| Tata Sons, the holding company of the Tata group, today announced it has formed Tata Capital, a wholly owned subsidiary, to offer services in capital market, merchant banking, housing finance, private equity, and vehicle and retail finance.
|
| |
| Tata Capital will undertake these activities through its subsidiaries or its divisions, depending on regulatory requirements, Tata Sons said in a statement.
|
| |
| However, the statement did not name the head of the company. Speculation doing the rounds has named Praveen P Kadle, executive director (finance and corporate affairs) of Tata Motors, and Kishore Chaukar, managing director of Tata Industries, as possible candidates. Chaukar is also a director of Tata Sons.
|
| |
| Tata Sons said that the other financial services companies in which it has substantial holdings, including Tata AIG Insurance, Tata Asset Management Co and Tata Investment Corporation, would remain separate entities.
|
| |
| However, sources said a merger of these companies under one umbrella could not be ruled out.
|
| |
| Tata Capital marks Tatas’ bigger involvement in the finance business after an exit two years ago following controversies over then finance arm Tata Finance. The company was subsequently merged with Tata Motors. Tata Capital will offer all the services Tata Finance provided, as well as merchant banking and private equity.
|
| |
| Corporate observers say opportunities in these two segments are rising fast on the back of more than 9 per cent growth of the economy and good corporate performance.
|
| |
| The fact that Indian companies are gearing up to raise $12 billion of funds from overseas markets in the next two months indicates the buoyancy in this sector. Opportunities in private equity investment have lured almost all big global players to set up offices in India.
|
| |
| Observers say its re-entry into the finance business was “only expected” as the Tata group has always been keen on having a strong position in this space.
|
| |
| “The opportunities in the retail business are tempting for the group, which would have set up a bank had it been permitted,” said an expert.
|
| |
| The retail finance business grew 35 per cent last year to over Rs 430,000 crore. The market is dominated by ICICI Bank.
|
| |
The other big players include Citi Bank, Standard Chartered Bank and HDFC Bank.
|
| |
| CASHING IN ON GROWTH
|
| |
|
Tata Capital to offer services in capital market, merchant banking, housing finance, private equity, and vehicle and retail finance.
Head of the company not named yet. Praveen P Kadle of Tata Motors and Kishore Chaukar of Tata Industries seen as candidates.
Other financial services companies would remain separate entities, though merger not ruled out.
Tata Capital marks Tatas’ re-entry into the finance business after an exit by Tata Finance two years ago. |
| |
|
| |
Content Guide
