Tata Marcopolo Motors Limited (TMML or JV), is a 51:49 JV formed in 2006 between the Company and Marcopolo S.A., one of the largest bus and coach manufacturers globally. Since its incorporation, the JV has introduced several innovative design and concepts helping redefine the premium bus body segment in India. The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied by the Company and marketed by the Company under the “Starbus” and “Starbus Ultra” bus brands. After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A has decided to exit from the JV and offered to sell its 49% shareholding in the JV to the Company.

The Company and Marcopolo S.A. have entered into a share purchase agreement where the Company will purchase the balance 49% shareholding in TMML for a cash consideration of INR 99.96 crore. Post the purchase, TMML will become a wholly owned subsidiary of the Company. All technologies pertaining to existing bus body products manufactured will continue to vest with TMML. In addition as part of the transition, Marcopolo S.A. will continue to license the “Marcopolo” trademarks to TMML for a minimum of 3 years with a non-compete provision in India for a corresponding period. The transaction will not result in any impact on TMML’s operations or the continued sales and service of the Company’s customers. The Company, Marcopolo S.A. and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services