MUMBAI, Dec 23 (Reuters) - India’s Tata group may have to pump in at least $1 billion to revive premium brands Jaguar Land Rover that was bought by Tata Motors (TAMO.BO) earlier this year, the Economic Times reported on Tuesday.
Tata Sons, the holding company that holds large stakes in group firms, and unlisted financial services unit Tata Capital are among the options being considered to raise the cash, the newspaper said, quoting unnamed company sources.
“We will do everything in our ability to resource all our operations,” the paper quoted a Tata Motors’ spokesman as saying, Tata Motors paid $2.3 billion to buy Jaguar Land Rover from Ford Motor Co (F.N) earlier this year, just as global auto sales began collapsing. adding he declined comment on the size of funds required.
A spokesman for Tata Motors could not be immediately reached by Reuters for comment.
On Monday UK’s Financial Times had reported that Tata Motors had agreed to inject “tens of millions of pounds” into Jaguar Land Rover to prevent an immediate cash flow crisis. [ID:nLM408046].
Tata Motors, which has a market value of about $1.5 billion, has dropped 74 percent so far this year while the main BSE index .BSESN is down more than half. (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan and Lincoln Feast)