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"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.
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