The salt-to-software conglomerate Tata Group spent $2 billion (R10,800 crore) on research and development during the last fiscal, the groups brand custodian and chief ethics officer, Mukund Rajan, said. We spent about 2% of our top-line on R&D last year, and this amount will only increase, going forward, Rajan said on the sidelines of an event. Rajan did not divulge further details about the breakdown of the expenditure. According to reports, the group companies cumulatively spent R12,500 crore on R&D activities for the fiscal ended March 31, 2012.
Currently, about 90% of Tatas R&D expenditure is incurred in areas such as steel, automotive and software. The group has tied up with academic institutions and other companies, apart from garnering talent from within the group. Rajan added that only 0.7% of Indias gross domestic product is spent on R&D and innovation in the country.
On Friday, the Tata Group held an event to encourage, recognise and showcase innovations within the Tata companies. The event had about 2,000 entries from 70 group firms.