Tata Group plans Rs65,000-cr capex across firms in FY15

The Tata Group, bullish about the new government even before it came to power, has lined up capital expenditure of over Rs65,000 crore across the group's companies for the current financial year.

The capex is part of the medium-term strategies of the widely diversified Tata companies, ranging from engineering, materials, information technology and communications to consumer products, services, energy and chemicals.

The majority of the investments will be by the group's most profitable companies - Tata Steel, Tata Motors and Tata Consultancy Services (TCS).

While Tata Steel would spend  nearly Rs16,500 crore in FY15, Tata Motors has earmarked around Rs38,500 crore - of which Rs35,000 crore will be for its British arm JLR (Jaguar-Land Rover) and Rs3,500 crore for Tata Motors' its operations in India.

Tata Motors is set to launch two new cars - Bolt and Zest - in the Indian market later this year, and several new products are under development.

TCS, a leader in India's IT sector, has outlined a capex of Rs4,000 crore, which will go towards already planned new products and services as well as continuing development of new technologies and both for global and domestic operations.

Titan managing director Bhaskar Bhat said last week that the group's jewellery arm will spend close to Rs100 crore on expanding its retail footprint, while around Rs150 crore will be incurred on expanding production capacities.

Tata Housing is learnt to have plans to spend around Rs3,000 crore this fiscal to acquire land parcels across the country.

A spokesperson for Tata Sons, the holding company of the group, said, "Tata companies always take a long-term view of business and make required investments, depending on the needs of the geography concerned and company imperatives, on new products and services, research and technology development, and establishment or expansion of facilities and business enablers.

''We are, in general, optimistic about emerging trends."

The investments include both planned spending in new products and services as well as continuing development of new technologies - both for global and domestic operations.

The thrust in on innovation and R&D, as Tata Sons chairman Cyrus P Mistry has pointed out in his note to employees of the group.
 
"To remain relevant in an increasingly competitive world, we shall put innovation capability at the core of each of our companies' operating structures and will invest in R&D," he had said in his letter to employees.

He had also stressed on the need by the group companies to take into account their execution abilities while planning capex.

With over 100 operating companies and operations in more than 100 countries across six continents, the Tata Group markets products and services in 150 countries across the world.