TIL is the leading investment company for Tata Group 's strategic investments in the areas of new technology and high technology, which complements Tata Sons' investment philosophy. TIL also provides strategic advice to other Tata Group companies.
TIL has incubated several companies, including the auxiliary automobile (TACO), defense (Tata Advanced Materials Ltd. (TAML)), telecom, logistics and switchboard industries. supply (Drive India Enterprise Solutions Ltd) and the Bangalore computer park. Tata Strategic Management Group (TSMG) and a division of education, Tata Classedge.
Activities are incubated in TIL and divested to separate segments within the group as they reach critical and sustainable levels. Disinvestment proceeds are used to invest in ongoing initiatives in areas such as e-commerce, health care and technology.
CRISIL has assigned the rating "AAA / Stable" to the Company's non-convertible debentures. TIL is expected to raise borrowings of up to 6,000,000 RR for investment in Tata companies.
TIL's income was reduced to 391 million rupees during the 18th year, compared to 391 billion for the 17th year.
The ratings reflect the strong support of parent company Tata Sons Ltd. It has made it clear that it intends to retain a controlling interest in TIL and help TIL repay the lenders and creditors in a timely and complete manner.
The rating also reflects TIL's strong management capacity in incubating new businesses. These strengths are partially offset by the volatility of emerging company returns and their inherent risk.
Rating agencies have reported low returns for TIL, prompting start-up companies with a relatively high degree of financial, commercial, technological and regulatory risk. But these risks are partially offset by strong parentage, access to capital, well-qualified management and an effective risk management framework, CRISIL said.