Tata Motors is working towards turning around its new Spanish acquisition, Hispano Carrocera in the next one year.
Meanwhile, it will also look at increasing the Euro 35 million bus company's turnover by 50 per cent in the first year and doubling it to Euro 70 million in two years.
Ravi Kant, executive director of Tata Motors has been appointed the chairman of Hispano Carrocera.
Speaking to Business Standard from Madrid, Kant said " Our immediate priority is to turn around the company and we are looking at doing that in one year's time."
Hispano Carrocera, which made losses of around Euro 1 million in 2003 (results for the December 2004 quarter are not out yet) has been under severe stress for two years now. Tata Motors hopes to revive the ailing Spanish company through infusion of funds and securing more orders for the company.
The Spanish company has 25 per cent market share in Spain and sells buses in Europe and outside Europe. It operates in two manufacturing locations -- Zaragoza in Spain and Casablanca in Morocco, North Africa. Tata Motors hopes to improve the company's sales by leveraging its own presence in different parts of the world.
Hispano, reputed for its design abilities, will also collaborate with Tata motors on its future bus launches in India. Kant refused to comment on when the first Tata-Hispano bus was likely to hit the Indian roads.Tata Motors acquired a 21 per cent stake in the company for Rs 70 crore (Rs 700 million) which includes equity, debt and technology licensing. Tata Motors has a call option on the remaining 79 per cent to take its shareholding to 100 per cent, the option is open for the next five years.