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Saturday, August 1, 2009

INDIAN COMPANIES TARGET AFRICA

The first Indian entity to set foot in Africa was the Tata group, which in 1977 opened an office in Zambia and sold vehicles. Since then the group's operations has expanded to tea, hotels, coal mines, telecom and soda ash, with investments over $1.5 billion across seven countries.

Over the last several years, major Indian groups like the Jindals, Godrej, Kirloskar, Infosys, Vedanta, Mahindra & Mahindra, Dabur and L&T, besides others, too have sought to tap the underdeveloped markets of Africa.

Essar, that now owns a 50% stake in 80,000 barrels-a-day refinery in Mombasa, said it will invest $350-450 million towards upgrade of the facility. It bought the stake from three oil majors — Shell, BP and Chevron — with the balance held by the Kenyan government. This is Essar's second business venture in Africa, where it is also a cellular operator under the Yu brand. The quest for energy security has driven companies including ONGC Videsh hold stakes in exploration blocks in the region.

SOURCE: http://timesofindia.indiatimes.com/NEWS/Business/India-Business/Essar-Energy-acquires-50-in-Kenyan-firm/articleshow/4844302.cms

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