News: 'Tatas eye for overseas acquisitions unsatiated'
(PTI 21/02/2007) Mumbai - The Tata Group's appetite for foreign acquisitions is not satiated, a top Tata group official said here on Tuesday.
"Our appetite for foreign acquisitions is not satiated. Besides, we also have the appetite to grow in India," said Tata Sons' Director, J J Irani, here on Tuesday, while speaking to reporters on the sidelines of a CII-organised conference.
The Tatas have been acquiring on an average one foreign company per year in the period between 1991 to 2003, which increased to five in 2004.
"In 2005, our acquisitions touched double-digits and in 2006, the number was 20," he said.
While not dwelling too much on the Tata-Corus deal, Irani, however, said that it would be the endeavour of Tata Steel to see that "the efficiencies of Tata Steel flow into Corus. Tata Steel will want to move its efficiencies to Corus."
Pointing out that Tata Steel was now one of the lowest cost producers of steel, Irani said that "we achieved this objective in just six years (by 1999-00). Today, we are amongst the five lowest cost producers of steel in the world."
Incidentally, CSN, which was locked in battle with the Indian group for acquiring the Anglo-Dutch steelmaker Corus, also finds a place in this list.
The Tata group's philosophy is to be a local company in the global arena, he said, adding that the group never tinkered with the culture of the companies it acquired.
Stating that the Tata touch to Corus would be brought in through its management, Irani said that "we realise that the job and working conditions there are different and we will not disturb their culture."
On Tata Steel's plans for growth in India, Irani said that the company's greenfield and brownfield projects would not, in any way, be impacted by the Corus acquisition. "Our Indian plans will not be impacted in any way," he said.
Irani said that Tata Steel's plans for its Orissa plant were "under way" while "we are in discussions with the Jharkhand Government" for setting up a plant there.
The company had enough resources for its Jamshedpur plant but not for Orissa "where the State Government has promised us ore," he said.
Welcoming foreign steel companies into India with the rider that "they should make steel here", Irani said that raw materials should not be allowed to be taken out for making steel abroad and then selling the steel here.
"About 100-million tonnes of iron ore are being shipped out now. One day, India will definiitely need more steel and we need the ore for making steel. Hence, while foreign steel companies are welcome to India, they must make their steel in the country," he said.
Many steel companies are interested in coming to India but they want facilities such as land, iron ore, etc, he said. "Unfortunately, the system here is such that we can't decide quickly on such allocations" Irani said, resulting in such companies investing elsewhere.
"Our appetite for foreign acquisitions is not satiated. Besides, we also have the appetite to grow in India," said Tata Sons' Director, J J Irani, here on Tuesday, while speaking to reporters on the sidelines of a CII-organised conference.
The Tatas have been acquiring on an average one foreign company per year in the period between 1991 to 2003, which increased to five in 2004.
"In 2005, our acquisitions touched double-digits and in 2006, the number was 20," he said.
While not dwelling too much on the Tata-Corus deal, Irani, however, said that it would be the endeavour of Tata Steel to see that "the efficiencies of Tata Steel flow into Corus. Tata Steel will want to move its efficiencies to Corus."
Pointing out that Tata Steel was now one of the lowest cost producers of steel, Irani said that "we achieved this objective in just six years (by 1999-00). Today, we are amongst the five lowest cost producers of steel in the world."
Incidentally, CSN, which was locked in battle with the Indian group for acquiring the Anglo-Dutch steelmaker Corus, also finds a place in this list.
The Tata group's philosophy is to be a local company in the global arena, he said, adding that the group never tinkered with the culture of the companies it acquired.
Stating that the Tata touch to Corus would be brought in through its management, Irani said that "we realise that the job and working conditions there are different and we will not disturb their culture."
On Tata Steel's plans for growth in India, Irani said that the company's greenfield and brownfield projects would not, in any way, be impacted by the Corus acquisition. "Our Indian plans will not be impacted in any way," he said.
Irani said that Tata Steel's plans for its Orissa plant were "under way" while "we are in discussions with the Jharkhand Government" for setting up a plant there.
The company had enough resources for its Jamshedpur plant but not for Orissa "where the State Government has promised us ore," he said.
Welcoming foreign steel companies into India with the rider that "they should make steel here", Irani said that raw materials should not be allowed to be taken out for making steel abroad and then selling the steel here.
"About 100-million tonnes of iron ore are being shipped out now. One day, India will definiitely need more steel and we need the ore for making steel. Hence, while foreign steel companies are welcome to India, they must make their steel in the country," he said.
Many steel companies are interested in coming to India but they want facilities such as land, iron ore, etc, he said. "Unfortunately, the system here is such that we can't decide quickly on such allocations" Irani said, resulting in such companies investing elsewhere.
posted by InCar Group Press Room at 18:09
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