Mumbai: Tata Steel has offered to acquire Brazilian iron ore miner AVG, which is owned by global mineral giant MMX, reports quoting its president Eike Batista said.

He, however, did not reveal the price offered by Tata, but said a deal could be made if Tata guarantees reciprocal investments.

''Tata has offered to build a car plant on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro,'' The Steel Business Briefing quoted a Eike as saying.

MMX Mining and Metallics SA, the owner of AVG, may accept the Tata Steel offer, provided the Tatas agree to set up a car plant in Rio de Janeiro. MMX could sell as much as 50 per cent stake in AVG to the Indian steel giant, the report added.

Brazilian media reports also said Tata Group chairman Ratan Tata was planning to invest about $15 billion in Brazil.

"Brazil has a huge potential market. I am naturally attracted to it," a report quoted Tata as saying.

The Tata Group has nearly 20 executives in Brazil to decide exactly where to make investments, the report said, adding that the group is especially interested in the areas of ethanol, beverages, automobiles and metal production.

MMX bought AVG last year for $224 million. It has a current annual production capacity of around 2.3 million tonnes. MMX has plans to integrate this asset into its recently acquired Minerminal mineral company and expand the combined out put to 6.1 million tonnes this year and up to 10 million tonnes by 2010, the report added.

Tata also wants to build a nuclear power plant in Brazil and is looking for partners, the report said.

Italian automaker Iveco will participate in the production of pick-ups and trucks for Tata Motors in a plant in Sete Lagoas, a city in the Brazilian state of Minas Gerais.

Tata Motors also plans to manufacture the Safari, its best selling sports utility vehicle in India, in Brazilian.

The Indian conglomerate is also interested in the raw materials of Brazil, which has one of the world's largest reserves of minerals and iron ore, the report added.