Niira Radia enters healthcare business; Ratan Tata inaugurates first hospital

Making a comeback, PR veteran and former corporate lobbyist Niira Radia has ventured into healthcare business through a new entity Nayati Healthcare, whose first hospital was inaugurated in Mathura on Sunday by Ratan Tata.

Inaugurating the 351-bed multi super specialty hospital, Mr. Tata said, “It is heartening to see a full fledged specialty hospital being established in Mathura with considerable personal sacrifice, driven by passion and a genuine desire to serve the community.”

The hospital would provide “much needed medical help and health care facilities for the people of the region”, the Tata Group chairman emeritus said.

Ms. Radia said the hospital is poised to serve not only the population of Western Uttar Pradesh but will be the centre of excellence for the whole of North India.

The hospital would aim to reduce the physical, emotional and economic burden of illness that blights the life of ordinary people in tier II and tier III towns by taking treatment to the patients, she added.

Nayati Healthcare & Research, a multi super specialty healthcare chain, has decided to start operations in Tier II and Tier III cities.

Ms. Radia, once known as an influential corporate lobbyist, had landed in controversy few years back following the leak of her alleged taped conversations with prominent politicians, businessmen and media persons.

Subsequently, she wound up her PR business comprising among other entities of Vaishnavi Corporate Communications, which handled various clients including the Tata Group and Unitech and of Neucom Consulting which managed the account of Mukesh Ambani-led Reliance Industries.

When asked about her past experiences, Ms. Radia asserted that she had no regrets.

“I was never a corporate communications person, never a corporate lobbyist as they keep on calling me... Success has a price but I don’t have any regrets,” Radia said.

“Do I regret (that I was) in the corporate space? I think it was a huge learning,” she noted.

About her foray into the healthcare space, Ms. Radia said, “I have found my calling.’

Talking about her business model, Ms. Radia said it would have to be “economies of scale... It is all about people”.

“We have to be sensitive to affordability,” she said, adding that the entity has not slashed prices but is only being sensible when it comes to pricing.

On financial aspect of the venture, she said they are very cautious as there is support of bank loans.

However, specific details were not disclosed.

Read More

Investing in startups easier than investing in large companies, says Tata

Ratan Tata, Chairman Emeritus of Tata Sons, on Thursday said that he would consider investing in young and dynamic startups than in large enterprise as the challenges associated in startup funding was lesser than investing in complex entities.

Mr. Tata, who has invested in 25 startups in the country, said that the quality of the founders, their passion and the concept were more relevant while investing in these startups.

“The challenge in investing in a startup is less than investing in stock market systems. At the same time, the risk profile could be higher. In my view, the risks and difficulties involved with startups are less in magnitude than investing in a major company that has got millions of rupees tied up in a new project,” he said.

In his personal capacity, Mr. Tata has invested in Snapdeal, Ola, Xiaomi, Kaaryah, Bluestone.com, Teabox.com, Urban Ladder, Alteroes Energies, among others.

Asked about the government’s move to provide financial supports for startups, he said that it would help the ecosystem and was a good initiative. But, Mr. Tata said that it would not solve the various problems faced by startups in the country.

“I do support the government. Though it has not completely spelt its plans, it is giving is a good thing for the startup industry. It is not going to provide all the answers but it is going to provide some support.”

Replying to a query on his investments in startups, Mr. Tata said, “My investments are relatively small and are private. The public announcements of my investments in an industry that I am learning really cringes me.”

Earlier, he announced his partnership with the University of California’s (UC) Office of the Chief Investment Officer (CIO). Through the partnership Mr. Tata’s private company and UC CIO would invest in companies in sectors such as e-commerce, health, payment, financial services, among others.

In December, the UC CIO appointed Mr. Tata as a senior advisor on international policy, including investment opportunities and strategies in Asia.

UC’s fund is around $91 billion which includes portfolio of retirement, endowment, and cash assets. According to reports, UC CIO is planning to invest up to $1 billion in the Asian market over the next three years.

Keywords: Ratan Tata, startups, investments

Read More

Tata Group looks at $350 billion market cap by 2025

With its listed firms adding over $100 billion to market capitalization in the last 15 years, the Tata Group is looking at an increase of nearly $250 billion by 2025, including through acquisitions.

The group will not shy away from global buyout activity and will continue to make significant investments in both existing as well as new businesses, including in the digital space to meet its vision 2025 targets.

It is looking to build on the platform set up by its previous Chairman Ratan Tata, who made ‘the difference’ and transformed the group from a largely India-oriented entity into a global multinational.

“At the turn of the century, we had a relatively small market cap of just under $8 billion. We have added a 100 billion dollars plus to that in the last 15 years. I am quite confident that this will continue to grow,” Member — Group Executive Council and Brand Custodian, Tata Sons, Mukund Rajan told PTI.

The Tata Group has over 100 independent operating companies out of which 29 are publicly-listed. The listed entities had a combined market capitalisation of about $134 billion as on March 31, 2015. It has presence in over 100 countries across six continents. The main listed Tata group companies, include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

2025 vision

When asked about the target M-cap under the group’s 2025 vision, Mr. Rajan said: “Today we are well over $100 billion.

By 2025, if we want to be amongst the 25 most valuable companies in the world, the number we would need to hit would be around $350 billion.”

As per its 2025 vision, Tata group aims to be amongst “the 25 most admired corporate and employer brands globally, with a market capitalisation comparable to the 25 most valuable companies in the world.” Recollecting how the Tata group has grown, Mr. Rajan said: “In 2000, we were principally an India-based group with 20 per cent of our turnover generated outside India. Fast forward 15 years, and we are now substantially a global group with $108 billion of turnover, 70 per cent of it generated outside of India.”

The group has been growing both in the publicly listed space and also in the unlisted space, he added.

“If you look at the true valuation of Tata enterprises (today) as a group, it would in fact be substantially higher than what the additional $100 billion of market cap represents,” he said.

Elaborating on the role played by Tata Sons Chairman Emeritus Ratan Tata in transforming the group, Mr. Rajan said: “Where we are today, owes much to the critical strategic choices that Mr Tata made after India started liberalising and opening up its market.” Tata had decided to benchmark the group with the best in the world and “not just confine the group to the domestic market but to become an international player”.

“What was clear to Mr.Tata in the 1990s was unless we were able to hold our own against the best in the world, foreign competition would come into the domestic market and encroach on our market share and business,” he added.

Underlining Tata’s risk-taking ability and strong leadership, Mr. Rajan said: “Very often you say that one man can make the difference. I can confidently assert that for Tatas that one man was Mr. Ratan Tata. If we had not had him as our leader, I do not believe we would be in the position that we are in today.”

With the group taking the acquisition route successfully, such as Tetley, JLR and Corus to expand globally, it will not shy away from such activity again.

“I can’t predict what the future will bring to us but what I can certainly say is that thanks to Mr.Tata we have the courage to make such acquisitions and when opportunities present themselves, we will appropriately deploy our learnings from the past in any future acquisitions,” Mr. Rajan said when asked if there could be as big an acquisition as Corus or JLR by the Tata group again.

Clearly stating the group’s appetite for inorganic route of growth, he said: “We have significant cash on the books of many of our companies. When we contemplate acquisitions, the timing will have to be picked carefully and we will need to pick the right moment in the economic cycle to close those acquisitions.”

Mr. Rajan, however, said apart from acquisitions the group would need to continue to make significant investments in both existing businesses and some of the new businesses, including in the digital space to meet its vision 2025 targets.

“There are new markets that we need to expand our footprint in. Obviously, markets like China will continue to grow in stature and size and we need to correspondingly ensure that our focus in those markets is also enhanced,” he said.

Besides, Mr. Rajan said: “We need to see growth in multiple domains, and multiple markets, including India. India also offers dramatic growth opportunities, and with the kind of projections being made for India, a significant part of our growth will come from this market also.”

Read More