Realty, retail new Tata thrust areas

The Rs 80,000-crore (Rs 800 billion) Tata Group has identified infrastructure, real estate, bio-fuels, wind power, retail, food, groceries and home improvement as new growth areas.

Tata group chairman Ratan Tata is believed to have outlined the blueprint of the transformation of the group to its senior executives at the Annual Group Managers' Meeting last week in Mumbai.

AGMM is an annual exercise where Tata focuses on future plans and reviews the group's performance in the last one year. Tata is learnt to have made a detailed presentation on how these sectors would be the focus areas of the group in the future.

A Tata group spokesperson declined to comment.

According to sources close to the development, the group will attach more importance to retail housing with greater focus on townships.

Through THDC (formerly known as Tata Housing Development Corporation), the group has been developing premium residential complexes, lifestyle housing buildings and holiday homes.

As a part of its globalisation process, the group will also explore opportunities in Vietnam, Russia, Ukraine, Kazakhstan, Indonesia, Latin America and West Asia.

Tata is learnt to have told group executives that the electronics chain Woolworths would start operation this year, with four stores of 20,000 sq feet each. It will be Woolworths' first venture outside Australia.

Industry sources said the Tata group would introduce Woolworths' Dick Smith Powerhouse electronics store in India. However, it is not known which Tata company will form a joint venture with the Australian retail behemoth. Dick Smith contributed less than 4 per cent of annual sales to the Woolworths group.

Tata is learnt to have explained to senior executives of the group how this annual event had, over the years, dwelled on areas like enhancing group shareholding and common identity, domestic leadership across companies, world-class products and services.

This year, the theme of the annual ritual was innovation and growth in new areas The two-and-a-half hour event took place at a hotel in south Mumbai and was attended by the top management of all Tata group companies.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group