TATA GROUP

MMS 1ST YEAR

Pioneers of TATA Group

Jamsetji tata Darobji tata Naval tata

J.R.D. Tata Ratan Tata

Tata Group Growing HistoryFaoundation1861-1931

Consolidation1932-1989

Expansions1990 Onwords

RANKS ACHIEVED

TATA Steel 6th largest steel maker in the world.

TATA Motors among the top five commercial vehicle manufacturers in the world.

TCS leading global software company

TATA Tea second largest branded tea company in the world

TATA Chemicals world’s second largest manufacturer of soda ash

TATA Communications world’s largest wholesale voice carriers

History

• The Tata Group was founded as a private trading firm in 1868 by entrepreneur and philanthropist Jamsetji Nusserwanji Tata.

• In 1932, Sir Nowroji Saklatwala became the group’s chair

• Six years later Jehangir Ratanji Dadabhoy Tata (J.R.D.) took over the position

• In 1991 J.R.D.’s nephew, Indian business mogul Ratan Naval Tata, succeeded him as chairman of the Tata Group.

Market Segmentation 1874 •Central India shipping

•Weaving and Manufacturing company

1902 •Taj mahal palace and towers

1907 •Tisco•Tata limited in London

Contd…

1910 •Tata electric Companies

1911 •Indian Institute of science

1917 •Tata oil mills

Contd…

1983 •Tata salt - Desh ka namak

2001 •Tata AIG

2006 •Tata credit Cards

Aim Of Tata Group

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The aim of Tata Group is improve the qualities Of society by virtue of integrity , UnderstandingExcellence ,unity and Responsibility and ReachAt the top

CORE VALUES

• Integrity• Spirit • Agility • Passion for excellence• Unity

Integrity

Agility

UnityPassion

Spirit

BUSINESS SECTORS• Tata companies operates in seven business sectors.

• The total revenue of Tata companies, taken together, was $62.5 billion (around Rs251,543 crore) in 2007-08, with 61 per cent of this coming from business outside India, and they employ around 350,000 people worldwide.

• The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics.

• There are 27 publicly listed Tata enterprises and they have a combined market capitalization of some $60 billion, and a shareholder base of 3.2 million.

Information systems and communications

• The Tata group has well-established enterprises in the fields of software and other information systems, telecommunications and industrial automation.

• E.g. nelito systems, tata technologies (10) tata sky, virgin mobile India(7)

Engineering

• The Tata group has a robust presence in engineering, with operations in automobiles and auto components and a variety of other engineering products and services.

• E.g. Automotive, jaguar land rover, tata motors(25), Engineering: voltas, TCE consulting engineers

Materials

• The Tata group is among the global leaders in this business sector, with operations in steel and composites.

• E.g.Metals: corus, natsteel asia, • Composites: tata advanced materials

Services

• The Tata group has widespread interests in the hospitality business, as also in insurance, realty

and financial and other services.• E.g. Hotels, property development: Indian

hotels,tata housing development company• Financial services: tata capital, tata financial

services

Energy

• The Tata group is a significant player in power generation and is also involved in the oil and gas segment.

• E.g. Energy: north delhi power, tata BP solar

Consumer Products

• The Tata group has a strong and longstanding business in watches and jewellery, and a growing presence in the retail industry.

• Consumer products: titan industries, Tetley group

Chemicals

• The Tata group is one of the largest producers of soda ash in the world. Additionally, it has interests in fertilisers and in the pharmaceuticals business.

• E.g. tata pigments, general chemical industrial products

Products and Services for CONSUMERS

Agriculture Automobiles Beverages

Charter flights Cooling appliances Crockery

DTH television Financial services Food

Holiday homes Hotels Housing

Jewellery Leather Retail

Solar appliances Telecommunications Watches and clocks

Products and Services for BUSINESSES

Advanced composites Aerospace Agricultural products

Automotive industry Beverages Books

Chemicals Construction Consultancy

Defence Design services E-learning

E-trading Energy Engineering

Financial services Food products Funding

Hospitality Industrial equipments IT

MERGERS AND AQUISITIONS

• TATA communications (formerly VSNL) acquired CEC (China enterprises communication) with 50 % stake in June 2008.

• TATA motors acquired jaguar and land rovers (UK based) with a value of $ 2.3 billion in March 2008.

• Telco construction equipment company acquired Hughes telecom India (Spain based) with 79% stake in March 2008.

Specialty in TATA Group

• An extraordinary range of disciplines.• Business management skills.• Inter-company mobility • Continuous Improvement • The Tata group is one of the world’s largest

private-sector employers

Strengths 1)resources and capabilities2)vast experience (steel and automobiles)3)The business model.

Weaknesses1)Distribution 2)value chain innovation 3)macro environment 4)in order to serve the global markets with high quality and low price.

Opportunities 1)new markets2)Exports3)Acquisitionse.g. jaguar and land Rover

Threats 1)India’s recent2)mergers of global 3)marketse.g.Vodafone,Reliance

SWOT Analysis

CURRENT STRATEGIES

• Expending globally (globalization strategy)• acquiring other companies in different countries• No frill strategy; “a low frill strategy combine a

low price and low value added, low perceived product/services benefits and a focus on a price sensitive market segment.

• invested a huge amount in research and development in order to achieve the highest degree of quality at the lowest price

• News Update: (April 12, 09) – tata motors presents new buses, TATA motors marcopolo limited, a joint venture of TATA motors and marc polo of Brazil introduced its starbus range of buses in Punjab.

• CONCLUSIONS: In the whole: the group acquiring the different strategy in the different market, in the home country TATA’s strategies are same as to cost leadership and differentiations.

Any Questions……