Brand India shines: Tata is UK's biggest industrial employer

There is no doubt that the UK is going through trying times. Reports the Guardian: “In the UK, the OECD expects growth of 1.4 percent this year.” Alan Clarke, UK economist at Scotia Capital, described the projection as “grim”, pointing out that it amounts to GDP growth of zero to 0.1 percent during the second half of 2011.

[caption id=“attachment_84145” align=“alignleft” width=“380” caption=“Tetley, in comparison to the Corus and JLR deals, was relatively small - but important. Reuters”] [/caption]

That’s a lot of gloom - and, an unlikely hero can be found in an Indian brand name - Tata.

Tata, which has spent $15 billion buying Tetley, Corus and Jaguar Land Rover, has not only bucked the trend, but contrary to fears in the UK, has stayed focused in the UK and retained the original names and brands - and has grown and added numbers to the workforce it inherited through these acquisitions.

“Tata UK is now the country’s biggest manufacturer, with almost 40,000 workers - just ahead of British Aerospace. Bring in Tata’s service industries, such as consultancy, and the payroll tops 45,000. Its presence in Britain is part of a growing trend. Britain is second only to America as a destination for investment by emerging-market firms, many of them from India,” says The Economist.

For Ratan Tata, everything is going according to plan. In an interview with CNN-IBN editor Rajdeep Sardesai immediately after the acquistion of Corus, Tata had said, “Corus was big, because it had a strategic value to us in Europe. It had scale and, more importantly, it had a human chemistry in its management, which was compatible.”

When the Tatas took over Jaguar Land Rover, WSJ had quoted Ratan Tata as saying, “We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact.” The WSJ report continues: “The turnaround of Jaguar Land Rover has become part of corporate lore and management textbooks. For the 12-month period ended December 31, 2010, the automaker’s revenue was in excess of 9.2 billion ($15 billion), and net income for that period was $1.5 billion.”

Tetley, in comparison to the Corus and JLR deals, was relatively small - but important. India Today reported in 2000: “Indeed the Tetley acquisition was almost the clarion call. Almost prophetically, Tata Sons chairman Ratan Tata said, “It is a bold move and I hope that other Indian corporates will follow”.”

The Tata success story - especially the chapter that deals with the increasing workforce in the countries where they make acquistions - is one that builds Brand India. India has struggled to build a brand that is truly global, save for ‘sectors’ like IT. The acquisition and development of already recognisable global brands is an alternative route that increases the credibility of India - and perhaps much easier than introducing a brand to a new consumer base - and, if handled right as Tata has done, delivers results much faster.