Tata to complete Jaguar deal by June

Tata group company, Tata Motors, has drawn up Rs 10,000-crore capex plan over the next three years. It also expects to complete the Jaguar and Land Rover acquisitions by June and launch its small car, Nano, this fiscal, a top company official said.

“We have finalised a Rs 10,000-crore capital expenditure plan for the next three years, which includes launching 100 new products/variants, streamlining of existing production facilities and setting up four new greenfield units,” Tata Motors' Managing Director, Ravi Kant said.

“We are in the process of completing the Jaguar and Land Rover deals in the current quarter,” he added.

Tata Motors had agreed to buy the premium brands from Ford Motor Co for $2.3-billion in March.

Tata will begin selling its 623-cc Nano in 2008 at a price expected to be around Rs 1 lakh.

“The Rs 10,000-crore capex would be funded through debt and internal accruals,” Tata Motors' Chief Financial Officer, C Ramakrishnan, said.

The company said that it was raising Rs 7,200 crore to finance its Jaguar and Land Rover acquisitions through three simultaneous but unlinked rights issues. It also proposed to raise about $500/600 million through an appropriate issue of securities in overseas markets on terms to be decided at a later date.