March 29, 2004
Tata Motors completes acquisition of Daewoo Commercial Vehicle Company
Tata Motors Limited, India, announced, today, that it had completed the acquisition of Daewoo Commercial Vehicle Company Limited (DWCV), Korea.
The ceremony to mark the completion of the transaction and the acquisition of the company was held at the factory premises of DWCV in Gunsan, Korea, where Kwang Ok Chae, president and receiver of DWCV, handed over the newly allotted shares of DWCV to Ratan Tata, Chairman, Tata Motors. With the completion of this transaction and the payment of the acquisition price by Tata Motors, DWCV becomes a wholly owned subsidiary of Tata Motors.
Tata Motors announced that Mr Chae would serve as the president and representative director of DWCV, once the court receivership of DWCV is terminated.
Speaking on the occasion, Mr Tata said, "This is a historic occasion for Tata Motors and the Tata Group. I am happy to note that this is the largest acquisition by any Indian company in Korea and I look forward to increasing the Tata Group's presence in this country. Korea is a shining example of what can be achieved with diligence and dedication, and I am sure we will learn a lot from operating in South Korea".
Mr Chae, on behalf of the employees of DWCV, said, "It has been a very productive negotiation and all of us are happy to be part of Tata Motors, which is the sixth largest manufacturer of commercial vehicles in the world".
Tata Motors, with revenues of over $ 2.25 billion (FY 2002-03), is the largest company in the Tata Group, which has a leadership position in engineering, materials, energy, consumer products, services and communication and information systems. Over 3 million Tata vehicles ply Indian roads, making the company a dominant force in the Indian automobile industry.
DWCV is Korea's second largest heavy truck maker with a modern plant in Gunsan that has an annual production capacity of 20,000 medium and heavy vehicles. Its robust manufacturing and quality processes that deliver a contemporary product range have enabled DWCV to enjoy a market share in excess of 25 per cent of the Korean heavy truck segment.