Renault seeks NCLT nod for restructuring, to separate powertrain manufacturing from car production and sales operations

Renault Group India has sought approval from the National Company Law Tribunal (NCLT) for a proposed restructuring of its operations, the automaker stated on Thursday. The French auto OEM is gearing up for a major business and operations restructuring in India, under which the company will separate its powertrain manufacturing from vehicle production and sales operations. The restructuring is aimed at further streamlining the business operations in India. The OEM, in an official statement, has stated that it has approached the NCLT seeking approval for the proposed structural realignment of its India operations.

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

Renault has been focusing on revamping its India operations by introducing new models and expanding its retail and service network in the country. Also, the company is ambitious about making India a major manufacturing and export hub for the brand's global operations. The automaker has taken a strategy to make India capable of supporting exports of up to 2 billion euros annually by 2030. The realignment move comes as a key part of the broader growth strategy. Renault has said that this alignment reflects the distinct industrial and operating requirements of the businesses and is intended to support Renault's long-term business strategy in the country. However, the OEM has assured that the proposed changes will not involve any disruptions to business operations.

The company, in its official statement, has said that 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," stated the company. This means all existing manufacturing, supply, and service commitments, including commitments to partners, will continue unchanged.

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