Wednesday, June 20, 2007

Tatas form finance co for bigger spread

Five years after the Tata group merged its finance unit Tata Finance with Tata Motors, the wheel has turned a full circle for the conglomerate. On Tuesday, Tata Sons, the group’s holding company, said it has formed a new firm, Tata Capital, for financial services that will operate in the large growing segments within the finance sector that also include businesses that Tata Finance earlier operated in.

It has also been learnt that segments of Tata Finance that are now operating within Tata Motors, such as asset and vehicle financing, would be spun off into Tata Capital.

Apart from private equity, which has become a buzzword in India due to recent large deals, Tata Capital would also function in capital market services, merchant banking, housing finance, assets and vehicle financing and retail finance.

Read more in The Economic Times article.

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