Jamshedpur, April 5: The National Company Law Tribunal (NCLT) today approved of the Merger and Arrangement between TML Drivelines Limited and Tata Motors Limited.
�To bring in the synergy in operation of Tata Motors and TML Drivelines this is an important step. As part the merger, employees of TML Drivelines now will be a part of Tata Motors. The team has extensive operational experience and is an excellent blend of knowledge and expertise,� said a company spokesperson on the announcement of merger.
With the NCLT giving its nod, Tata Motors will now merge its automotive component-making subsidiary TML Drivelines with itself.
The �scheme of merger and arrangement� document filed last year with the Bombay Stock Exchange and National Stock Exchange stated that Tata Motors will merge its wholly-owned subsidiary TML Drivelines Ltd with itself, thereby �dissolution without winding up� of TML Drivelines.
TML?Drivelines makes automotive components such as axles, gearboxes, crankshaft and forgings for commercial vehicles for Tata Motors.
The merger would enable �synergy of operations, optimisation of resources, reduction of statutory and legal compliance requirements and overall cost management�, especially in the Goods and Service Tax (GST) regime, which in turn would help in �developing stronger base for future growth�, the document said.
In 2000, the axle and transmission divisions of Tata Motors was spun off as its separate 100% subsidiaries — HV Axles Ltd (HVAL) and HV Transmission Ltd (HVTL).
�The key intent of incorporation was to give specialist focus on development and supplies of axles and transmissions for Tata Motors, while Tata Motors concentrated on vehicle design, integration & marketing,� the company website read.
HVAL and HVTL were again merged in 2011-12 as Total Driveline Solutions Provider and was later renamed as TML Drivelines Limited.
