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HindustanTimes Fri,18 Apr 2014

Tata Group to expand rural focus

HT Correspondent, Hindustan Times  Mumbai, November 29, 2012
First Published: 23:24 IST(29/11/2012) | Last Updated: 12:33 IST(1/12/2012)

With rural India's income is expected to triple from $571 billion in 2009-10 to $1.8 trillion by 2020-21, Tata group firms are focusing on this segment with specifically-designed products, services and delivery mechanisms.

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For instance, Tata Motors through a focused retail campaign targeting village clusters less than 50,000 population now sells 1,500 units of small trucks and vans every month in such identified markets in six states where this initiative has already been rolled out.

"We will cover the entire country by the end of 2013. This should give us an incremental sale of  70,000 units a year which translates into an additional revenue of Rs. 2500-Rs 3000 crore," said Sandeep Kumar, head, small commercial vehicles, Tata Motors.

Similarly, the watch and jewelry business arm Titan's rural-focused initiative Gold Plus is estimated to generate R800 crore revenue this fiscal through the 31 stores it opened in Tamil Nadu and Andhra Pradesh. It now spreads out to other states such as Karnataka and Maharashtra. "By 2015-16, we will have 60 showrooms and expect a revenue of R2000 crore," said N Vaideeswaran, head retail, Titan Goldplus.

"50% of our base investment is in rural areas as we see revenue from such markets are increasing year by year," said Sandeep Singal, Head-Branded Retail & Strategic Distribution, Tata Teleservices.

Tata Chemicals, which sells salt, seeds and fertilizers has built a network of outlets that touches 180,000 villages across the country. Rural market contributed 52% of Tata Chemicals' consolidated revenue, which amounts to R5,614 crore.

This involves recruiting sales representatives in villages, tying up with entities such as Indian Oil Corporation which has 4,000 filling stations in rural India.

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