Tata Group Looks to Expand 30% Annually in Africa from $2.3 Billion Base

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--To date, Tata Group (Mumbai, India) has invested $1.7 billion in Africa and is active in 20 African countries through nine different companies. In 2011-12, the group had total revenues in Africa of $2.3 billion. It is now set on an expansion program in the continent to increase revenues by an annual average of 30%.

The group is looking at setting up new facilities or expanding business vertically in mining, hospitality, automobiles, fertilizers and many other sectors, said Mukund Govind Rajan, the Tata Sons brand custodian and chief ethics officer.

The group operates through Tata Africa Holdings (Johannesburg, South Africa), a wholly owned subsidiary of Tata International.

Tata Motors is looking to set up new assembly lines through local partners in countries such as Tunisia and Kenya. Its hospitality chain, Taj Hotels Resorts and Palaces, is considering proposals from "three or four" countries to set up new properties.

"The business models that work in India work in Africa, and we would like to widen and deepen our business in Africa," Rajan said.

Currently, Tata Motors International operates an assembly unit in South Africa and is looking at assembly options for small, light and medium commercial vehicles in Tunisia and Kenya. The company also will start building buses in South Africa with its global partner Marcopolo (Brazil). It is evaluating options for its micro "Nano" car in Africa, although there are no plans for assembling passenger cars on the continent.

Tata Africa Holding Managing Director Raman Dhawan said that Taj Hotels Resorts and Palaces has properties in Lusaka, Zambia, and in Cape Town, South Africa. He added that the properties being considered in other countries would not necessarily be in the luxury segment, but would be appropriate for the African market.

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