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Tata Sons to invest TCS proceeds in growth sectors
Thursday, 17 June 2004, 19:30 IST
BANGALORE: Tata Sons, the holding company of the Tata empire, will invest proceeds from the initial public offering (IPO) of its flagship firm Tata Consultancy Services (TCS) in growth sectors like telecom, biotech and life sciences.
Tata Sons director J.J. Irani told reporters here Wednesday the group would invest about 
200 billion ($4.41 billion) in the telecom sector alone during the next three to four years.
This will be in addition to 60 billion ($1.32 billion) invested so far in the telecom business.
"Our current and future investments in the telecom business will far exceed the kind of investments made in other sectors, including steel and chemicals, as the booming sector is set for exponential growth in the coming years," Irani said.
If the Tata group had focused on traditional or core sectors during the last 100 years, the current century will see expansion of existing business operations and diversification into new growth sectors, including biotechnology, life sciences, energy, automobiles and financial services.
"With information and communication technologies becoming all pervasive, we will continue to invest substantially in IT software services and products," Irani said.
"Though there is no dearth of funds or cash reserves, the objective of divesting the holding company's stake in TCS is to generate enough wealth for reinvesting in growth sectors and to support various social and philanthropic activities of Jamsetji Tata Trust and Naval Tata Trust."
Both trusts, set up in honour of the founder of the Tata industrial empire, Jamsetji Nusserwanji Tata, and Naval Tata, will generate 15 billion ($330 million) from the holding they have in TCS.
Irani, however, ruled out the group foraying into the aviation or airlines sector, as it did not make much headway earlier in view of the business environment not being conducive.
Source: IANS
200 billion ($4.41 billion) in the telecom sector alone during the next three to four years.
This will be in addition to 60 billion ($1.32 billion) invested so far in the telecom business.
"Our current and future investments in the telecom business will far exceed the kind of investments made in other sectors, including steel and chemicals, as the booming sector is set for exponential growth in the coming years," Irani said.
If the Tata group had focused on traditional or core sectors during the last 100 years, the current century will see expansion of existing business operations and diversification into new growth sectors, including biotechnology, life sciences, energy, automobiles and financial services.
"With information and communication technologies becoming all pervasive, we will continue to invest substantially in IT software services and products," Irani said.
"Though there is no dearth of funds or cash reserves, the objective of divesting the holding company's stake in TCS is to generate enough wealth for reinvesting in growth sectors and to support various social and philanthropic activities of Jamsetji Tata Trust and Naval Tata Trust."
Both trusts, set up in honour of the founder of the Tata industrial empire, Jamsetji Nusserwanji Tata, and Naval Tata, will generate 15 billion ($330 million) from the holding they have in TCS.
Irani, however, ruled out the group foraying into the aviation or airlines sector, as it did not make much headway earlier in view of the business environment not being conducive.
Source: IANS