The Hindu : Business : Tata Motors to shrink supplier base

Online edition of India's National Newspaper
Thursday, Dec 15, 2005

Business

Business

Tata Motors to shrink supplier base

Special Correspondent

Share of exports in revenues to rise

NEW DELHI: Tata Motors on Wednesday indicated that it was in the process of `shrinking' the vendor base as part of a `strategy' to rationalise the supplier chain.

"We are looking at shrinking our supplier base by filtering out low quality suppliers,'' Tata Motors Managing Director Ravi Kant told newsmen after formally launching the Tata Novus range of heavy commercial vehicles here. The new range is the outcome of the collaborative efforts between the company and its South Korean subsidiary Tata Daewoo Commercial Vehicle Co. Elaborating further on the vendor base, Mr. Kant said the company was looking at going along with `key vendors.'

With the new range, contribution of exports to the revenues of Tata Motors, which was on the rise, would grow further as it was entering newer markets as part of its approach of going global. "Exports for us have been growing and should increase further " , he said.

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