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Tatas to consolidate defence business
Friday, June 15, 2007 (Mumbai):
The Tatas moved on to another part of their business to raise revenues, they are looking at consolidating their 8-10 defence companies under one entity.
Days after the government's decision to appoint Raksha Udyog Ratnas or defence industry jewels from the private sector, Tata group is looking at consolidating its defence businesses under one entity.
As a first step Tata group is planning to float a new entity to focus on defence business. The new company will drive the group's defence businesses that are currently pegged at around Rs 2,000 crore.
Currently around 10 group companies including Tata Motors, Tata Power, TCS, CMC, VSNL, Tata Advanced Materials and Nelco supply to the defence establishments. Tata group declined to comment on consolidation of defence businesses.
International players
One thing is clear that private sector players are clearly sensing some big-bang opportunities in the defence. Top-notch international players like EADS, Boeing, Rolls Royce are scouting for Indian partners.
And Ratan Tata, Chairman of the Tata group knows that a company focused on the defence sector will become a sought after partner not just for the international players but also for research establishments like DRDO.
The government has said that Raksha Udyog Ratnas will be allowed to design and manufacture major weapons platforms and systems including equipment developed by the DRDO.
Indian companies
Private sector players like Tatas, L&T, M&M, Godrej are likely to be nominated as the Raksha Udyog Ratnas. Defence is set to become big business for Indian companies.
Tatas may be leading the way but eventually most of the private sector groups will look at setting up dedicated companies for defence supplies.
With a defence budget of over $10 billion, Indian companies will be honing up skills to fight it out for a part of this pie
http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38906
Friday, June 15, 2007 (Mumbai):
The Tatas moved on to another part of their business to raise revenues, they are looking at consolidating their 8-10 defence companies under one entity.
Days after the government's decision to appoint Raksha Udyog Ratnas or defence industry jewels from the private sector, Tata group is looking at consolidating its defence businesses under one entity.
As a first step Tata group is planning to float a new entity to focus on defence business. The new company will drive the group's defence businesses that are currently pegged at around Rs 2,000 crore.
Currently around 10 group companies including Tata Motors, Tata Power, TCS, CMC, VSNL, Tata Advanced Materials and Nelco supply to the defence establishments. Tata group declined to comment on consolidation of defence businesses.
International players
One thing is clear that private sector players are clearly sensing some big-bang opportunities in the defence. Top-notch international players like EADS, Boeing, Rolls Royce are scouting for Indian partners.
And Ratan Tata, Chairman of the Tata group knows that a company focused on the defence sector will become a sought after partner not just for the international players but also for research establishments like DRDO.
The government has said that Raksha Udyog Ratnas will be allowed to design and manufacture major weapons platforms and systems including equipment developed by the DRDO.
Indian companies
Private sector players like Tatas, L&T, M&M, Godrej are likely to be nominated as the Raksha Udyog Ratnas. Defence is set to become big business for Indian companies.
Tatas may be leading the way but eventually most of the private sector groups will look at setting up dedicated companies for defence supplies.
With a defence budget of over $10 billion, Indian companies will be honing up skills to fight it out for a part of this pie
http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38906
