Tatas look to cut operating costs at JLR

TataTATAs have announced to take some concrete measures to curtail rising operational costs at Jaguar Land Rover (JLR) in order to improve margins and to turn it into a cost effective company.

However, the company has not announced any official time frame to revive JLR.

Company’s Chairman Ratan Tata, addressing the 64th annual general meeting of the company, said, “We would finance and leverage the company even further. There have been some encouraging signs. There are some new products still to come.”

TATA Motors has raised funds worth Rs 2,500 crore through FDs and plans to raise another Rs 1,500 crore through FD schemes. Mr. Tata, while admitting impact of external factors over its business, informed that the company has successfully raised capex for the current year from Rs 2,700 crore to Rs 4,000 crore and its total debt now stand at Rs 16,900 crore.

JLR hopes to boost its margin and profit given the signs of market recovery and decline in prices of raw materials.

About launching new vehicles, Mr. Tata said that the company has been working on a hydrogen-based model which is expected to hit roads in few years.