Ratan Tata's company will invest 9000 crores to increase production capacity, 5000 people will get jobs

Auto sector giant Tata Motors is going to make a big investment. Tata Motors has signed an MoU with the Tamil Nadu State Government. As per this agreement, the company will set up a vehicle manufacturing facility in the state and huge investment will be made at this facility.

Tata Motors has informed the stock market about this after the market closed on Wednesday. The impact of this report can be seen in Thursday's trading. The stock closed down more than 4 percent on Wednesday.

What is the advertisement of Tata Motors?

In a filing to the stock market, Tata Motors said it has signed an MoU with the Tamil Nadu government to set up a vehicle manufacturing facility in the state. According to the MOU, an investment of Rs 9000 crore will be made on this facility. This investment is to be made in the next 5 years.

5000 people will get employment

According to an estimate, this investment will create 5000 new jobs in the state. Before Tata Motors, Vietnam's electric vehicle manufacturer Vinfast has also started construction of a factory in the state. Thus, in two months, two big names of the auto sector have announced to set up their own plants in the state.

How did the stock perform?

Shares of Tata Motors fell 4.28 percent on Wednesday. However, over the medium to long term, this stock has been a profitable deal for investors. Investors have seen a 130 percent return in the stock in one year. The return in the last 3 years has been 206 percent. The stock has gained 35 percent in 3 months. The stock is currently at the level of 973. In the March 6 report, Sharekhana had Rs. Advised to invest in the stock with a target of 1188.

STATE GOVERNMENT STATEMENT

State Industries Minister TR B Raja wrote on social networking platform 'X' – Tata Motors and Tamil Nadu Government are gearing up for a historic tour. CM MK Stalin, Tata Motors signed an MoU with the Tamil Nadu government to set up a modern vehicle manufacturing unit. 9000 crores will be invested and more than 5000 jobs will be created. He said in another post that for the first time Tamil Nadu has attracted two major vehicle manufacturing investments in a span of just two months.