Tata Group CFO PB Balaji could play a pivotal role in unifying the new businesses following the proposed demerger of Tata Motors into two separate entities for commercial and passenger vehicles, as per a Livemint report.

What Happened: Tata Motors, the flagship automotive company of Tata Sons, is planning a demerger that is expected to be completed in the next 12-15 months, pending regulatory approvals.

Balaji, who has been with the company since 2017, is reportedly likely to serve as a unifying executive, potentially taking on the role of chairman or vice-chairman for both the demerged entities or even serving as executive head of the passenger vehicle business.

The demerger will bring fresh challenges in leadership realignment, including the need for a dedicated executive head for the new passenger vehicle company, which will include both the India passenger vehicle businesses and Jaguar Land Rover (JLR).

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The demerger is anticipated to help Tata Motors unlock shareholder value and enhance market focus for the two businesses. By separating the two businesses, Tata Motors allows investors to evaluate the businesses’ performance on their own merits.

Earlier in June, Tata Group chairman N Chandrasekaran stated at the 79th annual general meeting of Tata Motors that the proposed demerger aims to enhance synergies between its various divisions, particularly in the areas of electric vehicles (EVs) and autonomous vehicles.

Despite a slump in Tata Motors’ share price in the past few months, analysts at Morgan Stanley remained upbeat about the stock's performance, maintaining its "equal weight" rating on the auto giant with a target price of ₹1,178, indicating around 40% upside from the stock's last closing price of around ₹843.

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