Latest news with #Chandrasekaran
Time of India
6 hours ago
- Automotive
- Time of India
Tata Sons won't incur any debt unlike past takeovers
MUMBAI: In its biggest overseas deal and a strategic play aimed at expanding footprint in Europe, Tata Motors will buy Italian truck manufacturer Iveco for Euros 3.8 billion ($4.4 billion). Tired of too many ads? go ad free now Iveco will also be the biggest acquisition under Tata Group chairman N Chandrasekaran after Bhushan Steel and Air India. Chandrasekaran briefed the Tata Sons board on Wednesday about the deal. Tata Motors will launch an all-cash tender offer on Iveco's shares, subject to the sale of the Italian company's defence business, at 14.1 euros apiece. The defence business will be sold to Leonardo. Iveco's largest shareholder Exor will sell its 27.1% stake and 43.1% of voting rights to Tata Motors. Exor is owned by the Agnelli family, one of the founders of Fiat. The tender offer is subject to a minimum acceptance level of 80% of shares tendered. Iveco is active in more than 30 countries, including India, China, United States and Russia. It designs, manufactures, and sells trucks, buses and defence vehicles. It also offers financial products and services to dealers and customers. Tata Sons won't incur any debt unlike past takeovers Tata Motors and Iveco said, "The offer would bring together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints." The combined group would have a significant global presence, with sales of over 5.4 lakh units per year and revenues of around 22 billion euros split across Europe (50%), India (35%) and the Americas (15%). Tata Motors' move follows the demerger of its commercial vehicle unit, which virtually has no manufacturing footprint in the European commercial vehicle industry. Tata Motors, which will route the acquisition through TML CV Holdings, incorporated under Dutch law, intends to delist Iveco from Euronext Milan stock exchange. Tired of too many ads? go ad free now Morgan Stanley Bank, Morgan Stanley Senior Funding and MUFG Bank have jointly underwritten the financing facilities of euros 3.8 billion for funding of the tender offer, Tata Motors said. Unlike previous major acquisitions, Tata Sons, the holding company of Tata Group, will neither incur debt nor provide financial guarantees for this transaction. This shift follows RBI regulations which prevent unregistered core investment companies from accessing public funds directly or indirectly. Tata Sons has already applied to relinquish its core investment company status. Previously, Tata Sons supported acquisitions of Tetley, Corus, VSNL (now Tata Communications) by raising debt on its books and offering letters of comfort to lenders on behalf of its subsidiaries. Chandrasekaran briefed the Tata Sons board about the deal on Wednesday. The 20-minute Tata Sons board meeting occurred without a pre-distributed agenda. According to industry observers, Tata Motors is facing storms with Jaguar Land Rover moving to electric vehicles, US tariffs affecting luxury models, and big spending needed to comply with new European rules. They believe the Iveco deal will increase borrowing as Tata Motors' current cash flow cannot adequately cover the M&A transaction.
India Today
12 hours ago
- Automotive
- India Today
Tata Motors to acquire Iveco in €3.8 billion deal, expanding global CV reach
In a landmark, Tata Motors has announced the acquisition of Italy's Iveco Group for 3.8 billion in an all-cash transaction. The deal will be executed through a voluntary tender offer made by TML CV Holdings PTE Ltd, a newly formed Dutch-incorporated entity entirely owned by Tata Motors. Upon completion, the combined entity will become one of the world's largest CV manufacturers, generating annual revenues of approximately 22 billion and sales exceeding 540,000 units per offer targets all issued common shares of Iveco Group, conditional upon the successful separation of its defence business by March 31, 2026. Shareholders are expected to receive an dividend of 5.5–6.0 per share from the sale of the defence unit, which has been valued at 1.7 billion. The offer price of 14.1 per share (excluding the dividend) represents a 34–41% premium, providing significant value to Iveco's deal has received unanimous approval from Iveco's Board of Directors, who have recommended the offer as being in the best interest of shareholders and stakeholders. Exor N.V., Iveco's largest shareholder with a 27.06% equity stake and 43.11% voting rights, has irrevocably committed to tender its shares and support the transaction. Following the acquisition, Iveco will be delisted from Euronext Milan and will continue to operate as a wholly owned subsidiary of Tata Motors, retaining its headquarters in Turin, Italy, and preserving its brands and industrial footprint. Strategically, the merger brings together highly complementary businesses with minimal geographic and product overlap. Tata's strong presence in India and Asia will be coupled with Iveco's established operations in Europe and the Americas. The combined entity's revenues will be split roughly 50% from Europe, 35% from India, and 15% from the Americas, along with a growing presence in Asia and Africa. Together, the two companies aim to leverage their strengths in product development, powertrain capabilities, and zero-emission mobility ensure operational continuity and employee stability, Tata Motors has committed to a robust set of non-financial covenants, valid for two years post-settlement. These include no job losses or plant closures directly resulting from the merger, preservation of employee rights and benefits, and continued support for Iveco's strategic roadmap and capital expenditure plans. The governance structure will also remain intact, with two independent directors appointed to oversee compliance with the agreed Motors has secured full financing for the deal from Morgan Stanley and MUFG, ensuring high certainty of completion. Advisors on the transaction include Goldman Sachs (for Iveco), Morgan Stanley (for Tata Motors), and law firms Clifford Chance, De Brauw Blackstone Westbroek, and PedersoliGattai, among Chandrasekaran, Chairman of Tata Motors, called the acquisition a 'logical next step' after the recent demerger of the CV business, enabling the company to compete globally with dual strategic bases in India and Europe. Iveco Chair Suzanne Heywood echoed this sentiment, emphasising the alignment of the two companies' visions for sustainable mobility and long-term industrial acquisition positions Tata Motors and Iveco Group to lead in the future of commercial mobility, with enhanced scale, a diversified global footprint, and a shared focus on innovation, electrification, and sustainability. Subject to regulatory approvals, the transaction is expected to close by April, to Auto Today Magazine- Ends
The Hindu
2 days ago
- Business
- The Hindu
Illegal sale of fireworks, illicit import of Chinese fireworks caused loss of 40% to fireworks traders, says federation
Federation of Tamil Nadu Fireworks Traders have alleged that illegally functioning online sale of fireworks and illicit import of Chinese fireworks has caused a loss of ₹800 crore to the fireworks traders of the country during 2024 Deepavali season. Talking to reporters here on Tuesday, the federation president V. Raja Chandrasekaran said that despite the Supreme Court banning taking online orders and sale of fireworks in 2018, the illegal online sale continued. 'This has been more pronounced in Tamil Nadu, Kerala, Karnataka and Andhra Pradesh. Before it spreads to other States, the Government should ensure that no online sale of fireworks could be done,' he said. Besides, stealth import of Chinese goods continued, he charged. He pointed out that even recently, Chinese fireworks worth ₹35 crore were seized in Mumbai. 'The combination of online sales and Chinese imports had affected the business of traders to the extent of 40%, which is around ₹800 crore to ₹1000 crore, during Deepavali season 2024,' he said. The federation would proceed with a case of contempt of court for allowing online sale of fireworks besides initiating criminal case, he said. License for fireworks shops Mr. Chandrasekaran complained that applications submitted for permanent cracker shops in February and March 2025 were yet to be processed. 'The process should have been completed within two months,' he said. Besides, the license for permanent cracker shops is issued for five years under Explosives Act 2008. However, since the Department of Fireworks and Rescue gives no-objection certificate for only one year, the Revenue Department was giving license for only one year in many districts, he complained. Besides, he insisted that the inordinate delay in giving license for temporary cracker shops during Deepavali season was taking a huge toll on the traders. 'The applications should be invited 90 days before Deepavali and the 15-day license should be given one month ahead of Deepavali to help the traders plan their business,' he said. The federation secretary, N. Elangovan, was present.
Mint
2 days ago
- Automotive
- Mint
Tata Steel Q1 preview: All eyes on UK business turnaround, cost cuts, and margin expansions
MUMBAI : Tata Sons' chairman N. Chandrasekaran was all praises for Tata Motors Ltd in his letter to shareholders included in the 2024-25 annual report of Tata Sons, the privately held parent company of the Tata group, released last week. Deservedly so. Chandrasekaran shared the performance record of both listed and privately held group companies for the last five fiscal years, which showed the carmaker recorded a 69% revenue increase between 2019-20 and 2024-25. The top commercial vehicle maker's 955% stock-market return ranks among the best within the group. Tata Power Co. Ltd was the top-performing entity, with its shares delivering a return of 1,250%. That makes Tata Steel's impressive 529% return look a shade paler. But the performance of the country's second-largest steelmaker (behind JSW Steel Ltd) is no less commendable. This is especially true as the steel giant nears turning its loss-making European operations profitable, a vision shared by Chandrasekaran at the company's shareholder meeting in June. Higher steel prices surely helped the company. But credit also goes to the company's senior management, led by chief executive T.V. Narendran, who took over the top post eight months after Chandrasekaran assumed the role of Tata Sons chairman in February 2017. Still, Tata Steel's performance over the next 18 months will determine whether it can turn its UK operations profitable by September 2026. The US President Donald Trump-led tariff war and consequent global uncertainty could lead to a correction in steel prices, nullifying the management's efforts. For this reason, all eyes will be on the company's June-quarter results to be announced on 30 July. In the first three months of 2025-26, steel prices rose quarter-on-quarter but were slightly lower year-on-year. Hot-rolled coil (HRC), used in automobile parts and consumer durables, was sold for approximately ₹52,000 per tonne, and rebar, used in infrastructure and housing, for around ₹56,600, according to Antique Stock Broking analysts. Prices had recovered from January lows but dropped about 3% recently due to seasonal factors, as early rains led to slower construction. Rebar is selling at a higher price than HRC, which is good for companies such as Jindal Steel and Power Ltd that make more long steel. HRC prices are also higher than Chinese imports, even after including the 12% import tax, pressuring domestic steelmakers, said the brokerage's 5 June report. Mint lists five major areas to focus on in the company's first-quarter results: Revenue and profitability: Analysts at Systematix Institutional Equities expect Tata Steel's revenues to decline 7% on-year to ₹50,700 crore on weak demand and profits to rise by 72% to ₹1,580 crore due to an increase in steel prices. However, the companies in the sector are likely to report a 20% on-year Ebitda growth led by better cost efficiency, operating leverage, and better steel prices, said the 11 July report. Ebitda is short for earnings before interest, taxes, depreciation, and amortization. Demand and prices: Given the rise in steel prices, coupled with lower input costs, domestic steel producers such as Tata Steel are likely to report an improved Ebitda/tonne in Q1FY26 compared to Q4FY25. Domestic steel prices rebounded during the quarter due to the government's 12% safeguard duty. Analysts at Systematix Institutional Equities believe India will continue to be the growth engine for the ferrous sector. They also expect the safeguard duty to be extended beyond its 200-day period to continue protecting local producers. European operations profitability: The key focus for investors would be Tata Steel's overseas operations, where improved steel prices in Europe are likely to help narrow losses in the UK. Ebitda per tonne is expected to rise to $103, indicating early signs of a turnaround. Cost reduction and margin expansion: The steelmaker achieved ₹6,600 crore in cost savings in 2024-25. The management commentary in the March quarter suggested higher margins across geographies, supported by the 12% safeguard duties and a drop in coking coal prices for the next fiscal year, with a further cost reduction target of ₹11,500 crore in India and Europe. At least one of the brokerage firms said the cost-saving targets are ambitious, and they would factor in only partial cost benefits. Commentary on margin expansion due to safeguard duties and cost cuts would be a key factor to watch. Outlook: Analysts do not expect the India-UK free trade agreement to have any significant impact as the UK's business primarily sources its raw materials from the Netherlands. Tata Steel's outlook for 2025-26 hinges on aggressive cost takeouts and margin recovery. However, the steelmaker is expected to see a squeeze in margins in the next quarter, more than their peers, as prices of both steel and iron ore are on a downward trend. This is because of the fixed costs associated with their mines, which help them earn better margins when things are going well but become a burden during a slowdown.
Indian Express
4 days ago
- Business
- Indian Express
Rs 140 crore in perks: Tata Sons Chairman N Chandrasekaran's FY25 pay package totals over Rs 155 crore
Tata Sons Chairman N Chandrasekaran Salary: Tata Sons Chairman N Chandrasekaran is among the highest-paid industry leaders in India. In its annual report, the principal investment holding firm of the Tata Group of companies, said that the N Chandrasekaran's total remuneration in FY25 was at Rs 155.81 crore, up 15 per cent from Rs 135.32 crore in FY24. This huge pay package includes Rs 15.12 crore in salary and other compensation, along with Rs 140.69 crore as commission on profits for the financial year 2024-25. According to details available, Chandrasekaran joined the Board of Tata Sons in October 2016 and was appointed Chairman in 2017. Before becoming the Chairman, he served as the Chief Executive Officer and Managing Director of Tata Consultancy Services (TCS), the country's largest IT services firm. The IT giant is set to lay off about 2 per cent of its workforce (around 12,200 employees) in the financial year 2025-26. The move is likely to impact primarily employees at the middle and senior management levels. According to Reuters, the Tata Group company is retraining and redeploying staff as it enters new markets, invests in new technology and deploys AI, but over 12,000 jobs will be cut as part of the process. 'This transition is being planned with due care to ensure there is no impact on service delivery to our clients,' the company said, reports Reuters. Earlier this month, during earnings conference call, Milind Lakkad, Executive Vice President and Chief Human Resources Officer (CHRO) at TCS said that the workforce at the end of the first quarter was 6,13,069. 'Net attrition during the quarter was over 5,000 employees. We have honored all the job offers, and we'll do so for the rest of the year. Lateral hiring will be recalibrated based on the demand outlook,' he said, as per the exchange filing.
