Tatas to infuse $350 mn in startup cos abroad
Tata Industries, one of the two holding companies of the Tata Group, will invest up to $ 350 million to fund early-stage ventures overseas in sectors such as bio-technology, drug discovery, contract research, solar energy and water-recycling.
By ET Bureau |
HYDERABAD: Tata Industries, one of the two holding companies of the Tata Group, will invest up to $ 350 million to fund early-stage ventures overseas in sectors such as bio-technology, drug discovery, contract research, solar energy and water-recycling. The debt-free company is also open to raising funds through a rights issue to fund firms in emerging sectors here, said Kishore Chaukar, Managing Director Tata Industries. An IPO is ruled out as the company would not have the leeway to take huge risks.
Tata Industries (with Tatasons, the other holding company) has already disbursed around Rs 125 crore to a few early stage ventures. The funding ranges between Rs 60 lakh to around Rs 50 crore, depending on the venture.
Featuring in this list is Indigene, a bio-pharmaceutical firm, involved in developing and delivering molecular combination products both for global prescription and consumer healthcare markets.
Start-ups in contract research and drug discovery are high on TILs agenda due to the potential spin-offs from such ventures. The group has also has an R&D firm Advinis which is into drug discovery. The investment in this segment alone is around Rs 80 crore.
���We will infuse more funds, once the proof of concept is established and the venture can be scaled up. We will look at garnering revenues from out-licensing molecules that are successfully developed. But we will not get into making formulations,��� Chaukar said.
He was clear the group has no plans just yet to re-enter the pharma business that it exited a couple of years ago. It has also funded a project to develop the technology for a flexible solar photovoltic cells for efficient power generation. If the venture is successful, the company could look at investing around Rs 1,500 crore to set up at least two power plants.
But money will have to come from sister concerns (Tata Power in this case) if the investments are huge. The company also plans to invest around $ 15 million (Rs 70-80 crore) to replicate a medical application technology ���used by the US defence forces ��� for tracking health profiles of people in India. But unlike venture capital funds, TIL does not exit ventures after funding. ���The game plan is to keep scanning for VC-type ventures and make them scalable,��� he said. TIL is a closely-held company of the group and its assets stood at around 2,700 crore in FY07.
Tata Industries (with Tatasons, the other holding company) has already disbursed around Rs 125 crore to a few early stage ventures. The funding ranges between Rs 60 lakh to around Rs 50 crore, depending on the venture.
Featuring in this list is Indigene, a bio-pharmaceutical firm, involved in developing and delivering molecular combination products both for global prescription and consumer healthcare markets.
Start-ups in contract research and drug discovery are high on TILs agenda due to the potential spin-offs from such ventures. The group has also has an R&D firm Advinis which is into drug discovery. The investment in this segment alone is around Rs 80 crore.
���We will infuse more funds, once the proof of concept is established and the venture can be scaled up. We will look at garnering revenues from out-licensing molecules that are successfully developed. But we will not get into making formulations,��� Chaukar said.
He was clear the group has no plans just yet to re-enter the pharma business that it exited a couple of years ago. It has also funded a project to develop the technology for a flexible solar photovoltic cells for efficient power generation. If the venture is successful, the company could look at investing around Rs 1,500 crore to set up at least two power plants.
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But money will have to come from sister concerns (Tata Power in this case) if the investments are huge. The company also plans to invest around $ 15 million (Rs 70-80 crore) to replicate a medical application technology ���used by the US defence forces ��� for tracking health profiles of people in India. But unlike venture capital funds, TIL does not exit ventures after funding. ���The game plan is to keep scanning for VC-type ventures and make them scalable,��� he said. TIL is a closely-held company of the group and its assets stood at around 2,700 crore in FY07.
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