The making of an Indian Multinational

Font Size

Print

Feedback

Email

Discuss

Save & Share Article

What’s this?

Digg	My Yahoo	Fark
del.icio.us	Newsvine	Reddit

Rate This Article

Rating:  0

Wednesday, March 12, 2008 at 2345 hrs had bought two rolling mills in China, which will be further expanded. Another group company TACO is setting up a factory in Nanjing to make plastic parts.

But selling things in China will not be so easy, Rosling says. For instance, in steel, Chinese companies have become more competitive, with the result that exports from Tata Steel have slowed down. China is also gaining strength in telecom hardware, heavy industry and power equipment. So over a period of time more Tata Group companies would be sourcing these from that country. “More Chinese companies are collaborating with companies in the developed world, which has made them technologically competitive,” explains Rosling.

Internationalisation is an underlying motif in most of Tata’s business ventures. Maybe it’s a wee bit easier to think about internationalisation in businesses that have traditionally been high on exports, say like TCS or Tata Motors. But even in businesses of recent focus, like the manufacturing of defence-related goods, the Tatas see the potential to internationalise in a big way in the future. For instance, international defence companies are looking to collaborate with Indian companies for sourcing inputs owing to advantages of cost, efficiency or productivity. Says Rosling, “There are components of the relationships we announced recently, where India is being used as part of the global supply chain.” The government’s move for greater participation of Indian private sector companies in defence will provide the Tatas more than a window of opportunity here.