Financial Daily from THE HINDU group of publications
Monday, May 26, 2003
Mergers & Acquisitions
Corporate - Announcements
Tata Sons, GE group to part ways in India
NEW DELHI, May 25
THE house of Tatas and the General Electric (GE) group have decided to part ways as far as their Indian operations are concerned.
For this, Tata Sons, the holding company of the Tata group, has decided to exit from its only joint venture with the GE group in the country, namely Engineering Analysis Centre of Excellence Private Ltd (EACEPL).
According to the plans, Tata Sons will sell out its entire holding in EACEPL to GE's wholly-owned Indian subsidiary - GE India Technology Centre Private Ltd Government sources said.
Bangalore-based EACEPL is a 50:50 joint venture between Tata Sons and GE Pacific (Mauritius) Ltd operating in specialised technological sectors.
The company is engaged in undertaking and providing analysis expertise and engineering services in areas such as solid parametric and finite element modelling, heat transfer, fluid dynamics, stress analysis and life assessment of aircraft engines.
As of now, while a 49 per cent stake in EACEOL is held by Tata Sons, the remaining one per cent is held by the Tata Consultancy Services (TCS) chief, Mr S. Ramadorai.
TCS is a division of Tata Sons and is the largest information technology company in the country.
Government sources said that GE India Technology Centre recently got an approval from the Foreign Investment Promotion Board to buy out the Tatas in the joint venture company.
According to the approved plan, the deal will involve two steps.
The first will be the acquisition of the 49 per cent share from Tata Sons which will be followed by the acquisition of the one per cent stake held by Mr Ramadorai, sources said.
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line