There have been reports earlier that Mayank Pareek, President, Passenger Vehicle Business, Tata Motors will soon retire from his position in the company. Now, Tata has officially confirmed this development in a statement. Shailesh Chandra, President EV and Corporate Strategy will be assuming responsibility for the PV business from Mayank Pareek, including EV with effect from April 1, 2020. Shailesh and Mayank will work on transition over the next few weeks and Mayank will be superannuating from Tata Motors at the end of February 2021.
"Tata Motors Ltd (TML) Board approves plan to subsidiarize TML’s Passenger Vehicles (PV) including Electric Vehicles (EV) business into a separate subsidiary through a scheme of arrangement. This shall help provide differentiated focus for the PV and CV businesses and help each of them realise their potential. This decision is a first step in our plans to secure mutually beneficial strategic alliances for the domestic PV business and help secure its long-term viability. TML Board has in-principle approved to subsidiarize TML’s PV business (including EV) by transferring relevant assets, IPs and employees directly relatable to the PV business for it to be fully functional on a standalone basis through a slump sale," said the company in an official statement.
"However, certain shared services and central functions will be retained at TML to deliver cost efficiencies for the entire group. The proposed transfer shall be implemented through a scheme of arrangement, which will be tabled for approval to the TML Board over the next few weeks. Implementation of the scheme will be subject to regulatory and statutory approvals as applicable, including approval of shareholders and creditors. We expect the transfer process to be completed in the next one year. However, the recent outbreak of COVID-19 virus increases the challenges faced by the business. In this situation our first priority is to secure the health and safety of our people while continuing to serve our customers and securing the viability of our ecosystem," the statement added.
