With Britain deciding to vote against staying in the EU, Tata Sons, which has big business interests in the UK, has said that it is reviewing its strategy and operations.
“Each company continuously reviews its strategy and operations in the light of developments, and will continue to do so. Access to markets and to a skilled workforce will remain important considerations,” a Tata Sons spokesperson said.
There are currently 19 independent Tata companies in the UK, with diverse businesses. These include Tata Steel, Tata Motors (including Jaguar Land Rover), Tata Chemicals and Tata Global Beverages.
According to reports, Europe contributes nearly 50% to Tata Steel’s total revenues.
The company had recently announced plans to exit its operations in the UK as part of its strategy to cut losses.
Tata has been operating in the UK since 1907 and remains committed to delivering long-term value for all its stakeholders, the spokesperson said while commenting on the development. According to a Jaguar Land Rover spokesperson, it is business as usual for the company despite Brexit.
Remains committed
“For Jaguar Land Rover, today is just business as usual. We are a British business with a strong manufacturing base in this country, we call Britain home and we remain committed to all our manufacturing sites and investment decisions,” a Jaguar Land Rover spokesperson said.
We respect the views of the British people and in line with all other businesses, Jaguar Land Rover will manage the long-term impact and implications of this decision: nothing will change for us, or the automotive industry, overnight, the spokesperson added.
Tata Group stocks hit hard by Brexit
Tata Group stocks witnessed massive drubbing on Friday, plummeting up to 8%, as UK’s vote to exit the EU spooked investors given the conglomerate’s huge exposure to the region. Among bluechip Tata Group stocks, Tata Motors slumped 7.99%, Tata Steel plunged 6.37% and TCS slipped 2.78% on BSE.
Tata Motors and Tata Steel were the worst performers among the 30-Sensex stocks. Intra-day, they had fallen as much as 13% and 11%, respectively. Among others, shares of Tata Sponge declined by 4.61%, Tata Elxsi dropped 3.62%, Voltas (3.48%), Tata Global Beverages (1.86%), Tata Chemicals (1.67%) and Tata Communications (1.40%). Following the weakness in these stocks, the market valuation of as many as 26-listed Tata Group firms fell by over Rs 28,000 crore.