Under Mistry, Tata Group steps up organic expansion.

After a decade of inorganic growth, Tata Group has stepped up activity on the organic growth front through the past three years. In 2013-14, the first full year under the chairmanship of Cyrus Mistry, the 10 most valued listed companies of the group saw record capital expenditure of Rs. 95,634 crore on organic growth. This was largely on the back of Tata Steel’s expansion at the Kalinganagar plant in Odisha, as well as expansion related to the Jaguar Land Rover (JLR) brand in China and Brazil.

The tenure of former group chairman Ratan Tata was marked by $16-billion acquisitions, including those of Corus ($12.8 billion), JLR ($2.3 billion) and Tetley ($450 million). During that period, the top 10 group companies recorded their highest capital expenditure of Rs 1,08,367 crore (2007-08), following the acquisition of Corus. This was followed by capital expenditure of Rs 63,909 crore on the acquisition of JLR (2008-09).

Before the acquisition of Corus, spending on organic growth was as low as Rs 18,268 crore (2006-07).

BS