News: Ratan Tata - New engines of Growth
(EB 14/04/2006) Mumbai - The Tata Group has taken a number of big bets in recent years. Whether it is pioneering budget hotels across India, or the proposed Rs 1 lakh car, Ratan Tata, chairman of the $22-billion group (market capitalisation of about $50 billion), has gone where few CEOs would. Significantly, the aggression isn´t limited to India alone. Tata Group companies have surprised corporate watchers by some of their overseas acquisitions.
These successes seem to have whetted Tata´s appetite for growth even further. Now, the group has identified three new areas. Tata is looking to create several ´mini Jamshedpurs´ across the country under the special economic zones (SEZs) umbrella. As other high profile business groups identify retail as a major opportunity, the group is also preparing to roll out its consumer durables stores this year in collaboration with Woolworth´s of Australia. It is also exploring opportunities in the Indian food processing industry.
The group´s real estate initiative of setting up townships may be flagged off by its property development arm and Tata Sons subsidiary, THDC (formerly Tata Housing Development Company). THDC was among the early Indian corporate entrants into real estate development. The group´s urban development services arm, too, may vie for the SEZ and township development business.
It is not yet clear whether the Tata Group has identified locations for these townships. The overall idea, though, will be to maximise tax benefits available throughout these zones. So far, the group has received approval for a 3,500 acre SEZ in Gopalpur (Orissa), where Tata Steel had initially proposed to set up a 10-million-tonne steel plant. The proposal was subsequently scrapped. However, this approval was obtained more than two years ago, and the current plan is separate from this one.
Besides real estate, the Tata Group has also identified food processing as a major opportunity area, where other corporate majors such as ITC have made rather quick progress. However, it is learnt that this plan is in its early stages and may take a while to fructify.
Instead, in the short-term, the group is focussing on a major retail push and putting its muscle behind existing businesses in the food and beverages space, such as tea and salt. In retail, it is collaborating with Australian major Woolworth´s for setting up a consumer durables chain that will stock everything from mobile phones to LCD televisions, and plans to roll out a few stores this year itself. It will also revamp its food and groceries retail format.
Other new avenues identified by the group include leather goods, where the group has some previous experience. Textiles, home furnishings and pharmacies have also caught its interest. The group is already engaged in a pilot project for bio fuels, and will decide on taking this forward once the project is complete. It is reportedly also interested in nuclear energy, provided the government permits it.
Also, riding on its international acquisitions worth around $1.5 billion, it has chalked out an extensive strategy to take its existing businesses overseas. Till then, it has its hands full with major plans for the Indian subcontinent.
These successes seem to have whetted Tata´s appetite for growth even further. Now, the group has identified three new areas. Tata is looking to create several ´mini Jamshedpurs´ across the country under the special economic zones (SEZs) umbrella. As other high profile business groups identify retail as a major opportunity, the group is also preparing to roll out its consumer durables stores this year in collaboration with Woolworth´s of Australia. It is also exploring opportunities in the Indian food processing industry.
The group´s real estate initiative of setting up townships may be flagged off by its property development arm and Tata Sons subsidiary, THDC (formerly Tata Housing Development Company). THDC was among the early Indian corporate entrants into real estate development. The group´s urban development services arm, too, may vie for the SEZ and township development business.
It is not yet clear whether the Tata Group has identified locations for these townships. The overall idea, though, will be to maximise tax benefits available throughout these zones. So far, the group has received approval for a 3,500 acre SEZ in Gopalpur (Orissa), where Tata Steel had initially proposed to set up a 10-million-tonne steel plant. The proposal was subsequently scrapped. However, this approval was obtained more than two years ago, and the current plan is separate from this one.
Besides real estate, the Tata Group has also identified food processing as a major opportunity area, where other corporate majors such as ITC have made rather quick progress. However, it is learnt that this plan is in its early stages and may take a while to fructify.
Instead, in the short-term, the group is focussing on a major retail push and putting its muscle behind existing businesses in the food and beverages space, such as tea and salt. In retail, it is collaborating with Australian major Woolworth´s for setting up a consumer durables chain that will stock everything from mobile phones to LCD televisions, and plans to roll out a few stores this year itself. It will also revamp its food and groceries retail format.
Other new avenues identified by the group include leather goods, where the group has some previous experience. Textiles, home furnishings and pharmacies have also caught its interest. The group is already engaged in a pilot project for bio fuels, and will decide on taking this forward once the project is complete. It is reportedly also interested in nuclear energy, provided the government permits it.
Also, riding on its international acquisitions worth around $1.5 billion, it has chalked out an extensive strategy to take its existing businesses overseas. Till then, it has its hands full with major plans for the Indian subcontinent.
posted by InCar Group Press Room at 12:37
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