What does NIIT, Tata, Apollo Tyres and Dr Reddy’s have in common? Their prolonged interest and success in Africa
Instead of fretting over crowded markets in Europe and Asia, a few companies (Apollo, NIIT, Tata Steel, and Skipper Energy to name a few) looked at Africa. These companies had to do a lot of unlearning, think differently about business models, work with the governments and the local community and wait patiently to get back in the black.
Tata Steel KZN (Pty) Ltd
In 2000, the Tata Group decided to set up a ferrochrome plant. After evaluating 30 countries, they zeroed in on South Africa and Australia. Tata Steel KZN was almost deciding on Australia, when the South African government offered them a significant incentive package. They also helped them get land in an industry development zone, the equivalent of an SEZ. This was Tata Steel’s first overseas greenfield venture. Somdeb Banerjee, managing director of Tata Steel KZN, talks about the journey so far. Excerpts from the interview: