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Tata Motors to divert its distribution into a separate unit

By Motortrend India Staff   |   17 July,2008

Tata Motors is diverting its sales and distribution operations into a separate unit apart from implementing reformation. However, this development comes into picture when the company is all set to launch the world’s ultra-cheapest car Tata Nano.

This new unit is named as TML Distribution Company (TDCL) which is completely owned subsidiary of Tata Motors. The unit will start with the operations of sales, logistics and distribution of both commercial vehicles and passenger vehicles to its 200 odd dealers across the country. The company is also transferring around 100 people to TDCL which is projected to commence operations abruptly.

One of the Tata Motors spokesperson said, Tata Motors' product portfolio which already includes large volume vehicles, is being further expanded. Simultaneously new plants are being set up at Pant Nagar, Singur, and Dharwad, while capacities are being added at Pune, Jamshedpur and Lucknow.

The dealership network has been expanded for better growth, wideness and reaches required for the product portfolio and multi-location operations.

The major idea of expansion is to bring spotlight and become more efficient in the selling and distribution operations and processes. It is also considered that this new unit has the probability to become one immense entity like Tata Motors. Bearing this in mind TDCL will obtain vehicles from Tata Motors and the sale will be reflected on record books of TDCL.

One of the spokesperson said that, the new set up will help improve planning, inventory management, transport management, on-time delivery, while harnessing cost synergies. Tata Motors and subsidiary will work together for sales plans, with the subsidiary procuring vehicles and selling them to dealers as per their orders.

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