MUMBAI, March 3: The Tata group has decided to gradually shift the management of overseas facilities of different group companies to Tata International, formerly Tata Exports, which is the international trading arm of the group.Several group companies have extensive international operations in the form of turnkey projects, manufacturing facilities through joint ventures, hotels and others, and the management of these facilities will be transferred to Tata International for a fee. This, in turn, will directly boost the bottomline of Tata Sons, the group's holding company, of which Tata International is a wholly-owned subsidiary. The group needs to strengthen the holding company financially, as it may require substantial funds to up its stake in other group companies.
Bombay House insiders said the move is part of the Tata group's plans to spread its wings overseas in a bigger way than it ever did earlier. The move is being regarded as a step towards bringing the group's international operations under acommon umbrella.
The change of the company's name from Tata Exports to Tata International, effective from March 3, is in line with the company's new mission and objective, the sources said. Among the projects whose management will be handed over to Tata International is an assembley line that Telco has recently set up in South Africa.
Other projects that are likely to be shifted to Tata International's management are certain turnkey projects in the Middle East and south-east Asia, sources said. The sources made it clear that this does not mean that the group has immediate plans to make major investments abroad, but can be considered as a step towards increasing its global presence.
The Tatas, in fact, are planning to unveil a group identity shortly, which will be registered internationally to give the group an international status. Tata International, set up in 1962 on the lines of the Japanese export houses, was one of the first to be recognised by the government of India as an export house.
Itcurrently enjoys the super star trading house status. The company's wide portfolio of products range from autmobiles, steel, capital goods and engineering products, auto components, steel plants and railway equipment to leather and downstream leather products, chemicals, textiles, agro-commodities and foods, software and the like. It is presently not only engaged in export of value-added products, but also acts as a facilitator for import of goods and technology into India. Over the last 35 years, the company has built up a strong presence in over 14 countries through wholly-owned subsidiaries, joint ventures and representative offices.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
