The Hindu Business Line : Fresh boost for Tata group in UK with Ford deal

Mumbai, Jan. 3 The Land Rover-Jaguar deal is expected to reinforce the United Kingdom as the key overseas destination for the Tata Group. The UK is already the largest overseas market for the group, contributing 15 per cent of group’s turnover.

Revenues from the UK are expected to grow to $50 billion this year from $38 billion last year. Today the group has 18 companies in the UK, employing over 30,000 people.

With Jaguar and Land Rover coming into its fold, the Tata group’s image in the UK gets a fresh boost. The group’s interest now ranges from tea, steel, chemicals, software and luxury cars.

The group companies which have substantial presence in the UK include Tata Steel, Tata Consultancy Services, Tata Chemicals, Tata Tea, Indian Hotels, and VSNL.

Tetley buy

Interestingly, it was in the UK that the Tatas started their new phase of multinational pursuit by acquiring Tata Tetley in 2000. It was the largest overseas acquisition by an Indian company then. Tetley, which gave a big boost to the groups’ international ambitions, now contributes nearly 70 per cent of Tata Tea’s consolidated revenue.

This was followed by the takeover of the chemical company Brunner Mond in UK by Tata Chemicals in 2005 for Rs 508 crore. Tata Technologies, a subsidiary of Tata Motors, acquired INCAT, the UK Engineering design company, for Rs 411 crore, in 2005.

It was TCS — which bagged a large outsourcing contract from UK’s insurance and pensions major Pearl Group — which became the first Indian company to open a back office in London. In the current year, Tata Group, which operates in 80 countries, expects to earn more 60 per cent of its turnover from its overseas operations.

When Tata Steel hit the headline with the $12.5-billion acquisition of Corus in January last year, it also marked the centenary of Tata Group in the UK. A year later, the group has emerged as the preferred bidder for Britain’s marquee brands. The Tata group, which opened its first overseas office in London in 1907, UK has become the largest market outside India, replacing United States.

More Stories on : Mergers & Acquisitions | Cars | Overseas Investments | Tata Motors Ltd

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