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Our Bureau

Mumbai , Nov. 14

TATA Group expects revenues from international business to contribute 35 per cent of its total turnover by 2010. Currently, overseas business, which is growing by 37 per cent annually, accounts for 25 per cent of the group's revenues of $18.2 billion.

"We have set a medium term target of 35 per cent overseas revenues in the next five years," said a Tata group official. Tata Consultancy Services, Tata Motors and Tata Steel will be the major contributors to the growth in overseas business. Though Tata Group's priority is to strengthen its position in India by taking advantage of the growing opportunities within the country, group companies are expanding overseas operations in line with the group's international strategy, the official said.

International Finance Corporation has recently identified Tata Group as one of the emerging `southern multinationals.' For Tata Motors, exports contribute 18 per cent of its total revenues and the target is to reach 20 per cent by next year. Vehicle exports have increased more than 100 per cent in the last quarter as compared to the corresponding previous quarter.

International operations account for nearly 89 per cent of TCS's revenues, as it has a large overseas presence. The company operates in 30 countries and in six places, it has a leadership position. By 2010, TCS wants to become one of the top ten IT companies in the world.

The Tata companies had made significant overseas acquisitions in the recent past. Tata Motors had acquired the Daewoo Commercial Vehicle Company last year. Tata Steel had acquired NatSteel of Singapore, with a presence in several Asian countries, including China. TCS has made a number of acquisitions overseas, the latest being a Chilean BPO firm.

Tata Tea, Indian Hotels and Tata Chemicals are also expanding their international operations. According to recent reports, Indian Hotels is looking for properties in Australia and China. Smaller group companies such as Tata Technologies, Tata Autocop and Tata Elxsi are growing overseas.

Mr Ratan Tata, Tata Group Chairman, said at a recent seminar that the group's international strategy is to be a local player — but a prominent one — in whichever country the group operates, with the ownership being Indian. "We would like to focus on geographies where we have opportunities to be a prominent player," he said. Tata Group proposes to invest $2.2 billion in Bangladesh in four major projects, mainly in the fertiliser and steel sectors.

When contacted, a Tata official said, "In Bangladesh, we are engaged in negotiating four major, complex projects with FDI amounting to more than $2.5 billion." "A recent independent economic assessment by the Economist Intelligence Unit from London estimated that our projects would increase the size of the GDP in Bangladesh by 1.9 per cent. No one has done anything like this in the country so far. We have made good progress in our discussions, and so far, the Government has been very positive."

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Overseas business to contribute 35% of Tata Group revenues by 2010

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