Investor Presentaiton
14
WHY SWAP OPTION IS PREFERRED-IMPORTANCE OF CASH
■ The data in the previous slide clearly shows that the swap option would be financially of greater benefit to shareholders,
and also be financially beneficial to MSIL.
■ MSIL will need about Rs.45,000 crores to create a capacity of 2 million units. This is based on current costs and a small
amount for cost escalation.
■ Funds would be needed for creating the sales, service and spare parts infrastructure to almost double domestic sale
volumes. The infrastructure for exporting the much larger volume of cars will also have to be strengthened. The
conversion of production lines to have greater flexibility will need additional capex.
■ R&D will need additional outlays to enable most of development work relating to Internal Combustion Engine (ICE) cars
being done by MSIL. Capex will be needed to develop 10-11 new models, with different fuel options in this period.
Production of EVs and SUVs will also need larger capex.
■ MSIL could consider investing in the production of CBG both for its own needs and also for sale as a fuel.View entire presentation