Renault India to go for business rejig

French carmarker Renault Group’s Indian arm Renault India has moved before the National Company Law Tribunal (NCLT) for approval of a proposed structural realignment of its India operations, which involves separation of its powertrain manufacturing and vehicle manufacturing units.

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The proposed realignment is aimed at creating clearer and more focused operating structures. It envisages the powertrain manufacturing activity being organised as a dedicated powertrain entity within Renault Group India, while vehicle manufacturing and sales operations are brought together under an integrated operating structure, the company said in a statement.

The alignment reflects the distinct industrial and operating requirements of the businesses and is intended to support Renault’s long-term business strategy in India, including strengthening India’s role as a manufacturing and export base, with the ambition of supporting exports of up to 2 billion euros annually by 2030, it added.

The proposed changes do not involve any disruption to business operations. There is no impact on employees, customers, dealers, suppliers, or partners. Employment terms, service continuity, and existing relationships remain unchanged, and business continues as usual. All existing manufacturing, supply, and service commitments, including commitments to partners, continue unchanged, Renault said.

Recently, Renault unveiled its futuREady India strategy, under which it aims to make India one of the brand’s top three global markets by 2030.

Renault Group India remains fully committed to India as a key market and manufacturing hub and will continue to engage transparently with stakeholders as the process progresses, the company said.

Also read: Chennai plant is key to our global plan: Renault Global CEO

I am cautious about exporting cars: Renault Global CEO

 

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