After Corus, Tata may eye other firms
The group sets an ambitious target to have a 30 mn tonne steel production capacity by '15, reports Arun Kumar.india Updated: Jan 16, 2007 03:05 IST
Irrespective of the outcome of the current bidding war for Anglo-Dutch steelmaker Corus, the Tata Group has set an aggressive target to have 30 million tonnes of steel production capacity by 2015 worldwide – which means other big efforts to buy out companies are not ruled out.
The group is also racing to meet a 2010 deadline to make Tata Consultancy Services (TCS) enter the global top 10 in the industry.
The largest business house in the country is looking at opportunities in overseas markets for several reasons among which are a desire to diversify and mitigate economic and political risks.
According to key strategic documents of the group made available to the Hindustan Times, the group has a clear intention to access strategic assets like production facilities, distribution, branding and technologies.
In the vision documents dated January 12, the group has set an ambitious internationalisation strategy. The vision is also to make TCS, the largest IT company in the country, part of global top 10 companies by 2010.
While internationalisation is the group imperative, the Tata Group will continue to invest in high growth domestic sectors.
"We have two guiding arrows. One points overseas where we want to expand markets for our existing products. The other points right here, to India, where we want to explore the large mass market that is emerging – not by following but by breaking new ground in product development and seeing how we can do something that hasn't been done before," chairman Ratan Tata said in a statement.
Sources aware about the know-how of the Corus deal said that Tata Steel will revise its bid once more by eight to 10 per cent. However, a Tata Steel spokesman said that they were 'studying the position'.
Besides the overseas expansion, the vision outlined Tata Steel's grand plan in the domestic market where it will add 23 million tonnes per annum (MTPA) in production capacity.
Of this, Jharkhand will account for 12 MTPA, followed by, Orissa (six MTPA) and Chhattisgarh (five MTPA).
Since 2000, the group, under the different companies, has made more than 20 acquisitions or strategic alliances in the overseas markets, entailing an investment of over $3 billion.
In 2005-06 (April-March), the group reported international revenues of $6.7 billion as against $4.4 billion in 2004-05, a growth of 51 per cent.
First Published: Jan 15, 2007 21:36 IST