India’s Tata group eyes $35 billion global expansion
India’s Tata group has earmarked $35 billion (£20.7 billion) as part of its global expansion plans over the next three years.
India’s largest conglomerate by revenue, Tata, is aiming to extend its reach across the world, according to plans outlined by chairman Cyrus Mistry’s Vision 2025 report. The goal is to push Tata into new markets in India and overseas, making it a globally recognised company. Mr Mistry aims to have the firm “among the 25 most admired corporate and employer brand globally, with a market capitalisation comparable with the 25 most valuable companies in the world”.
Tata owns over 100 companies involved in a range of markets but confirmed that the new investment would help focus on four new clusters – defence and aerospace, retail, infrastructure and finance.
The conglomerate would not release any further details on its plans but stated that it would help Tata to “facilitate the creation of new companies”.
India’s biggest conglomerate owns brands such as Tata Motors and Tata Steel. The former has experienced some tough trading conditions of late reporting a slight drop in fourth-quarter net profits, announced in May. While it managed to record strong sales of its luxury Jaguar and Land Rover brands, it was hampered by currency moves.
The company saw net profits for January to March reach 39.18 billion rupees (£398 million), a 0.7 per cent decline on the same period a year before. While net sales were up, the company was unable to prevent the fall in profits.
Tata said in a financial report: “Sustained deceleration in the economic growth leading to weak consumer sentiment, high inflation, higher fuel prices, reduced availability of finance, elevated interest rate regime, continues to impact the demand for the entire auto industry.”
It is hoped that Vision 2025 can ensure that Tata copes with the tough trading conditions and can reach its goal across the globe.
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