Tata manendra

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The Tata Group (Hindi: टाटा समूह) is a multinational conglomerate based in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India and has been recognized as one of the most respected companies in the world.[3][4] It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in seven business sectors [5], 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts.[6] Companies which form a major part of the group include Tata Steel, Corus Steel, Tata Motors, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Tata Communications, Tata Teleservices, Tata AutoComp Systems Limited and the Taj Hotels.
The group takes the name of its founder, Jamsetji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is currently one of the major international business figures in the age of globality.[7] The company is currently in its fifth generation of family stewardship. [8]
The beginnings of Tata Group can be traced back to 1868,when Jamsetji Nusserwanji Tata established a trading company dealing in Opium in Bombay.

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Tata manendra

  1. 1. PRESENTED BY Manendra & Team
  2. 2. INTRODUCTION India’s largest business group Diverse businesses in 7 sectors International income 61% of group revenue Operations in over 80 countries Products and services exported to 85 countries Largest employer in private sector over 300,000 employees Group revenue FY 2008: Rs 251,543 cr/$ 62.5 bn Group profit FY 2008: Rs 21,578 cr/$ 5.4 bn
  3. 3. <ul><li>The beginnings of Tata Group can be traced back to 1868,when Jamsetji Nusserwanji Tata established a trading company dealing in Opium in Bombay. </li></ul><ul><li>Sir Dorab Tata , the eldest son of Jamsetji became the chairman of the group after his fathers death in 1904. </li></ul><ul><li>After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till 1938. </li></ul><ul><li>He was succeeded by JRD Tata till 1991. </li></ul><ul><li>Ratan Tata , the incumbent chairman of the group </li></ul><ul><li>succeeded JRD Tata in 1991. </li></ul>HISTORY
  4. 4. Improve the quality of life of the communities we serve through leadership in sectors of national economic significance
  5. 5. Group Values Tata Code of Conduct
  6. 6. Ownership Promoter Companies 66% Public Trust Tata Sons 18% Other corporate shareholders 13% Tata Companies 3% Family 51% Other Tata Companies Tata Industries 29% Tata Sons 20% Jardine Matheson group
  7. 7. Business Sectors <ul><li>Tata Steel </li></ul><ul><li>Advance Materials </li></ul><ul><li>Taj Hotels </li></ul><ul><li>Tata AIG Life & General Insurance Companies </li></ul><ul><li>Tata Tea </li></ul><ul><li>Titan </li></ul><ul><li>Trent </li></ul><ul><li>Tata Motors </li></ul><ul><li>TACO Group </li></ul><ul><li>Voltas </li></ul><ul><li>Tata Chemicals </li></ul><ul><li>Rallis </li></ul><ul><li>Tata Power </li></ul><ul><li>Tata BP Solar </li></ul>Services Materials Energy Chemicals Engineering Consumer Products <ul><li>Tata Consultancy Services </li></ul><ul><li>Tata Teleservices </li></ul><ul><li>VSNL </li></ul>IT and Communications
  8. 8. Industry Pioneers
  9. 9. Role of Companies: <ul><li>Committed to improving quality of life of surrounding communities. </li></ul><ul><li>CSR expenditure budgeted before preparation of P & L accounts. </li></ul><ul><li>Active volunteering programme in group. </li></ul><ul><li>IIIustrative Initiative: </li></ul><ul><li>Tata Steel: HIV/AIDS programme. </li></ul><ul><li>TCS: Computer-based Adult Literacy Programme. </li></ul>
  10. 10. INFORMATION TECHNOLOGY AND COMMUNICATIONS <ul><li>INFORMATION TECHNOLOGY </li></ul><ul><li>TATA CONSULTANCY SERVICES </li></ul><ul><li>TATA TECHNOLOGIES </li></ul><ul><li>TATA ELXSI </li></ul><ul><li>TATA INTERACTIVE SYSTEMS </li></ul><ul><li>TATA BUSINESS SUPPORT SERVICES </li></ul><ul><li>COMPUTATIONAL RESEARCH LABORATORIES </li></ul><ul><li>COMMUNICATIONS </li></ul><ul><li>TATA TELESERVICES </li></ul><ul><li>TATA COMMUNICATIONS </li></ul><ul><li>TATA SKY </li></ul>
  11. 11. INFORMATION TECHNOLOGY TATA CONSULTANCY SERVICES ESTABLISHED :1968 MARKET CAP: Rs 47,242cr/$9.7bn <ul><li>Pioneer & leader in Indian Services </li></ul><ul><li>Current global ranking </li></ul><ul><li>No 11: Revenue No 3: Profits </li></ul><ul><li>Global footprint </li></ul><ul><li>Clients in 50 countries: 6 of Fortune Top 10 </li></ul><ul><li>Offices in 42 countries: Delivery Centers in 18 countries </li></ul><ul><li>Over 1,16,000 Associates </li></ul><ul><li>Full Service Provider: </li></ul><ul><li>IT services BPO </li></ul><ul><li>Infrastructure services Engineering and Industrial services </li></ul><ul><li>VISION: GLOBAL TOP BY 10 BY 2010 </li></ul>REVENUE 07-08: $5.7bn
  12. 12. COMMUNICATIONS TATA INDICOM ONE BRAND COMPREHENSIVE TELECOM SERVICE PORTFOLIO <ul><li>SERVICES: FIXED & MOBILE, VOICE/DATA/VAS </li></ul><ul><li>SEGMENTS: CARRIERES,CORPORATE,SME and INDIVIDUALS </li></ul><ul><li>NETWORKS: DOMESTICS AND INTERNATIONAL </li></ul>
  13. 13. COMMUNICATIONS TATA COMMUNICATIONS TAKEN OVER BY TATA : 2002 MARKET CAP: Rs. 12078Cr/$2.5 bn <ul><li>INDIA: </li></ul><ul><li>ENTERPRISE DATA AND MANAGED SERVICES </li></ul><ul><li>INTERNATIONAL AND DOMESTICS LONG </li></ul><ul><li>DISTANCE SERVICES. </li></ul><ul><li>INTERNET AND BROADBAND SERVICES </li></ul><ul><li>GLOBAL : </li></ul><ul><li>INTERNATIONAL WHOLESALE VOICE CARRIER </li></ul><ul><li>SUBMERINE CABLE AND BRANWIDTH </li></ul><ul><li>ENTERPRICE CONNECTIVITY & MANAGED SERVICES </li></ul><ul><li>ENTRY INTO SOUTH AFRICA(NEOTEL) AND CHINA(CEC) </li></ul><ul><li>LISTED ON NYSE </li></ul><ul><li>OBJECTIVE:TOP 3 SERVICE PROVIDER IN CHOOSEN MERKET </li></ul>REVENUE 07-08: $2.12 bn
  14. 14. COMMUNICATIONS TATA SKY ESTABLISHED: 2002 <ul><li>Direct-To-Home satellite TV services </li></ul><ul><li>JV WITH STAR </li></ul><ul><li>World class TV Viewing experience empowering </li></ul><ul><li>customers with choice control and convenience </li></ul><ul><li>DVD quality picture and CD quality sound </li></ul><ul><li>Range of interactive services </li></ul><ul><li>Launched: Aug.2006, record 2.3million activations </li></ul>
  15. 15. ENGINEERING <ul><li>AUTOMOTIVE: </li></ul><ul><li>TATA MOTORS </li></ul><ul><li>TATA AUTOCOMP SYSTEMS </li></ul><ul><li>TELCO CONSTRUCTION EQUIPMENT </li></ul><ul><li>ENGINEERING PRODUCTS,PROJECT AND SERVICES </li></ul><ul><li>VOLTAS </li></ul><ul><li>TATA PROJECTS </li></ul>
  16. 16. AUTOMOTIVES ESTABLISHED :1945 MARKET CAP: Rs:6,763cr/$1.4 bn <ul><li>India’s largest Automobile company by revenue </li></ul><ul><li>Jaguar Land Rover part of portfolio. </li></ul><ul><li>Leadership position in commercial vehicles </li></ul><ul><li>Global No 4 in M&HCV trucks; No 2 in Buses </li></ul><ul><li>No 3 in passenger car vehicles in India </li></ul><ul><li>Strongest Subsidiaries / Associates </li></ul><ul><li>Tata Daewoo, Hispano, Telcon, Tata Technologies, </li></ul><ul><li>European Technical center in UK and Tata Motors in </li></ul><ul><li>Thailand </li></ul>Objectives 2010 : Doubles sales to >1m vehicles; Thrust on growing International presence TATA-MOTORS REVENUE 07-08: $8.8 bn
  17. 17. TATA MOTORS-NANO Address largest part of the pyramids Expanding Domestic Addressable Market <ul><li>Price Rs:1,00,000 ~2000(exclusive VAT and freight) </li></ul><ul><li>Among the World’s least expensive car. </li></ul><ul><li>Family car-seats four comfortably </li></ul><ul><li>Fully complaint with safety and emission norms. </li></ul><ul><li>Engine: 623cc; 33PS </li></ul><ul><li>250,000 capacity plant coming up Sanand,Gujarat </li></ul>
  18. 18. AUTOMOTIVE TATA AUTOCOMP SYSTEMS ESTABLISHED: 1995 <ul><li>Amongst fastest growing auto components </li></ul><ul><li>and service provider </li></ul><ul><li>Among top 5 Indian players </li></ul><ul><li>BUSINESSES: </li></ul><ul><li>Manufacturing: 35 facilities </li></ul><ul><li>Including One each Germany and China </li></ul><ul><li>Design and Engineering </li></ul><ul><li>Supply Chain </li></ul><ul><li>15 Global Partners </li></ul><ul><li>Own business in interior and plastics, suspension </li></ul><ul><li>parts for passenger vehicles and Mobility Telematics </li></ul><ul><li>Customers from all major global and Indian auto OMES. </li></ul><ul><li>Objectives: To become a preferred Tier 1 supplier to Global </li></ul><ul><li>automotive industry. </li></ul>REVENUE 07-08: $ 843m
  19. 19. AUTOMOTIVS Telco Construction Equipment Company ESTABLISHED :1999 REVENUE 07-08: Rs:2,735/$679.7m <ul><li>60:40 JV of Tata Motors & Hitachi Construction Machinery. </li></ul><ul><li>Domestic market leader in product and services for construction </li></ul><ul><li>mining and earthmoving industries. </li></ul><ul><li>Design, manufacturing, servicing, marketing and sales capabilities. </li></ul><ul><li>Main Products : hydraulic excavators, backhoe loaders, wheeled </li></ul><ul><li>loaders, off-highway dampers, crawler & tyre mounted cranes , </li></ul><ul><li>compactors, motor graders. </li></ul><ul><li>Manufacturing Units : Jamshedpur; Dharwad; Kharagpur(up coming) </li></ul><ul><li>Acquired Serviplem S.A. (Spain) </li></ul><ul><li>Design, manufacturing, sales and service of concrete equipments </li></ul><ul><li>Acquired Comoplesa Lebrero S.A. (Spain) </li></ul><ul><li>Design, manufacturing, sales and service of concrete equipments </li></ul>
  20. 20. Engineering Products, Projects and Services VOLTAS ESTABLISHED :1954 MARKET CAP: Rs.1,310 cr/$269m <ul><li>Engineering Solutions in: </li></ul><ul><li>Electro-mechanical projects and services </li></ul><ul><li>Largest exporter in India </li></ul><ul><li>Leading central air conditioning company in India </li></ul><ul><li>Cooling Products: commercial/homes </li></ul><ul><li>India’s no 2 air-conditioner brand </li></ul><ul><li>Engineering product and services </li></ul><ul><li>Textiles, material handling, mining and construction </li></ul><ul><li>equipment and machine tools. </li></ul><ul><li>Objectives: Rs 10,000 cr ($2 bn) revenue by 2010-11 </li></ul>REVENUE 07-08: $774.4m
  21. 21. MATERIALS <ul><li>METALS </li></ul><ul><li>TATA STEEL </li></ul><ul><li>COMPOSITES </li></ul><ul><li>TATA ADVANCE MATERIALS </li></ul>
  22. 22. METALS TATA STEEL ESTABLISHED :1907 MARKET CAP: Rs 13,301 cr/ $2.7bn <ul><li>Fortune 500 company </li></ul><ul><li>World’s 6th largest steel maker : 28 MTPA </li></ul><ul><li>Jamshedpur works NatSteel Asia </li></ul><ul><li>Corus Tata Steel,Thailand </li></ul><ul><li>Presence in 50 markets; manufacturing </li></ul><ul><li>operation 24 countries. </li></ul><ul><li>Expansion plans: </li></ul><ul><li>Brownfield : Jamshedpur works </li></ul><ul><li>Greenfield : India and Overseas </li></ul>REVENUE 07-08: $ 32.83 bn
  23. 23. METALS TATA STEEL GROUP CORUS <ul><li>Europe's 2 nd largest steel producer: 20 MTPA </li></ul><ul><li>Main plant in UK and The Netherlands </li></ul><ul><li>Three main operating divisions- Strips Products, </li></ul><ul><li>Long Products and Distribution & building Systems </li></ul><ul><li>Investment underway to reinforce competitive position </li></ul><ul><li>in automotive and construction markets. </li></ul><ul><li>Scunthrope, UK-new beam caster and wire rod mill </li></ul><ul><li>upgrade (on stream 2008) </li></ul><ul><li>IJmuiden, Netherlands – new cold rolling mill and </li></ul><ul><li>continuous galvanizing line (on stream 2008-09) </li></ul>
  24. 24. COMPOSITES TATA ADVANCED MATERIALS ESTABLISHED :1999 REVENUE 07-08: Rs 26 cr/$ 6.45m <ul><li>Design, engineering, and manufacture of </li></ul><ul><li>advanced composites </li></ul><ul><li>Products and Services: </li></ul><ul><li>Aerospace and Aircraft components </li></ul><ul><li>Design and Engineering services </li></ul><ul><li>Personnel armour products- largest in India </li></ul><ul><li>Vehicle armour solutions </li></ul><ul><li>Objectives: Rs 1000 cr/$200 m revenue by 2012-13 </li></ul>
  25. 25. SERVICES <ul><li>HOTELS AND REALITY </li></ul><ul><li>Indian Hotels( Taj hotels, Resorts, Palaces) </li></ul><ul><li>Tata Reality and Infrastructure </li></ul><ul><li>Tata Housing </li></ul><ul><li>FINANACIAL SERVICES </li></ul><ul><li>Tata AIG Life and General Insurance </li></ul><ul><li>Tata Asset Management </li></ul><ul><li>Tata Investment Corporation </li></ul><ul><li>Tata Capital </li></ul>
  26. 26. HOTELS Taj Hotels, Resorts & Palaces ESTABLISHED :1903 MARKET CAP: Rs 2,778 cr/ $ 0.6 bn (Indian hotels only) <ul><li>One of the Asia’s largest Hospitality Groups </li></ul><ul><li>Leading chain in India </li></ul><ul><li>87 hotels; 10,391 rooms; 12 countries; 5 continents </li></ul><ul><li>Indian Ocean Rim: luxury properties </li></ul><ul><li>Key gateway cities- New York, Boston, San Francisco, </li></ul><ul><li>London, Dubai, Sydney </li></ul><ul><li>Venturing into China </li></ul><ul><li>“ Smart Basics” hotels </li></ul><ul><li>Ginger Hotels: exiting-14; 29 in the pipeline </li></ul><ul><li>Objective: 20,000 rooms by 2011 </li></ul>REVENUE 07-08: $ 1.08 bn
  27. 27. Address largest part of the pyramids Indian Hotels- Ginger <ul><li>Rs. 999-2,499 (single room) ($20-$50) </li></ul><ul><li>“ Smart Basics” </li></ul><ul><li>100+ rooms per hotel </li></ul><ul><li>14 open; mostly in non-metros </li></ul><ul><li>Aggressive roll out: 30 hotels in 2 years; </li></ul><ul><li>100+ by2011 </li></ul>
  28. 28. ENERGY <ul><li>POWER </li></ul><ul><li>Tata Power </li></ul><ul><li>Renewable Energy </li></ul><ul><li>Tata BP Solar </li></ul>
  29. 29. POWER TATA POWER ESTABLISHED :1911 MARKET CAP: Rs 16,447cr/$3.4 bn <ul><li>Pioneered hydro power generation in India </li></ul><ul><li>Generation Capacity>2300 MW- largest private sector </li></ul><ul><li>Presence in generation (thermal, hydro, solar and wind), </li></ul><ul><li>transmission and distribution </li></ul><ul><li>Expansion:>7,500 MW additional generation capacity </li></ul><ul><li>by 2012 </li></ul><ul><li>Objective: Aggressive addition in generation, transmission, </li></ul><ul><li>distribution capacity in India </li></ul>REVENUE 07-08: $ 2.8 bn
  30. 30. CONSUMER PRODUCT <ul><li>BEVERAGES </li></ul><ul><li>Tata Tea </li></ul><ul><li>Tata Coffee </li></ul><ul><li>WATCHES AND JEWELLARY </li></ul><ul><li>Titan Industry </li></ul><ul><li>Retailing </li></ul><ul><li>Trent </li></ul><ul><li>Infiniti Retail </li></ul>
  31. 31. BEVERAGES TATA TEA ESTABLISHED :1964 MARKET CAP: Rs 3,429 cr/$ 703m <ul><li>World’s 2 nd largest global branded tea operation </li></ul><ul><li>Acquisition- Tetley, Good Earth, Jemca, Joekels & Vitax </li></ul><ul><li>Coffee- growing through: </li></ul><ul><li>Higher value roast & grounded coffee </li></ul><ul><li>(Eight O’clock coffee) </li></ul><ul><li>Freeze dried/Instant coffee </li></ul><ul><li>Water: Himalaya Brand </li></ul><ul><li>Objectives: </li></ul><ul><li>Beverage solution for consumers’ well being, nutrition and </li></ul><ul><li>hydration. </li></ul><ul><li>Global face in the beverage industry; grow 5X in 5 years </li></ul>REVENUE 07-08: $ 1.1 bn
  32. 32. CHEMICALS <ul><li>Tata Chemicals </li></ul><ul><li>Rallis India </li></ul><ul><li>Advinus Therapeutics </li></ul>
  33. 33. CHEMICALS TATA CHEMICALS ESTABLISHED :1939 MARKET CAP: Rs 3,398cr/$ 0.7bn <ul><li>Into inorganic chemicals, fertilizers, and </li></ul><ul><li>food additives. </li></ul><ul><li>World No.2 in Soda Ash </li></ul><ul><li>Pioneer and market leader in branded, iodized salt </li></ul><ul><li>Total Produce Ireland JV for fruits and vegetables </li></ul><ul><li>distribution. </li></ul><ul><li>Entering Bio-fuels Sector </li></ul><ul><li>Objectives: $ 4bn (18000 cr) revenues by 2012. </li></ul>REVENUE 07-08: $ 1.7 bn
  34. 34. <ul><li>IDP is a fact sheet about the individual. </li></ul><ul><li>Is prepared by the manager of the employee. </li></ul><ul><li>Is endorsed by the Function/SBU Head and finally signed off by the CEO of the company. </li></ul>Individual Development Profile Work & Career Details Performance Data Personal Details: Age, Education Tata Work Level & MCPA Assessment Tata Leadership Practices Data Development Plan IDP
  35. 35. Talent Management Schedule Annual Performance Review & Development need discussions with individual employees Manager / Employee Apr - Jun Talent Review within Business Unit/Function BU Leadership Team Jun - Jul Presentation of Talent Review by BU / Functional Leaders to MD/CEO BU Leadership Team & CEO Jul - Aug Talent Review at Company level Identification of HPMs and their Development and Movement Plans CEO & HR Head Aug Group PPM discussions Agree on Development & Movement plans CEO & Head HR and GCC / Peer MD / Group HR Sep – Feb <ul><li>Implement Development & Movement plans </li></ul><ul><li>In Company </li></ul><ul><li>Cross Company / Group Level </li></ul>CEO & HR Head Sep - Mar Implement agreed cross company Movement plans & Group level Development programs CEO & Head HR and Group HR Oct – Sep 1 2 3 4 5 6 7&8
  36. 36. SWOT ANALYSIS <ul><li>STRENGTH </li></ul><ul><li>EXPERIENCE </li></ul><ul><li>MICRO ENVIRONMENT </li></ul><ul><li>BUSINESS MODEL </li></ul><ul><li>RESOURCE AND CAPABILITIES </li></ul><ul><li>CULTURE </li></ul><ul><li>WEAKNESS </li></ul><ul><li>VALUE CHAIN </li></ul><ul><li>DISTRIBUTION </li></ul><ul><li>MACRO ENVIRONMENT </li></ul><ul><li>OPPORTUNITIES </li></ul><ul><li>EXPORTS </li></ul><ul><li>NEW PRODUCTS </li></ul><ul><li>NEW MARKETS </li></ul><ul><li>ACQUISITION & MERGERS </li></ul><ul><li>THREAT </li></ul><ul><li>FREE MARKET </li></ul><ul><li>LOW BARRIERS </li></ul><ul><li>GLOBALISATION OF ECONOMY </li></ul>
  37. 37. STRATEGIES <ul><li>GLOBAL EXPANSION THROUGH ACQUISITION </li></ul><ul><li>Low price strategy </li></ul><ul><li>Differentiation strategy </li></ul><ul><li>Reach to potential markets and repeatedly expending the value network </li></ul><ul><li>A hybrid strategy (differentiation & price lower) </li></ul>
  38. 38. “ We have two guiding arrows. One points overseas, where we want to expand markets for our existing products. The other points right here, to India where we want to explore the large mass market that is emerging – not by following but by breaking new ground in product development and seeing how we can do something that hasn’t be done before.” Ratan Tata Group Chairman
  39. 42.   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds of Tata steel(BALANCE SHEET TATA STEEL) Owner's fund Equity share capital 730.79 730.78 580.67 553.67 553.67 Share application money - - 147.06 - - Preference share capital 5,472.66 5,472.52 - - - Reserves & surplus 23,501.15 21,097.43 13,368.42 9,201.63 6,506.25 Loan funds Secured loans 3,913.05 3,520.58 3,758.92 2,191.74 2,468.18 Unsecured loans 23,033.13 14,501.11 5,886.41 324.41 271.52 Total 56,650.78 45,322.42 23,741.48 12,271.45 9,799.62
  40. 43. Uses of funds Fixed assets Net block 10,994.54 8,256.11 8,543.12 8,707.32 7,239.58 Capital work-in-progress 3,487.68 4,367.45 2,497.44 1,157.73 1,872.66 Investments 42,371.78 4,103.19 6,106.18 4,069.96 2,432.65 Net current assets Current assets, loans & advances 11,591.66 38,196.34 14,671.91 4,997.00 4,935.90 Less : current liabilities & provisions 11,899.95 9,755.78 8,279.70 6,913.83 6,895.99 Total net current assets -308.29 28,440.56 6,392.21 -1,916.83 -1,960.09 Miscellaneous expenses not written 105.07 155.11 202.53 253.27 214.82 Total 56,650.78 45,322.42 23,741.48 12,271.45 9,799.62
  41. 44. INCOME STATEMENT OF TATA STEEL LTD. Mar’09 Mar ' 08 Mar ' 07 Mar ' 06 Income Operating income 24,348.32 19,654.41 17,452.66 15,132.09 Expenses Cost of sales 15,171.88 11,409.87 10,538.91 9,247.87 Other recurring income 305.36 347.28 485.14 256.95 Financial expenses 1,489.50 929.03 251.25 168.44 Depreciation  973.40 834.61 819.29 775.10 Tax charges  2,114.87 2,380.28 2,040.47 1,734.38 Adjusted PAT 4,904.03 4,447.90 4,287.88 3,463.25 Non recurring items 297.71 239.13 -123.02 -4.37 Other non cash adjustments - - 57.29 47.50 Reported net profit 5,201.74 4,687.03 4,222.15 3,506.38
  42. 45. RATIO ANALYSIS OF TATA STEEL   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Per share ratios Reported EPS (Rs) 69.70 63.85 72.74 63.35 62.77 Dividend per share 16.00 16.00 15.50 13.00 13.00 Operating profit per share (Rs) 125.60 112.85 119.11 106.31 107.61 Profitability ratios Operating margin (%) 37.68 41.94 39.61 38.88 41.10 Gross profit margin (%) 33.69 37.70 34.91 33.76 36.83 Net profit margin (%) 21.09 23.43 23.53 22.78 23.72 Adjusted return on net worth (%) 19.87 20.42 31.19 36.44 50.27
  43. 46. CONTD.. Leverage ratios Total debt/equity 1.34 1.08 0.69 0.25 0.38 Owners fund as % of total source 42.77 48.16 59.12 79.49 72.04 Fixed assets turnover ratio 1.22 1.20 1.09 0.98 1.11 Liquidity ratios Current ratio 0.97 3.92 1.77 0.72 0.71 Quick ratio 0.57 3.52 1.37 0.29 0.33 Inventory turnover ratio 9.36 10.84 10.81 9.89 10.42 Payout ratios Dividend payout ratio (net profit) 27.15 29.39 26.15 23.39 23.64 Coverage ratios Financial charges coverage ratio 6.37 9.25 29.45 36.46 26.72 Long term assets / total Assets 0.83 0.30 0.53 0.73 0.70
  44. 47. Balance sheet of TATA MOTORS   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Sources of funds Owner's fund Equity share capital 514.05 385.54 385.41 382.87 Reserves &surplus 11,855.15 7,428.45 6,458.39 5,127.81 Loans & funds Secured loans 5,251.65 2,461.99 2,022.04 822.76 Unsecured loans 7,913.91 3,818.53 1,987.10 2,114.08 Total 25,534.76 14,094.51 10,852.94 8,447.52 Uses of funds Fixed assets Net block 7620.20 5361.80 3855.31 3543.65 Capital work-in-progress 6,954.04 5,064.96 2,513.32 951.19 Investments 12,968.13 4,910.27 2,477.00 2,015.15
  45. 48. Net current assets cont’d of tata motors Current assets, loans & advances 10,836.58 10,781.23 10,318.42 9,812.06 Less : current liabilities & provisions 12,846.21 12,029.80 8,321.20 7,888.65 Miscellaneous expenses not written 2.02 6.05 10.09 14.12 Total 25,534.76 14,094.51 10,852.94 8,447.52
  46. 49. INCOME STATEMENT OF TATA MOTORS CO Mar’09 Mar’08 Mar’07 Mar’06 Income Operating income 25660.67 28767.91 26664.25 20088.63 Expenses Cost of sales 23937.57 25737.39 24077.74 17942.27 Other recurring income 841.54 359.42 887.23 685.18 Financial expenses 704.92 471.56 455.75 350.24 Depriciation 874.54 652.31 586.29 520.94 Other write offs 51.17 64.35 85.02 73.78 Tax charges  12.50 547.55 660.37 524.93 Adjusted PAT 921.51 1,654.17 1,686.31 1,361.65 Non recurring items 79.75 374.75 227.15 167.23 Other non cash adjustments 15.29 - -0.07 - Reported net profit 1,016.55 2,028.92 1,913.39 1,528.88
  47. 50. BALANCE SHEET OF TCS LTD. MAR ‘09 MAR’08 MAR’07 SOURCES OF FUNDS OWNERS FUND EQUITY SH CAP. 97.86 97.86 97.86 PREF SH CAP 100.00 100.00 - RES.&SURPLUS 13248.39 10806.95 7961.13 LOANS FUNDS 13486.62 11023.06 8109.73 USES OF FUNDS NET BLOCK 2669.08 1940.53 1460.61 CAPITAL WIP 685.13 889.74 757.85 INVESTMENTS 5936.03 4509.33 3252.04 NET CURRENT ASSETS CURRENTS ASSETS,LOANS &ADVANCES 9250.79 7396.46 5294.74 LESS:CURRENT LIABILITY 5054.41 3713.00 2655.51 TOTAL NET CURRENT ASSETS 4196.38 3683.46 2639.23 TOTAL 13486.62 11023.06 8109.73
  48. 51. INCOME STATEMENT OF TCS LTD. Mar’09 Mar’08 Mar’07 Income Operating income 22401.92 18533.72 14939.97 Expenses Cost of sales 16381.09 13508.11 10638.49 Other recurring income 232.62 165.01 86.38 Financial expenses 7.44 3.42 3.43 depriciation 417.46 458.78 343.41 Tax charges 443.48 457.58 410.80 PAT 5385.07 4270.84 3630.22 Nonrecurring items -688.86 275.44 129.66 Other non cash adjust. - -37.52 -2.59 Reported net profit 4696.21 4508.76 3757.29
  49. 52. RATIO OF TCS 31-Mar-09 31-Mar-08 31-Mar-07 Return on Total Assets (%) 41.23 38.81 48.44 Return on Networth (%) 34.93 40.97 46.62 Return on Capital Employed (%) 40.36 49.74 56.40 Profitability Gross Margin (%) 35.40 35.00 36.98 Operating Margin (%) 25.01 23.61 26.49 Net Profit Margin (%) 20.96 24.65 25.15 Leverage Debt/Equity ratio (x) -- -- 0.01 Interest Coverage (x) 809.25 1396.60 1253.90
  50. 53. Liquidity Current Ratio (x) 1.27 1.46 1.55 Quick Ratio (x) 1.75 2.14 2.37 Working Capital Per Share Earnings Per Share (Rs) -- 46.07 38.40 Dividend Per Share (Rs) -- 14.00 11.50 Total Operating Income 22.49 22.42 33.03
  51. 54. THE PURPOSE OF THE TATA – IMPROVING THE QUALITY OF LIVES <ul><li>ACTIVITIES </li></ul><ul><li>Endowments for creation of national institutions </li></ul><ul><li>Development assistance – including for livelihoods, health,education, micro-finance, </li></ul><ul><li>bio-diversity,water harvesting. </li></ul><ul><li>Foreign scholarships – science and engineering </li></ul><ul><li>Jn tata endowment </li></ul><ul><li>Disaster relief </li></ul>
  52. 55. CSR Contd….. <ul><li>NATIONAL INSTITUTIONS </li></ul><ul><li>Indian Institute of Science </li></ul><ul><li>Tata Institute of Social Sciences(TISS) </li></ul><ul><li>Tata Memorial Hospital </li></ul><ul><li>Tata Institute of Fundamental Research </li></ul><ul><li>National Centre for the Performing Arts </li></ul><ul><li>Other Initiatives </li></ul><ul><li>Tata Steel HIV/AIDS programme </li></ul><ul><li>TCS: Computer based Adult Literacy Programmes </li></ul>
  53. 56. THE QUESTIONS AHEAD OF TATA <ul><li>the total debt of the Tata group as of the end of FY'09 at over </li></ul><ul><li>Rs one trillion , of which Rs 117 billion is due through March 2010. </li></ul><ul><li>The total debt of the five major entities -- Tata Motors, Tata Steel, TCS, Tata Power and Tata Communications -- which account for 90 per cent of the group's revenues, is estimated at Rs 91,000 crore in FY2010, the analysts said. It includes:- </li></ul>Tata Steel Rs 40,600 crore Tata Motors Rs 22,800 crore Tata Power Rs 21,400 crore Tata Communication Rs 6,200 crore <ul><li>&quot;Within the group, the most pertinent issue rem ains Tata Motors' Rs 11,300 crore debt coming up for repayment/refinance in FY2010 </li></ul>
  54. 57. Additionally, total capital expenditure for the group is Rs216 billion in financial year 2010, with a bulk of this coming from Tata Steel and Tata Power Tata Power today said it has lined up nearly Rs 24,000 crore as capital expenditure in the next three years. (6 th august 2009, Mumbai) Tata steel is planning to spend Rs 40,000 crore to expand it’s production capacity to 16 million tonnes Rating agency S&P (standard and poor's) downgraded Tata Motors rating to ‘B’ from ‘B+’ (Aug 4 th , 2009)  
  55. 58. Possible Measures Tata Sons does not aggregate the debt of individual group companies as each company is a standalone legal entity and is evaluated accordingly.&quot; <ul><li>MEASURES </li></ul><ul><li>Sake sales can be a possible measure </li></ul><ul><li>Tata motors can monetize its commercial vehiches division which is valued at </li></ul><ul><li>Rs 12000 crore </li></ul><ul><li>Tata Motors can borrow upto Rs 11500 crores against the assets in the books </li></ul>Tata motors announced a surprise quarterly profit July 28 of just under $107 million , investors took notice. Operating profit was up 11.4%, even though exports were down 43% and domestic sales were down about 10%.
  56. 59. A CLEAR VISION AND THE DEDICATION TO SERVE PRODUCES THE BEST OUTPUT AND LEADS TO GREATNESS
  57. 60. <ul><li>TATA.COM </li></ul><ul><li>BROCHURE OF THE TATA GROUP </li></ul><ul><li>KOTAK SECURITIES REPORT ON TATA </li></ul>

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