labels: tata group, writers & columnists
A broader spectrum news
Sunil K Poolani
13 February 2002

Mumbai: For the Tatas change is a constant word, be it management, leadership, human resources, operations or performance. There is no better person other than group chairman Ratan Tata to quote in this context: "A company or business that remains static is a business that will die. A company that constantly changes and accepts that there are better ways to do things than the way they are done today, is the company that will survive in the global market that we face."

After rapid organic growth to become a Rs 41,000-crore group, the Tatas have now embarked on the path of growth through acquisitions, as can be seen from the recent buyouts of the government's stake in CMC and VSNL.

The Tata group's acquisition of a 25 per cent stake in VSNL (see report) represents a significant milestone in the group's overall strategy of becoming a truly world class end-to-end telecom services company. The acquisition provides an ideal opportunity for the Tata group to seamlessly integrate its basic and cellular services business with VSNL's presence in the international long-distance, ISP businesses and its imminent entry into the national long-distance space.

With the Tata group's dominant presence in both infrastructure and access services, it will have a unique business advantage - its ability to provide a full range of services to its customers and speedily respond to a very dynamic market, which is witnessing changes in customer behavior, competition, merger and acquisition opportunities, and technology changes.

The number of telecom subscribers is expected to increase from 35 million in March 2001 to about 85 million in 2006. Revenues from telecom services are expected to be around Rs.66,000 crore.

With a robust, flexible and holistic business strategy in place, the Tata Group is confident of emerging as a dominant player in the telecom services space by capturing a sizable portion of this market. Ratan Tata believes that in the not-so-distant future, the contribution of the infocom sector to the Tata Group's turnover and profits will be significant, ensuring a high return on investment for all its stakeholders.

Commenting on his group's successful bid for VSNL, Mr Tata said: "We are pleased to have been successful in our bid for VSNL, which will facilitate the enhancement of the spectrum of our telecom services. This meaningful acquisition will enable us to meet our objective faster and help in providing end-to-end quality services to our customers."

also see : Telecom services: Tata group
Rationale for disinvestment
Disinvestment procedure
Acquisition of VSNL
Acquisition of CMC

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