Tata Motors will acquire the balance 49 percent stake in Marcopolo which will make Tata Marcopolo a wholly-owned subsidiary of the former
Tata Motors Limited has entered into an agreement with Brazilian bus and coach manufacturers Marcopolo SA to buy out the balance 49 percent share in the joint venture of Tata Marcopolo Motors (TMML).
The purchase is for a cash consideration of Rs.99.96 cores following which TMML will be a wholly owned subsidiary of the company. A statement to this effect confirmed that the acquisition would be completed by February 28, 2021.
Following the purchase, all technologies pertaining to the existing bus body production manufactured will continue to vest with TMML. Marcopolo SA will license Marcopolo trademarks to TMML for 3 years with a non-compete provision in India for the said period.
Along with this arrangement, TMML and Marcopolo will also extend the open channel for future collaboration opportunities with regard to bus body design and consultancy for technical service.
Tata-Marcopolo JV
The JV between Tata and Marcopolo which went on to be called Tata Marcopolo Motors Limited (TMML) dates back to 2006 as a part of a 51:49 joint venture. Through this liaison, several innovative designs in bus and coach manufacture were introduced with production taking place at Dharwad and Lucknow where the bus bodies on chassis were built and marketed by the Company under the “Starbus” and “Starbus Ultra” bus brands.
With Marcopolo SA wishing to exit from this JV, the balance 49 percent share is being sold and Tata Motors will become the sole owner of the Tata Marcopolo Motors Limited joint venture. The takeover will not have any impact on TMML operations in the country or on the continued sales and service options of its customers.
Tata and Marcopolo Buses
The JV between Tata Motors and Marcopolo has brought in a revolution in terms of bus travel with a range of buses and coaches to comply with every demand but more specifically where school bus safety standards are concerned. The buses are fitted with advanced safety measures which include GPS Trackers, ITS Systems and CCTV Cameras to alleviate the fears of parents who entrust their children into the hands of transport staff.
The school buses are of 23 to 56 seating capacities and offered in AC and Non-AC variants. The buses are BS6 compliant and interiors are moulded in ways to as to minimize injury to its children passengers. The buses are painted a brilliant shade of yellow so as to set them apart on the road.
