MUMBAI: With the letter of approval from National Company Law Tribunal (NCLT) for the Scheme of Merger between TML Drivelines and Tata Motors being filed with the Registrar of Companies (ROC), the Scheme is effective from today (April 30, 2018).
The process for the merger had started last year and the NCLT issued its approval letter on April 5. The ‘scheme of merger and arrangement’ document filed with the Bombay Stock Exchange and National Stock Exchange stated that Tata Motors would merge its wholly-owned subsidiary TML Drivelines Ltd with itself, thereby “dissolution without winding up” of TML Drivelines.
The company had said that the merger would enable “synergy of operations, optimisation of resources, reduction of statutory and legal compliance requirements and overall cost management”, especially in the Goods and Service Tax (GST) regime, which in turn would help in “developing stronger base for future growth.
For TML Drivelines, it is the culmination of a 360 degree round-trip with the company coming back to its original stable after long 18 years. It was in 2000, the axle and transmission divisions of Tata Motors were spun off into two separate fully owned subsidiaries – HV Axles Ltd (HVAL) and HV Transmission Ltd (HVTL). The key intent of this exercise was to have specialist focus on development and supplies of axles and transmissions for Tata Motors, while Tata Motors concentrated on vehicle design, integration & marketing,” the company website read.
HVAL and HVTL were again merged in 2011-12 as Total Driveline Solutions Provider and the duo was later renamed as TML Drivelines Ltd.