Tata Technologies: Tata Technologies and BMW Group of Tata Group have announced the formation of a joint venture. This joint venture (Tata Tech BMW JV) of both the companies will jointly develop software for the German luxury car brand. Tata Technologies announced this joint venture on Tuesday. Since then, the company's shares were trading above Rs 1095, rising 4.35 percent on the National Stock Exchange (NSE) by 2.30 pm.
Work will be done from Pune, Bengaluru and Chennai
This joint venture will create software and IT development hubs in Pune, Bengaluru and Chennai. Development and operation work will be done in Bengaluru and Pune. The focus will be on business IT solutions in Chennai. Initially it will start working with a team of 100 people and soon the number of employees will be increased to 1000. Warren Harris, CEO and MD of Tata Tech, said that through this JV, we want to provide the best automotive software and digital engineering to decision customers around the world.
Software will be used in BMW's premium cars
Both the companies issued a joint statement saying that this joint venture will develop various types of automotive software. It will also include automated driving and dashboard system. This software will be used in BMW's premium cars. Tata Tech's Automotive Sales President Nachiket Paranjape said that big changes are coming in the automobile sector. The role of software in vehicles has become very important. We, together with BMW, will develop vehicles that will be known not only for their engineering but also for their excellent software. However, he has not yet disclosed the financial details of this deal.
The stake in the joint venture will be 50-50 percent
According to the information, Tata Technologies and BMW Group will have 50-50 percent stake in this joint venture. Tata Technologies is a subsidiary of the country's leading automobile company Tata Motors. This company provides engineering and technology services to automobile, aerospace and heavy machinery manufacturers. Promoters' stake in this company is 55.39 percent while retail and others hold 40.19 percent.
Read this also
Grandfather forgot by buying SBI shares worth Rs 500 30 years ago, grandson got a gift worth lakhs
Get more latest business news updates