OREANDA-NEWS. Indian firms are increasingly looking to Africa as an investment destination. While the country's largest telecom operator Bharti Airtel announced a big-ticket entry in 2010 by acquiring the African operations of Zain for USD 10 billion, the salt-to-software Tata Group, which has had a long presence in the region (since 1977), is gradually strengthening by expanding through its various business verticals. The Tata group, which has a committed investment of USD 1.7 billion in the continent, gets an annual turnover of USD 2.3 billion and expects to grow by 30% every year.

Similarly, Bharti Airtel today offers mobile services across 17 countries in the region, making it the largest amongst all telecommunication service providers in the continent. Apart from the USD 10 billion the company spent in acquiring Zain, it has invested another USD 3 billion making its total investment as on date to USD 13 billion with a customer base of over 61.7 million.

The ongoing two-day India-Africa Conclave in the Capital underlines the significance of trade relations between the two regions and industry leaders as well as government officials believe that many more investors would invest in Africa following the example of the Tata Group and Bharti Airtel.

The bilateral trade between India and Africa touched USD 60 billion in 2011 from USD 3 billion recorded in 2000. In 2011, India accounted for 5.2% of Africa's global trade and is the latter's fourth largest trade partner. In 2011, Africa had a USD 14.8 billion trade surplus with India. In fact, the trade target has been now raised by USD 10 billion to touch USD 100 billion by 2015.

Key officials of the Tata Group handling different business verticals in the Continent on Monday outlined the Group's presence and investment thrust in the region. Tata Motors, for instance is looking to set up new assembly facilities through local partners in countries like Tunisia and Kenya. The group's hospitality chain Taj Hotels Resorts and Palaces is also considering proposals from three-four countries to set up new properties. "The business models which work in India can work in Africa and we would like to widen and deepen our business in Africa," Tata Sons brand custodian and chief ethics officer Mukund Govind Rajan told a group of journalists on Monday.

When asked about revenue growth from the Continent in future, Tata Africa Holdings managing director Raman Dhawan said, "It is expected to grow at around 30% every year”.

Tata Africa Holdings, a wholly-owned subsidiary of Tata International, serves as the headquarters for Tata operations in Africa. Commenting on the plans for assembly operations, Tata Motors head, international business- commercial vehicles business unit, R T Wasan said, "We are looking at new assembly operations in Tunisia and Kenya through local partners. We are focusing on small, light and medium commercial vehicles”. Tata Motors has a commercial vehicles assembly plant in South Africa.

Wasan said the company will also start bus body building in South Africa through its global partner Marcopolo soon. He, however, said at present there were no plans for starting assembling passenger cars in Africa although the company is "evaluating" options about the Nano in Africa.On the hospitality front, Dhawan said Taj Hotels Resorts and Palaces has a property at Lusaka in Zambia and Cape Town in South Africa. "We are looking to expand in other African countries. We are considering proposals from 3-4 countries. All of these properties may not necessarily be in the luxury segment but they would be appropriate for the African market," he added.

The Tata Group entered Africa way back in 1977 in Zambia through its trading arm, Tata International. Today nine of its firms, including Tata Motors and Tata Consultancy Services, have presence in the continent.