What does the Daewoo Commercial Vehicle acquisition mean to Tata Motors?
The most important advantage is that our top line and bottom line will go up. International business accounted for less than Rs 400 crore (Rs 4 billion) of our total turnover last fiscal. The Korean company itself recorded a turnover of Rs 1200 crore (Rs 12 billion) in the previous fiscal and is a profit-making company. What else does the acquisition signify? Commercial vehicle is a cyclical business. The larger the market share of a company the more severe is the cyclical impact, also the more liberal the markets, the more pronounced is the cyclical impact. The only saving grace in this business is the cyclical phase lag across different geographies. Spreading our business to different countries will act as a hedge against cyclical trends because when the domestic CV business is in a slump, things will be looking up elsewhere. What are your plans for your new Korean subsidiary? Daewoo is present only in the heavy commercial vehicle (HCV) segment, though the Korean plant can produce bo
