Categories: Business

Tata motors group says will cut consolidated debt to zero in 3 years

Photo: PTI

Tata motors group aims to become debt free in 3 years

new Delhi. Tata Motors Limited (TML) has set a target of reducing its debt burden to near zero in three years and has forecast that the company's cash-flow (cash inflows) will turn positive from FY 2021-22. Tata Motors Chairman N. Chandrasekharan said at the company's 75th annual general meeting on Tuesday that the company would also look into withdrawing investments from non-core sectors so that the debt burden could be reduced. Chandrasekhar further mentioned five aspects of the plan in which the net burden of debt to zero is the main issue.

The current net automotive debt on the Tata Motors group is Rs 48,000 crore. He said, "We have set a target to reduce debt significantly. It will be brought to near zero in three years. "He said that from 2021-22 the company will start generating positive free cash flow. Regarding the cost structure of the company, Chandrasekaran said that the group's gross investment has decreased by 50 per cent during the current financial year, it will also be strictly controlled in the future. He said that the company will sell such investments / assets which are not necessary for it. Regarding Jaguar Land Rover (JLR), Chradashekaran said that the emphasis will be on improving the brand portfolio. Regarding the entire business environment, Chandrasekaran said that the entire global auto industry has been grappling with a variety of issues for the past 12 months. "Increasing trade tensions, shrinking global growth and ever-increasing regulatory regulations have significantly changed the working scenario," he said. The Tata Motors chairman said the domestic auto sector saw an 18 percent drop in sales. The Indian automobile industry has faced an unprecedented situation.

This post was published on August 25, 2020 11:37 pm

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