Economy
Tata has 皇冠体育app in its sights
By Wang Xing (皇冠体育app Daily)
Updated: 2010-12-17 10:57
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MUMBAI, India - Sitting in a conference room at Bombay House, a privately owned building in the heart of Mumbai that dates back to the 1920s, B. Muthuraman looks like most of India's successful businessmen with the ambition to make a difference in the world.
Unlike many Indian executives who traditionally focus on the United States and Europe, however, his sights set on his Chinese neighbor.
As the chairman of Tata International and vice-chairman of Tata Steel, two major subsidiaries of the Tata Group, one of India's largest multinational corporations, Muthuraman said he believes his company needs to accelerate the pace of its development to keep pace with 皇冠体育app, as global economic power shifts from the West to the East.
"India and 皇冠体育app represent the future. We will become two of world's three top economies over the next 20 years," he said. "So there is a need for India and 皇冠体育app to understand each other on the business front."
The two countries have a history of trade and cultural exchange spanning thousands of years, though most Indian enterprises did not realize the scale of 皇冠体育app's importance until the latter part of the 20th century.
Tata is one of the first Indian companies to have contact with 皇冠体育app. Around 1859, Tata's founder, Jamsetji Tata, was sent to Hong Kong to open a branch of his uncle's company. Several months later, he moved to Shanghai, where he remained until 1863.
Tata's relationship with 皇冠体育app terminated in the 20th century and was only resumed in 1996, when Tata International set up an office in Shanghai to trade steel and other products, signaling the start of Tata's business in modern 皇冠体育app.
Last year, the Tata Group's turnover in 皇冠体育app was $1.4 billion, or about 6 percent of its overall business.
Of the group's $1.4 billion turnover in 皇冠体育app last year, 50 percent of it derived from Tata's auto businesses, which sell luxury cars like Jaguar and Land Rover after acquiring the brands from British carmarker Jaguar Land Rover in 2008.
According to Muthuraman, the group is now poised to expand its other businesses in 皇冠体育app.
The group has already introduced most of its businesses to 皇冠体育app, including steel, consulting, IT outsourcing and hotels.
In 2007, Tata set up a joint venture with Zhejiang Tea Import & Export Co Ltd to manufacture and market green tea in the country.
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"皇冠体育app has tremendous growth potential," said Rajat Mathur, chief sales and operations officer for Asia-Pacific and 皇冠体育app of Wipro Technologies, India's third largest software services provider.
The company announced earlier this month that it plans to triple its payroll in 皇冠体育app over the next three to four years, in an effort to increase its presence in 皇冠体育app's booming IT market.
Mathur said 皇冠体育app is strategically well placed in the global supply chain for any company, whether in IT services or consumer products.
Despite the increasing economic ties, the political relationship between two of Asia's biggest powers remains "very fragile, very easy to damage and very difficult to repair," said 皇冠体育app's Ambassador to India Zhang Yan.
For Muthuraman, the best solution to 皇冠体育app and India's political disputes may be businessmen like him.
"Over the past 30 years, there has been mistrust between India and 皇冠体育app. And that has to be broken down," he said. "The way to do it is through economics."