Tata International looks to grow global footprint: report

Tata International Ltd will pour $100 million into two new joint ventures with Japan’s Mitsubishi Corp. and Switzerland’s Mercuria as the trading arm of Tata Sons looks to scale its global footprint, Mint reported, citing people in the know.

The Tata Sons board last week cleared the plan for its subsidiary to team up with Mitsubishi Corp.’s Mobility Group in Africa, creating a multi-brand distribution business spanning commercial vehicles, construction, and agricultural equipment.

Tata will hold a 51% stake in the venture with a $51 million investment, while Mitsubishi will put in $49 million for the remaining stake. The entity is expected to be formally named in the coming months.

In a parallel move, Tata International struck a deal with Mercuria, the $110 billion trading house, to form a 51:49 joint venture covering physical and derivatives trading in energy, metals, freight, and agricultural commodities. Together, the partners will inject $100 million into a holding company, Meta, in line with their stakes.

The trading firm, chaired by Tata Trusts’ Noel Tata, already spans leather, steel, and agricultural products. Other senior Tata executives, including Tata Steel CEO T.V. Narendran and Tata Chemicals CEO R. Mukundan, serve on its board, while Tata Sons chairman N. Chandrasekaran also chairs several group companies such as Trent and Voltas.

The partnerships underline Tata International’s bid to gain scale in commodities, vehicles, and construction materials after decades of operating in niche businesses such as leather exports and automobile distribution.

Founded in 1962, Tata International operates in 27 countries but has yet to make a significant mark on the global trading stage. The tie-ups with Mitsubishi and Mercuria mark its most ambitious attempt in years to change that.