Financial Daily from THE HINDU group of publications
Thursday, Apr 20, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 20, 2006 |
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Corporate - Overseas Investments Tatas' African ventures turning profitable D. Sampathkumar
Upbeat on prospects Tata Africa, a window of opportunity for Group cos in India Group's cumulative investments in Africa put at $325 million Lines up big-ticket investments in telecom, ferro chrome smelting, hotel
Johannesburg , April 19 For the Tatas, their African safari is turning out to be, it would seem, quite a profitable one. Turnover of their various business ventures in Africa has grown more than five-fold in a span two years. This was stated by Mr Raman Dhawan, Managing Director of Tata Africa Holdings — the flagship company steering Group investments in South Africa and elsewhere in Africa. Briefing a group of visiting journalists from India, Mr Dhawan said the Tata Africa's turnover has touched $250 million in fiscal 2005-06 from a modest figure of $37 million in 2003-04.
Operations profitable
On the question of profits, while conceding that operations have been profitable, he said, he would prefer to look at it from an overall Group perspective. Tata Africa Holdings operations represented an opportunity for the group companies in India to showcase their products in a market that is full of promise, he pointed out. Tata Africa has already invested over $100 million till date in various ventures. With some big-ticket investments in telecommunication and ferro chrome smelti ng, hotel etc. on the anvil, the flagship company's investments would go up by a further $35 million in the next 2-3 years.
New projects
The above investment supplements that directly committed by VSNL (telecommunication), Tata Steel (ferro chrome) and Tata Coffee (instant coffee). These add up to a further sum of $150 million. Also on the anvil are investments in a clutch of hotel projects and vehicle assembly plants, which would take the Group's cumulative investments to around $325 million, Mr Dhawan added. Tata Africa Holdings' and various group companies' investments have been spearheaded by export of commercial vehicles to key African countries. Such vehicle sales have led to opening up sales and service centres. The knowledge of local business environment gained from such operations appears to have provided the ideal springboard for more ambitious ventures in telecom, steel, hotels etc that Tata Africa is now piloting.
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