Monday, February 6, 2023

NCLT approves merger of Tata Motors with TML Drivelines


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.

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