Tata flays UK govt over its record on manufacturing

Criticising the British government for ignoring the manufacturing sector,Indian industrialist Ratan Tata has said he was not asking for a bailout...

Criticising the British government for ignoring the manufacturing sector,Indian industrialist Ratan Tata has said he was not asking for a bailout but only a facilitation of access to credit on commercial terms for his businesses in the UK.

In an interview published in British newspaper Sunday Times,Tata said: Were responsible for the fortunes of the company but this is a bone-dry situation in terms of access to credit. Nobody can operate on that basis unless you have large cash balances,which we dont. My concern is that the government doesnt appear to care about manufacturing. The comments follows reports about the UK government denying financial aid to Jaguar and Land Rover,the iconic car brands acquired by Tatas last year.

I would like to see the British government playing only one role. It controls the banks,and all I seek is the facilitation to provide access to credit on commercial terms. Its not a bailout, Tata said. Tata is one of the largest inward investors in Britain.

Besides JLR and Corus,which together employ about 40,000 people,the Indian conglomerate also owns Tetley Tea and is also present in the UK through other businesses such as chemicals and IT.

Tata Motors bought Jaguar Land Rover from Ford in April 2008,paying 1.15 billion pound. Tata,having failed to raise bank loans to ease JLR through a disastrous slump in sales,has asked the government for financial assistance.

Sales at JLR,has slumped due to recession and a dearth of automotive finance. In April Jaguars UK sales were down 21 per cent on the same month last year,an improvement on recent months. Land Rovers were down 47 per cent, the Sunday Times added. Going forward,Tata said,8230;I would like to see us coming out of the recession with these new products E-type and fuel efficient hybrids in place. What would be sad remorseful is if the meltdown continues and we cant get access to funds. The first thing that will happen will be that these projects will go on hold,and we will come out of the recession just as we went in.

I had hoped we would come out of it a new company, he added.

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Tata,however,said British Prime Minister Gordon Brown was a very sincere person. I have to believe he is genuine in his desire to see British industry supported. There hasnt been implementation of that desire. There is however,an upside to the governments ignorance towards the manufacturing sector. Tata said he was amazed at how his company had been able to buy two sizable British groups without interference. I expected all kinds of road blocks, he said.

Admits Corus,JLR acquisitions at inopportune time

London: Indian business tycoon Ratan Tata has said his two acquisitions Anglo Dutch steelmaker Corus and British Marquee Jaguar Land Rover were done at an inopportune time and his company might have gone too far too fast. In an interview published in the Sunday Times,Tata admitted with hindsight that he might have gone too far too fast,but that nobody saw the economic recession coming. If one had known there was going to be a meltdown,then yes Tata went too far,but nobody knew. Both the acquisitions were made,I would say,at an inopportune time in the sense that they were near the top of the market in terms of price, Tata told the Sunday Times. Recession is making Tatas recent international spending spree look ill-timed as he bought Corus and JLR just as the boom reached its peak. Tata Steel paid 6.7 billion pound for Corus,which,when measured as a multiple of the target companys earnings,made it the most expensive steel deal to date.