Five years ago, when Ratan Tata, chairman of the Tata Group, bought Tetley, a British institution, for $430.9 million, he said in a world where brand strength is crucial, the acquisition would provide his company, Tata Tea, with a "global opportunity". Today his words are being echoed across India Inc boardrooms.

PICTURE SPEAK

SAY CHAI: Once British, Tetley is now truly Indian

From copper mines in Australia which bear Aditya V. Birla's imprimatur to Ranbaxy's acquisition of RPG Aventis to strengthen its market in Europe, it's a reorganisation of the world according to India.

The British with their passion for understatement may call it a partnership. But whether it is in the tea room at Harrods or at home discussing Eastenders, there is an English brand now that will forever be Indian. "It used to be said that Indians can't run big companies, but not anymore," says Alpesh Patel, a UK trade analyst, while economist Lord Meghnad Desai believes India will have more MNCs. As he says, "We have to shed the victim mindset of regarding British companies as something special because of the Empire."

For Tetley, the deal has been mutually beneficial. The Tata Group was looking for a partner to further its global expansion and Tetley, as the world's No. 2 teabag brand, proved ideal. For India was seen as a tea producer, not a marketer or strong brand. The purchase of the Tetley business, twice the size of Tata Tea, represented the largest cross-border venture by an Indian firm, beating competing interests from Sara Lee and Nestle.

15 Assets in 13 countries in four continents were acquired by ONGC for $4,300 million. 22.9 billion dollars is the Net profit notched by corporate India in 2004-5. 1.7 million dollars is the Value of international acquisitions by Indians in 2004.

The relationship has so far been cosy. No management changes were introduced: there were no upheavals or resignations. "There was no attempt to merge the Tata Tea and Tetley brands, they are superbrands with separate roles," says its communications chief Sara Howe.

With corporate India raking in an all-time high net profit of over $22.9 billion in 2004-5, the new aggression is evident. This year, the Taj Group signed a management contract for Manhattan's The Pierre Hotel and Videocon acquired Thomson SA's colour picture tube business in Europe. Industry watchers hazard that India will be one of the biggest players in the M&A business in the next four years. Already there are 15 Indian firms in the Forbes 200 roster of the best-emerging companies; China has just six. The new attitude is seen in India Inc with the traditional caution towards using up precious foreign exchange giving way to a more strategic approach.

Nothing symbolises it better than Tetley itself: a Chinese invention, a British brand, run by an Indian multinational.

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