After the $2.3 billion Jaguar-Land Rover deal, Ratan Tata is looking to partake in designing automobiles by picking stake in Italian design house Pininfarina, known for designing the likes of Ferraris.
Pininfarina on Thursday said Tata has shown interest in picking up a stake in the automotive design house.
“To further reinforce the strategic tie between Tata group and Pininfarina group, Ratan Tata, chairman of Tata Sons, has expressed interest in the Tata companies participating in Pininfarina's planned capital increase with the subscription of a portion of the options that will be assigned to the Pininfarina family,” the Italian firm said.
When contacted, Tata Motors spokesperson said without divulging the deal size, “The company is going to take a minority stake in Pininfarina”. Pininfarina also said it would set up an R&D and engineering centre in Pune by the end of this year, where homegrown major would have a minority stake.
The Tata Motors spokesperson said that “in the Indian centre, we will pick up a minority stake”. He said Tata Motors already does designing and styling for different companies in the world.
“We welcome Pininfarina's entry into India. By this minority stake, we will have access to Pinifarina's design,” he added. “Pininfarina and Tata have signed a Letter of Intent (LoI) wherein Tata will support this centre in India with contracts and participate through a minority interest. Pininfarina will be the majority shareholder with management responsibility,” the Italian firm said.
The facility would also provide services to other Indian and international automotive manufacturers, enlarging its offer of services to the original equipment maker, Pininfarina said.
“This agreement witnesses the great attention Pininfarina is dedicating to an emerging and highly developing market such as the Indian one,” its chairman and CEO Andrea Pininfarina said.
Through an association with Tatas, the company would reach a higher excellence level in the design and engineering sectors, Pininfarina said.
The company already associated with India's National Institute of Design (NID) and intends to absorb more local talent in its design centre here. Pininfarina has trained Indian students at Fiat, Italy in association with NID.
Source: Times of India