OREANDA-NEWS. July 27, 2011. Tata Capital, a subsidiary of Tata Sons, today, announced that it will form a joint venture company with Groupe Aeroplan (TSX: AER), the Canadian loyalty marketing giant, to launch a multi-party coalition loyalty programme in India. Tata Capital and Groupe Aeroplan have signed a Memorandum of Understanding (MoU) as a confirmation of their intent to form the joint venture company.

The loyalty programme will be modelled on the lines of Nectar; which is Groupe Aeroplan’s highly-acclaimed coalition loyalty programme in the UK and Italy. The programme will leverage the brand, scale and reach of the Tatas in India and is expected to substantially drive, and benefit from, the rapidly evolving retail and consumer marketing landscape in the subcontinent. This innovative programme retains the initial objectives of ‘Empower’, India’s first multi-brand coalition loyalty programme, which was launched by Tata Sons in 2006.

Speaking on the MoU, Praveen Kadle, managing director and chief executive officer, Tata Capital, said, “Indian consumerism has evolved manifold over the last decade and offers significant potential for a coalition loyalty programme. Realising this potential requires an established global player which has the necessary expertise and proven track record in launching and managing successful loyalty programmes across geographies. We are pleased to join hands with Groupe Aeroplan, the global experts in loyalty management."

Jeff Balagna, chief executive officer, Groupe Aeroplan for the USA and Asia-Pacific, said, “As we expand our global presence by entering the critical and rapidly-growing Indian market, we could not ask for a better joint venture partner than Tata Capital. The Tatas, with their exemplary business standards and deep understanding of the Indian consumer across multiple sectors, will be an invaluable partner for Groupe Aeroplan as we build, strengthen and then deepen relationships with the Indian consumers."

Akash Sahai, managing director, Groupe Aeroplan for India, said, “We are thrilled with the opportunity to create the leading loyalty programme in India. We have immense faith in the Indian market and its potential for growth. We are in active discussions with a number of highly-respected companies both within and outside of the Tatas to join our programme and look forward to making several exciting announcements in the near future.”