The brand value of the Tata Group Companies and products shot up to Rs. 24,396 crores in January 2006. “Not many have undertaken the brand valuation exercise but I think we are the biggest in India,” Mr. R. Gopalakrishnan, Director, Tata Sons declared. The Group has over Rs. 1,80,000 crores in investments planned for the next 8-10 years.

The brand valuation exercise undertaken by the Group twice a year since 2001, has shown that the Tatas are ahead of peers in various aspects. The Group’s exit from non-core businesses, the restructuring exercise and cost cut measures have all led to a perception of better performance, which has pushed up the brand value of Group Companies. Providing an example of the growing international strength of the brand, Mr. Gopalakrishnan said that the South African government was sponsoring an advertisement on their national TV about Tata Steel partnering the country in its progress. The branding exercise and valuations are of great importance with all Group Companies taking their business overseas, as well as aggressively making acquisitions. The Tata brand is now represented on every continent across the globe.

On February 18, CEOs of five top Tata Companies spoke to NDTV Profit about their plans to go global, with Mr. Alan Rosling, Executive Director, Tata Sons providing the Group perspective.

When asked about decommoditising steel and making it “beautiful”, the Managing Director, Mr. B. Muthuraman said, it depends on perception of individual consumers.”

On being asked whether the investments in NatSteel and Millennium would overextend the financial health of the Company since these were not profit making organisations, Mr. Muthuraman pointed out, “these investments fitted in with the Company’s strategy. Tata Steel is extending its cost competitiveness in steel making to these finishing facilities.”

On March 7, Tata Steel signed an external commercial borrowing agreement of US $ 500 million (Japanese Yen equivalent of US $ 495 million and US $ 5 million) at Singapore for funding its growth projects and acquisitions.

The syndicated term loan facility, in which 17 banks across geographies participated, was for US $ 400 million (or its equivalent in JPY) with a Greenshoe Option of a further US $ 100 million (or its equivalent in JPY). The issue was oversubscribed and the Company exercised the Greenshoe option for the loan, which has a door-to-door maturity of 7 years. The coupon of the loan will be Libor (London Inter Bank Offer Rate) plus 45 points.