Tata revenues go global
Financial Express — April 4, 2007

Big-ticket international investments in 2007, including the $11.3-billion acquisition of Corus Group by Tata Steel and the $1.1-billion to get 30-per cent stake in Indonesia's PT Bumi Resources by Tata Power, mean that revenues from international operations will soon account for over half the Tata group's turnover. This is two years ahead of schedule and far higher than the planned 35 per cent by 2010.

"Our international revenues will contribute to 50 per cent of total revenues by 2008," Alan Rosling, executive director, Tata Sons, told Financial Express.

In 2005-06, of group revenues of $22 billion, only $6.7 billion (30 per cent) came from international operations. With Corus, the group's turnover is expected to touch $35 billion by 2008, at least $17-18 billion of which would be from global operations.

Last year, the US was the largest contributor to Tata's total overseas revenues. Thanks to Corus, the UK will bag the number one slot in 2008, contributing more than a quarter of the total overseas share, said Rosling.

Rosling and his team had identified emerging markets like Indonesia, Vietnam, Brazil and Egypt last year "where they did not have a presence but should have a presence".

Barely three months into 2007, and both Vietnam (where Tata Steel bought two plants) and Indonesia feature prominently in the Tata global footprint. Industry watchers are eagerly awaiting the group's plans for Brazil and Egypt.

The Tata Group's appetite for capacities, resources and overseas companies has been growing voraciously of late. Besides Tata Steel and Tata Power, Tata Tea acquired 30 per cent in Glaceau (Energy Brands) of the US in August 2006 for $677 million and compatriot Eight O'Clock Coffee for $220 million in June 2006. Tata Motors acquired South Korea's Daewoo Commercial Vehicle Company in 2004. Tata Steel acquired NatSteel of Singapore the same year, and Millenium Steel of Thailand in 2005. TCS has also made a number of acquisitions overseas.