Tata Motors to develop new cars in synergy with JLR

India's highest revenue earning auto maker Tata Motors has initiated the process of developing new cars and engines in synergy with its British subsidiaries Jaguar cars and Land Rover, which it acquired more than two years back. The company said in a statement that Initiatives have been taken on joint development programmes for engines, vehicles and platforms, which would leverage skills of both Tata Motors and Jaguar Land Rover (JLR), resulting in a synergy in operations of the company and its subsidiary.

The company has sought the approval of its share holders for raising up to Rs 4,700 crore in long-term funds. However, it is yet to reveal the projects and programmes on which it has been working with these British marques.  It is to be mentioned here that Tata Motors had acquired these two British subsidiaries from US based auto giant Ford Motors in the year 2008, with an investment of more than $2.3 billion.

Mr Ravi Kant, non-executive vice-chairman of the company, has been credited  for initiating synergies between Tata Motors and JLR. In recognition of his work company's board has approved an annual remuneration of about Rs 53 lakh for him. Mr Kant was appointed as advisor of Tata Motors on June 2, 2009. According to the company, Mr Kant has been performing a key function in overseeing and co-ordinating the operations of JLR, besides reviewing the existing manufacturing processes, which would result in substantial cost reduction and rationalisation of platforms.

Tata Motors has already announced that it would invest heavily (about Rs 10,000 crore) in the coming years on product development and facility modernization.