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TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
TATA Group
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TATA Group

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Tata Group

Tata Group

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  • 1. Tata Group
  • 2. Introduction One of India’s Largest Conglomerates India’s Best Known and Most Respected Business House Main Companies in 7 Business Sectors Largest Employer in the Private Sector Aggregate revenues of US$22b (2005-’06) Revenues Equivalent to 2.8% of India’s GDP International Income 30% of Group Revenue Total market capitalisation of US $62.2 bn (as on 12th July, 2007)
  • 3. 1868: Jamsetji Nusserwanji Tata sets up a private trading firm, laying the foundation of the Group 1874: The Central India Spinning, Weaving and Manufacturing Company is set up, marking the Group’s entry into textiles 1874 – 1904: JN Tata commits the Group’s entry into steel, power and hotels. J N Tata 1839-1904 A nationalist, he believed for India to be truly independent, it needed a strong industrial base History
  • 4. History - Group Firsts 1902 Taj Mahal Palace Hotel - Luxury Hotels 1907 Tata Steel - Asia’s first 1910 Tata Power - Hydro Power 1932 Tata Airlines - Civil Aviation 1968 Tata Consultancy Services - Software 1998 Tata Motors - India’s first indigenous car Industries 1912 Eight hour working day 1915 Free medical aid 1917 Schooling facilities for children 1920 Leave with pay, workers Provident Fund Scheme Industrial Practices
  • 5. Group Corporate Centre Provides Strategic Direction Finance/HR/M&As/Brand/Legal and Assurance/TQM Group Structure Shareholding in Main Operating Companies 66% Public Trusts 3% Family 13% Tata Companies 18% External Shareholder 29% Tata Sons 19% Jardine Matheson Group 52% Other Tata Companies Promotes Group Entry into New Businesses Activity PROMOTER COMPANIES Ownership Tata Sons Tata Industries
  • 6. Beyond Business Annual spend on social welfare (along with Trusts) ~$100 m: Expenditure budgeted before preparation of P&L account Commitment incorporated in company Articles of Association Active volunteering programme Over 10,000 volunteers Company Examples: Tata Steel: HIV / AIDS Programme - GBC winner Tata Consultancy: Adult Literacy Programme 66% Equity of Tata Sons in Public Trusts Sir Dorabji Tata Trust Sir Ratan Tata Trust ACTIVITIES Endowments for Creation of National Institutions: (1911) Indian Institute of Science (1936) Tata Institute of Social Sciences (1941) Tata Memorial Hospital (1945) Tata Institute of Fundamental Research (1966) National Centre for the Performing Arts (2006) Tata Medical Centre, Kolkata Development assistance in water harvesting, medical research, microfinance, bio-diversity Foreign scholarships - science & engineering COMPANIES Tata Council for Community Initiatives Facilitating Role for companies’ CSR activities Triple Bottom-line Global Reporting Initiative - 16 Cos UN Global Compact 35 Cos Tata Index for Sustainable Development 14 Cos GROUP
  • 7. Steel Hotels Insurance & Asset Management International Trade Beverages Watches Retailing Automobiles Auto Components Air-Conditioning Basic Chemicals Fertiliser Pesticides Power Services (10%) Materials (21%) Energy(8%) Chemicals (5%) Engineering(31%) Consumer Products (6%) Software Telecom Services Automation & Control Systems Information System and Communications (19%) Group Today - 7 Business Sectors 29 Listed Companies ; 2,46,000 employees NOTE: The numbers within the brackets indicate % contribution to total group revenues (2005 –’06)
  • 8. Financial results Note: converted at US$1 = INR 43.5 14 year CAGR of 14.8% 14 year CAGR of 19.6% Aggregate profits US$ b 0.0 0.5 1.0 1.5 2.0 2.5 91-92 94-95 97-98 00-01 03-04 Aggregate sales US$ b 0.0 5.0 10.0 15.0 20.0 25.0 91-92 94-95 97-98 00-01 03-04
  • 9. IT and Communications IT Services (Entry 1968) - Main Company: Tata Consultancy Services Pioneer & Leader in Indian IT Services and BPO • Asia’s Largest, Global No. 12 Global Footprint • Clients in 55 Countries: 7 of Fortune Top 10 • 157 Offices in 34 Countries across 6 Continents • 71,190 Consultants, 44 Nationalities Total Solutions Provider ● IT Services ● BPO ● Infrastructure Services ● Consulting ● Products ● Engg. & Industrial Services 2005-06 Revenue: ~$ 3.03 bn; Profits $ 0.67 bn Vision: Global top 10 by 2010 with $ 10 bn Revenues Other Key Companies: Tata Interactive Systems – Custom E- Learning Tata Technologies – Automotive Engg. & Design Services Tata Elxsi – Graphics Design
  • 10. IT and Communications Telecom Services (Entry 1995) Tata Indicom: One Brand Services: Fixed/Mobile, Voice/Data/VAS Segments – Carriers, Corporate, SME and Individual Networks – Domestic and International Companies: 1. Tata Teleservices Pan-India 3G Ready CDMA Network Customer Base > 11 Mn; 140% Increase in 2005 • Highest Among All Service Providers No.1 Private Fixed Service Provider India’s Largest Branded Telecom Retail Chain
  • 11. IT and Communications Telecom Services 2. Videsh Sanchar Nigam Limited (VSNL) India -- International and Domestic Long Distance Services •Corporate Data and Managed Services •Internet and Broadband Global – Emerging Challenger •Wholesale International Voice Carrier: # 1 •Submarine Cable/Bandwidth: Top 3 •Enterprise Managed Services •Entry into South Africa: Second Network Operator 2005-06: Revenue $ 1.1 bn; Profits $ 15.8 mn Objective: Top 3 Service Provider in Chosen Markets
  • 12. Engineering Automotive (Entry 1945) Tata Motors India’s Largest Automobile Company by Revenue Leadership Position in Commercial Vehicles • No. 1 in India; Global No.2 in Heavy Buses and No.5 in M&HCV Trucks Domestic No. 2 in Passenger Car Vehicles • Made Country’s First indigenously Developed Car, Indica • Developing $ 2000 Small Car Strong Host of Subsidiaries/Associates • Including Tata Daweoo, Hispano, Telcon, Tata Technologies 2005-06: Revenue $ 5.4 bn; Profits $ 387 mn Objective 2010: Double Sales to > 1 Million Units; Select Global Thrust
  • 13. Engineering Automotive (Entry 1995) Tata AutoComp Systems (TACO) Among Top 5 Indian Auto Component Products and Service Provider Businesses: • Manufacturing: 24 Facilities • Design and Engineering Services • Supply Chain Management Own Businesses in Plastics and Interiors, and Stampings 16 Global Partners for Manufacturing and Engineering 2005-06: Revenue $ 300.7 mn; Profits $ 9.7 mn Objective: Revenues > S 1 bn by 2008
  • 14. Materials Steel (Entry 1907) Main Company: Tata Steel Asia’s First and India’s Largest Private Sector Steel company • Over 9 MT Production in FY 2006 in 7 Locations Among Lowest Cost Producers of Steel in the World • Among Select EVA+ Steel Companies in the World Green Field Expansions Plans • In India: Jharkhand 12 MTPA Plant / Orissa 6 MT / Chattisgarh 5 MT • Overseas: Iran: 3 +2 MT/Bangladesh: 2.4 MT 2005-06 Revenue: $ 4.64 bn; Profits $ 842 m Objective : Global Presence by 2015 with >30 MT Production Other Company Tata Advanced Materials -- Manufactures composites
  • 15. Services Hospitality (Entry 1903) Indian Hotels (Taj Hotels Resorts and Palaces) One of Asia’s Largest Hospitality Group 75 Hotels; 15 Countries; 5 Continents • Private Islands, Authentic Indian Palaces • Includes: The Pierre, New York; Blue, Sydney Expansion: • Ginger Hotels • Serviced Apartments 2005-06 Revenue: $ 424.2 m; Profits $ 50.7m Objective: Double Existing Room Capacity with 25 Major Destinations by 2010
  • 16. Energy Power (Entry 1911) Tata Power Pioneered Power Generation in India Largest Power Utility in Private Sector Presence across the Entire Value Chain – Generation (Thermal, Hydro and Wind), Transmission and Distribution 2005-06 Revenue $ 1.4 bn ; Profits $ 144.1 mn Objective: Seek Generation and Distribution Opportunities in India and Overseas
  • 17. Consumer Products Beverages (Entry 1964) Tata Tea and Tetley Group (UK) • World’s Second Largest Global Branded Tea Operation • Acquired The Tetley Group in 2000 • Expanding into Specialty and Ready to Drink Teas • US Convergence into Beverages • Good Earth Acquired through Tetley • Acquired 8 O’Clock Coffee through Tata Coffee • $ 677 m Glaceau Investment 2005- 06 Revenue: $ 713 mn; Profits $ 68 mn Objective: Global Beverage Convergence in Hydration
  • 18. Consumer Products Watches & Jewellery (Entry 1984) Titan Industries India’s Largest Manufacturer of Branded Watches • Annual Output: 8.5 Mn; Customer Base 75 Mn … And Branded Jewellery • Tanishq: Premium Range Expansion Plan: Lifestyle Products; Precision Engineering; Value Watches and Jewellery 2005- 06 Revenue: $ 327 mn; Profits $ 18.3 mn Objective: $ 1 bn Revenue by 2009
  • 19. Chemicals (Entry 1939) Tata Chemicals Manufacturer of Inorganic Chemicals, Fertilisers & Food Additives • World No. 3 and India’s Largest in Soda Ash • Acquired UK’s Brunner Mond Group in 2005 • 12% of Country’s Urea Output in the Private Sector • Pioneer and Market Leader in Branded, Iodised Salt 2005-06: Revenue $ 930 m; Profits $ 97 m Objective : $ 2 Bn Revenue by FY 2011
  • 20. International business •In 05-’06, approx. 76% of the sales growth came from acquisitions •Acquisition of Millennium Steel did not impact FY’06, since it was completed only in April ’06 •In FY’06, TGN revenues were considered for 9 months and Teleglobe for 45 days Inorganic – full year impact of NatSteel, Teleglobe, TGN etc. US$ m 05-'06 Tata Chemicals - Europe 279 Tata Chemicals - Kenya 62 INCAT 74 NatSteel 916 TGN & Teleglobe 178 Tata Motors - Hispano 3 Total 1512 US $b 2.5 3.2 4.4 6.7 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 02-'03 03-'04 04-'05 05-'06 CAGR 38% CAGR 51% Globalisation strategy •Operating company driven •Value addition wherever economic / competitive •Geographically selective •Be local, internationally •Greenfield, JVs and acquisitions •Group synergies / co-ordination •Partner development of select countries
  • 21. International revenues - distribution revenue mix by larger companies ('05-'06) total US$6.7b 36% 22% 13% 7% 5% 5% 3% 3% 3% 3% Tata Consultancy Services Tata Steel Ltd. Tata Motors Tata Tea Tata Chemicals Ltd. Tata International VSNL IHCL Voltas Others Geographical distribution 05-'06 total – US$ 6.7b 31% 23% 12% 11% 9% 6% 4% 3% 1% 0.4% North America Europe South East Asia East Asia Africa Middle East / Gulf South Asia Australasia Latin America CIS
  • 22. JRD Tata 1904 - 1993 Nothing worthwhile is ever achieved without deep thought and hard work. No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people. One must forever strive for excellence, or even perfection, in any task however small, and never be satisfied with the second best.
  • 23. Tata Group

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