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As told to Christabelle Noronha
"Have
you thought about Africa," Ratan Tata asked me
back in the 1960s. "The Tatas must do some pioneering
work there." These prophetic words of the chairman
stayed with me. When the opportunity came to do business
in the continent, we tried to make it happen for the
right reasons. The Tata presence in Africa is what it
is today because of this vision and support.
The greatness of Africa lies
as much in the goodness of its people as it does in
the splendour of the land that nurtures them. Far from
being the 'dark continent', this is a beacon of magnificence
that radiates a life-affirming energy, a haven where
the bounty of life burns bright in every facet of human
endeavour, from the Sahara in the north to the savannahs
of the south.
Blending the many realities of
Africa with the idea of helping it reclaim the vitality
that made it the fountainhead of man's evolution
that's the grand project occupying the consciousness
of many fine minds within and outside the continent.
The Tatas were among the earliest Asian companies to
do business in Africa. We recognised the immense potential
of the region and made it part of the Group's natural
expansion into uncharted geographical areas and new
markets. This was but part of the globalisation effort
that has been an ongoing process since the very inception
of the Group.
It was Sumant Moolgaonkar, the
late chairman of Telco (now Tata
Motors) and also the chairman of Tata Exports (now
Tata
International), who was the architect of the concept
of promoting Tata vehicles abroad. He was supported
by N. A. Palkhivala, another Tata stalwart, who would
in later years become the chairman of Tata Exports.
Tata Exports eventually became the flag bearer for the
Group's foray into this region abounding in natural
resources and with great potential for human capital
development. To a large extent this was made possible
due to the support extended by the Indian government
over the years.
The Tata engagement with Africa began in Zambia back
in the mid-1970s. Tata Zambia, formed in 1977 as a joint
venture between Tata Zug and Tata Exports, was engaged
primarily in the imports of Tata vehicles, marketing
and providing after-sales services.
After spending 10 years at Tata
Precision Industries Singapore, I moved to Tata Exports
as its managing director in 1982. During the same year
Tata Exports bought out the shareholding of Tata Zug
and Tata Zambia became its 100-per cent subsidiary.
Those were the days when the
economy had to cope with more than its share of adverse
developments. In order to do business in Zambia, one
needed to partner a local company. That was the year
I visited Zambia to explore further business opportunities
for the Group. The objective was to look at exporting
products carrying the Tata name. Some of the areas that
seemed promising were trucks, hotels, mining and agriculture.
Tata Zambia became our starting point and base in Africa.
We gradually extended our reach
to include other products that helped increase the business.
Also in 1982, Tata Zambia acquired a large land holding
in an attempt to grow energy-based products such as
rapeseed, which produces bio fuel. That did not work
out as we had envisaged so we got into rose and vegetable
farming. The produce found an export market in Holland
during the 1982-85 period, leading to the creation of
local employment. In the Tata tradition of contributing
to the local community, the Group started a school near
its operations.
As business grew, we were able
to create distributor sales outlets for Tata trucks
and a warehouse for spares of Telco products. In 1997,
Tata Zambia took over the Pamodzi Hotel and, with effective
Taj Group management, we were able to turn the fortunes
of the property around and make it an efficient and
successful operation (Tata Zambia currently holds 76
per cent of the shares in Taj Pamodzi).
The Tata brand has come to be
well respected and well known in Zambia. A recent visit
by Mr Tata to Zambia has given a further boost to the
Group's long-term engagement and commitment to the country,
so much so that the Tatas are today looked upon as a
local entity. We are now exploring wide-ranging opportunities
in the mining sector on one hand, and projects in the
power and agricultural sectors on the other. Tata Zambia
is a substantial operation, having successfully cemented
a long and fruitful strategic relationship with the
government.
From Zambia we expanded our activities
and moved to, among other countries, Tanzania, Malawi,
Namibia, Ghana, Mozambique and Uganda. We have consistently
adopted a three-pronged approach in all these ventures:
building good relationships with the national government,
enhancing our business and helping improve the local
community. We recruit a large number of locals in each
of our companies and have many in senior positions as
well.
In 1994, we decided to open an
office in South Africa, in many ways the most important
country on the continent, and this has now become the
headquarters for all our African operations. While each
of our offices in the different countries in Africa
operate as independent entities, the office in South
Africa, other than conducting its own business operations,
also looks after all policy-related issues and acts
as a liaison office with Tata International in India.
Tata Africa Holdings is a 100-per cent subsidiary of
Tata International.
Tata Africa Holdings has interests
in the automobile industry and, through Tata
Infotech, in information technology (Tata
Consultancy Services has an independent operation
in the country). It interfaced with the South African
government and seeded the ground for the setting up
of Tata
Steel's ferro-chrome project. Future plans in
South Africa include exploring opportunities to manage
or buy-out a hotel, set up a bus body building plant
and finding a foothold in the telecom, power as well
as agricultural sectors. In fact, Tata Steel is already
looking at business opportunities in the mining industry
and TCE
Consulting Engineers is exploring the power
projects route. Tata Africa Holdings has consistently
undertaken to promote group businesses by leveraging
its knowledge of the local markets and creating awareness
of the Tata brand.
A critical component in all of
the Tata ventures in Africa has been the emphasis on
building and sustaining relationships in a spirit of
cooperation and partnership, creating employment opportunities
and contributing to the social development of the local
communities that we have embraced and in which we function.
Clearly, the entrepreneurial
ethos that underlines the Tata way holds sway as strongly
for the Group in Africa as it does in India. The 'bright
continent' demands no less.
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