Tata to invest Sh23 billion in Kenya
The Standard (online edition) — November 7, 2007

Indian conglomerate, Tata Group, is to invest Sh23.8 billion in the construction of two five-star hotels in the country and other ventures.

The massive investment will be done through the firm’s Africa subsidiary, Tata Africa.

Tata Africa Executive Director, Mr Naresh Leekha, said directors of the parent company had approved the multi-billion dollar projects.

"Tata Africa is interested in telecommunication, engineering and tourism sectors, where we will invest substantial amounts of money. In tourism, we are going to construct two major hotels. The group is currently building two hotels in South Africa and one in Zambia, which should be ready by 2010 under Tata Taj Group of companies," he said.

Tata Group is India’s largest business conglomerate with revenues of over Sh1.5 trillion and market capitalization of over six trillion shillings.

"As Tata Motors, we are currently the largest automobile company, the fifth world’s largest medium and heavy commercial bus manufacturer and the world’s second largest medium and heavy bus manufacturer," he added.

Leekha said the company had built a motor vehicle assembly plant in Mombasa to serve the East African market.

He was speaking when he signed an agreement between his firm and Marshalls East Africa Limited, where Marshals was appointed the official dealer of Tata brands.

The agreement gives Marshalls exclusive rights to distribute Peugeot, KIA and Delta vehicles.

Marshalls said there were over 2000 Tata trucks and busses on Kenyan roads, making the brand a major player in the local transport industry.

"Marshals E Africa has developed from a modest investment that has slowly risen to its position as a major force in the local automotive industry. The group has achieved for its high quality after sales service,’’ said Mr Ngugi Kiuna, the firm’s chairman.

Leekha pledged that Tata’s entry into the market was likely to force prices down as its vehicles were competitively priced.

"Our vehicles are fitted with environment-friendly high torque low emission engines and customer-friendly features like power steering, safety belts, high visibility windscreen and precision full air braking system across the range," Leekher added.