Tata Group cools expansion plans

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Indian conglomerate Tata Group says it will reduce its acquisitions because of increasing problems in raising capital.

The group's chairman, Ratan Tata, asked the 96 companies under the Tata brand to defer further expansion plans unless they were strategically motivated.

He also asked the companies to make savings by cutting spending.

The announcement came soon after one of Tata's companies, Tata Teleservices, sold a 26% stake in itself to Japanese firm DoCoMo for $2.6bn (£1.7bn).

In recent years, Tata Group has been aggressively buying stakes in domestic and international companies, following up on a policy of global expansion.

But now much of Indian industry is taking a more financially prudent stance, given the impact of the global financial slowdown.

All the major carmakers in India, including Tata Motors, reported falling sales in October.

Some of Tata's auto plants were temporarily closed to prevent the build-up of unsold stock.