Tata Motors to borrow, spend more

 

Tata Motors – India’s largest automobile maker - is planning investments that reflect the company’s size. The company plans to invest Rs. 10,000crore by 2013 for ‘product development, capital expenditure in capacity enhancement, plant renewal and modernization and other meaningful growth opportunities’. 

 

The ‘other meaningful growth opportunities’ could also include setting up plants, deals with other players to expand business. Tata Motors Group CEO Carl Peter Forster had mentioned earlier that Light Commercial Vehicles (LCV) will play a key role for the company ‘to go global in a massive scale’.

 

To fund these plans, Tata Motors has sought shareholders’ approval to raise the borrowing limit of the company to Rs. 30,000crore, from the current level of Rs. 20,000crore.