tata

It was probably the last straw for Tata Motors when two of their security guards were beaten up by a mob .What was worse is that this happened in the night despite heavy police presence early on Tuesday. Both guards sustained severe injuries and are now recuperating. Less than 24 hours after this incident the crew at the Tata factory in Singur have been told to slowly start moving out all their manufacturing equipment and relocate.Though no formal announcement has been made that the Tatas have finally decided to walk out of West Bengal with their Nano, it is quite safe to assume the same.

With a share rights issue expected to hit the market next month, this development will undoubtedly cause confusion in investors’ minds, unclear about the future.

For a country which doesn’t like to hear the term ‘Socialism’, the US government backed bailout of insurance company AIG is exactly that: pure unbranded socialism. Politically the government might have given it a spin saying that this was a bailout of AIG’s consumers and insurance policy holders and not the shareholders. The fact however remains that this bailout was necessary to prevent a bigger stock market crash across the world. Had AIG not been saved by the US Federal Reserve, the ripples would have been massive for the Indian markets because apart from the obvious global impact, AIG is also an important stock holder in many Indian equities.

Titan Watches, India’s most popular watch brand have made a decision to enter the manufacturing of plastic fiber watches. It should be noted that Titan has an impressive array of plastic/fiber watches that are already being sold under their ‘Fastrack’ franchise. This is a brand that is aimed at the high end watch market with a specific focus on the fashion conscious youth sector. The same aim has been continued by glitzy marketing campaigns and forays into retail. The new line of plastic watches will however be manufactured under Titan’s ‘Sonata’ brand.

Earlier today, the Chairman of the Tata Group made a very strong statement in a press conference: “We perceive that we may not be wanted……if people think that we will not move out of Singur, they’re wrong. We would, whatever be the cost.”

In Tata Motors’ long term interests Singur has become a flash point and a hot bed for political activity. The average Indian will however be synonymous with Singur as the chief production facility of the World’s cheapest car. The much talked about 1 lakh people’s car or the Nano.

This statement is the first clear indication by Ratan Tata that he isn’t interested in dealing with the violent politics of Singur. Ratan Tata is not the type of man who uses the media to play around which means that today’s statement is a forecast of what WILL happen unless things change at ground zero in Singur.