of US$ 100 each at par of TML Holdings Pte Ltd, Singapore, of Rs.1,378.95 crores, resulting in reduction of investments.
- This was partly offset by increase in investments in subsidiaries Rs.258.27 crores (Tata Motors Finance Ltd Rs.150 crores, Tata Motors European Technical Centre Plc Rs.62.37 crores, and PT Tata Motors, Indonesia of Rs.45.90 crores), and investments in mutual fund of Rs.359.42 crores.
Inventories stood at Rs.4,455.03 crores as compared to Rs.4,588.23 crores as at March 31, 2012. The Company achieved reduction in stocks of raw material & components, work in progress and transit inventory of Rs.327.67 crores. However, due to difficult market scenario, the finished goods stock and traded inventory has increased by Rs.181.90 crores. The total inventory therefore has increased to 33 days of sales as compared to 28 days in last year.
Trade Receivables (net of allowance for doubtful debts) were
Rs.1,818.04 crores as at March 31, 2013, as compared to Rs.2,708.32 crores as at March 31, 2012. The reduction reflects lower volumes and steps taken by the Company to control the credit. The receivable represented 15 days as at March 31, 2013, compared to 18 days as at March 31, 2012. The amount outstanding for more than six month has gone up to Rs.682.82 crores as at March 31, 2013 from Rs.452.53 crores as at March 31, 2012. These represented dues from Government owned transport companies and some of the dealers. The overdues are monitored and the Company has taken steps to recover these dues. The allowances for doubtful debts were Rs.240.59 crores as at March 31, 2013 against Rs.181.23 crores as at March 31, 2012.
Cash and bank balances were Rs.462.86 crores as at March 31, 2013 compared to Rs.1,840.96 crores as at March 31, 2012. The decrease was due to (i) utilisation of deposits held in foreign currency for redemption of CARS (Rs.759.19 crores) and (ii) utilization of bank deposits of Rs.626.08 crores for business purposes.
|Standalone Cash Flow
||(Rs. in crores)
|Net Cash from Operating Activities
|Profit for the year
|Adjustments for cash flow from operations
|Changes in working capital
|Direct taxes paid/(credit)(net)
|Net Cash used in Investing Activities
|Payment for fixed assets (Net)
|Proceeds from sale of a division
|Net investments, short term deposit, margin money and loans given
|Redemption of preference shares in subsidiary
|Investments/loans in subsidiary/associates/JV (net)
|Dividend and interest received
|Net Cash from/(used in) Financing Activities
|Interest and dividend paid
|Net Borrowings (net of issue expenses)
|Net decrease in cash and cash equivalent
|Effect of exchange fluctuation on cash flows
|Cash and cash equivalent, beginning of the year
|Cash and cash equivalent, end of the year
- Reduction in net cash generated from operations reflects
impact of reduction in sales and profitability. The cash
generated from operations before working capital changes
was Rs.1,648.32 crores as compared to Rs.4,303.59 crores in the
previous year. There was a net inflow of Rs.502.79 towards
working capital changes mainly attributable to decrease
in trade receivables and partly offset by increase of trade
The net cash inflow from investing activity was Rs.991.50 crores
as compared to Rs.144.72 crores for the previous year and was
mainly attributable to:
The net change in financing activity was an outflow of
Rs.4,045.69 crores against Rs.4,235.59 crores for last year. The
outflow is attributable to the following:
Redemption of preference shares by TML Holdings Singapore,
resulting in cash inflow of Rs.1,378.95 crores as compared to
Rs.4,146.98 crores in FY 2011-12.
- Inflow by way of dividend was Rs.1,660.95 crores (Rs.180.63 crores for FY 2011-12).
The cash used for payments for fixed assets was Rs.2,588.44
crores (net) (Rs.2,852.56 crores for FY 2011-12),
There was an outflow (net) of Rs.203.00 crores (Rs.1,806.87
crores for FY 2011-12) towards investments in subsidiary
The Company repaid fixed deposits - Rs.1,868.38 crores (Rs.1,069.25 crores for FY 2011-12).
- The long term borrowings (net) repayment was Rs.814.63 crores (last year there was inflow of Rs.2,423.30 crores).
- Short term borrowings – net increase of Rs.2,983.74 crores (last year Rs.2,567.37 crores). As explained, the Company is in the process of raising long term funds.
|FINANCIAL PERFORMANCE OF JLR (AS PER IFRS)
The financial statement of JLR are prepared as per International
Financial Reporting Standards (IFRS) applicable in the UK. This
information is given to enable the readers to understand the
performance of JLR
Revenue: During the year, JLR generated a record revenue and
profits. This was primarily driven by increased demand for both
brands as well as a strong product and market mix. Consolidated
revenues for FY 2012-13 were GB£15,784 million, an increase of
16.8% compared to FY 2011-12.
EBITDA: Consolidated EBITDA for FY 2012-13 was GB£2,402
million, an increase of 19% compared to FY 2011-12, a significant
improvement mainly driven by increased volume, a favourable
exchange rate environment and richer model and market mix.
The introduction of the new Range Rover, a full year of the Range
Rover Evoque and the new variants of the Jaguar XF, as well as the
continued strength of the Range Rover Sport, were key contributors
to the profitable growth.
JLR also experienced a change in market mix, in particular the
continued strengthening of business in China, which is now its
largest single market. Further, JLR's performance was also supported
by the positive impact of the continuing strength of the US Dollar
against the Pound Sterling and the Euro, improving its revenues
against the backdrop of a largely pound sterling and euro cost base.
The improvement in JLR's results of operations in FY 2012-13 was
also partially attributable to further cost efficiency improvements
in material costs and manufacturing costs, supported by increased
production volume levels.
Material cost of sales for FY 2012-13 were GB£9,904 million, an
increase of GB£1,172 million (13%) compared to FY 2011-12 and,
as a percentage of revenue, was 63%, a decrease of 2% compared
to FY 2011-12. The main drivers of the decrease were product and
market mix and material cost improvements.
Employee costs: There was an increase of GB£322 million (32%)
compared to FY 2011-12. This reflects increase in permanent
and agency headcount, to support product development and
manufacturing in view of increased volumes.
Other expense for FY 2012-13 were GB£3,075 million, an increase
of GB£546 million (22%) compared to FY 2011-12. These costs
include manufacturing and launch costs, freight and distribution
costs, warranty costs, product development/engineering expense,
selling and fixed marketing expenses. Some of these costs were
attributable to launch expenses for new/variants introduced
during the year.
Development costs of GB£1,058 million represent an increase of
GB£158 million (18%). This reflected the increased spend on future
model development for both brands. Of the total spending, GB£860
million was capitalised (last year GB£ 751 million).
Profit before tax (PBT) for FY 2012-13 was GB£1,675 million,
an increase of GB£168 million (11%) compared to FY 2011-12.
Depreciation and amortisation costs were GB£622 million, an
increase of GB£157 million (34%) compared to FY 2011-12, reflecting
the growing product development and facilities investment.
The net foreign exchange loss was GB£108 million, an impact of
GB£122 million, compared to FY 2011-12 (£14 million gain). This
was as a result in the mark to market of hedging instruments and
revaluation of loans and other balance sheet items.
Finance income was GB£34 million, an increase of GB£18 million
compared to FY 2011-12, as a result of an increase in cash generated
by JLR during FY 2012-13. Finance expense (net of capitalised
interest) was GB£65 million, a reduction of GB£20 million compared
to FY 2011-12.
During the year, JLR invested £70 million in the China joint venture,
established with Chery Automobile Company Ltd. Due to initial
start-up costs; JLR has recognised a loss of £12 million on the JV
in the current year.
The effective tax rate was 27% compared to 2% in FY 2011-12.
This reflects the recognition of GB£217 million of previously
unrecognised deferred tax assets.
Net cash provided by operating activities was GB£2,429 million in
FY 2012-13 compared to GB£2,500 million during FY 2011-12. This
was primarily attributable to the improvement in JLR's profits offset
by higher tax paid and working capital changes.
Net cash used in investing activities increased significantly to
GB£2,609 million in FY 2012-13, compared with GB£1,542 million
in FY2011-12. Purchase of property, plant and equipment and
expenditure on intangible assets (product development projects)
was GB£1,846 million in FY 2012-13 against GB£1,410 million in
FY 2011-12. JLR's capital expenditure related mostly to capacity
expansion of its production facilities and investment in new
and future products, including the costs associated with the
development of the all new Range Rover and Range Rover Sport.
Net cash used in financing activities was GB£178 million in FY 2012-13 compared to net cash generated in financing activities of GB£444 million in FY 2011-12. Cash used in financing activities in FY 2012-13 includes a maiden dividend paid of GB£150 million and reflects long term unsecured bond proceeds of GB£317 million and repayment of short term debt (GB£250 million). Also including interest and fees of GB£179 million.
Financial performance of TMFL: During FY 2012-13, TMFL earned a total income of Rs.2,889.81 crores, against an income of Rs.2,096.66 crores earned during the previous year, reflecting an increase of 38%. The Profit Before Tax grew by 27% to Rs.449.59 crores (Previous year: Rs.355.12 crores). The Profit After Tax at Rs.309.30 crores was 29% higher than that in the previous year (Rs.239.90 crores).
Financial performance of TDCV (as per Korean GAAP) : During FY 2012-13, TDCV's total revenue was at KRW 823.92 billion (Rs.4,024.00 crores) higher by 7.9 % compared to KRW 763.47 billion (Rs.3,288.18 crores) in FY 2011-12. TDCV reported Loss before Tax was at KRW 10.44 billion (Rs.51.00 crores) as compared to Income before tax of KRW 6.43 billion (Rs.27.67 crores) in FY 2011-12. After providing for tax, the Loss for the year stood at KRW 9.21 billion (Rs.44.96 crores), against profit of KRW 2.03 billion (Rs.8.74 crores) in FY 2011-12. The positive impact of higher volume and various cost control initiatives, ere negated by provision of KRW 18.9 Billion Rs.92.27 crores) made on account of court verdict in the Ordinary Wage Lawsuit filed by the Union Employees of TDCV.
Financial performance of TTL : The consolidated revenue was
Rs.2,045.42 crores, an increase of 22.7% against Rs.1,666.95 crores in
the previous year. The Profit Before Tax was Rs.392.59 crores as against
Rs.271.83 crores in the previous year, recording a growth of 44.4%.
The Profit After Tax stood at Rs.300.89 crores as against Rs.208.37 crores
recording a growth of 44.3%.
Opportunities and Risks – JLR and Tata Motors businesses
constitute a significant portion of Revenue, Income and assets
/liabilities. Accordingly, we have given below key opportunities
Infrastructure Growth: While the growth in this sector in India
has been below expectations last year, there are encouraging
signs of improvement in this sector going forward. In the recently
announced Annual Budget for FY 2013-14, the Finance Minister
announced under the Jawaharlal Nehru National Urban Renewal
Mission scheme (JNNURM) and a spend of in the infrastructure
The Government of India has been focusing on improving road
infrastructure through two main umbrella programs – National
Highway Development Project (NHDP) and Pradhan Mantri Gram
Sadak Yojna (PMGSY).
While National Highway Authority of India (NHAI) has till date
awarded 66% of the projects by road length (the plan is to upgrade,
widen and strengthen 55,000 km of road network), 34% still remains
to be awarded. Of the awarded projects, 39% of the work has been
completed and work on the remaining 28% is underway.
In the FY 2013-14 budget, the Government has planned to award a
further 8,270 km of projects, higher than originally planned.
Under the PMGSY, the Government aims to develop 470,761 km
of rural roads. Of this, till date about 72% of network has been
completed (including up gradation). Of the sanctioned road work
for new connectivity, 66% has been completed and 82% of that
for upgraded connectivity has been completed.
This improved and new connectivity presents a significant
opportunity for the Company with its wide product range in
commercial, utility and passenger vehicles. Also, there is potential
requirement of both cargo and passenger small commercial
vehicles from newly connected rural areas.
Increase in connectivity has also resulted in urbanization of towns
and villages thus boosting local economy and leading to increased
demand. It is expected, the above initiatives will boost the demand
for construction equipment and tippers.
Rural market penetration : In India, growth in FY 2013-14
is expected to come from reach and penetration in tier 2 and
tier 3 markets. With growing connectivity and increased rural
affluence, the demand for automobiles in rural areas has increased
significantly. For FY 2013-14 as well, with indications of a normal
monsoon and a robust growth in agriculture, the demand from the
rural segment is likely to sustain. With a product range catering to
even the buyer of smallest commercial vehicle or a fun-to-drive yet
affordable passenger car offering, the Company is appropriately
placed to encash the opportunity. Along with the product range,
the Company is working on increasing reach and penetration
of the sales and service network to be able to serve this market
better. During FY 2012-13, the Company increased sales touch
points by 35% and service touch points by 26%. With aggressive
plans to further increase penetration this year, the Company has
potential opportunity to leverage its wide product range and large
distribution network, to accelerate growth.
Non-cyclical business growth : In order to better insulate
against the cyclicality of the automobile industry in the event of
a downturn, specifically in the MHCV segment, the Company has
also focused on lines of business and customer solutions which
are inherently less cyclic in nature, e.g. the sale of spares and the
after sales business. The spares business of the Company's Indian
operations has grown by 20% CAGR in the last five years.
Similarly, the Annual Maintenance Contracts enable the Company
to continue revenue streams from a customer even after sale of
the vehicle, while enhancing the value to the customers during
lifetime of product.
The Company has also taken initiative of increasing focus on the
Defence business which is also independent of the cyclicality of the
other segments in the automobile sector. While the Government
has announced increased private participation in Defence sector,
the progress is quite slow in this direction. The Company is targeting
moving from pure logistics solutions to tactical and combat
solutions, thus garnering a greater share of this market.
The Defence business has increasing relevance in international
markets, as well and the Company is now focusing on developing
this business beyond India. We have appointed exclusive Defence
distributors in certain key markets such as Thailand, Malaysia etc.
to penetrate this business.
Exports from India: India has emerged as a major hub for global
manufacturing with its advantage of lower input costs, availability
of local supplier base and high domestic demand. As an established
domestic manufacturer, the Company is ideally placed to take
advantage for targeting lucrative international markets, either
through the fully built export or CKD route.
In addition to the above, the Company also has the advantage of a
strong in-house design and development facility and professionals.
Thus the Company's R&D group is capable of developing solutions
for different regulatory and emission norms as per market
specifications in minimal time.
As demand slows down in the domestic market, growing and
consolidating presence in select international markets will be a
key priority for the Company.
Currently, the Company is present in Africa and ASEAN markets
through manufacturing facilities. The Company is also actively
considering expanding its global manufacturing footprint in key
international markets to take advantage of import duty differentials
and local sourcing benefits.
Jaguar Land Rover Opportunities through products and
markets: JLR offers products in the premium performance car and
all-terrain vehicle segments, and it intends to grow the business
by diversifying the product range within these segments with
both new products as well as product derivatives. The new Range
Rover Evoque has helped expansion into a market segment that
is attracted by a smaller, lighter and more 'urban' off-road vehicle,
as compared to domain market segment in which Range Rover
models traditionally compete. All-wheel drive Jaguars and the XF
Sportbrake, cater a much wider group of potential customers.
In addition, JLR has a strategy of expanding regional coverage
into geographic locations where it has identified an opportunity
to grow within its core segments. As a producer of distinctive and
premium cars, JLR believes it is well positioned to increase revenues
in emerging countries with growing sales potential. There are
three specific aspects to the company's strategy of geographic
- JLR aims to increase its marketing and dealer network in
emerging markets. In China, the presence in this key market
and plans to increase the network of sales dealerships across
the country. At March 31, 2013, JLR had increased to 135 Land
Rover dealers and 134 Jaguar dealers in China. Similarly, JLR
plans to continue to grow its presence in the Indian market
by opening additional dealerships across the country.
- JLR aims to establish new manufacturing facilities, assembly
points and suppliers in selected markets. In China, joint
venture with Cherry Automobiles has been formed. In India,
the Company has already established a CKD assembly facility.
JLR will continue to look for opportunities to source materials
and components in a cost-efficient manner and, in pursuit of
that objective, JLR has already opened purchasing offices in
China and India.
- JLR aims to leverage its relationship with Tata Motors and the
synergies it can achieve in the areas of research and product
development, supply sourcing, manufacturing and assembly
and other vital operations, including the co-development of
a family of small efficient diesel and petrol engines.