Tata Group lines up Rs. 65 K-cr capital expansion this year | business | Hindustan Times
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Tata Group lines up Rs. 65 K-cr capital expansion this year

business Updated: Jun 15, 2014 23:21 IST
HT Correspondent
Tata Group

Even as the Indian economy reels from a slowdown, the Tata Group is not waiting for things to turn around. In fact, the group’s various companies have lined up capital expenditure plans of close to Rs. 65,000 crore in 2014-15.

The capex plans announced by Tata Group companies is a part of the group’s medium-to-long term investments to boost growth across sectors.

Tata Motors will incur a significant amount of the capex Rs. 38,500 crore — mainly at its luxury Jaguar Land Rover unit in the UK, of which Rs. 35,000-37,000 crore will be incurred by JLR. This is significantly higher than the £2.75 billion (Rs. 27,500 crore) JLR incurred last year.

In the domestic business, Tata Motors is set to launch two new cars — Bolt and Zest — later this year and several new products are under development.

Among other group companies, Tata Steel will invest close to Rs. 16,000 crore, while TCS, India’s largest software services exporter, will spend around Rs. 4,000 crore in 2014-15.

TCS had said after the fourth quarter results that much of the planned capex will go towards building new delivery centres, across several cities in India.

Tata Communications has guided for a capital expenditure of $250-300 million (around Rs. 1,800 crore). Watches to jewellery maker Titan and Tata Housing Development Co too have announced sizeable capital expenditure plans in recent days.

Titan MD Bhaskar Bhat said last week the company will spend close to Rs. 100 crore on growing its retail footprint, while around Rs. 150 crore will be incurred on expanding production capacities.

Tata Housing is learnt to have plans to spend around Rs. 3,000 crore this fiscal to acquire land parcels across the country.

“Tata companies always take a long term view of business and make required investments on new products and services, research and technology development, and establishment or expansion of facilities and business enablers,” according to a Tata Group spokesperson.

Tata Sons chairman Cyrus Mistry has stressed on research and development and innovations. “To remain relevant in an increasingly competitive world, we shall put innovation capability at the core of each of our companies’ operating structures and will invest in R&D and grow top talent,” Mistry had said in his new year message to employees.