Ratan Tata was in headlines through out the world when he single handedly accomplished two mega deals CORUS for Tata steel and Jaguar,Landrover for Tatamotors.
There was a lot of speculation about whether it was right to buy jaguar and
Landrover.Jaguar hasn't made money in decades, but has eaten up tens of billions of dollar in investment. Land Rover is barely profitable, but probably not enough to offset Jaguar's losses. People groan about supposed mismanagement from Ford, but the truth is that Ford put way too much attention and money into these brands while ignoring their own marques like Lincoln that actually made good money. Also, even BMW couldn't get much out of Land Rover, even in the age of cheap gas prices and the peak of the body-on-frame SUV craze.Though TATA could make a case of selling lots of Jaguars and Land Rovers to India's emerging rich, as a type of foreign, yet patriotic Indian pride bride, but it remains to be seen if there's enough of such folks, and whether these vehicles can be imported without stifling tarriffs.
However, the present circumstances are entirely different . We are in midst of severest form of credit crisis. Although Tata and Birla are well known in India, they are not as much known overseas. Since almost all western banks are in trouble, they are unable to raise necessary finance their overseas acquisition – Corus (for Tata Steel), Jaguar (for Tata
Motors) and Novelis (for Hindalco). They are now at the mercy of the foreign vultures.Should India and Indians abandon these worthy Industrialists who created millions of jobs, made India independent in basic industries without foreign help, donated thousands of crores in charities in building temples (Birla Temple in Shahad, Kalyan (Maharashtra) is one of them), educational institutions like BIT (Birla Institute of Technology), Tata Institute of Social Science (TISC at Chembur, Mumbai) Tata Institute of Fundamental Research (TIFR),IISC, hospitals, schools, nurseries, Tata Consultancy Service (TCS) and what not for the benefit of Indian society regardless of cast, creed or color, and also paid thousands of crores of Income Tax, Excise duty, Sales Taxes, Professional taxes to the national and state exchequer for over 60 years?
It is now pay back time, Mr. Prime Minister and Finance Minster
Ratan Tata is going pillar to post for lousy $12 billions whereas Mr. Birla for paltry $5 to 6 billions to finance their overseas acquisitions. When the world is denying them these paltry sum, for its own reasons of bankruptcy, why not India with over $300 billions of Forex reserve which is earning lousy 1 or 2% interest and invested in country like USA, help our own businessmen which in turn would help Indians.
If Indian Forex Reserve does not come to the help of India’s best industrialists, what is the use? Should we allow our Forex reserve for the use of Americans who has been simply wasting all resources and using them to create toxic waste.
This is the time when Leaders should avoid politics and work for the country.I remember Ratan tata statement when he was asked about the competition faced from Reliance .
His words were I can compete with reliance in business but not in Political circles.(This statement says alot about Indian politics)
Lastly of course, Iam not suggesting to give them free money.Finance them on set of conditions:)
Do give your comments on this issue.
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