Access to market, workforce key post Brexit: Tata Sons

Mumbai: Tata Sons on Friday termed access to markets and skilled workforce as "important considerations" after Britain voted in favour of leaving the European Union and said that each of its 19 firms having interests in the UK will do a business review.

 

"There are 19 independent Tata companies in the UK, with diverse businesses. Each company continuously reviews its strategy and operations in the light of developments, and will continue to do so," a Tata Sons spokesperson said in a statement.

"Access to markets and skilled workforce will remain important considerations," the statement added.

Tata Group stocks this morning witnessed severe drubbing, plummeting by up to 13 percent, as the UK's vote to exit the European Union spooked investors given the conglomerate's huge exposure to the region.

Tata Motors plunged 12.9 percent, Tata Steel tanked 10.89 percent and TCS dipped 4.81 percent on BSE.

 

Shares of Tata Elxsi plunged 9.21 percent, Tata Global Beverages (7.26 percent), Tata Chemicals (5.72 percent) and Tata Communications (5.34 percent).

The salt-to-software group said it has been operational in the UK since 1907 and has 19 of its companies present there.

Some of the most visible business interests of the over USD 100-billion Tata Group in the UK include the marquee automaker JLR and Tata Steel.

According to estimates, there could be a significant impact on JLR following Brexit vote.

Jaguar Land Rover in a separate statement said it is business as usual and they will manage the long-term impact and implications of the decision, insisting nothing will change overnight for it and the automotive industry.

"We remain absolutely committed to our customers in the EU. There will be a significant negotiating period and we look forward to understanding more about that as details emerge," JLR said.

Britain voted today to leave the EU in a deadly blow to the 28-nation bloc, forcing Prime Minister David Cameron to announce his resignation in the wake of defeat in the referendum whose result triggered a panic reaction in world markets and raised questions over immigration and other issues in the UK after the divorce.