Tata Industries executive director KRS Jamwal is visiting Israel to tighten ties with Israeli academic institutions.
Six months ago, Tata Industries, which focuses on innovation at Tata Group, signed an agreement with Tel Aviv University to make a $5 million anchor investment in a $20 million fund that will invest in the university's technologies. Ramot at Tel Aviv University Ltd. CEO Shlomo Nimrodi says that the fund will soon raise the rest of the money.
"Almost most of Tata's income now comes from outside India, we have not sufficiently exploited technology as a competitive advantage. We mainly operated in emerging markets where there was demand for our products, including products that are not at the forefront of technology."
In recent years, especially since Cyrus Pallonji Mistry was appointed Tata Group chairman in 2012, the company has been emphasizing technology. It already collaborates with Israeli defense companies.
Tata is collaborating with Israeli companies on nutrition security, which includes better use of water, crop enhancements, and food transportation. "India, like Israel, has little farmland relative to its population. India produces 220 million tons of food a year, and consumes the about same amount, but much of the population is undernourished," says Jamwal. "The problem is that farmers cannot make profits to invest in advanced technologies, creating a vicious circle. They're stuck with grade B seeds, they have no greenhouses, and they're completely dependent on the weather. Many innovative Israeli technologies allow better use of what already exists in agriculture, and at a reasonable price."
"Globes": You've bought brands such as Land Rover and Jaguar. Will you acquire more giant companies?
Jamwal: "We'll pay attention to opportunities, but this is not our main way. We've always been very focused on organic growth and the establishment of new businesses in-house."
As for possible acquisitions in Israel, Jamwal said, "There are no plans at the moment, and the activity is mainly with universities. Our relations with Israel are fairly new."
Tel Aviv University recently announced the establishment of a research institute in China, at an investment of a few million dollars. The Technion Israel Institute of Technology has also announced collaborations in China, in addition to its collaborations in the US.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2013
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