Tata International, the Rs 4,000 crore (Rs 40 billion)-plus business gateway of the Tata group, has embarked on a restructuring exercise. The objective is to spot new business opportunities.
One of the country's largest trading companies, Tata International, is into a gamut of activities ranging from sourcing products to delivery. It has a global network spreading across more than 100 countries with major markets in Europe, West Asia, the Far East, Ocenia and the Saarc nations.
Industry sources said broad contours of the exercise suggested that Tata International would no longer handle the international business of the group firms. Instead, the company would focus only on and grow its own activities - leather and leather goods.
Consequently, for example, Tata Steel - the principal supporting steel producer to Tata International - would look after steel trading on its own. Sources also said the company could be rechristened.
Sources close to the company confirmed that a restructuring was on. They, however, refused to disclose details of the exercise. "The company has in-principle decided to restructure its businesses. However, it is premature to discuss the details of the restructuring. The company will be able to talk on the issue within two weeks once the plan is through," they said.
Tata International, according to the group's website, is into five business segments - steel, engineering, minerals, bulk commodities and chemicals.
Industry sources said post-restructuring Tata International, the country's leading leather and leather products exporter, would attach more importance to its leather business.
They added that the company had expressed its interest to the West Bengal government to set up an integrated facility for tanning and footwear manufacturing at the Calcutta Leather Complex. The facility might be built on a 25-acre area.
Tata International already has a manufacturing facility in Kolkata that caters to the German, UK and US markets in the mid-value segments. Its premium product manufacturing facilities are located in Dewas (Madhya Pradesh), Chennai and Delhi, locally, and in China. Recently, it has introduced premium, luxury German brand - LLOYD - in the domestic market.
Changing gear
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Tata International would no longer handle the international business of the group firms
- The company is into a gamut of activities ranging from sourcing products to delivery
