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Tatas looks to UK markets for
growth
3 October 2007:
After its successful takeover of steel
giant Corus, the Tatas are eyeing the
United Kingdom for inorganic growth.
The Tata group's $13 billion
investment to acquire Corus Group Plc,
earlier in 2007, is the largest by any
business house from India. The group
is said to be currently doing a
brand-building exercise in the UK as
the country is seen as a gateway to
doing business in Europe as well as
rest of the world. The Tata group has
appointed the financial public
relations firm Financial Dynamics (FD)
for the brand-building exercise.
With the UK being the largest market
for the group after India, generating
revenue worth more than $7 billion per
year, the Tata group sees a lot of
growth potential in the UK. The
possibility of the Tata group bagging
the Jaguar-Land Rover deal may be seen
in this context. The turnover is
expected to rise to close to $10
billion by year 2010. Besides steel,
the company is already present in
sectors like IT, chemicals, telecom,
auto, and consumer products in the
country.
The growth prospects is more likey to
take the inorganic route, and
acquisitions of more entities are
expected in the days ahead. However,
the Indian major is particular that
there has to be a definite
India-advantage for any deal to be
inked.
Meanwhile, related reports said that
the Tatas may relaunch its Tata Indica
car model in the European market. The
company would then look at putting in
place a solid dealer network in the UK
on this front. It may be noted that
the company had earlier launched the
Indica in partnership with MG Rover in
the UK but it had failed due to high
costs.
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