The Hindu Business Line : Tata Comm to invest $2 b for global expansion

The company has in the past invested in infrastructure in different markets and it would continue to build on this strategy in emerging markets like India, China, East Europe and Africa, said Mr N. Srinath, Chief Executive Officer and Managing Director of Tata Communications.

Investments would be across infrastructure, service capabilities and skills, he said. The funds would be generated through internal accruals and borrowings, he said.

About 50 per cent of the investment would go into submarine cables and roll-out of the Wimax network in the country, said Mr Srinivasa Addepalli, Tata Communications’ Senior Vice President, Corporate Strategy.

The rest would go into organic expansion of the business, he added, without divulging details. In the last year, Tata Communications has made significant investments in enhancing network and service capabilities in the country, intra-Asia, West Asia and Africa. The company’s TGN-Intra Asia and TGN-Eurasia cables complement the company’s existing capacities across the Atlantic and Pacific oceans for inter-continental connectivity.

The Tata Communications brand now integrates former VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit and Cipris brands worldwide. The rebranding exercise will help the company to go into the market with one consistent strategy over different brands, said Mr Srinath. Going forward, he said the company expects compounded annual organic sales growth of 15 per cent over the next few years. Tata Communications shares were up 4.64 per cent on the BSE, at Rs 468.70, on Wednesday.

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