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Tata to spend Rs 300 crore over next five years on brand building

19-July-2002
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Tata to spend Rs 300 crore over next five years on brand building

The Tata group plans to spend around Rs 300 crore over the next five years on brand building. The group’s aim is to generate 60-70 per cent of its total revenues in the next ten years from branded products. In 1991, 10 per cent of the group revenue came from branded business. At present, the share of branded products in the total business is 40 per cent.

According to inside sources, three things would drive the group to support the brand-building exercise—delivering economic performance with consistency, growth with entrepreneurship and pride through people.

According to sources, the payback period for the Tata group's IT and telecom initiatives has been pegged at between seven and eight years.

Hitherto, the group has had company-led growth plans. Henceforth, the board of Tata Sons would decide on forays into new business and provide the performance matrix for individual group companies, which would then be responsible for chalking out their plans.

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