Tata Marcopolo Motors, the 51:49 JV between Tata Motors and Marcopolo S.A reported Rs 651 crore turnover and Rs 21 crore profit after tax (PAT) in FY2020.
Brazilian bus and coach manufacturer Marcopolo S.A will exit the Tata Marcopolo Motors Ltd (TMML) joint venture with Tata Motors. As Tata Motors has said in a regulatory filing on Thursday, it will acquire the remaining 49% stake of the 51:49 JV between the two companies, at an amount of Rs 99.96 crore.
The acquisition is expected to be completed by 28th February 2021.
Post the completion of this share purchasing deal, Tata Marcopolo Motors will be a wholly-owned subsidiary of the homegrown auto manufacturer.
Tata Motors also said in the filing, “After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A. has decided to exit from the joint venture and offered to sell its 49% shareholding in TMML.”
Tata Marcopolo Motors reported a Rs 651 crore turnover and Rs 21 crore profit after tax (PAT) in FY2020.
The Tata Marcopolo Motors was formed in 2006 between the two Indian and the Brazilian auto companies. While Tata Motors is India’s largest commercial vehicle manufacturer, Marcopolo S.A is one of the largest bus manufacturers globally.
The TMML joint venture manufactured buses at its production facilities in Lucknow and Dharwad where it builds bus bodies on chassis supplied by the homegrown CV maker. These buses are marketed by Tata Motors under its Starbus and Starbus Ultra brands.
All the technologies around the bus bodies currently manufactured by Tata Marcopolo Motors will continue to vest with the company. Also, the Brazilian CV maker will continue to license the Marcopolo trademarks to TMML for at least 3 years. The share purchasing deal would not impact Tata Marcopolo Motors’ operations including sales and service of existing customers, as Tata Motors has claimed.
As the automaker said, Tata Motors, Marcopolo S.A. and Tata Marcopolo Motors Ltd intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services.
Tata Marcopolo Motors was one of the first bus manufacturers to introduce low-floor passenger buses for public transportation in Delhi, Mumbai among other cities. These low-floor buses come with a relatively lower ground clearance as compared to regular buses resulting in making it comfortable for the passengers to step in.