Trading and distribution company TATA International Africa's uptime strategy has allowed it to improve turnover and profitability over the past year.
It also supports the pursuit of its growth and expansion objectives, says TATA International Africa CEO Len Brand.
The group also launched a retail finance offering, which it says is a strong proposition for businesses in Africa and supports opportunities for growth in African markets.
“Our team has worked exceptionally hard over the past four years to set up the necessary structures and our uptime strategy is working well. Technologies in construction and agriculture products will continue to improve, enhancing our ability to diagnose and predict problems remotely. Drones will also perform more crucial roles in the agricultural field. All of this is positive for us, as it supports our uptime strategy,” says Brand.
TATA Trucks and Buses, Daewoo Trucks and John Deere construction and agriculture equipment are the core brands of TATA International and, while having global commercial vehicle brands helps, having a good understanding of the environments in which these products operate is critical to ensuring sustainability, he emphasises.
“Having an appropriate range of products, a reliable parts supply network, the right support structures in place and an intimate knowledge of the environments in which we operate, have all been instrumental in our success.”
The record of the past two-and-a-half years has set TATA International Africa up for growth, which is the next phase for the business, he says.
“In April and May 2020, our turnover was down considerably. However, from June onwards, it achieved close to budget and exceeded it in the third quarter. Turnover and profitability have been stronger than last year and we estimate that our profitability percentage will be up by double digits.
“We are now ready to pursue growth through expansion and acquisition. We are determined to double our turnover over the next four years. We know what we are good at, and we know the types of products and services we want to be involved with; this keeps us focused,” he says.
TATA International's ethos will remain focused on improving the lives of people and communities in a sustainable way, he adds.
“I personally have a passion for small farmers, so I’d like us to continue to make a difference in that space,” says Brand.
Meanwhile, the company is also monitoring developments in electric trucks and busses and sees potential opportunities linked to solar power, with TATA International Africa already having invested in a solar distribution business in South Africa.