News: Tatas pick up Nissan’s South Africa plant
(DNA 15/08/2006) Mumbai - Less than a decade after it acquired an “unwanted but state-of-the-art” Nissan car plant from Australia and transplanted it to their Pune works, for making Tata Indicas and Tata Indigos, the largest auto maker in the country has made another Nissan manufacturing plant acquisition, this time in South Africa.
On this occasion, Tata Motors acquired Nissan’s truck assembly unit from Nissan Motor in Rosslyn, South Africa. The bill for the acquisition is said to be a modest sum of about Rs 21 crore.
The acquisition will allow Tata Motors to capitalise on its success in South Africa by assembling a diverse range of vehicles in its portfolio that includes cars, buses and trucks in the Nissan plant.
The acquisition signifies the growing importance of South Africa to the Tata group.
“The Tatas are known to buy good assets at bargain prices”, says Avinash Gorakshakar, head of research, Emkay Shares Private Client Group.
The logic for the acquisition is simple. “The market in South Africa is large. Getting close in terms of access to the customer is very important in any markets,” says Gorakshakar.
Tata Motors officials could not be reached for an official comment. Sources, however, also aver that the acquisition may have been directly funded by Tata International’s overseas companies.
The plant is also likely to be used to cater to the other markets in the African region.
The Tatas have a bus body building unit in Casa Blanca, Morocco. It was by virtue of acquiring Hispano Carrocera, a bus maker from Spain that it got control over a Moroccan plant.
Africa is seen as a market with a huge potential. The rising aspirations, increasing incomes and low penetration of services spurred the Tata group to be an early mover in the African market.
Tata Motors South African foray has been a success story so far. Having entered the country some seventeen months ago, the spurt in monthly sales of cars and trucks have reached a critical mass.
South Africa has become an important marketplace in its growth strategy.It is currently supplying about 1,500 vehicles a month to the market.
Tata Motors already has a bus and truck assembly plant in South Africa.
Auto analysts point out that the company’s move to locate and identify a car manufacturing plant in the late nineties, enabled it to make an entry at fraction of the costs it otherwise would have entailed.
The company had bought it for Rs 103 crore, a plant that was in mint condition because Nissan used to run it every day for 15 minutes.
The manufacturing plant weighing 4,800 tonnes was moved to India in 582 containers in 16 shipments over six months.
On this occasion, Tata Motors acquired Nissan’s truck assembly unit from Nissan Motor in Rosslyn, South Africa. The bill for the acquisition is said to be a modest sum of about Rs 21 crore.
The acquisition will allow Tata Motors to capitalise on its success in South Africa by assembling a diverse range of vehicles in its portfolio that includes cars, buses and trucks in the Nissan plant.
The acquisition signifies the growing importance of South Africa to the Tata group.
“The Tatas are known to buy good assets at bargain prices”, says Avinash Gorakshakar, head of research, Emkay Shares Private Client Group.
The logic for the acquisition is simple. “The market in South Africa is large. Getting close in terms of access to the customer is very important in any markets,” says Gorakshakar.
Tata Motors officials could not be reached for an official comment. Sources, however, also aver that the acquisition may have been directly funded by Tata International’s overseas companies.
The plant is also likely to be used to cater to the other markets in the African region.
The Tatas have a bus body building unit in Casa Blanca, Morocco. It was by virtue of acquiring Hispano Carrocera, a bus maker from Spain that it got control over a Moroccan plant.
Africa is seen as a market with a huge potential. The rising aspirations, increasing incomes and low penetration of services spurred the Tata group to be an early mover in the African market.
Tata Motors South African foray has been a success story so far. Having entered the country some seventeen months ago, the spurt in monthly sales of cars and trucks have reached a critical mass.
South Africa has become an important marketplace in its growth strategy.It is currently supplying about 1,500 vehicles a month to the market.
Tata Motors already has a bus and truck assembly plant in South Africa.
Auto analysts point out that the company’s move to locate and identify a car manufacturing plant in the late nineties, enabled it to make an entry at fraction of the costs it otherwise would have entailed.
The company had bought it for Rs 103 crore, a plant that was in mint condition because Nissan used to run it every day for 15 minutes.
The manufacturing plant weighing 4,800 tonnes was moved to India in 582 containers in 16 shipments over six months.
posted by InCar Group Press Room at 18:36
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