Tata Group owned Jaguar Land Rover announced that it has obtained a loan worth Rs 1300 crore from State Bank of India.
Jaguar land Rover is a business built around two famous British Brands- Jaguar cars, a leading manufacturer of luxury saloons and sports car, and Land Rover. The manufacturing facilities of JLR are based at UK.
In a statement to the media, the company said that it had been in the process of enhancing its funding activities and had made a significant progress in that. It revealed that new facilities worth Rs 3700 crore had been completed, including facilities from SBI, Standard Chartered, Bank of Baroda and Burdale Financial ltd, a subsidiary of Bank of Ireland.
JLR's Chief Financial Officer Kenneth Gregor stated: "We are pleased our funding plans are progressing and appreciate the confidence shown by our banking partners in our business."
JLR decided to look for other options after it had a prolonged negotiation for a guarantee from the UK government for a £ 340 million loan (Rs. 2500 crore) from European investment bank two months back.
Loans from banks in India and other countries should help JLR in achieving its target. The company had experienced heavy losses last year due to fading global demand in expensive cars. JLR said that as a part of its restructuring plan, it would shut down one of its plants in Midlands in the ‘middle of next decade'. It assured that this would not result in any job loss. It further said that the new plan would lead to fresh investments in technologies and products , which in turn, would lead to a creation of 800 more jobs by mid 2010.
During the last year, the company had to cut down its production capacity by 100,000 units, reduce the jobs by 2500, cancel the bonuses. The company had said that this was not a sustainable situation.