As part of a demerger plan of Tata Motors’ commercial vehicle and passenger vehicle units, the company on Friday announced a top-level rejig putting Girish Wagh and Shailesh Chandra at the helm of the businesses, respectively.
The announcement came a month after the company secured approval from the National Company Law Tribunal (NCLT) for the demerger of its PV and CV businesses.
Chandra has been appointed additional director, managing director and CEO of Tata Motors with effect from October 1 for a period of three years, subject to shareholder approval. Chandra will continue to be the managing director of Tata Passenger Electric Mobility. He has been the managing director of Tata Motors Passenger Vehicles.
Girish Wagh to lead TML Commercial Vehicles
Wagh, the company’s executive director, has resigned effective October 1 and will join the board of TML Commercial Vehicles (TMLCV) — the proposed listed entity in which the CV business of the company would be demerged — as an additional director, managing director and CEO.
Tata Motors had previously announced the resignation of group chief financial officer P B Balaji which will be effective from November 17. Balaji will join as the chief executive officer of Jaguar Land Rover Automotive, the UK, from the same date. He has been appointed as additional, non-executive, non-independent director on the board of Tata Motors. Dhiman Gupta, currently the CFO of Tata Passenger Electric Mobility, will be the CFO of Tata Motors effective November 17.
Tata Motors directors move to board of TML Commercial Vehicles
Tata Motors also announced the cessation of its directors. Kosaraju Veeraya and Guenter Butschek will cease to be independent directors of the company as they join the board of TML Commercial Vehicles. Hanne Sorensen will also cease to be an independent director at Tata Motors but will continue to be on the board of JLR Automotive.
Public policy and finance expert Sudha Krishnan has been appointed as an additional, non-executive independent director of Tata Motors, for a tenure of 5 years commencing from October 1, subject to approval of the shareholders of the company.
In a filing with the exchanges, Tata Motors said that the scheme of arrangement (demerger) shall become effective upon filing of the certified true copies of the NCLT orders with the Registrar of Companies, Mumbai. The copies were received by the company on Thursday and were placed before the boards of the respective companies on Friday.
“The company will separately notify the effective date of the scheme and the “record date”, for determining the shareholders of the company who shall be entitled to receive 1 fully paid equity share in TMLCV (face value of `2 each) for every 1 fully paid equity share of the company,” Tata Motors said.
