| "Have
you thought about Africa," Ratan Tata asked me back
in the 1960s. "The Tatas must do some pioneering
work there." These prophetic words of the Chairman
stayed with me. When the opportunity came to do business
in the continent, we tried to make it happen for the right
reasons. The Tata presence in Africa is what it is today
because of this vision and support.
The greatness of Africa lies as much in the goodness of
its people as it does in the splendour of the land that
nurtures them. Far from being the 'dark continent', this
is a beacon of magnificence that radiates a life-affirming
energy, a haven where the bounty of life burns bright
in every facet of human endeavour, from the Sahara in
the north to the savannahs of the south.
Blending the many realities of Africa with the idea of
helping it reclaim the vitality that made it the fountainhead
of man's evolution that's the grand project occupying
the consciousness of many fine minds within and outside
the continent. The Tatas were among the earliest Asian
companies to do business in Africa. We recognised the
immense potential of the region and made it part of the
Group's natural expansion into uncharted geographical
areas and new markets. This was but part of the globalisation
effort that has been an ongoing process since the very
inception of the Group.
It was Sumant Moolgaonkar, the late chairman of Telco
(now Tata Motors) and also the chairman of Tata Exports
(now Tata International), who was the architect of the
concept of promoting Tata vehicles abroad. N. A. Palkhivala,
another Tata stalwart, who would in later years become
the chairman of Tata Exports, supported him. Tata Exports
eventually became the flag bearer for the Group's foray
into this region abounding in natural resources and with
great potential for human capital development. To a large
extent, this was made possible due to the support extended
by the Indian government over the years.
The Tata engagement with Africa began in Zambia back
in the mid-1970s. Tata Zambia, formed in 1977 as a joint
venture between Tata Zug and Tata Exports, was engaged
primarily in the imports of Tata vehicles, marketing and
providing after-sales services.
After spending 10 years at Tata Precision Industries
Singapore, I moved to Tata Exports as its managing director
in 1982. During the same year, Tata Exports bought out
the shareholding of Tata Zug and Tata Zambia became its
100-per cent subsidiary.
Those were the days when the economy had to cope with
more than its share of adverse developments. In order
to do business in Zambia, one needed to collaborate with
a local company. That was the year I visited Zambia to
explore further business opportunities for the Group.
The objective was to look at exporting products carrying
the Tata name. Some of the areas that seemed promising
were trucks, hotels, mining and agriculture. Tata Zambia
became our starting point and base in Africa.
We gradually extended our reach to include other products
that helped increase the business. Also, in 1982, Tata
Zambia acquired a large land holding in an attempt to
grow energy-based products such as rapeseed, which produces
bio fuel. That did not work out as we had envisaged so
we got into rose and vegetable farming. The produce found
an export market in Holland during the 1982-85 period,
leading to the creation of local employment. In the Tata
tradition of contributing to the local community, the
Group started a school near its operations.
As business grew, we were able to create distributor
sales outlets for Tata trucks and a warehouse for spares
of Telco products. In 1997, Tata Zambia took over the
Pamodzi Hotel and, with effective Taj Group management,
we were able to turn the fortunes of the property around
and make it an efficient and successful operation (Tata
Zambia currently holds 76 per cent of the shares in Taj
Pamodzi).
The Tata brand has come to be well respected and well
known in Zambia. A recent visit by Mr Tata to Zambia has
given a further boost to the Group's long-term engagement
and commitment to the country, so much so that the Tatas
are today looked upon as a local entity. We are now exploring
wide-ranging opportunities in the mining sector on one
hand, and projects in the power and agricultural sectors
on the other. Tata Zambia is a substantial operation,
having successfully cemented a long and fruitful strategic
relationship with the government.
From Zambia, we expanded our activities and moved to,
among other countries, Tanzania, Malawi, Namibia, Ghana,
Mozambique and Uganda. We have consistently adopted a
three-pronged approach in all these ventures: building
good relationships with the national government, enhancing
our business and helping improve the local community.
We recruit a large number of locals in each of our companies
and have many in senior positions as well.
In 1994, we decided to open an office in South Africa,
in many ways the most important country on the continent,
and this has now become the headquarters for all our African
operations. While each of our offices in the different
countries in Africa operate as independent entities, the
office in South Africa, other than conducting its own
business operations, also looks after all policy-related
issues and acts as a liaison office with Tata International
in India. Tata Africa Holdings is a 100-per cent subsidiary
of Tata International.
Tata Africa Holdings has interests in the automobile
industry and, through Tata Infotech, in information technology
(Tata Consultancy Services has an independent operation
in the country). It interfaced with the South African
government and seeded the ground for the setting up of
Tata Steel's ferro-chrome project. Future plans in South
Africa include exploring opportunities to manage or buy-out
a hotel, set up a bus body building plant and finding
a foothold in the telecom, power as well as agricultural
sectors. In fact, Tata Steel is already looking at business
opportunities in the mining industry and TCE Consulting
Engineers is exploring the power projects route. Tata
Africa Holdings has consistently undertaken to promote
group businesses by leveraging its knowledge of the local
markets and creating awareness of the Tata brand.
A critical component in all of the Tata ventures in Africa
has been the emphasis on building and sustaining relationships
in a spirit of cooperation and partnership, creating employment
opportunities and contributing to the social development
of the local communities that we have embraced and in
which we function.
Clearly, the entrepreneurial ethos that underlines the
Tata way holds sway as strongly for the Group in Africa
as it does in India. The 'bright continent' demands no
less. |