X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
TACO firms up Rs 30 bn investments - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 25, 1999

    TACO firms up Rs 30 bn investments

    Newspaper reports reveal that Tata AutoComp Systems Ltd. (TACO) plans to invest Rs 30 bn in a slew of fresh joint ventures (JV) over the next five years.

    TACO (Tata Group's auto components holding company) already has some 12 joint ventures in place. The company has charted out ambiguous expansion plans by acquiring companies overseas. It aspires to emerge as a global manufacturer through its joint venture partners by leveraging the low-cost, high-productivity engineering skills available in the country.

    The ventures will have a debt-equity ratio of 1:1. Therefore, on an investment of Rs 30 bn, the equity component constitutes Rs 15 bn. As these ventures are expected to be a 50:50 partnerships, TACO would be required to inject Rs 7.5 bn. In FY2000, the company plans to invest Rs 10 bn.

    TACO has targeted the group turnover for auto ancillaries at Rs 180 bn over the next five years, from a current turnover of approximately Rs 4-5 bn. Of this, it expects 39% to come from component manufacturing, 22% from supply-chain management and international operations. The balance 17% is likely to come from engineering and after market operations. By 2005, the company expects domestic sales to account for 40% of turnover, with exports accounting for the balance.

    The company has firmed plans to set up 40-50 ventures including those with US-based Eaton, Zf of Germany, Magna Atoma Roltra, UFI, and Iransa among others.

    TACO ambitious plans to emerge as a global vendor of auto components are highly dependent on its joint ventures. Growth through ventures will have its pros and cons for TACO. The upside being that TACO will gain a foothold in overseas markets, and can leverage on its JV partners brand, marketing and distribution network ,as also its clientele. The downside will be that TACO may come to depend a little too much on its partner(s), which could be exploited by the latter to its benefit.

     

     

    Equitymaster requests your view! Post a comment on "TACO firms up Rs 30 bn investments". Click here!

      
     

    More Views on News

    Atul Auto: Demonetization Impacts Volumes and Profitability (Quarterly Results Update - Detailed)

    Mar 1, 2017

    Atul Auto has reported a 11.2% YoY decline in the topline while the bottomline has declined by 23% YoY.

    Endurance Technologies Ltd (IPO)

    Oct 4, 2016

    Equitymaster analyses Initial Public Offering (IPO) of Endurance Technologies Limited

    GNA Axles Limited (IPO)

    Sep 14, 2016

    Should you subscribe to GNA Axle IPO?

    Precision Camshafts (IPO)

    Jan 27, 2016

    Precision Camshafts Ltd (PCL) is one of the world's leading manufacturer and supplier of camshafts, a critical engine component, in the passenger vehicle segment.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    SKF INDIA SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK SKF INDIA

    • Track your investment in SKF INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    SKF INDIA - SUNDARAM CLAYTON COMPARISON

    Compare Company With Charts

    COMPARE SKF INDIA WITH

    MARKET STATS