Tata Motors is reportedly in talks to raise around US$100m through the sale of a stake in a group company.

The firm is in need of cash in the face of the economic slowdown and having borrowed to pay for the acquisition of Jaguar Land Rover last year.

The Economic Times newspaper reported that buyout firms, including General Atlantic Partners, were eager to pick up equity in Tata Technologies, an unlisted engineering and design group company and provides software for industries including automotive.

Tata Motors Managing Director Ravi Kant said in January the divestment process would continue and would be spread over the next three to four quarters.

Tata Motors had sold its investment in Tata Teleservices in the December quarter making a profit of 478 million rupees ($9 million) and also got 650 million rupees by selling an 11.1 percent stake in unit H V Axles, the ET report added.