Shares of Tata Motors Limited traded a percent higher at Rs 982 on March 14 morning after the company announced signing a contract with the Tamil Nadu government to set up a Rs 9,000 crore manufacturing plant that is likely to create 5,000 jobs.
"Following the signing of this MoU, teams from guidance, Tamil Nadu's nodal agency for investment promotion and facilitation and Tata Motors Group will work together to take this opportunity forward," the company said in a press release. This will be its second plant in South India, after Dharwad in Karnataka.
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The stock was the best performer on the Nifty in 2023, gaining over 100 percent.
Also read: Demerger to help unlock value of Tata Motors’ passenger car division: Experts
The development gains significance as Tata Motors is the second auto company in recent times to establish a partnership with Tamil Nadu. Last month, Chief Minister MK Stalin laid the foundation stone for the electric vehicle car and battery manufacturing facility of VinFast Auto Ltd, a Vietnamese EV-focused auto company, earmarked investments to the tune of Rs 16,000 crore in the state.
On March 4, the company approved the demerger of its business into two separate units, the CV business and the PV business. PVs include electric vehicles (EVs) and Jaguar Land Rover (JLR). The development is still at a nascent stage and it will take about 12-15 months to materialise.
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