THE TATA GROUP

Lakshmi MMBA-FT-S2,SMS,CUSAT

Contents

• TATA Group – Leadership with trust• Business Sectors• International Operations• Tata Companies• Mergers and Acquisitions• Profile Analysis• Current Strategies• Conclusion

TATA Group – Leadership with trust

Jemsetji Tata  (3 March 1839 – 19 May 1904)

•Indian entrepreneur and industrialist

• Jamsetji worked in his father's company until the age of 29.

•  In 1869, he acquired a bankrupt oil mill in Chinchpokli, converted it into Alexandra Mill.

• Thereafter he set up a cotton mill in Nagpur in 1874. He christened it Empress Mill 

• BiographyFor the Love of India:

The Life and Times of Jamsetji Tata by R M Lala 

Founder of Tata Group

The TATA Group

Business Sectors

• Information technology and communications

• Engineering products and services

• Materials• Services• Energy• Consumer products• Chemicals

The Tata Group

International Operations

• AFRICA• ASIA PACIFIC• CHINA• EUROPE• MIDDLE EAST• NORTH AMERICA• SOUTH AMERICA• UNITED KINGDOM

Tata companiesAdvinus TherapeuticsCasa DécorCMCComputational Research LaboratoriesDrive India Enterprise Solutionse-nxt FinancialsHispano CarroceraHooghly Met Coke and Power CompanyIndian HotelsIndian Steel and Wire ProductsInfiniti RetailJaguar Land RoverJAMIPOLJamshedpur Utilities and Services CompanyLandmarkmjunction servicesNatSteel HoldingsNelco

Nelito SystemsPowerlinks TransmissionRallis IndiaRoots CorporationTaj AirTAL Manufacturing SolutionsTata Advanced MaterialsTata Advanced SystemsTata Africa HoldingsTata AGTata AIG General InsuranceTata AIG Life InsuranceTata Asset ManagementTata AutoComp SystemsTata BlueScope SteelTata BP SolarTata Business Support ServicesTata Capital

Tata companies (contd. …)

Tata CeramicsTata ChemicalsTata Chemicals EuropeTata Chemicals MagadiTata Chemicals North AmericaTata CommunicationsTata Consultancy ServicesTata Consulting EngineersTata CumminsTata Daewoo Commercial Vehicle CompanyTata ElxsiTata Financial ServicesTata Global BeveragesTata Housing Development CompanyTata Industrial ServicesTata IndustriesTata Interactive SystemsTata International

Tata International AGTata Investment CorporationTata LimitedTata MetaliksTata MotorsTata Motors European Technical CentreTata NYKTata PetrodyneTata PigmentsTata PowerTata Power Delhi DistributionTata Power TradingTata Precision IndustriesTata ProjectsTata Quality Management ServicesTata Realty and InfrastructureTata Services

Tata companies (contd. …)

Tata SkyTata SonsTata Sponge IronTata SteelTata Steel EuropeTata Steel KZNTata Steel Processing and DistributionTata Steel ThailandTata Strategic Management GroupTata TechnologiesTata TeleservicesTata Teleservices (Maharashtra)TatanetTayo RollsTelco Construction EquipmentThe Tinplate Company of IndiaTitan Industries

TKM Global LogisticsTM International LogisticsTrentTRFTRL Krosaki RefractoriesVoltasWestland

Mergers and AcquisitionsTata company Acquired

company Country Stake acquired Value Year

Indian Hotels

Campton Place Hotel US   $58 million Apr-07

 

Ritz-Carlton hotel US   $170 million Nov-06

 

Starwood group (W Hotel)

Sydney100 per cent

$29 million Dec-05(wholly-owned)

 

The Pierre US Management contract   Jul-05

 

Regent Hotel (renamed  India Effective 100

per cent stake Rs450 crore Sep-02Taj Lands End)

Mergers and AcquisitionsTata company

Acquired company

Country Stake acquired Value Year

Tata Chemicals

British Salt UK100 per cent (wholly-owned)

£93 million (approximately Rs650 crore)

Dec-10

 

General Chemical Industrial Products (now Tata Chemicals North America)

US 100 per cent stake   Jan-08

 

Brunner Mond (now Tata Chemicals Europe)

UK 63.5 per cent  Rs508 crore Dec-05

 

Brunner Mond (now Tata Chemicals Europe)

  36.5 per centRs290 

Mar-06crore

 

Indo Maroc Phosphore SA (IMACID)

Morocco Equal partner$38 million 

Mar-05(Rs166 crore)

 

Hind Lever Chemicals

India Amalgamation   Jun-04

Mergers and AcquisitionsTata company

Acquired company

Country Stake acquired Value Year

Tata Consultancy Services

Citigroup Global Services

US 100 per cent $512 million Dec-08

 

Tata Infotech India     Feb-06

 

Comicrom Chile     Nov-05

 

Pearl Group UK Structured deal   Oct-05

 

Financial Network Services

Australia     Oct-05

 

Phoenix Global Solutions

India     Mar-04

 

Aviation Software Development Consultancy India (ASDC)

India     Mar-04

 

Airline Financial Support Services India (AFS)

India     Jan-04

Mergers and AcquisitionsTata company

Acquired company

Country Stake acquired Value Year

Trent Landmark India 76 per cent$24.09 million (Rs103.60 crore)

Aug-05

 

TRF

Hewitt Robins International

UK   £3 million Apr-10

 

Dutch Lanka Trailer Manufacturers

Sri Lanka 51 per cent $8.67 million Jul-09

 

York Transport Equipment (Asia)

Singapore 51 per cent stake   Oct-07

 

Voltas Rohini Industrial Electricals

India 51 per cent Rs62 crore Aug-08

Mergers and AcquisitionsTata company

Acquired company

Country Stake acquired Value Year

Rallis India (through Tata Chemicals)

Metahelix Life Sciences

India 53.5 per cent Rs99.5 crore Dec-10

 

Tata Autocomp Systems

Wündsch Weidinger

Germany   Euro7 million Sep-05

Tata IndustriesIndigene Pharmaceuticals US <30 per cent   Jul-05Inc

 

Tata Interactive

Tertia Edusoft Gmbh

Germany 90 per cent   Jan-06

 

Tertia Edusoft AG

Switzerland 90.38 per cent    

Tata Metaliks Usha Ispat, Redi Unit

India100 per cent

Rs115 crore Jan-06(wholly-owned)

TATA GROUP – PROFILE ANALYSIS

Introduction- bird's-eye view

• The 134-year-old Tata Group, with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's

• Largest private-sector employer.• Its biggest taxpayer, and its greatest foreign-

exchange earner.

Introduction- Culture and Values

• Integrity• Understanding• Excellence• Unity • Responsibility.

The groups policy is to serve the value to the community they serving, it’s not necessarily in India only

Vision, Mission & Values

• Mission: to be a competitive value provider in international business Group companies and all our partners.

• Vision: Creating brand awareness in new geographies, and grow our businesses commercially and strategically in regions.

The groups policy is to serve the value to the community they serving, it’s not necessarily in India only

The Tata Group BCG Analysis

Automobile Tea

Chemicals

TechnologyConsultancy

Engineering ServiceComposites

PowerSteel

Oil & Gas

Information SystemsCommunication

BCG

Star

s ?

Cash

Cow

s

Dogs

The Tata Group SWOT Analysis Experience

Micro EnvironmentBusiness Model

Resource & CapabilitiesCulture

Value ChainDistribution

Macro Environment

ExportsNew ProductsNew Markets

Acquisitions and Mergers

Free MarketLow barriers

Globalization of Economy

SWOT

Current Strategies• Expending globally (globalization strategy)• Acquiring other companies in different

countries acquiring other companies in different countries

• Maintain the cost of raw materials as lowest as possible and to achieve the lowest cost of final products

• Invested a huge amount in R&D in order to achieve the highest development.

Conclusion

• Tata only rebrands its acquisitions when it is clear that such a rebranding will add value.

• A look at the group’s performance, even through a deep recession, suggests the pragmatic approach has worked.

• A hybrid strategy seeks simultaneously to achieve differentiation and a price lower then that of competitors.

Resources

• Tata Group - http://www.tata.com• Wikipedia - http://en.wikipedia.org/wiki/• Wordpress : http://www.wordpress.com/

DISCUSSIONS

THANK YOU