New road ahead

Mumbai, March 17: Tata Motors Limited today signed an agreement to acquire a 21 per cent stake in Hispano Carrocera SA at a cost of 12 million euros (approximately Rs 70 crore).

Under the agreement, Tata Motors has a call option to buy out the remaining 79 per cent stake to take its shareholding to 100 per cent in the Spanish bus company. Tata Motors will also have the licence for technology and brand rights from Hispano.

The agreement was signed in Madrid where Ravi Kant, executive director of Tata Motors, was handed over the share certificates by Gerardo Mugica, CEO of Hispano Carrocera SA. Kant today took over as chairman of Hispano Carrocera.

Hispano Carrocera is a bus and coach manufacturer in Spain with two manufacturing facilities at Zaragoza in Spain and Casablanca in Morocco, North Africa.

The first task for Tata Motors would be to infuse some liquidity in the company, Kant told The Telegraph.

?We?ll get the business, which is sputtering at present, running soon,? he added.

?This partnership gives both companies an opportunity to use their complementary strengths to create high-class transport solutions for intracity and intercity mass transportation in Spain, India and many other countries around the world,? Kant said.

Regarding the synergies and the grand alliance Tata Motors, Daewoo Commercial of South Korea and Hispano could forge in the coming years, he said, ?We?ll secure more orders by plugging their vehicles in our international network.?

Kant, who will be flying to Casablanca, said the African unit can throw up interesting opportunities for Tata Motors as it expands its footprint in Africa.

The product designed by Pininfarina has won Bus of the Year awards in their markets.

Earlier this month, Tata Motors had successfully launched its fleet of stylish and contemporary ?Globus? coaches and ?Starbus? range of buses.

The Tata branded 13 to 67-seater buses and coaches, available in diesel and CNG variants, have been developed to meet the exacting requirements of every user group.

Tata Motors produces more than 150 commercial vehicle models with a range of light, medium to heavy-duty trucks, buses and tractor-trailers.