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Tata group to crack into Russian market

August 21, 2007
The erstwhile communist giant Russia is going be the big commercial story for Tata group companies like Tata Tea, Tata Coffee and even for Tata Motors.

Tata Coffee is planning to buy a mid-sized company that has strong brand presence across the markets. Coffee production in India will now convert into high value products and sold in Russia.

Tata Coffee is open to spend about $200 million. Even for other group companies like Tata Motors the search is on for a mid-size commercial vehicle company.

Tata Motors has started working on a joint venture with Iveco of the Fiat Group for a manufacturing base for commercial vehicles in Russia.

This Iveco combine venture is likely to be the future manufacturing and distribution platform for Tata's World Truck set for launch in mid-2008. According to sources it is currently being designed at Tata Daewoo Commercial Vehicle plant in Korea.

Tatas seem to be ready for their next big leap in international business. While most of India Inc looks West for inspiration and markets, Tatas were to be the first to break fresh ground in Russian and East European countries.