Tata lines up mega plan for new ventures

The group, which has just emerged from a successful listing of its software behemoth Tata Consultancy Services TCS, is now ready for the next phase of growth, and hence the look at possible new business areas. Top group sources said no final plans had been drawn up as yet, but the group was taking a serious look at select new areas.

8216;8216;We may re-enter some financial services which we moved out of. Also, the focus will clearly be on retail in financial services to leverage the group8217;s image and reach,8217;8217; group sources said. They said though Tata Finance Ltd TFL 8212; a group company where some past problems had now been set right 8212; was a vehicle for financial services, it wasn8217;t essential that the new businesses would be routed through this company. The Tata group already has a healthy presence in asset management through Tata Asset Management Company and in insurance through Tata-AIG.

On life sciences, the Tata gameplan is to explore areas like biotechnology and ayurveda, and officials are looking seriously at the possibilities in these. 8216;8216;Many companies in the group come up with new areas which they want to explore further. Some ideas get taken further and some then move forward,8217;8217; the sources said.

The Tata group8217;s new business plan comes after a major turnaround, thanks in the main to companies like Tata Steel and Tata Motors, both of which are now doing well. Besides, the TCS listing has also catapulted the group8217;s market capitalisation to a new high. With enough cash in its kitty owing to Tata Steel and TCS being cash-flush, financing the growth plans isn8217;t being seen as an issue. Other than new businesses, existing companies can, therefore, also finance much of their own expansion plans. 8216;8216;Tata Steel has enough cash and so have many other companies in the group,8217;8217; sources pointed out.

On global expansion plans, the sources said enough opportunities existed even within the Saarc area and in the rest of Asia for the Tata group to exploit. The group8217;s 2 billion investment plan in neighbouring Bangladesh is therefore being seen as a crucial entry point in that strategy. 8216;8216;We take our Bangladesh plan very seriously. The other key countries are Sri Lanka, the Middle East and even areas like Myanmar. If countries like Pakistan open up, we see a huge market there too,8217;8217; the sources said.

The only downside at this point is telecom. The group, therefore, is planning a separate strategy to beef up its telecom business and make it more competitive and better managed.