Ratan Tata's gamble on the small car project has finally paid off. Riding on the runaway success of the Indica the company clocked its highest-ever sales of 140,000 cars in 2003-4, increasing its domestic market share to 15.5 per cent. And the growing acceptance of the Indica and now Indigo saw it emerge as the leader in the midsize segment, allowing its to better the 27 per cent average growth in the passenger car segment. 

The success of the car has put the company in a different league altogether amongsts other global worthies. And the project conceived in 1994 to take on the challenge posed by Maruti has taken off. In our issue in April 2001 he had confided that "What I would hope history will record is that it was Telco that established that India has globally competitive skills in designing and developing a car. That indeed is the true achievement of Indica." Adding that "Hopefully over time these skills will prove to be those which India could leverage to become a substantial player in the global automobile arena."

Telco's thrust on expanding its footprint in global markets is also yielding rich dividends. International sales topped 11,000 cars, more than half the share coming from exports of the City Rover. Exports of medium and heavy vehicles also grew by more than 50 per cent to a little less than 11,000 vehicles. Passenger cars and commercial vehicles contributed almost equally to the 3.14 lakh units sold by the company in 2003-4. 

The completed acquisition of Daewoo Commercial Vehicles Co in Korea with an annual capacity of 20,000 units will also help the company expand its presence in other global markets and gives it a wider portfolio of vehicles to offer. A new model in the medium-size segment is also being planned from the Daewoo plant. 

Foreseeing better times ahead Tata Motors has chalked out a Rs6,000 crore capex programme spread over the next five years. A part of this will go towards funding capacity expansion at the passenger car plant by more than 50 per cent by 2005. The company also plans to come out with a new station wagon model, the Indigo Marina. The balance will be used for product development, quality improvement, and modernisation, according to executive director (finance and corporate affairs) Pravin Kadle. After raising $400 million recently Tata Motors plans to raise another $100 million shortly. Added to the cash profit of nearly Rs1,700 crore (2003-4), it should meet company's finance needs comfortably. With a record post-tax profit of Rs810 crore and a generous dividend of 80 per cent, getting shareholder sanction for this ambitious growth plan will be the least of its problems as it powers ahead.