Tata Motors incorporates BRAL as subsidiary
Brabo Robotics and Automation Ltd. (BRAL) was incorporated as a wholly-owned subsidiary of Tata Motors. The company holds 100 per cent shareholding in BRAL and has subscribed to 50,000 equity shares of Rs. 10 each. All in all, this amounts to a total cash consideration of Rs. 5,00,000.
In FY19, Tata Motors registered good growth across all segments. It maintained its leadership position in the commercial vehicles segment with a market share of 45.1 per cent in FY19. The business showcased volume growth of 17.2 per cent YoY. During the year, the volumes in the passenger vehicles segment surpassed the industry growth rate of 2.8 per cent by posting an impressive growth of 13.9 per cent.
The implementation of the BSVI norms to curtail harmful emissions will exert some pressure on all automobile manufacturers. The company is working on a smooth transition to the new norms and in securing sustainable cash flows. It is also working on developing electric vehicles.
The company’s other operations business segment mainly includes information technology services, machine tools and factory automation services. Revenue from other operations before inter-segment eliminations stood at Rs. 3,626.07 crore in FY19, thereby increasing 11.5 per cent YoY. Since BRAL is engaged in the business of manufacturing machinery and equipment relating to factory automation and robotics, it will aid in driving the revenues of the company from this segment.
On Friday, the shares of Tata Motors opened at Rs. 162.00, and hit a high and low of Rs. 162.50 and Rs. 157.00, respectively. At 11:05 am, the stock was trading at Rs. 157.55, down 2.02 per cent.