Debt-struck Jaguar Land Rover managed to secure $277.7 million or Rs. 1300 crore loan from State Bank of India. The company is owned by Tata Motors which took over company reigns last year. The growing economic crisis last year added to company woes and further led it into troubled waters. "We are pleased our funding plans are progressing and appreciate the confidence shown by our banking partners in our business," Jaguar Land Rover Chief Financial Officer Kenneth Gregor said in a statement.
Apart from the loan from SBI, the company has also entered into an agreement with ABC International Bank for $90 million export financing facility. Both the agreements form part of GBP 500 million refinancing package designed to bring new funds into the loss-making unit. Barely two months earlier, after prolonged negotiation for a guarantee from the UK government for a £340 million loan (Rs 2500 crore) from European Investment Bank, the company decided to pursue other options to raise funds on its own.
According to JLR CEO David Smith, the company can also move its manufacturing operations to Russia, China or Brazil as a part of its new business strategy. It intends to close one of its two Midlands production plants by 2014.
