Indian multinational conglomerate Tata Group announced on Monday plans to grow its business in the African continent by 30 per cent annually. It also anticipated expanding into seven new countries over the next four years.
As part of its growth strategy in Africa, Tata said it planned on increasing its presence in automotive, mining, infrastructure and hospitality sectors.
According to reports, the group has been operating in Africa since 1977 and currently gets 2.3 per cent of its revenue from the continent.
“We have made investments of around US$1.7 billion in all the running projects in Africa and we will continue to augment that,” said Raman Dhawan, managing director of Tata Africa Holdings in a statement.
Tata is one of several Indian companies, including Essar and Bharti Artel Limited, that are investing in the continent to tap into new markets and expand their brand recognition. On Monday, India’s commerce minister Anand Sharma stated that bilateral trade between India and Africa is anticipated to reach $100 billion by 2015 and that Indian investments within the continent were now close to $50 billion.
Tata Group operates within seven sectors, including communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Africa Holdings is a wholly-owned subsidiary of Tata International. It was set up in South Africa in 1994 as a strategic investment arm of the Tata group in Africa.