This project gives an overview of Indian companies working In Africa with a case study on TATA Africa.

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A Project Report on
Overview and business details of select
Indian companies operating in Africa
Submitted By:
Mukul Kumar
Under the guidance of
Prof. Sumanta Choudhury
Centre for African Studies
University of Mumbai
Mumbai, Maharashtra (400098)

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CertificateCertificateCertificateCertificate
This is to certify that the project titled “Overview and business
details of select Indian companies operating in Africa”, which is
submitted by Mukul Kumar in fulfillment of the requirements of the
degree of Certificate Course in International Trade (Africa), is a bona
fide record of the work carried out by him under my guidance and
supervision.
Date - 30 April 2016
Signature- ------------------------------
Prof. Sumanta Choudhury
Centre for African Studies
University of Mumbai

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ACKNOWLEDGEMENT
My heart pulsates with the thrill for tendering gratitude to those persons who
have helped me in workings of the project.
First and foremost, I would like to express my gratitude and indebtedness to Prof.
Eknath Birari, for his inspiring guidance, constructive criticism and valuable
suggestion throughout this project work. I am sincerely thankful to him for his
able guidance and pain taking effort in improving my understanding of this
project.
Last but not least, my sincere thanks to Prof. Sumanta Choudhury, Prof.
Manendra Sahu, Prof. Renu Modi, other guest lecturers and all my friends who
have patiently extended all sorts of help for accomplishing this undertaking.
Mukul Kumar
Centre for African Studies
University of Mumbai

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BACKGROUND OF INDIAN COMPANIES OPERATING IN AFRICA
The relationship between Indian companies and Africa is a happy coincidence
of needs. After independence, Indian companies chugged along in the shadow
of state-run enterprises, protected as well as hampered by a bewildering raft
of Soviet-style regulations and the infamous ‘license raj’ that bred corruption
on a national level. The loosening of the straitjacket in 1991 finally allowed
the private sector to break free from its fetters and ushered in one of the
world’s most spectacular growth performances.
The route followed by Indian companies in Africa is largely through
acquisitions led by private players unlike China's policy of direct investments
through state owned entities. Although large global acquisitions – such as
Tata’s purchase of Jaguar and Land Rover, Bharti Airtel’s acquisition of
Middle East telecom giant Zain’s one network operation in Africa and
Mittal Steel’s takeover of Arcelor, which turned ArcelorMittal into the
world’s largest steel company – made the headlines around the world, Africa
had never been far from the minds of India’s leading entrepreneurs. In fact
according to Thomson Reuters’ data, Indian acquisitions were a third of total
acquisitions (in terms of value) in Sub-Saharan Africa in 2010, the highest by
any country in the region.
ArcelorMittal South Africa has become the continent’s largest producer
of liquid steel, with a capacity of 7.8 million tonnes per annum from its
plants in Gauteng. ArcelorMittal is also the largest iron ore mining
company operating in Africa, with mines in Algeria, Mauritania, Senegal,
South Africa and a $1 billion project in Liberia. Essar Steel took over
Zimbabwean steel producer Zisco in 2010, and the group is also
involved in several other projects, including business process
outsourcing (BPO) operations in Africa. Other large Indian investors in
African resources include Coal India in Mozambique, Vedanta
Resources in copper mining in Zambia, Varun Industries in rare earth
minerals in Madagascar, and Jindal Steel and Power in South Africa

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(coal and iron ore), Mozambique (coal), Madagascar (limestone),
Tanzania (copper) and Zambia (copper).
In 2006, Apollo Tyres, one of India’s largest tyre manufacturers and
distributors, bought out Dunlop Tyres International South Africa and in
the process acquired Dunlop’s rights in 33 African countries. Mahindra
& Mahindra has also set up base in South Africa. Hero MotoCorp has
an assembly plant in Kenya for the manufacturing of its 100cc Dawn
motorcycle. TVS Motor Company has also commissioned an assembly
line in Kenya and plans a large assembling plant in Uganda. In 2010
Kirloskar Brothers Limited acquired Braybar Pumps, South Africa and
in 2012 it established a manufacturing facility in Egypt as SPP MENA.
Godrej Consumer Products Ltd acquired Nigerian personal care
product maker Tura in 2010 and has hiked its stake in hair extension
brand Darling South Africa and Mozambique businesses to 90 % in
2015. It had also acquired South Africa's Kinky Group in 2008 and hair
color brand Rapidol in 2006. Marico has purchased the consumer
division of Durban-based Enaleni Pharmaceuticals Ltd. and South
African health-care brand Ingwe.
Indian pharmaceutical company Cipla slashed the per patient drug cost
for HIV-positive patients from around $10,000 to $400 per year in
Africa, earning enormous goodwill in a continent where HIV/AIDS is
still rife. It has announced a $36 million upgrade to its plant in Durban
and has recently formed a joint venture in Uganda. India’s
pharmaceutical giant Ranbaxy Laboratories, which was the first to set
up operations in Africa in 1977, opened its second plant near
Johannesburg in 2010.

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Africa’s large tracts of arable land are another attraction for Indian
agribusinesses. Commercial agriculture has been a major focus area for
Indian companies, accounting for 40 per cent of the investments.
Instances include M/s Karuturi – 1,00,000 hectares, Bho-Bio–27,000
hectares, Ruchi Soya – 25,000 hectares, Sannata Group -10,000
hectares, White Field Cotton – 10,000 hectares. Karuturi Global is
now the world’s largest exporter of roses thanks to its investments in
Ethiopia and Kenya.
CASE STUDY OF SELECTED COMPANY
TATA IN AFRICA
The Tata group has had a historical connection with Africa since the early
years of the twentieth century. Between 1909 and 1913, Ratanji Tata, the
younger son of Tata group founder Jamsetji Tata, contributed Rs125, 000 to
help Indian leader Mahatma Gandhi in his passive resistance movement
against apartheid in South Africa. To Mahatma Gandhi, the Tatas represented
the ''spirit of adventure'', especially evident in Sir Jamsetji who travelled to
America, Britain and the Far East to spread his business vision. It was this
spirit which drove the Tata group to become one of the very first foreign
companies to enter Africa. The focus was towards natural expansion into
geographic areas and developing markets that held the promise of mutual
benefit.
The Tata group began its relationship with Africa in 1977 when it set up Tata
Zambia, which was engaged primarily in the imports of Tata vehicles,
marketing and providing aftersales services. The group has since then
explored African countries such as South Africa, Mozambique, Zambia,
Zimbabwe, Kenya, Tanzania, Senegal, Nigeria, Malawi, Uganda, Ghana, Algeria
and Ivory Coast, and established businesses in the areas of mining products,
steel, hospitality, beverages, chemicals, energy and information technology.

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Tata Africa Holdings
In 1994, the Tata group established Tata Africa Holdings, a subsidiary of
global trading company Tata International, in Johannesburg, South Africa,
which now serves as the group's headquarters on the continent. Tata Africa
Holdings believes in providing quality to its consumers and at the same time
improving the quality of life of the people. The organisation has a strong
infrastructure base, excellent marketing capabilities, knowledge of local
markets and needs, a highly qualified manpower, and its commitment to
community development initiatives. A well-known and respected name in
Africa, it is committed to its vision of building and sustaining relationships
with cooperation and trust, creating employment opportunities, and making
its contribution to the social development of local communities.
Historical Milestones-
1977 - Tata begins operations in Africa. Tata Zambia is established in Zambia.
1989 - Tata Zimbabwe is set up.
1991 - Tata Holdings Mozambique LDA is established.
1993 - Tata Uganda is set up.
1994 - The Tata group sets up Tata Africa Holdings (SA) (Pty) in Johannesburg
as group headquarters for Africa. Tata Holdings Tanzania is established.
1997 - Tata Zambia acquires 70 percent stake in Pamodzi Hotel and renames
it Taj Pamodzi.
1998 - Tata Automobile Corporation (SA) is established to market Tata
Motors commercial vehicles in Africa. Tata Ghana is set up.
2000 - Consilience Technologies set up as joint venture between Tata Africa
Holdings and J&J, a local group

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2002 - Tata Consultancy Services launches a literacy programme in South
Africa
2004 - Tata Motors introduces passenger cars (Tata Indica and Tata Indigo),
utility vehicles and pick-ups in South Africa
2005 - Tata Africa and Tata Communications are allotted a 26 percent share in
Neotel, the second national fixed-line operator in South Africa. Tata Chemical
acquires 100 percent stake in Brunner Mond, making Magadi Soda Company a
part of the Tata group
2006 - Tata Zambia sets up a bus and truck assembly plant in Ndola. Tata Steel
initiates the construction of chrome project at Richards Bay – the first
Greenfield project for the Tata group outside of India. Tata Africa Nigeria
Services is established. Tata Motors expands into Kenya.
2007- TCS South Africa Pty formed as a subsidiary of TCS.
2008- Neotel acquires Transtel. Tata Steel KZN begins production at the
Richards Bay plant in South Africa. Tata Africa Senegal is established.
2010- Taj Hotels Resorts and Palaces announces the opening of Taj Cape
Town
2012- Cennergi, a joint-venture between Tata Power and South Africa's
Exxaro Resources, is formed to focus on developing electricity projects in
Africa. Tata Africa Cote D’Ivoire SARL established.

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MAJOR TATA COMPANIES IN AFRICA
This section lists the major Tata companies in Africa and details their profiles
and business areas.
1. Tata Chemicals Magadi
Tata Chemicals Magadi (formerly The Magadi Soda Company) is Africa's
largest soda ash manufacturer and one of Kenya's leading exporters. It mines
soda ash from naturally occurring deposits of an ore known as trona, located
at the base of the Rift Valley, at Lake Magadi in Kenya and transports it by rail
to the Port of Mombasa, the only bulk soda ash terminal at the Port of Durban
in South Africa for onward shipping to the markets. It also supplies crushed
refined soda, obtained by crushing and washing the trona ore. Additionally, it
manufactures salt from the waters of Lake Magadi for the Kenyan market.
Tata Chemicals Magadi has a capacity of over 0.35 million tonnes of soda ash.
Its products are used in Glass manufacturing, making soaps and detergents,
production of chemicals such as sodium silicate, sodium bicarbonate and per
carbonate, sodium chromate and dichromate, manufacturing of pulp and
paper, Water treatment, Effluent treatment and Metallurgy and drugs. Over 95
percent of the company product is exported to its principal markets of South
East Asia, Indian sub-continent, Africa and the Middle East.
2. Tata Motors
Tata Motors vehicles were introduced in the African market in 1977, when
Tata Zambia began importing them from India. Tata Automobiles Corporation
SA, a subsidiary of Tata Africa Holdings, markets and distributes vehicles
manufactured by Tata Motors (passenger cars and medium and heavy
commercial vehicles) in South Africa. It has a commercial vehicle assembly
plant in Rosslyn (South Africa) and bus body fabrication plant in South Africa.
Recently Tata Motors launched its passenger cars in Algeria.
Tata vehicles have come to be recognised for their utility, quality and comfort.
The original 713 remains one of the company's mainstay products and has
been joined by an improved 2-tonner, the 407. The range of vehicles includes

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the 709 3-tonne, LPTA 713 4x4 and 1518 8-tonne truck. The company also
assembles 18-and 32-seater Tata Ubuntu buses and markets the Tata Novus
range of tippers and trailers.
3. Tata Power
Established in March 2012, Cennergi is a 50:50 joint venture formed between
Exxaro, the second largest producer of coal in South Africa, and Tata Power,
India’s largest integrated power company. It focuses on the development,
ownership, operation, maintenance, acquisition and management of
electricity generation assets in South Africa, Botswana and Namibia. The
initial project pipeline focuses on renewable energy projects in South Africa.
There is also a joint venture with ZESCO, the Zambia state electricity utility,
for a 120MW hydroelectric power project under construction.
4. Taj Hotels
4. A) Taj Cape Town
Opened in 2010, Taj Cape Town occupies two historic buildings — the original
South African reserve bank and the old BoE building — built in 1890. With its
blend of the heritage buildings and the modern tower, the hotel reflects the
urban revival within the heritage precinct. The hotel offers a selection of
several room types, which includes the Tata Suite (presidential suite), luxury
heritage rooms, heritage suite rooms and the luxury tower rooms and tower
suites which offer a panoramic Table Mountain or city views. The rooms
combine old wood finishes with modern amenities. The hotel also houses an
80-seater banquet room, eight meeting rooms, two boardrooms and a
business centre. It features the first Grande Jiva Spa in Africa, an
internationally renowned health spa offering guests the choice of Indian
aromatherapy and ayurvedic treatments.
4. B) Taj Pamodzi
The Taj Pamodzi in Lusaka is a five star hotel and a part of the Taj Hotels
Resorts and Palaces. The hotel is owned by Tata Zambia and operated by the
Taj Group of Hotels. Conveniently located just 22km from the airport and 3km

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from the city centre, it offers a comprehensive range of services. It
complements the rapidly developing economy of Zambia’s capital city of
Lusaka. The hotel offers 193 rooms including suites, an array of restaurants,
business facilities and banqueting arrangements for its customers. Set amidst
tropical gardens in the heart of Lusaka's business and government district,
this luxurious hotel provides both spacious comfort and modern amenities to
the traveler.
5. Tata Consultancy Services SA
TCS South Africa (Pty) was formed as a subsidiary of TCS in 2007 to enable
the company to serve its South African and sub-Saharan customers better,
making it one of the first Indian IT services and consulting companies to enter
South Africa. With operations in South Africa, Kenya, Botswana, Zambia and
Uganda, TCS South Africa's business objectives include the incubation of
domestic IT talent and building of IT delivery capabilities. The company's
strategy is to train and transfer globally competitive IT processes and
methodologies to local firms and citizens. TCS counts many leading South
African business houses, financial institutions, telecom service providers,
educational institutions and government organizations as its clients.
6. Tata Communications
Neotel is a telecommunications network operator that delivers services to
reduce the costs of doing business through the optimal use of advanced
technologies. The Tata group, through Tata Communications and Tata Africa
Holdings Pty, is a strategic equity partner in the company, which provides the
entire range of telecommunications services in all major metropolitan areas of
South Africa. Neotel's service portfolio includes a range of services for
businesses, wholesale network operators, network providers and consumers,
such as value-added voice, internet and data services, virtual private networks
and hosting and satellite services.
7. Jaguar Land Rover
Jaguar Cars, founded in 1922, is one of the world’s premier manufacturers of
luxury saloons and sports cars. Land Rover has been manufacturing 4x4s

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since 1948 and its products have defined the segments in which they operate.
All Jaguar Land Rover vehicles are designed, engineered and manufactured in
the UK and more than 70 percent of them are exported. JLR is represented in
24 sub-Saharan countries. The company has invested in dealership
enhancements and upgrades in South Africa. Jaguar has established 11
franchised dealerships in Africa, while Land Rover has 31 dealerships,
including one each in Namibia and Botswana. The company has also set up
four Land Rover Experience Centers in Kyalami, Gerotek, Inchanga KZN and
Western Cape.
8. Tata Steel KZN
Tata Steel set up Tata Steel KZN to manufacture high-carbon ferrochrome in a
plant in Richards Bay on the KwaZulu-Natal coast (South Africa). The
ferrochrome, used in the manufacture of stainless steel, is exported to Tata
Steel customers in Asia, Europe and the US. It has a capacity to smelt 135,000
tons per annum.
Cometal SARL of Tata Holdings Mozambique Ltd has steel fabrication plant in
Mozambique. It manufactures Railway wagon, Tank Wagons, Special Wagons
for Port, Special cars Structures, Tanks, pipelines, Transmission Towers and
Cranes.

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CONCLUSION
Africa is a gold mine, but it doesn’t come easy! With explosive population
growth and a youthful market with 50 per cent of inhabitants below 20 years
of age coupled with over a 100 million households with discretionary income,
it offers great potential for progressive Indian companies. While India has had
a commercial presence in Africa going back decades, nothing matches the rush
of Indian companies to do business in Africa that has taken place over the last
two decades. Indian MNCs like Tata have ventured into both Greenfield and
Brownfield investments, spanning telecommunications, energy, computer
services, power and the automobiles sector among others. Such trend will
likely to accelerate in coming decades.
References-
1. “A marriage made in heaven? Indian companies in Africa” by Anver
Versi
2. “What are Chinese and Indian firms doing in Africa?”, International
Trade Forum Issue 2/2010
3. http://www.voanews.com/content/indian-companies-push-into-africa-
to-explore-its-growing-business-potential-105997178/156530.html
4. http://www.africaindia.org/index.php
5. Tata Corporate Brochure 2016.
6. http://tatainternational.com/
7. http://www.tata.com/
8. http://www.tataafrica.com/