Tata Tea is scouting for an alternate name - and a new brand identity.
Tata Group chairman Ratan N. Tata told shareholders that the change was being considered to "reflect the diversified portfolio beyond tea" that includes bottled water and health drinks.
Emphasising that Tata Tea was no longer a tea company, Tata said: "It is a beverage company. We are now into branded products like coffee, water and ready-to-drinks."
Vice chairman R.K. Krishna Kumar told reporters after the annual general meeting that a few names have been already identified. "A decision on a new name would be taken in 3-4 weeks."
Tata Tea is also planning for financial integration of its global operations and tax implications are currently being studied.
"Operation integration has already happened with the formational of a virtual global company and the financial integration is currently being considered," Krishna Kumar said.
The company is currently studying the tax implications of such merger, he added.
Krishna Kumar said the "new enterprise" could achieve a consolidated turnover of $10 billion in five years, compared to around $1 billion now.
While replying to shareholders, Ratan Tata said the company had planned a capital expenditure of Rs.40 crore on a stand-alone basis and Rs.150 crore on a consolidated basis for 2009-10.
On new products, Tata said a company subsidiary, Mount Everest Mineral Water, would soon launch a bottled water brand for the "mass market".
Mount Everest currently sells only premium drinking water under the Himalayan brand.
Showing posts with label tata. Show all posts
Showing posts with label tata. Show all posts
Tuesday, September 1, 2009
Friday, June 5, 2009
Tata's hub see rush of plantaion programmes on E-day
Various companies of Tata group, including Tata Steel and Tata Motors, today observed the environment day by organising plantation and climate change awareness programmes.
An awareness rally was organised at the main gate of the Tata Motors' heavy commercial vehicle plant here. Saplings were planted by officials, employees, dealers and other associates of the company as part of its massive plantation campaign.
The celebration at Jamshedpur Steel Works flagged off with a sapling plantation ceremony by Mr H M Nerurkar, Executive Director, India & South East Asia, Tata Steel and Mr Raghunath Pandey, President, Tata Workers’ Union.
A sapling plantation ceremony was also spearheaded by Mr Radhakrishnan Nair, Chief Human Resource Officer, Tata Steel at Tribal Cultural Centre, Sonari where numerous employees under the Employee Volunteerism programme, had followed suit.
The plantation ceremony was followed by a programme on the ''Climate Change'' in which a large cross section of employees, including senior officials from the company, participated.
An awareness scheme a documentary film on the hazards of plastic was shown to all employees in its canteen. It was also agreed that the company would study and explore the opportunities of water conservation and rain water harvesting.
An awareness rally was organised at the main gate of the Tata Motors' heavy commercial vehicle plant here. Saplings were planted by officials, employees, dealers and other associates of the company as part of its massive plantation campaign.
The celebration at Jamshedpur Steel Works flagged off with a sapling plantation ceremony by Mr H M Nerurkar, Executive Director, India & South East Asia, Tata Steel and Mr Raghunath Pandey, President, Tata Workers’ Union.
A sapling plantation ceremony was also spearheaded by Mr Radhakrishnan Nair, Chief Human Resource Officer, Tata Steel at Tribal Cultural Centre, Sonari where numerous employees under the Employee Volunteerism programme, had followed suit.
The plantation ceremony was followed by a programme on the ''Climate Change'' in which a large cross section of employees, including senior officials from the company, participated.
An awareness scheme a documentary film on the hazards of plastic was shown to all employees in its canteen. It was also agreed that the company would study and explore the opportunities of water conservation and rain water harvesting.
Thursday, May 7, 2009
Tata Housing | Ratan Tata: A Messiah for middle class
New channels and internet were abuzz with the talks of the new Tata ‘Nana’ housing project yesterday. It seems Ratan Tata has planned to tap the still neglected low cost product market (untapped in the sense that no known company has entered this sector). Be it the recently launched Tata Nano or the Tata Housing project at Boisar, about 120 kms from South Mumbai.
In a country like India, where we have such a large middle class, It is ought o the middle class deciding the future of a product in the market. It is the middle class which is going to make Tata Nano, a big hit or a flop and it was the same class which led to the record sales of Maruti 800. So, when you launch a product, you need to keep in mind this middle class. This middle class can also be easily divided into three categories: Upper Middle Class, Lower middle class and Typical Middle Class and lower middle class remains the biggest in number in the middle class segment.
So the products like Tata Nano and Tata housing are surely going to be a big hit amongst this segment, which lives in rented accommodations in these metros and dreams about having their own homes and obviously a car for the family. Ratan Tata has surely taken a big risk by entering this sector, but if it pays off, he will be become the best businessman ever, which India produced.
Which lower Middle class family can dream of having a home and car for just 5 lakhs, its like playing God and making their all dreams come true? With rents touching their all time highs, in normal circumstances, a middle class family pays around Rs. 3000-4000 per month for house rent and spends more than Rs. 2000 per month for commuting. So a family spends a total of around Rs. 6000 on housing and commuting. Calculating in normal mathematics, this family will spend Rs 5 lakh in around 83 months, if they pay same amount every month. But it is not the same, costs increase, inflation is always there.
For such a family buying a Tata house and a Tata car is going to be the first priority.
In a country like India, where we have such a large middle class, It is ought o the middle class deciding the future of a product in the market. It is the middle class which is going to make Tata Nano, a big hit or a flop and it was the same class which led to the record sales of Maruti 800. So, when you launch a product, you need to keep in mind this middle class. This middle class can also be easily divided into three categories: Upper Middle Class, Lower middle class and Typical Middle Class and lower middle class remains the biggest in number in the middle class segment.
So the products like Tata Nano and Tata housing are surely going to be a big hit amongst this segment, which lives in rented accommodations in these metros and dreams about having their own homes and obviously a car for the family. Ratan Tata has surely taken a big risk by entering this sector, but if it pays off, he will be become the best businessman ever, which India produced.
Which lower Middle class family can dream of having a home and car for just 5 lakhs, its like playing God and making their all dreams come true? With rents touching their all time highs, in normal circumstances, a middle class family pays around Rs. 3000-4000 per month for house rent and spends more than Rs. 2000 per month for commuting. So a family spends a total of around Rs. 6000 on housing and commuting. Calculating in normal mathematics, this family will spend Rs 5 lakh in around 83 months, if they pay same amount every month. But it is not the same, costs increase, inflation is always there.
For such a family buying a Tata house and a Tata car is going to be the first priority.
Friday, November 7, 2008
Tata-owned Corus to axe 400 jobs
Corus, owned by the Tata Steel Group, has announced plans to cut 400 jobs at its distribution arm, saying it had been operating in a "volatile and fluctuating" market.
The proposed job losses will be spread across Britain, including 100 in the West Midlands, nearly 100 in North Wales, 50 in South Wales and 50 in Leeds, the steel giant said Thursday.
"The impact and continuation of the global economic downturn is having a major effect on steel customers in the automotive, construction and plant and machinery markets. Since September, the business has seen a significant decline in demand," the company said.
"As a result, Corus Distribution has introduced a series of actions to reduce expenditure on transport, consumables, energy and other discretionary spending. However, these actions alone will not be sufficient to offset the decline in the market."
"Corus Distribution is committed to ensuring it will do everything possible to assist those people leaving the business, and will be putting in place a range of support services designed to help them through this difficult time," it added.
Corus Distribution employs 2,400 workers at 36 sites in Britain and Ireland.
Roy Rickhuss of the steelworkers' union Community said: "We welcomed the original Corus approach to the current downturn - to avoid knee-jerk reactions and not just cut jobs - so we are disappointed this has not been followed in Corus Distribution.
"Support will be available from Community's education and training arm, Communitas, to help redundant workers retrain and find new employment."
The proposed job losses will be spread across Britain, including 100 in the West Midlands, nearly 100 in North Wales, 50 in South Wales and 50 in Leeds, the steel giant said Thursday.
"The impact and continuation of the global economic downturn is having a major effect on steel customers in the automotive, construction and plant and machinery markets. Since September, the business has seen a significant decline in demand," the company said.
"As a result, Corus Distribution has introduced a series of actions to reduce expenditure on transport, consumables, energy and other discretionary spending. However, these actions alone will not be sufficient to offset the decline in the market."
"Corus Distribution is committed to ensuring it will do everything possible to assist those people leaving the business, and will be putting in place a range of support services designed to help them through this difficult time," it added.
Corus Distribution employs 2,400 workers at 36 sites in Britain and Ireland.
Roy Rickhuss of the steelworkers' union Community said: "We welcomed the original Corus approach to the current downturn - to avoid knee-jerk reactions and not just cut jobs - so we are disappointed this has not been followed in Corus Distribution.
"Support will be available from Community's education and training arm, Communitas, to help redundant workers retrain and find new employment."
Monday, May 12, 2008
No gas to spare, Dhaka tells Tata
Bangladesh has told India's Tata Group that it does not have gas to spare for the steel and fertiliser plants that form part of its $3 billion investment proposals. Instead, Tata should await the coal policy that is on the anvil.
Allen Roseling, executive director of Tata Sons, responded by saying Sunday: "If there is no gas, we cannot go ahead with our steel plant."
The situation would be the same for the fertiliser project that was to be fuelled by the gas, analysts noted, viewing the five-hour talks as a dampener on the biggest foreign investment proposals that Bangladesh has ever received.
The talks, which resumed after two years, produced "no answer", New Age newspaper said Monday.
The Indian conglomerate will review and study the resources situation in Bangladesh before making the final decision on investment, said Roseling.
The government side informed the Tata officials about the the country's depleting energy resources and said it was not possible now to supply 200 million cubic feet of gas daily as asked by the Indian conglomerate for its planned plants.
"We told them about the resource situation, gas scenario and coal policy (in the making), which would form the basis for our discussion," said Board of Investment (BOI) chief Kemal Odin Ahmed, who led the Bangladesh side at the talks.
Roseling, too, admitted that the country's gas reserve situation was not in a state that "the investor wanted it to be in", the report said.
The Tata group will now look at the planned coal policy that will determine the mining method - either underground or open-pit - and see whether enough coal would be made available for its proposed power plant.
Neither BoI chief nor the Tata executive confirmed when the next stage of negotiations would take place.
The Tata proposals worth $1.8 billion were first made in 2003 when its chief Ratan Tata visited Bangladesh.
They were hiked to $3 billion later with more projects envisaged as part of a larger effort to utilise Bangladesh's resources to speed up industrial development.
Indo-Asian News Service
Allen Roseling, executive director of Tata Sons, responded by saying Sunday: "If there is no gas, we cannot go ahead with our steel plant."
The situation would be the same for the fertiliser project that was to be fuelled by the gas, analysts noted, viewing the five-hour talks as a dampener on the biggest foreign investment proposals that Bangladesh has ever received.
The talks, which resumed after two years, produced "no answer", New Age newspaper said Monday.
The Indian conglomerate will review and study the resources situation in Bangladesh before making the final decision on investment, said Roseling.
The government side informed the Tata officials about the the country's depleting energy resources and said it was not possible now to supply 200 million cubic feet of gas daily as asked by the Indian conglomerate for its planned plants.
"We told them about the resource situation, gas scenario and coal policy (in the making), which would form the basis for our discussion," said Board of Investment (BOI) chief Kemal Odin Ahmed, who led the Bangladesh side at the talks.
Roseling, too, admitted that the country's gas reserve situation was not in a state that "the investor wanted it to be in", the report said.
The Tata group will now look at the planned coal policy that will determine the mining method - either underground or open-pit - and see whether enough coal would be made available for its proposed power plant.
Neither BoI chief nor the Tata executive confirmed when the next stage of negotiations would take place.
The Tata proposals worth $1.8 billion were first made in 2003 when its chief Ratan Tata visited Bangladesh.
They were hiked to $3 billion later with more projects envisaged as part of a larger effort to utilise Bangladesh's resources to speed up industrial development.
Indo-Asian News Service
Tata in world's biggest business brains list
After being named among the 100 most influential people in the world by Time magazine, head of India's Tata Group Ratan Tata has been included in the list of 73 biggest brains in business for his Rs.100,000 Nano car.
Conde Nast Portfolio, a US business magazine, in its May issue on all-round brilliance, has identified business' biggest brains including media czar Rupert Murdoch, Microsoft founder Bill Gates, Google co-founders Larry Page and Sergey Brin, and investor Warren Buffet.
"Brilliance comes in many forms, whether it is founding a startup that kicks sand in Microsoft's face or creating an affordable car for the developing world. A small number of innovators influence the rest of the influencers in business," the magazine said.
Profiling Tata, the magazine said: "He believes the future of the auto industry rests in the hands of people who don't yet drive. Besides snapping up Jaguar and Land Rover, his company, the Tata Group, is developing a car that will cost just $2,500".
The model won't be sold in the US, but the magazine said, it has the potential to radically alter the market for manufacturers there.
"Tata-inspired followers are already revving up their engines: Nissan-Renault is partnering with India's Bajaj Auto to develop a car by 2010 that will sell for less than $3,000," the magazine added.
"But except for Ford India, US companies can't produce a model this cheaply. Which means they risk being run over," the magazine predicted.
Tata is considered a 'game changer' by the magazine, other categories in its brilliant list being connectors, taste-makers, rebels and upstarts.
Indo-Asian News Service
Conde Nast Portfolio, a US business magazine, in its May issue on all-round brilliance, has identified business' biggest brains including media czar Rupert Murdoch, Microsoft founder Bill Gates, Google co-founders Larry Page and Sergey Brin, and investor Warren Buffet.
"Brilliance comes in many forms, whether it is founding a startup that kicks sand in Microsoft's face or creating an affordable car for the developing world. A small number of innovators influence the rest of the influencers in business," the magazine said.
Profiling Tata, the magazine said: "He believes the future of the auto industry rests in the hands of people who don't yet drive. Besides snapping up Jaguar and Land Rover, his company, the Tata Group, is developing a car that will cost just $2,500".
The model won't be sold in the US, but the magazine said, it has the potential to radically alter the market for manufacturers there.
"Tata-inspired followers are already revving up their engines: Nissan-Renault is partnering with India's Bajaj Auto to develop a car by 2010 that will sell for less than $3,000," the magazine added.
"But except for Ford India, US companies can't produce a model this cheaply. Which means they risk being run over," the magazine predicted.
Tata is considered a 'game changer' by the magazine, other categories in its brilliant list being connectors, taste-makers, rebels and upstarts.
Indo-Asian News Service
Wednesday, April 30, 2008
Tata Group wants fresh talks on investments in Bangladesh
India's Tata Group expects to revive talks on the proposed $3 billion investments in Bangladesh.
"A lot of things have changed in the last two years," Tata's Bangladesh project director Syed Manzer Hussain said in response to media queries after his courtesy call on Commerce and Education Adviser Hossain Zillur Rahman Tuesday.
The New Age newspaper Wednesday quoted Rahman as welcoming Tata's interest in investing in Bangladesh. But he said: "In a professional negotiation, we will uphold hundred percent our national interests and everything will be settled after professional analysis."
Tata showed interest in investing in steel, fertilizer, power and coal mining sectors of Bangladesh, making proposals worth $3 billion, the highest Bangladesh has received from anywhere, when Tata Group chairman Ratan Tata visited Dhaka in 2003.
After months of prolonged negotiations, the government of Prime Minister Khaleda Zia put the project on hold saying they were "politically sensitive" and could not be taken up when the country was scheduled to go for elections.
The negotiation was supposed to be resumed in 2007 when Tata executives, particularly Manzer, met a number of advisers to the interim government. But the government pushed the issue into limbo.
Indo-Asian News Service
"A lot of things have changed in the last two years," Tata's Bangladesh project director Syed Manzer Hussain said in response to media queries after his courtesy call on Commerce and Education Adviser Hossain Zillur Rahman Tuesday.
The New Age newspaper Wednesday quoted Rahman as welcoming Tata's interest in investing in Bangladesh. But he said: "In a professional negotiation, we will uphold hundred percent our national interests and everything will be settled after professional analysis."
Tata showed interest in investing in steel, fertilizer, power and coal mining sectors of Bangladesh, making proposals worth $3 billion, the highest Bangladesh has received from anywhere, when Tata Group chairman Ratan Tata visited Dhaka in 2003.
After months of prolonged negotiations, the government of Prime Minister Khaleda Zia put the project on hold saying they were "politically sensitive" and could not be taken up when the country was scheduled to go for elections.
The negotiation was supposed to be resumed in 2007 when Tata executives, particularly Manzer, met a number of advisers to the interim government. But the government pushed the issue into limbo.
Indo-Asian News Service
Sunday, April 6, 2008
'Tata name helped clinch Jaguar deal'
The Tata group's awesome reputation for excellent human resources management was one of the critical factors that helped it clinch the deal with Ford Motor Co. for acquiring the Jaguar and Land Rover brands, says a business relations expert.
"The manner in which the Tata group handled the Corus Steel deal in late 2006 created a major positive impression among the unions and the employees at large. Finally, it was one of the key factors that led to a successful completion of the Jaguar and Land Rover deal," said Chandrika Shah.
Based in Mumbai, Chandrika is country representative in India for The British Midlands that promotes business relations with the region, with seven branches worldwide, including four in the US, and one each in India, Australia and Japan. The Jaguar and Land Rover plants are located in The British Midlands region.
"The Tatas displayed a very deep and mature understanding with the employees of Ford. The Tatas also enjoyed a close relationship with the influential Warwick Manufacturing Group here, headed by Kumar Bhattacharya, long before this deal had been planned which helped," she added.
More than anything, the unions were very much influenced by the favourable feedback garnered from the unions of Corus Steel and the comfort levels were very high when dealing with Tata.
"There was a great level of psychological acceptability to the whole deal and the way the Tatas handled it, the unions felt that if it should be anybody, then it must be the Tatas."
The British Midlands also acted as a quiet, behind-the-scenes facilitator to ensure that the Tata deal went through sans bloodshed.
The deal is considered a feather in the cap of The British Midlands and has thrown open a sparkling new chapter in the already flourishing Indo-British relations.
At present, there are more than 35 big and small Indian companies that have invested in the region, including Indian banks.
Though Chandrika could not provide the quantum of investments by Indian companies, she said that so far they have helped create around 1,500 jobs in that region.
The main cities in the picturesque region with a salubrious climate include Birmingham, Nottingham, Leicester, Worcester and Northampton.
She explained the major strengths of The British Midlands are the automotives, aerospace and aviation, components, research and development, information technology (IT), pharma and biotechnology, rail, logistics, financial and business services, environmental technology and foods and beverages. "I feel that now the higher end of technology could be our prime focus, given India's high levels of technical capabilities. It's time the Indians thought of going global by collaborating with companies in the UK and other places," Chandrika said.
Some of the top international brands like Jaguar, Land Rover, Toyota and Aston Martin have based their UK headquarters, main vehicle assembly plants and research and development facilities in The British Midlands region.
Also present are Honda's Swindon plant and BMW's mini-plant at Cowley and the Nissan assembly plant at Sunderland.
The region is also home to a thriving niche vehicle sector - many manufacturers of specialist commercial vehicles, low-volume sports cars and leisure vehicle manufacturers can be found here.
Indo-Asian News Service
"The manner in which the Tata group handled the Corus Steel deal in late 2006 created a major positive impression among the unions and the employees at large. Finally, it was one of the key factors that led to a successful completion of the Jaguar and Land Rover deal," said Chandrika Shah.
Based in Mumbai, Chandrika is country representative in India for The British Midlands that promotes business relations with the region, with seven branches worldwide, including four in the US, and one each in India, Australia and Japan. The Jaguar and Land Rover plants are located in The British Midlands region.
"The Tatas displayed a very deep and mature understanding with the employees of Ford. The Tatas also enjoyed a close relationship with the influential Warwick Manufacturing Group here, headed by Kumar Bhattacharya, long before this deal had been planned which helped," she added.
More than anything, the unions were very much influenced by the favourable feedback garnered from the unions of Corus Steel and the comfort levels were very high when dealing with Tata.
"There was a great level of psychological acceptability to the whole deal and the way the Tatas handled it, the unions felt that if it should be anybody, then it must be the Tatas."
The British Midlands also acted as a quiet, behind-the-scenes facilitator to ensure that the Tata deal went through sans bloodshed.
The deal is considered a feather in the cap of The British Midlands and has thrown open a sparkling new chapter in the already flourishing Indo-British relations.
At present, there are more than 35 big and small Indian companies that have invested in the region, including Indian banks.
Though Chandrika could not provide the quantum of investments by Indian companies, she said that so far they have helped create around 1,500 jobs in that region.
The main cities in the picturesque region with a salubrious climate include Birmingham, Nottingham, Leicester, Worcester and Northampton.
She explained the major strengths of The British Midlands are the automotives, aerospace and aviation, components, research and development, information technology (IT), pharma and biotechnology, rail, logistics, financial and business services, environmental technology and foods and beverages. "I feel that now the higher end of technology could be our prime focus, given India's high levels of technical capabilities. It's time the Indians thought of going global by collaborating with companies in the UK and other places," Chandrika said.
Some of the top international brands like Jaguar, Land Rover, Toyota and Aston Martin have based their UK headquarters, main vehicle assembly plants and research and development facilities in The British Midlands region.
Also present are Honda's Swindon plant and BMW's mini-plant at Cowley and the Nissan assembly plant at Sunderland.
The region is also home to a thriving niche vehicle sector - many manufacturers of specialist commercial vehicles, low-volume sports cars and leisure vehicle manufacturers can be found here.
Indo-Asian News Service
Friday, April 4, 2008
Tata group acquires second Spanish company
The Tata group's acquisition spree in Spain continues. A week after buying strategic stake in Serviplem, a construction equipment firm, the group has bought controlling stake in another Spanish company with interests in similar areas - Comoplesa Lebrero.
Telcon, a subsidiary of Tata Motors, has acquired 60 percent stake in Lebrero, which is also located at Zargoza like Serviplem is, and manufactures road construction equipment.
"This acquisition helps Telcon's strength and adds relevance to last week's Serviplem deal in enhancing product offering in the road, general construction value chain," said Ranaveer Sinha, managing director of Telcon.
Since 1954, Lebrero has developed its own technology and has sold its machinery globally. It also makes bitumen tanks and auxiliary machinery for public works.
The acquisition of Lebrero gives Telcon and its joint venture partner, Hitachi, access to compaction equipment technology that the Indian company could exploit internationally.
As in the case of Serviplem, the cost of the acquisition has not been disclosed. A statement from Telcon said under the agreement, the existing shareholders will retain 40 percent stake and continued to associate themselves with the venture.
Sinha said Telcon, Hitachi and Lebrero would work jointly to identify business opportunities worldwide and leverage their presence for mutual benefit.
Lebrero has been dealing with Telcon for some four years in sourcing components for its products and hence the acquisition was only expected to strengthen the association further, a company statement said.
Indo-Asian News Service
Telcon, a subsidiary of Tata Motors, has acquired 60 percent stake in Lebrero, which is also located at Zargoza like Serviplem is, and manufactures road construction equipment.
"This acquisition helps Telcon's strength and adds relevance to last week's Serviplem deal in enhancing product offering in the road, general construction value chain," said Ranaveer Sinha, managing director of Telcon.
Since 1954, Lebrero has developed its own technology and has sold its machinery globally. It also makes bitumen tanks and auxiliary machinery for public works.
The acquisition of Lebrero gives Telcon and its joint venture partner, Hitachi, access to compaction equipment technology that the Indian company could exploit internationally.
As in the case of Serviplem, the cost of the acquisition has not been disclosed. A statement from Telcon said under the agreement, the existing shareholders will retain 40 percent stake and continued to associate themselves with the venture.
Sinha said Telcon, Hitachi and Lebrero would work jointly to identify business opportunities worldwide and leverage their presence for mutual benefit.
Lebrero has been dealing with Telcon for some four years in sourcing components for its products and hence the acquisition was only expected to strengthen the association further, a company statement said.
Indo-Asian News Service
Tuesday, April 1, 2008
Hotels the next big thing on Tatas' African safari
The Tatas Group's African safari is getting bigger and better as the ambitious industrial house readies to set up luxury hotels and a multimillion-dollar ferrochrome steel plant in South Africa.
Indian Hotels, part of the Tata Group and owners of the famed Taj chain of hotels, is already developing properties in Johannesburg, Durban and Cape Town. "We hope the hotels will be in place by the end of the year or early next year," Syamal Gupta, chairperson, Tata International Limited and director, Tata Sons, told IANS.
The Tata Group is already established as a powerful Indian business brand in Africa with business interests in diverse sectors from vehicles and telecom to infrastructure and now hotels, said Gupta, a prime mover behind the group's ambitious business plans for Africa.
The hospitality sector is not virgin territory for the Tatas in Africa. The group set up a five-star hotel called The Taj Pamodzi in Zambia a few years ago. There is also a plan to set up a hotel in the Nigerian capital Lagos. In fact, the Tatas' presence in the hospitality sector in Africa is set to get bigger in the days to come with some of the African economies growing at double-digit figures and attracting more global business travellers and tourists than before.
Another big project in South Africa - a $100-million-plus ferrochrome steel plant at Richards Bay in KwaZulu-Natal - is under construction and set to be completed by next year, said Gupta.
He said the Nano small car had created a splash in Africa, like elsewhere in the world. "The Nano car has created a big buzz in Africa. India is increasingly seen in Africa as a source of high-end appropriate, adaptable and affordable technologies," said an upbeat Gupta, chairperson of the Confederation of Indian Industry's Africa Committee.
"Besides Western countries, which used to be their main source of capital and technology, African countries are now seeking alternatives like India. India is now one of their most important sources of investment."
"Africa is a very attractive destination for Indian investment. Besides the Tatas and Kirloskars, big Indian companies like ONGC Videsh, Vedanta, Mittal Group, Reliance, Essar, Ranbaxy and Dr Reddy's Labs have already made forays into Africa," he added.
VSNL, the former Indian state-owned telecom business in which Tata has a 26 percent stake and management control, has already invested in South Africa's second fixed-line operator.
The Tata Group, which has business interests in at least 18 African countries, has ambitious investment plans worth nearly $800 million in the auto, hospitality and IT sectors.
Tata Africa, the company arm that operates in Africa, and Tata Motors plan to start a vehicle assembly plant in South Africa soon. The group plans to pump $100 million into the vehicle assembly plant it acquired in Pretoria last year. The plant is likely to be operational by 2010.
The Tatas are also actively scouting for mining opportunities in Africa.
Indo-Asian News Service
Indian Hotels, part of the Tata Group and owners of the famed Taj chain of hotels, is already developing properties in Johannesburg, Durban and Cape Town. "We hope the hotels will be in place by the end of the year or early next year," Syamal Gupta, chairperson, Tata International Limited and director, Tata Sons, told IANS.
The Tata Group is already established as a powerful Indian business brand in Africa with business interests in diverse sectors from vehicles and telecom to infrastructure and now hotels, said Gupta, a prime mover behind the group's ambitious business plans for Africa.
The hospitality sector is not virgin territory for the Tatas in Africa. The group set up a five-star hotel called The Taj Pamodzi in Zambia a few years ago. There is also a plan to set up a hotel in the Nigerian capital Lagos. In fact, the Tatas' presence in the hospitality sector in Africa is set to get bigger in the days to come with some of the African economies growing at double-digit figures and attracting more global business travellers and tourists than before.
Another big project in South Africa - a $100-million-plus ferrochrome steel plant at Richards Bay in KwaZulu-Natal - is under construction and set to be completed by next year, said Gupta.
He said the Nano small car had created a splash in Africa, like elsewhere in the world. "The Nano car has created a big buzz in Africa. India is increasingly seen in Africa as a source of high-end appropriate, adaptable and affordable technologies," said an upbeat Gupta, chairperson of the Confederation of Indian Industry's Africa Committee.
"Besides Western countries, which used to be their main source of capital and technology, African countries are now seeking alternatives like India. India is now one of their most important sources of investment."
"Africa is a very attractive destination for Indian investment. Besides the Tatas and Kirloskars, big Indian companies like ONGC Videsh, Vedanta, Mittal Group, Reliance, Essar, Ranbaxy and Dr Reddy's Labs have already made forays into Africa," he added.
VSNL, the former Indian state-owned telecom business in which Tata has a 26 percent stake and management control, has already invested in South Africa's second fixed-line operator.
The Tata Group, which has business interests in at least 18 African countries, has ambitious investment plans worth nearly $800 million in the auto, hospitality and IT sectors.
Tata Africa, the company arm that operates in Africa, and Tata Motors plan to start a vehicle assembly plant in South Africa soon. The group plans to pump $100 million into the vehicle assembly plant it acquired in Pretoria last year. The plant is likely to be operational by 2010.
The Tatas are also actively scouting for mining opportunities in Africa.
Indo-Asian News Service
Thursday, March 27, 2008
Jaguar, Land Rover deal not without challenges: experts
With the acquisition of Jaguar and Land Rover, does the Tata group have the two big cats of the British automobile industry by the tail? Analysts are posing this question given the implications of the future emission norms in Europe. But Tata Motors are confident of addressing the challenge.According to analysts and automobile engineers, Tatas Motors may get choked with fines on Jaguar and Land Rover - the brands acquired for $2.3 billion from Ford Motors Wednesday - when the proposed emission norms come into force by 2012.
"The maximum permissible emission limit will be 130 grams per km per model. The manufacturers may be fined if their models emit more," said Krishnasami Rajagopalan, senior analyst with Frost and Sullivan and a qualified automobile engineer.
Vehicle makers have an escape route if they average out their emissions over the entire fleet and set off the excess in some against lower emissions in others, he said.
"But for Tata Motors, having just two models in Britain could pose challenges," Rajagopalan, who heads the consultancy's Automotive and Transportation Unit, told IANS.
Nevertheless, C. Ramakrishnan, president and chief financial officer for Tata Motors, was confident of addressing the challenges. "The two models will meet the emission norms. Necessary agreements have been signed with Ford for sourcing engine technology."
The engine supply agreement signed with Ford Motor is mutually satisfactory and will be for a period of 5-9 years depending on the model. "There are some normal technologies that come along with an acquisition. Some other technologies do come under licensing agreement," said Ramakrishnan.
Car manufacturers, including premium and sports car makers, generally work on alternative powertrains such as hydrogen, fuel cells, electric vehicles and hybrid vehicles, then plug-in hybrids.
"Though Ford is already developing alternative powertrains, will it be ready to share its technology with Jaguar and Land Rover owing to its engine supply pact with the Tatas?" queried Rajagopalan.
"This could eventually result in the technology being accessed by Tatas and indirectly by Fiat through Tata," he said, while adding that car makers may be allowed to trade on emission certificates as in the case of carbon trading.
The other challenge for Tata Motors is the flexibility available to cut costs at the production sites in Britain, the process of integration and the challenges posed by the market, said Piyush Parag.
Tatas have decided to retain manufacturing of Jaguar and Land Rover in their home country, it will have also have to contend with higher cost of production and rising material prices in Western Europe, said Rajagopalan.
"The biggest challenge for Tata Motors is to balance the increase in costs with tradition, quality and performance of Jaguar and Land Rover. It remains to be seen if this will push Tata to look at low cost manufacturing in the near future."
This apart, since Tatas Motors will have separate supplier base for their India operations and that in Britain, the benefit synergies of scale may not be available - at least for the first five years.
But Ramakrishnan said the group could look at the possibility of sourcing some components from India. "Both the companies have competent high quality vendors. Nevertheless we will explore the possibilities to synergise all our operations."
Indo-Asian News Service
Tata pleases, Ford 'disappoints' British workers' union
The head of Britain's largest workers union Wednesday reiterated his support for Tata's acquisition of the luxury car brands Jaguar and Land Rover, but said he was disappointed by seller Ford's failure to retain a stake.
"If Jaguar and Land Rover had to be sold, then Tata was the best option," said Tony Woodley, joint general secretary of Unite, as Ford announced the sale of the two British iconic cars to Tata Motors Ltd.
The deal, announced Wednesday, already has the union's seal of approval, after it secured Tata's assurance that it will not shed jobs at the three Jaguar and Land Rover factories at Solihull, Castle Bromwich and Halewood and would continue to source Ford-made engine and components from its factories in Bridgend and Dagenham.
"We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable," Woodley said.
"But with the commitments Tata have given to the future of Jaguar-Land Rover and the long-term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game."
However, Woodley added that there was disappointment that Ford had decided against taking a stake in the new future.
"That is a big disappointment," he said.
According to sources in Unite, union officials would have liked to see Ford take a minority stake, as it did while selling off the luxury car Aston Martin to two Kuwaiti investment companies last year. Ford retained a $77 million stake in Aston Martin.
This, the union officials feel, would have helped to "lock in" long-term commitments made as part of the agreement signed Wednesday between Tata and Ford.
The nervousness may be explained by the fact up to 40,000 jobs were at stake at a time of a global economic slowdown.
"On the positive side, Tata has not only given us a long-term commitment, but they are an industrial company as well," Unite's Andrew Dodgson told IANS.
"Tata recognise the iconic brand value of Jaguar-Land Rover - that they are British-engineered and British-made cars and so it is important to keep them in Britain," he added.
Ford acquired Jaguar for $2.5 bn in 1989 and Land Rover for $2.75 bn in 2000 but put them on the market last year after posting losses of $12.6 bn in 2006 - the heaviest in its 103-year history.
Tata was named by Ford as the preferred bidders in January as it beat off competition from fellow-Indian carmaker Mahindra and Mahindra and American buy-up specialist One Equity.
While the three Jaguar and Land Rover factories in Britain employ some 16,000 people, the number swells to between 30,000 and 40,000 when ancillaries are taken into account, according to Dodgson.
Indo-Asian News Service
"If Jaguar and Land Rover had to be sold, then Tata was the best option," said Tony Woodley, joint general secretary of Unite, as Ford announced the sale of the two British iconic cars to Tata Motors Ltd.
The deal, announced Wednesday, already has the union's seal of approval, after it secured Tata's assurance that it will not shed jobs at the three Jaguar and Land Rover factories at Solihull, Castle Bromwich and Halewood and would continue to source Ford-made engine and components from its factories in Bridgend and Dagenham.
"We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable," Woodley said.
"But with the commitments Tata have given to the future of Jaguar-Land Rover and the long-term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game."
However, Woodley added that there was disappointment that Ford had decided against taking a stake in the new future.
"That is a big disappointment," he said.
According to sources in Unite, union officials would have liked to see Ford take a minority stake, as it did while selling off the luxury car Aston Martin to two Kuwaiti investment companies last year. Ford retained a $77 million stake in Aston Martin.
This, the union officials feel, would have helped to "lock in" long-term commitments made as part of the agreement signed Wednesday between Tata and Ford.
The nervousness may be explained by the fact up to 40,000 jobs were at stake at a time of a global economic slowdown.
"On the positive side, Tata has not only given us a long-term commitment, but they are an industrial company as well," Unite's Andrew Dodgson told IANS.
"Tata recognise the iconic brand value of Jaguar-Land Rover - that they are British-engineered and British-made cars and so it is important to keep them in Britain," he added.
Ford acquired Jaguar for $2.5 bn in 1989 and Land Rover for $2.75 bn in 2000 but put them on the market last year after posting losses of $12.6 bn in 2006 - the heaviest in its 103-year history.
Tata was named by Ford as the preferred bidders in January as it beat off competition from fellow-Indian carmaker Mahindra and Mahindra and American buy-up specialist One Equity.
While the three Jaguar and Land Rover factories in Britain employ some 16,000 people, the number swells to between 30,000 and 40,000 when ancillaries are taken into account, according to Dodgson.
Indo-Asian News Service
Praise for Tatas for Jaguar, Land Rover deal
The workers at Jaguar and Land Rover are not the only people who praised Tata Motors for the $2.3 billion deal with Ford. Commerce Minister Kamal Nath Wednesday joined corporate India in complementing the Tata group for spearheading India Inc's globalisation drive.
"My congratulations to the Tatas and entire corporate world as they have held India's private sector flag high. The world is looking at India," Kamal Nath said at the sidelines of a meeting here.
"The most important thing is that world is recognising India's credibility," he said, adding the $2.3 billion deal was also a sign of the rising globalisation of Indian companies even at a time when there was a global slowdown.
"The acquisition of Jaguar and Land Rover has been a culmination of a process of acquisition overseas by the Indian corporate," said the Federation of Indian Chambers of Commerce (Ficci) in a statement.
"With the meltdown in US and repercussions in Europe, Ficci is convinced India Inc will have many more opportunities of buying up valuable companies in these markets, provided the growth momentum of the Indian economy is sustained."
The Associated Chambers of Commerce and Industry (Assocham) said the agreement signed by the Tatas also marks the transparent and business-like manner in which the group has negotiated with Ford, which needed to be complimented.
"The Indian industry has been doing an extremely good job in acquiring foreign assets. But the way the Tatas have done it makes India proud," said Venugopal N. Dhoot, the president of the industry lobby.
Indo-Asian News Service
"My congratulations to the Tatas and entire corporate world as they have held India's private sector flag high. The world is looking at India," Kamal Nath said at the sidelines of a meeting here.
"The most important thing is that world is recognising India's credibility," he said, adding the $2.3 billion deal was also a sign of the rising globalisation of Indian companies even at a time when there was a global slowdown.
"The acquisition of Jaguar and Land Rover has been a culmination of a process of acquisition overseas by the Indian corporate," said the Federation of Indian Chambers of Commerce (Ficci) in a statement.
"With the meltdown in US and repercussions in Europe, Ficci is convinced India Inc will have many more opportunities of buying up valuable companies in these markets, provided the growth momentum of the Indian economy is sustained."
The Associated Chambers of Commerce and Industry (Assocham) said the agreement signed by the Tatas also marks the transparent and business-like manner in which the group has negotiated with Ford, which needed to be complimented.
"The Indian industry has been doing an extremely good job in acquiring foreign assets. But the way the Tatas have done it makes India proud," said Venugopal N. Dhoot, the president of the industry lobby.
Indo-Asian News Service
Tata deal shows 'India has arrived': Sunil Mittal
Tata Motors' acquisition of the prestigious Jaguar and Land Rover car brands shows that "India has arrived" on the world scene - something American politicians now need to wake up to, Indian industrialist Sunil Bharti Mittal said Wednesday.
He spoke after meeting British Prime Minister Gordon Brown. He was leading a delegation of the Confederation of Indian Industry (CII).
"India has arrived and is being accepted by all. The welcome we are seeing in the United Kingdom is just fantastic. We are very, very proud of the house of Tatas," Mittal, president of the CII, told IANS.
"Globalisation is a two-say street. Now, it is time for American politicians to realise that globalisation benefits everybody, as the UK has understood," said Mittal, who is CEO of Bharti Enterprises.
Mittal said he was "delighted" with the news about the deal between Tata Motors and sellers Ford.
"Jaguar and Land Rover are iconic brands known to the entire world. For Tata to pick them up is fantastic," he added.
Mittal also said he had a "very good meeting" with Prime Minister Brown as a follow-up to the British leader's visit to India in January.
Brown and the 15-member delegation discussed key issues in areas of skills building, climate change and global trade talks.
"Gordon Brown wants India to fully participate in the Doha Round of Talks at the World Trade Organization. He wants us to move ahead on the NAMA discussions (on manufacturing tariffs)," Mittal said.
"He said the world will move on agriculture, so that's a message we will be carrying to (Commerce Minister) Kamal Nath."
The meeting was the third between CII members and the British prime minister in the last 18 months.
Britain is India's fourth largest trading partner globally and the second largest in Europe, after Germany.
The delegation included CII chief mentor Tarun Das, Hindustan Motors chairman C.K. Birla, and Dabur India chairman Anand Burman.
Indo-Asian News Service
He spoke after meeting British Prime Minister Gordon Brown. He was leading a delegation of the Confederation of Indian Industry (CII).
"India has arrived and is being accepted by all. The welcome we are seeing in the United Kingdom is just fantastic. We are very, very proud of the house of Tatas," Mittal, president of the CII, told IANS.
"Globalisation is a two-say street. Now, it is time for American politicians to realise that globalisation benefits everybody, as the UK has understood," said Mittal, who is CEO of Bharti Enterprises.
Mittal said he was "delighted" with the news about the deal between Tata Motors and sellers Ford.
"Jaguar and Land Rover are iconic brands known to the entire world. For Tata to pick them up is fantastic," he added.
Mittal also said he had a "very good meeting" with Prime Minister Brown as a follow-up to the British leader's visit to India in January.
Brown and the 15-member delegation discussed key issues in areas of skills building, climate change and global trade talks.
"Gordon Brown wants India to fully participate in the Doha Round of Talks at the World Trade Organization. He wants us to move ahead on the NAMA discussions (on manufacturing tariffs)," Mittal said.
"He said the world will move on agriculture, so that's a message we will be carrying to (Commerce Minister) Kamal Nath."
The meeting was the third between CII members and the British prime minister in the last 18 months.
Britain is India's fourth largest trading partner globally and the second largest in Europe, after Germany.
The delegation included CII chief mentor Tarun Das, Hindustan Motors chairman C.K. Birla, and Dabur India chairman Anand Burman.
Indo-Asian News Service
British government welcomes Tata buy
Trade and Investment Minister Lord Digby Jones - who has just won a campaign to be allowed to drive a Jaguar - said Wednesday the British government welcomes the "long-term commitment" shown by Tata Motors in purchasing the Jaguar and Land Rover brands.
"The Tata Group is already a major investor in the United Kingdom, with recent acquisitions including Corus, and in automotive terms Tata Motors has also had its European Technical Centre in the West Midlands for several years," he said in a statement minutes after Ford announced the sale of the iconic brands to Tata Motors for $2.3 billion.
"We welcome their long-term commitment now to developing the Jaguar and Land Rover brands as part of their British businesses," said Jones, who earlier this month won a feisty battle against the government's green lobby to be allowed to be driven in an official Jaguar rather than a low-emission hybrid car.
"These businesses have every reason to face the future with confidence - Land Rover is at record production levels, Jaguar has exciting new products, and both brands are supported by a committed, expert workforcem," Jones said.
"UK Trade and Investment will do everything it can to promote the Jaguar and Land Rover brands around the world," he added.
Jones' comments came amid much speculation in London that Prime Minister Gordon Brown would make a statement on the acquisition by the Tatas during Question Hour in the British parliament.
Although he failed to do so, Jones gave interviews on the deal, speaking to the media all the way from Bangkok, where he is on an official visit.
Meanwhile, the UK-India Business Council (UKIBC) said the deal is an "outstanding example of the UK's open economy" and its ability to attract offshore investment and talent.
"Vodafone's acquisition of Hutch and Tata's previous acquisition of Tetley and more recently Corus are leading examples of this," said Sharon Bamford, chief executive of the UKIBC - the lead organisation supporting the promotion of bilateral trade, business and investment opportunities between the two countries.
UKIBC chairman Lord Karan Bilimoria said the purchase is the latest example of the newfound confidence of Indian companies.
"Less than two months ago, I sat in the new Tata Nano, and I witnessed history in the making. Indian companies are growing more confident in the global economy, and with this deal the country is on the move like never before," he added.
Indo-Asian News Service
"The Tata Group is already a major investor in the United Kingdom, with recent acquisitions including Corus, and in automotive terms Tata Motors has also had its European Technical Centre in the West Midlands for several years," he said in a statement minutes after Ford announced the sale of the iconic brands to Tata Motors for $2.3 billion.
"We welcome their long-term commitment now to developing the Jaguar and Land Rover brands as part of their British businesses," said Jones, who earlier this month won a feisty battle against the government's green lobby to be allowed to be driven in an official Jaguar rather than a low-emission hybrid car.
"These businesses have every reason to face the future with confidence - Land Rover is at record production levels, Jaguar has exciting new products, and both brands are supported by a committed, expert workforcem," Jones said.
"UK Trade and Investment will do everything it can to promote the Jaguar and Land Rover brands around the world," he added.
Jones' comments came amid much speculation in London that Prime Minister Gordon Brown would make a statement on the acquisition by the Tatas during Question Hour in the British parliament.
Although he failed to do so, Jones gave interviews on the deal, speaking to the media all the way from Bangkok, where he is on an official visit.
Meanwhile, the UK-India Business Council (UKIBC) said the deal is an "outstanding example of the UK's open economy" and its ability to attract offshore investment and talent.
"Vodafone's acquisition of Hutch and Tata's previous acquisition of Tetley and more recently Corus are leading examples of this," said Sharon Bamford, chief executive of the UKIBC - the lead organisation supporting the promotion of bilateral trade, business and investment opportunities between the two countries.
UKIBC chairman Lord Karan Bilimoria said the purchase is the latest example of the newfound confidence of Indian companies.
"Less than two months ago, I sat in the new Tata Nano, and I witnessed history in the making. Indian companies are growing more confident in the global economy, and with this deal the country is on the move like never before," he added.
Indo-Asian News Service
Tata deal an honour for India, say analysts
Corporate analysts Wednesday hailed Tata Motors' deal with Ford Motor to buy two iconic British auto brands Jaguar and Land Rover as not just a milestone for the Tata group but a historic moment for India.
"This is a landmark deal and it is a landmark deal for India also," says Deven Malkan, a noted commentator and editor-in-chief of Corporate India magazine.
"The deal has all the ingredients of a lion-hearted industrialist. The critics had earlier tried to run down the Corus deal and look at the Tata Steel's share price today - it is flourishing," he said.
"Tata is a conservative and staid industrial house and before jumping into the deal fray everybody in the market knows that they would have first made sure of raising funds along with a study of the deal and its ramifications."
Sanjay Choksi, president of automobile appraisal group Western India Automobile Association, said: "This deal will help Tata Motors in gaining prestige and enhancing the Tata brand in the automobile world internationally."
"I think buying a readymade company also paves the way for the enhancement of indigenous automobile industry. Though the automobile industry here has a lot of tie-ups with major international giants, but this deal will certainly bring about a change in the Indian car world," Choksi said.
Hormazd Sorabjee, editor of "AutoCar", said: "It is a big thing not just for the Tatas but also for the Indian automotive industry. It means a lot."
However, he contended that the deal and the transfer of technology from the Ford Motor would not have much impact in the domestic field.
"The cars are from the extreme high-end spectrum, which means it will have limited buyers in the domestic market. But then if you look from the international band, then it will certainly have an impact on the fortunes of Tata Motors," Sorabjee said.
Moreover, Sorabjee felt that even the high-end technology transfer may not have much impact on the domestic front, "though some changes might be felt in the Indian automotive industry, in the coming days."
Indo-Asian News Service
"This is a landmark deal and it is a landmark deal for India also," says Deven Malkan, a noted commentator and editor-in-chief of Corporate India magazine.
"The deal has all the ingredients of a lion-hearted industrialist. The critics had earlier tried to run down the Corus deal and look at the Tata Steel's share price today - it is flourishing," he said.
"Tata is a conservative and staid industrial house and before jumping into the deal fray everybody in the market knows that they would have first made sure of raising funds along with a study of the deal and its ramifications."
Sanjay Choksi, president of automobile appraisal group Western India Automobile Association, said: "This deal will help Tata Motors in gaining prestige and enhancing the Tata brand in the automobile world internationally."
"I think buying a readymade company also paves the way for the enhancement of indigenous automobile industry. Though the automobile industry here has a lot of tie-ups with major international giants, but this deal will certainly bring about a change in the Indian car world," Choksi said.
Hormazd Sorabjee, editor of "AutoCar", said: "It is a big thing not just for the Tatas but also for the Indian automotive industry. It means a lot."
However, he contended that the deal and the transfer of technology from the Ford Motor would not have much impact in the domestic field.
"The cars are from the extreme high-end spectrum, which means it will have limited buyers in the domestic market. But then if you look from the international band, then it will certainly have an impact on the fortunes of Tata Motors," Sorabjee said.
Moreover, Sorabjee felt that even the high-end technology transfer may not have much impact on the domestic front, "though some changes might be felt in the Indian automotive industry, in the coming days."
Indo-Asian News Service
Be British, buy Indian - live life the Tata way!
Sip Tetley tea in the morning, drive a Jaguar built with Corus steel to office, work with Tata Consultancy software and over the weekend take your Land Rover to the countryside before fine dining in a Taj hotel.
This seems to be the message of the $28.8 billion Tata group to the British people. For Tetley, Corus, Jaguar and Land Rover are UK based companies taken over by the Indian group.
The Tatas own 98 operating companies around the world with a market capitalization of $56.52 billion.
The acquisition of Jaguar and Land Rover takes the overseas operating companies to 100, another landmark number.
The Tata's passage to Britain is over 100 years old through Tata Limited, a subsidiary of Tata Sons.
However it was in the new millennium that the Tata group initiated its new phase of globalisation when it acquired the Tetley tea brand - the market leader in Britain and Canada.
Tetley contributes a lion's share of the Tatas' tea business today.
The next major acquisitions came in 2005 when Tata Chemicals bought the soda ash maker Brunner Mond Group, Tata Technologies acquired INCAT International a technology company and TCS bought the business process outsourcing (BPO) division of Pearl Group.
The year 2007 saw Tatas acquiring British steel maker Corus, one of the largest European steel makers.
And on Wednesday the group announced the acquisition of two more iconic British brands - Jaguar and Land Rover from Ford Motor Company, US.
All these acquisitions make Britain a major overseas market for the Indian group.
At the last count the Indian group has around 20 companies in Britain and several thousand employees.
On the information technology domain, TCS has a good presence in Britain and Ireland while Tata Interactive Systems operates in the e-learning space.
Tata Motors has an engineering technology centre in Warwick while the group's hotel chain Taj has two hotels in Britain.
The telecom company VSNL International also has a presence in Britain.
Indo-Asian News Service
This seems to be the message of the $28.8 billion Tata group to the British people. For Tetley, Corus, Jaguar and Land Rover are UK based companies taken over by the Indian group.
The Tatas own 98 operating companies around the world with a market capitalization of $56.52 billion.
The acquisition of Jaguar and Land Rover takes the overseas operating companies to 100, another landmark number.
The Tata's passage to Britain is over 100 years old through Tata Limited, a subsidiary of Tata Sons.
However it was in the new millennium that the Tata group initiated its new phase of globalisation when it acquired the Tetley tea brand - the market leader in Britain and Canada.
Tetley contributes a lion's share of the Tatas' tea business today.
The next major acquisitions came in 2005 when Tata Chemicals bought the soda ash maker Brunner Mond Group, Tata Technologies acquired INCAT International a technology company and TCS bought the business process outsourcing (BPO) division of Pearl Group.
The year 2007 saw Tatas acquiring British steel maker Corus, one of the largest European steel makers.
And on Wednesday the group announced the acquisition of two more iconic British brands - Jaguar and Land Rover from Ford Motor Company, US.
All these acquisitions make Britain a major overseas market for the Indian group.
At the last count the Indian group has around 20 companies in Britain and several thousand employees.
On the information technology domain, TCS has a good presence in Britain and Ireland while Tata Interactive Systems operates in the e-learning space.
Tata Motors has an engineering technology centre in Warwick while the group's hotel chain Taj has two hotels in Britain.
The telecom company VSNL International also has a presence in Britain.
Indo-Asian News Service
Wednesday, March 26, 2008
Factsheet on the Tata group
A factsheet on the Tata group, India's largest private sector business conglomerate, founded by Jamsetji Tata in the mid 19th century:
Past titans: Jamsetji Tata, Sir Dorab Tata, Sir Ratan Tata, J.R.D. Tata, Naval Tata
Chief Executive: Ratan Naval Tata, 70
Headquarters: The landmark Bombay House in downtown Mumbai
Promoter companies: Tata Sons and Tata Industries
Shareholding: About 66 percent of equity capital of Tata Sons held by philanthropic trusts endowed by members of the Tata family
Decision makers: The Group Corporate Centre comprises Ratan Naval Tata, N.A. Soonawala, J.J. Irani, R.K. Krishna Kumar, R. Gopalakrishnan, Ishaat Hussain, Kishor Chaukar, Arun Gandhi and Alan Rosling
Number of companies: 98, of which 27 are listed
Areas of interest: Seven business segments covering information systems and communications, engineering; materials, services, energy, consumer products and chemicals
Group turnover: $28.8 billion in 2006-07, equivalent to 3.2 percent of the country's GDP
Market capitalisation: $56.52 billion as on March 19, 2008
Shareholder base of listed companies: Around 3 million investors
Countries of operation: Over 80, spread over six continents
Employees: 289,500
Some global companies acquired: Tetley of Britain in 2004, Daewoo Commercial Vehicles of South Korea in 2004, Eight 'O'clock Coffee of US in 2006 and Anglo-Dutch Corus in 2007
Some popular brands: Tetley (beverages), Tanishq (jewellery), Titan (watches), Voltas (cooling appliances), Rallis (agro-chemicals), Westside (garments), Tata Indicom (telecom), Taj Air (in-flight catering), Nelco (electronics)
Some brand ambassadors: Tennis ace Sania Mirza, cricketers Saurav Ganguly, Yuvraj Singh and Irfan Pathan, formulae one racer Narain Karthikeyan, and actors Aamir khan and Naseeruddin Shah
Some major companies: Indian Hotels, Tata Consultancy Services, Tata Tea, Tata Coffee, Tata Motors, Titan, Rallis India, Voltas, Tata Chemicals, Tata Steel, CMC, Tata Communications, Tata Elxsi, Tata Power, Tata Investment, Tata Metaliks, Tayo Rolls, Tinplate, Trent, Tata Teleservices and Nelco
Indo-Asian News Service
Past titans: Jamsetji Tata, Sir Dorab Tata, Sir Ratan Tata, J.R.D. Tata, Naval Tata
Chief Executive: Ratan Naval Tata, 70
Headquarters: The landmark Bombay House in downtown Mumbai
Promoter companies: Tata Sons and Tata Industries
Shareholding: About 66 percent of equity capital of Tata Sons held by philanthropic trusts endowed by members of the Tata family
Decision makers: The Group Corporate Centre comprises Ratan Naval Tata, N.A. Soonawala, J.J. Irani, R.K. Krishna Kumar, R. Gopalakrishnan, Ishaat Hussain, Kishor Chaukar, Arun Gandhi and Alan Rosling
Number of companies: 98, of which 27 are listed
Areas of interest: Seven business segments covering information systems and communications, engineering; materials, services, energy, consumer products and chemicals
Group turnover: $28.8 billion in 2006-07, equivalent to 3.2 percent of the country's GDP
Market capitalisation: $56.52 billion as on March 19, 2008
Shareholder base of listed companies: Around 3 million investors
Countries of operation: Over 80, spread over six continents
Employees: 289,500
Some global companies acquired: Tetley of Britain in 2004, Daewoo Commercial Vehicles of South Korea in 2004, Eight 'O'clock Coffee of US in 2006 and Anglo-Dutch Corus in 2007
Some popular brands: Tetley (beverages), Tanishq (jewellery), Titan (watches), Voltas (cooling appliances), Rallis (agro-chemicals), Westside (garments), Tata Indicom (telecom), Taj Air (in-flight catering), Nelco (electronics)
Some brand ambassadors: Tennis ace Sania Mirza, cricketers Saurav Ganguly, Yuvraj Singh and Irfan Pathan, formulae one racer Narain Karthikeyan, and actors Aamir khan and Naseeruddin Shah
Some major companies: Indian Hotels, Tata Consultancy Services, Tata Tea, Tata Coffee, Tata Motors, Titan, Rallis India, Voltas, Tata Chemicals, Tata Steel, CMC, Tata Communications, Tata Elxsi, Tata Power, Tata Investment, Tata Metaliks, Tayo Rolls, Tinplate, Trent, Tata Teleservices and Nelco
Indo-Asian News Service
Major overseas acquisitions by Tata group
With the takeover of two British automobile marquees Jaguar and Land Rover, the $28.8 billion Tata group, with 98 companies in its fold, will add another prominent entry to its growing roster of global acquisitions.
Barely a year ago, it paid over $12 billion to acquire Anglo-Dutch steel maker Corus, in what remains the largest buy-out deal overseas by an Indian company till date.
And going by what senior executives of Tata Sons - the holding arm of the group that has 27 listed companies - maintain, the appetite for such mega mergers and acquisitions is only growing with each deal.
Tata Steel has made three major acquisitions worth some $13 billion in the past few years.
"A journey that began long ago is gathering pace," said chairman Ratan Tata on the overseas foray of the group that has interests in consumer goods, chemicals, energy, services, engineering, materials and IT systems and communications.
"From IT and tea to automobiles and steel, Tata companies are spreading their wings to find a place in the global sun," he says.
Here's a look at some notable acquisitions by the Tata group companies overseas in the past few years:
Tata Steel:
The company, which celebrated its centenary in August last year, wants to boost its annual output of 8.7 million tonnes to 15 million tonnes by 2010, and take it upwards to 30 million tonnes by 2030. More stunning moves on the mergers and acquisition front can definitely be expected, it says.
In January 2007, the group pulled off India's biggest ever takeover of an overseas company to buy Anglo-Dutch steel-maker Corus in a $12 billion deal that made it the combined entity the world's fifth largest producer of the commodity.
This came just over a year after it acquired Singapore's NatSteel, which also has a presence in Thailand, China, Malaysia, Vietnam, the Philippines and Australia followed by the acquisition of Thailand's Millennium Steel for a $421 million.
Tata Motors:
South Korea's Daewoo Commercial Vehicle Co was acquired by the company in March 2004 for $102 million and gained, in the process, a market share of 30 percent and access to markets where it had no prior presence.
This was followed by the acquisition of a 21 percent stake in Spanish bus maker Hispano Carrocera for $18 million with an option to pick up the remaining stake at a later date. This helped the company get technology to make top-end busses.
Another company in the fold - Tata Technologies, which provides automotive engineering and design services - bought Britain's Incat International for $53 million.
Tata Consultancy Services:
This company, which was earlier a division of Tata Sons, has been among the most aggressive shoppers for companies overseas. It has acquired six companies in recent months, though the net value of the deals is no more than $100 million.
In the second half of 2005, following the merger of group company Tata Infotech into its fold, TCS acquired financial services company FNS of Australia for $26 million and then Chile's outsourcing major Comicrom for $23 million.
TCS, which has 160 offices in 30 countries, also entered into a structured deal with the British insurance major, the Pearl Group, which essentially called for the two entities to set up a subsidiary with TCS as the majority partner.
Videsh Sanchar Nigam Ltd:
The Tata group acquired the former state-run, international telecom carrier a few years ago. The company has made several overseas acquisitions since then with the aim of becoming a top-end services provider in the industry.
Some of the acquisitions include undersea cable company Tyco of the US for $130 million, Internet service provider Dishnet's India division for $64.28 million and international telecom service provider Teleglobe of US for $239 million.
Tata Chemicals:
Following its acquisition of Hindustan Lever Chemicals, Tata Chemicals was on the lookout for a steady supply of phosphoric acid for its newly acquired plant at Haldia.
It, accordingly, took over two overseas for a total value of $215 million - Indo Maroc Phosphore of Morocco in March 2005 and Brunner Mond Group of Britain in December last year. Morocco produces over 50 percent of world's rock phosphate.
Tata Tea:
In 2000, Tata Tea bought British giant Tetley for a $407 million - in what was then the largest such deal by an Indian company - and started scouting for similar deals to become a global tea and related drinks brand.
Another acquisition has been a 33 percent stake in South African Joekels Tea Packers for an undisclosed amount that was announced this month. It had earlier acquired the US-based Good Earth Corp for $32 million.
The company's other picks include Czech Republic's Jemca and 30 percent stake in the US-based favoured water manufacturer Glaceau for $677 million.
Indian Hotels:
This company, which runs the Taj Group of hotels, acquired several hotels abroad for $121 million in the past few years. It has set aside $100 million for future acquisitions in Europe, the Middle East, Asia and the US.
In December 2006, it acquired W, a hotel at the Woolloomooloo Bay in Sydney, then it took over the management of The Pierre, a luxurious landmark hotel on New York's Fifth Avenue. India Hotels has 39 hotels in India and 18 worldwide.
Another acquisition was Campton Place Hotel in San Francisco
Tata AutoComp Systems:
This company - which makes auto components from 14 plants, three engineering centres and three export-oriented units for clients like General Motors, Ford and Toyota - acquired W? Weidinger of Germany for $7 million last year.
Tata Interactive Systems:
A pioneer in simulations business in India, this company too made acquired several companies overseas - Notably Tertia Edusoft GmbH of Germany and Tertia Edusoft AG of Switzerlandm - and is keen on more buy outs in the future.
Indo-Asian News Service
Barely a year ago, it paid over $12 billion to acquire Anglo-Dutch steel maker Corus, in what remains the largest buy-out deal overseas by an Indian company till date.
And going by what senior executives of Tata Sons - the holding arm of the group that has 27 listed companies - maintain, the appetite for such mega mergers and acquisitions is only growing with each deal.
Tata Steel has made three major acquisitions worth some $13 billion in the past few years.
"A journey that began long ago is gathering pace," said chairman Ratan Tata on the overseas foray of the group that has interests in consumer goods, chemicals, energy, services, engineering, materials and IT systems and communications.
"From IT and tea to automobiles and steel, Tata companies are spreading their wings to find a place in the global sun," he says.
Here's a look at some notable acquisitions by the Tata group companies overseas in the past few years:
Tata Steel:
The company, which celebrated its centenary in August last year, wants to boost its annual output of 8.7 million tonnes to 15 million tonnes by 2010, and take it upwards to 30 million tonnes by 2030. More stunning moves on the mergers and acquisition front can definitely be expected, it says.
In January 2007, the group pulled off India's biggest ever takeover of an overseas company to buy Anglo-Dutch steel-maker Corus in a $12 billion deal that made it the combined entity the world's fifth largest producer of the commodity.
This came just over a year after it acquired Singapore's NatSteel, which also has a presence in Thailand, China, Malaysia, Vietnam, the Philippines and Australia followed by the acquisition of Thailand's Millennium Steel for a $421 million.
Tata Motors:
South Korea's Daewoo Commercial Vehicle Co was acquired by the company in March 2004 for $102 million and gained, in the process, a market share of 30 percent and access to markets where it had no prior presence.
This was followed by the acquisition of a 21 percent stake in Spanish bus maker Hispano Carrocera for $18 million with an option to pick up the remaining stake at a later date. This helped the company get technology to make top-end busses.
Another company in the fold - Tata Technologies, which provides automotive engineering and design services - bought Britain's Incat International for $53 million.
Tata Consultancy Services:
This company, which was earlier a division of Tata Sons, has been among the most aggressive shoppers for companies overseas. It has acquired six companies in recent months, though the net value of the deals is no more than $100 million.
In the second half of 2005, following the merger of group company Tata Infotech into its fold, TCS acquired financial services company FNS of Australia for $26 million and then Chile's outsourcing major Comicrom for $23 million.
TCS, which has 160 offices in 30 countries, also entered into a structured deal with the British insurance major, the Pearl Group, which essentially called for the two entities to set up a subsidiary with TCS as the majority partner.
Videsh Sanchar Nigam Ltd:
The Tata group acquired the former state-run, international telecom carrier a few years ago. The company has made several overseas acquisitions since then with the aim of becoming a top-end services provider in the industry.
Some of the acquisitions include undersea cable company Tyco of the US for $130 million, Internet service provider Dishnet's India division for $64.28 million and international telecom service provider Teleglobe of US for $239 million.
Tata Chemicals:
Following its acquisition of Hindustan Lever Chemicals, Tata Chemicals was on the lookout for a steady supply of phosphoric acid for its newly acquired plant at Haldia.
It, accordingly, took over two overseas for a total value of $215 million - Indo Maroc Phosphore of Morocco in March 2005 and Brunner Mond Group of Britain in December last year. Morocco produces over 50 percent of world's rock phosphate.
Tata Tea:
In 2000, Tata Tea bought British giant Tetley for a $407 million - in what was then the largest such deal by an Indian company - and started scouting for similar deals to become a global tea and related drinks brand.
Another acquisition has been a 33 percent stake in South African Joekels Tea Packers for an undisclosed amount that was announced this month. It had earlier acquired the US-based Good Earth Corp for $32 million.
The company's other picks include Czech Republic's Jemca and 30 percent stake in the US-based favoured water manufacturer Glaceau for $677 million.
Indian Hotels:
This company, which runs the Taj Group of hotels, acquired several hotels abroad for $121 million in the past few years. It has set aside $100 million for future acquisitions in Europe, the Middle East, Asia and the US.
In December 2006, it acquired W, a hotel at the Woolloomooloo Bay in Sydney, then it took over the management of The Pierre, a luxurious landmark hotel on New York's Fifth Avenue. India Hotels has 39 hotels in India and 18 worldwide.
Another acquisition was Campton Place Hotel in San Francisco
Tata AutoComp Systems:
This company - which makes auto components from 14 plants, three engineering centres and three export-oriented units for clients like General Motors, Ford and Toyota - acquired W? Weidinger of Germany for $7 million last year.
Tata Interactive Systems:
A pioneer in simulations business in India, this company too made acquired several companies overseas - Notably Tertia Edusoft GmbH of Germany and Tertia Edusoft AG of Switzerlandm - and is keen on more buy outs in the future.
Indo-Asian News Service
Monday, March 17, 2008
Tata BP Solar Raises $78 million for Further Investments in Solar Energy
Tata BP Solar today announced that they had signed an agreement with Calyon Bank (Credit Agricole CIB) and BNP Paribas and among others, to raise $78 million to fund its 128MW Solar Cell Expansion Project, which is in the advanced stages of implementation, eventually totaling 180MW solar cell manufacturing capacity.
This is another step towards realizing the designed potential of the 300MW plant. The current production line's manufacturing capacity is already some 50MW per annum.
Tata BP Solar, a Tata Power and BP Solar joint venture, has been leading India's solar industry for over fifteen years. Today, it is India's largest solar photo voltaic manufacturing company, and the largest manufacturer of solar water heaters in India. The Company delivers products and solutions that serve both the Indian and global markets, earning substantial foreign exchange earnings for India while also increasing product supply locally. During 2006-07, Tata BP Solar achieved Rs. 6690 million sales revenue and is poised to exceed Rs. 8500 million during 2007-08.
"We have been at the forefront of helping to build a solar industry and market in India," said Syamal Gupta, Chairman, Tata BP Solar. "We are pleased to be joining hands with players in the banking sector to help us to continue to supply the global market, while also growing India's domestic photovoltaic market."
India's growing solar market currently consumes about 1% of the world's photovoltaic products. Total domestic installed photovoltaic capacity is in excess of 100 MW cumulative. Most of the photovoltaics used in India are used for off-grid applications (so have a disproportionate impact in relation to their capacity), however today there is an increasing interest in on-grid applications, as well as high tech applications for various high tech sectors, including telecommunications and the 'green buildings' sector.
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This is another step towards realizing the designed potential of the 300MW plant. The current production line's manufacturing capacity is already some 50MW per annum.
Tata BP Solar, a Tata Power and BP Solar joint venture, has been leading India's solar industry for over fifteen years. Today, it is India's largest solar photo voltaic manufacturing company, and the largest manufacturer of solar water heaters in India. The Company delivers products and solutions that serve both the Indian and global markets, earning substantial foreign exchange earnings for India while also increasing product supply locally. During 2006-07, Tata BP Solar achieved Rs. 6690 million sales revenue and is poised to exceed Rs. 8500 million during 2007-08.
"We have been at the forefront of helping to build a solar industry and market in India," said Syamal Gupta, Chairman, Tata BP Solar. "We are pleased to be joining hands with players in the banking sector to help us to continue to supply the global market, while also growing India's domestic photovoltaic market."
India's growing solar market currently consumes about 1% of the world's photovoltaic products. Total domestic installed photovoltaic capacity is in excess of 100 MW cumulative. Most of the photovoltaics used in India are used for off-grid applications (so have a disproportionate impact in relation to their capacity), however today there is an increasing interest in on-grid applications, as well as high tech applications for various high tech sectors, including telecommunications and the 'green buildings' sector.
Posted from moBlog – mobile blogging tool for Windows Mobile
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