Tata International, the trading and distribution arm of Mumbai-based Tata Group, already has a presence in twelve African countries, however, the group is seeking to expand its reach on the continent to two additional countries, according to Footprint to Africa.

 

Approximately 18 months ago through a step-down subsidiary, Tata Africa Holdings (Tanzania) Ltd, the group began originating and exporting agricultural commodities to India, China, Myanmar, and select European countries, reaching an export volume of 5,000 tons in 2015, however the group is now planning to scale up its business. After realizing market penetration in farm equipment, healthcare, construction equipment, and automobiles, the group sees agri-commodities as its new focus to achieve growth. Now the company is planning to invest in processing facilities for the exportation of pulses from Tanzania, Africa’s largest pulse producing country.

 

“We want to be among the top two-three players in every country and in each business we are operating,” Ajay Mehra, executive director, Tata Africa Holdings (Tanzania) Ltd, and the head of non-auto distribution of Tata International in Africa told The Hindu.

 

“We are now exporting pulses (tur dal) from Tanzania, which are well accepted in India,” said Mr. Mehra. “We are working with farmers to help them improve their productivity. Apart from pulses, we are exporting sesame and cashew nuts. We are looking at coffee out of Uganda. We are sourcing sesame from many African countries,” he added. “Right now we are exporting cashew nuts from Tanzania and are looking at Nigeria. We will focus on four commodities primarily for which we have a good market in India and China,” Mr. Mehra said.

 

Since the company is already exporting from Tanzania, it is planning to construct two to three cleaning and processing plants for its pulses in that country within the next five to six months, according to Mr. Mehra, although he did not disclose the amount the company will invest in such projects. Once these plants are operational, the group may turn its attention to pre-packaging activities and expanding its exports.

 

The group’s African business generates $400 million and accounts for approximately 20% to 25% of Tata International’s total turnover.