journey of TATA

TATA GROUP PROFILE

The Tata Group comprises 96 operating companies in seven business sectors:

information systems and communications;engineering; materials; services; energy;consumer products; and chemicals.

The Tata Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations.

The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the country's GDP, and a market capitalisation of $55.1 billion.

Tata companies together employ some 2,46,000 people.

The Group's 28 publicly listed enterprises — among them stand out names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea — have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over  2 million

The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity and responsibility.

Purpose

At the Tata Group their purpose is To improve the quality of life of the communities they serve.

They do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities.

This requires them to grow aggressively in focused areas of business.

Their heritage of returning to society what they earn evokes trust among consumers, employees, shareholders and the community.

The Tata name is a unique asset representing leadership with trust.

1868

The TATA Group was founded byJamsetji Nusserwanji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule.

The Central India Spinning, Weaving and Manufacturing Company is set up, marking the Group's entry into textiles.

The Indian Hotels Company is incorporated to set up the Taj Mahal Palace and Tower, India's first luxury hotel, which opened in 1903.

The Tata Iron and Steel Company (now Tata Steel) is established to set up India's first iron and steel plant in Jamshedpur. The plant started production in 1912.

The first of the three Tata Electric Companies, The Tata Hydro-Electric Power Supply Company, (now Tata Power) is set up.

The Indian Institute of Science is established in Bangalore to serveas a centre for advanced learning.

1912

Tata Steel introduces eight-hour working days, well before such a system was implemented by law in much of the West.

19171917

The Tatas enter the consumer goods industry, with the Tata Oil Mills Company being established to make soaps, detergents and cooking oils.

1932

Tata Airlines, a division of Tata Sons, is established, opening up the aviation sector in India.

1939

Tata Chemicals, now the largest producer of soda ash in the country, is established

1945

Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) is established to manufacture locomotive and engineering products.

Tata Industries is created for the promotion and development of hi-tech industries.

1952

Jawaharlal Nehru, India's first Prime Minister, requests the Group to manufacture cosmetics in India, leading to the setting up of Lakme.

19541954

India's major marketing, engineering and manufacturing organisation, Voltas, is established.

1962

Tata Finlay (now Tata Tea), one of the largest tea producers, is established.

Tata Exports is established. Today the company, renamed Tata International, is one of the leading export houses in India.

1968

Tata Consultancy Services (TCS),India's first software services company, is established as a division of Tata Sons.

1970

Tata McGraw-Hill Publishing Company is created to publish educational and technical books.

Tata Economic Consultancy Services is set up to provide services in the field of industrial, marketing, statistical and techno-economic research and consultancy.

1984

Titan Industries – a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO) – is set up to manufacture watches.

19919911

Tata Motors rolls out its millionth vehicle. (The two-million mark was reached in 1998 and the third million in 2003.)

1995

Tata Quality Management Services institutes the JRD QV Award, modelled on the Malcolm Baldrige National Quality Value Award of the United States, laying the foundation of the Tata Business Excellence Model.

Tata Teleservices (TTSL) is established to spearhead the Group's foray into the telecom sector.

Tata Indicom delivers cellular services through its CDMA mobile telephony platform. It has pre-paid and post-paid options, enhanced through tie-ups for handsets with leading manufacturers.

Tata Indica – India's first indigenously designed and manufactured car – is launched by Tata Motors, spearheading the Group's entry into the passenger car segment.

The new Tata Group corporate mark and logo are launched.

20002000

Tata Tea acquires the Tetley Group, UK. This is the first major acquisition of an international brand by an Indian business group.

 2001

Tata AIG – a joint venture between the Tata Group and American International Group Inc (AIG) – marks the Tatare-entry into insurance.

(The Group's insurance company, New India Assurance, was nationalised in 1956).

The Tata Group Executive Office (GEO) is set up to design and implement change in the Tata Group and to provide long-term direction.

2002

The Tata Group acquires a controlling stake in VSNL, India's leading international telecommunications service provider.

Tata Consultancy Services (TCS) becomes the first Indian software company to cross one billion dollars in revenues.

Titan launches Edge, the slimmest watch in the world. Idea Cellular, the cellular service born of a tie-up involving

the Tata Group, the Birla Group and AT&T, is launched. Tata Indicom, the umbrella brand for telecom services from

the Tata Teleservices stable, starts operations.

2003

Tata Motors launches CityRover – Indicas fashioned for the European market. The first batch of CityRovers rolled out from the Tata Motors stable in Pune on September 16, 2003.

2004

Tata Motors acquires the heavy vehicles unit of Daewoo Motors, South Korea.

TCS goes public in July 2004 in the largest private sector initial public offering (IPO) in the Indian market, raising nearly $1.2 billlion.

2005

Tata Steel acquires Singapore-based steel company NatSteel by subscribing to 100 per cent equity of its subsidiary, NatSteel Asia .

VSNL acquired Tyco Global Network, making it one of the world's largest providers of submarine cable bandwidth.

Tata Sons completes 60 years of Tata operations in the US.

The Taj takes over management of The Pierre, NY .

Taco acquires Wundsch Weidinger, Germany.

Tata Steel acquires stake in Carborough Down Coal Project, Queensland, Australia

VSNL acquires Teleglobe International Holdings, Bermuda

TCS acquires Sydney-based Financial Network Services (FNS)

Tata Motors passenger vehicle sales cross one-million mark

TCS acquires leading BPO firm Comicrom in Chile.

The Indian Hotels Company acquires hotel run by Starwood, Sydney.

Tata Steel acquires Millennium Steel, Thailand.

Tata Chemicals acquires controlling stake in Brunner Mond Group, UK.

Tata launched gold plus ,a new jewellery range.

2006

Tata Credit Card launched

Foundation stone for the Tata Medical Centre unveiled in Kolkata

TCS launches India’s largest e-governance initiative, MCA-21

Tata Steel ranked world’s best steel maker for the third time by World Steel Dynamics

Tata Coffee acquires US-based Eight O'Clock Coffee

Tatas join hands with Indigene Pharmaceuticals to build a global biopharmaceutical company

Tata Sky satellite television service launched across the country

Tata Steel begins construction of R670 million Ferrochrome plant in South Africa

Tata Group acquires 30-per cent stake in Glacéau

VSNL rebrands SNO as Neotel in South Africa

2007

In a giant leap, Tata Steel's acquisition of the Anglo-Dutch steel major Corus has vaulted the former to the fifth position from 56th in global steel production capacity.

2007

TATA singur project

Tata Motors' General Manager (Construction), MB Kulkarni, "We have planned our work plans in such a way that whatever are the target dates for the product. Rolling of the vehicle will take place in 2008." Group Chairman Ratan Tata's dream "people's car" is expected to roll out by next year.

Tata Motors said that 700 acres of land will be used for the factory and manpower has been mobilised for the construction.

Till feb 2007

PRODUCTS AND SERVICESFor homes and individuals Agricultural appliances (Tata Agrico)   Tata Agrico, a division of Tata Steel, manufactures hand tools and implements that are used primarily in agriculture

Agrochemicals (Rallis)   Books (Tata McGraw-Hill) Cellular products and services (Tata Indicom) Ceramics (Tata Ceramics) Charter flights (Taj Air)   Coffee (Tata Coffee) Cooling appliances (Voltas)

Voltas, a standout engineering enterprise in the Tata family, manufactures top-notch air-conditioning and refrigeration products for homes.

Credit card (Tata Sons) Electronics (Infiniti Retail)

For homes and individuals

  Entertainment (Tata Sky) Tata Sky offers subscribers popular

channels such as STAR group channels, Sony,

Discovery, Disney, MTV, NDTV, ESPN STAR Sports, National

geographic, Eenadu, TV Today, Asianet and many more.

 Fertilisers (Tata Chemicals)

 Financial services (investment: Tata Asset Management, Tata Investment Corporation)  

Food products (food additives: Tata Chemicals; spices: Tata Tea, Tata Coffee)

 

Garments and home products (Westside)   Holiday homes (Tata Coffee) Home appliances (Tata BP Solar)   Hotels (Indian Hotels)  

For homes and individuals

Housing (THDC)

THDC (formerly known as Tata Housing) develops real estate in India and has, since its inception in 1942, constructed

residential buildings and complexes in various Indian cities,among them Mumbai, Delhi, Bangalore Hyderabad and Kochi.

THDC has been involved in developing premium residential complexes, lifestyle housing buildings and holiday homes.

Insurance (Tata AIG Life, Tata AIG General)

Jewellery (Tanishq)  

Leather products (Tata International)

Multi-utility vehicles (Tata Motors)  

Passenger cars (Tata Motors)  Tea (Tata Tea, Tetley)

 Telecommunications (Tata Indicom, VSNL)  

Watches, clocks (Titan)

Hotels (Indian Hotels)  

For industries and companies Agricultural inputs

Agrochemicals (Rallis) Fertilisers (Tata Chemicals)

  Automotive

Automotive components (TACO) Automotive services (TACO, Tata Technologies) Commercial vehicles (Tata Motors) Diesel engines (Tata Cummins)

Tata Motors is India's largest manufacturer of commercial vehicles, with a 59-per cent market share, and it ranks among the top six manufacturers of medium and heavy commercial vehicles in the world

The company has over 130 models of light, medium and heavy commercial vehicles, ranging from two tonnes to 40 tonnes, buses ranging from 12 seaters to 60 seaters, tippers, special purpose vehicles, off-road vehicles and defence vehicles.

Tata Cummins, a 50-50 joint venture between Tata Motors and Cummins Engine Company, USA, manufactures low-emission diesel engines and is a pioneer in the field of supplier quality improvement (SQI).

Aviation

Charter flights (Taj Air)

Taj Air is India's leading charter flight operator with two Falcon 2000 aircrafts serving top industry leaders, global CEOs and celebrity personalities from both India and abroad.

Communications Broadband services (Tata Indicom) Telecommunications (Tata Indicom) Tata Teleservices and VSNL, through their common brand Tata

Indicom, offer a complete range of telecom solutions for business needs. Tata Indicom is the world leader in fixed wireless services.

They are providing: Fixed-wire phone connections Web conferencing Centrex (central exchange)

Consultancy Management consultancy (Tata Economic

Consultancy Services, Tata Strategic Management Group)

 

Electronics Digital disc recorder (Tata Elxsi)  

Energy Oil and gas (Tata Power) Power (Tata Power, Tata Projects) Solar energy (Tata BP Solar)

Engineering

Air-conditioning products and services (Voltas)Bearings (Tata Steel)

Construction equipment (Telcon, Voltas) Engineering consultancy (TCE Consulting

Engineers) Engineering equipment and services (TRF, Voltas) Engineering projects and project services (Tata

Projects, Voltas) Industrial electronics (Nelco) Industrial machinery (Voltas) Manufacturing engineering (TAL Manufacturing

Solutions) Mining and material handling equipment (Voltas) Precision equipment (Tata Precision Industries) Turbochargers (Tata Holset)

Financial services

Insurance (Tata AIG General, Tata AIG Life) Investment (Tata Asset Management, Tata Investment

Corporation, Tata International AG) Food products

Coffee (Tata Coffee) Food additives (Tata Chemicals) Spices (Tata Tea, Tata Coffee) Tea (Tata Tea, Tata Tea Inc)  

Hospitality

Hospitality (Indian Hotels)

Indian Hotels and its subsidiaries, collectively known as the Taj Group, are recognised as one of the world's finest hospitality chains.

Information technology IT-enabled services (SerWizSol)

IT products and solutions (TCS, CMC, Tata Infotech, Nelito Systems, Tata Interactive Services)

IT services (TCS, CMC, Tata Infotech, Tata Technologies, Nelito Systems)  

Infrastructure

Construction services (Tata Projects, Voltas) Realty (THDC)

Materials

Advanced composites (Tata Advanced Materials) The company manufactures armour products such as bulletproof jackets

and helmets and armoured panels for battle tanks and special applications

Cement (Tata Chemicals) Tata Chemicals manufactures three varieties of cement: Ordinary Portland

Cement (grades 43 and 53) and Pozzolana Portland Cement.

Dolomite Refractories (Tata Refractories)

Pig iron (Tata Metaliks) Pigments (Tata Pigments) Renewable wood (Tata Conswood) Roll manufacture and supply (Tayo Rolls) Sponge iron (Tata Sponge Iron)

Steel (Tata Steel) The company's products include hot- and cold-rolled coils and sheets, wire

rods, construction bars, structurals and forging quality steel.

Steel processing and distribution (Tata Ryerson) Tinplate (Tinplate Company of India) Tubes (Tata Steel)

Publishing

E-learning (Tata Interactive)

Publishing (Tata McGraw-Hill)  

Trading

E-trading (mjunction services)

Trading (Tata International, Tata AG, Tata Incorporated, Tata Limited)  

The Tata Group has some of India's most famous personalities from the sports and entertainment fields endorsing its products and services, and the Tata brand.

Narain Karthikeyan: The 'fastest Indian in the world' has been a brand ambassador for the Tata Group since 2002. The Group was instrumental in helping Karthikeyan break into the charmed Formula One racing circle in 2005.

Sourav Ganguly and Irfan Pathan: The old warhorse and the young tearaway have

been supporting the Tata Indicom brand. Ganguly has also been associated

with Tata Steel.

Sania Mirza: The new kid on the tennis block has been making waves in the women's game with her power and ebullience. Mirza, who broke into the ATP top 100 in 2005, is a brand ambassador for TATA TEA

Yuvraj Singh: This rising cricket star, among the most prominent of the young

brigade that has been transforming the way India plays the game, is a prominent

feature of the many promotions run by

Westside, the retail chain of lifestyle stores.

Naseeruddin Shah: Arguably the best actor of his generation, Shah has

been endorsing a range of insurance

products from the Tata AIG stable.

Aamir Khan: To promote its watches, Titan has cast this extremely popular and versatile Bollywood star in the role of an "iconic, style-conscious [brand ambassador] who cuts across both sex and age groups in urban and rural India".

Karun Chandhok: Tata Group brand ambassador Karun Chandhok is the brightest young star in the brigade of Indian racing car drivers looking to follow in the footsteps of Narain Karthikeyan. The 21-year-old racer is currently honing his skills in the Formula 3 World Series for RC Motorsport, for whom he has made a positive start in the 2005-2006 racing season.

Mergers and acquisitions

Indian Hotels

Starwood GroupStarwood Group

(W Hotel) (W Hotel)

Sydney Sydney Dec 2005 Dec 2005

The Pierre The Pierre US US July 2005 July 2005

Regent Hotel Regent Hotel (renamed Taj Lands (renamed Taj Lands End) End)

India India September September 2002 2002

Tata Autocomp Systems

Wündsch Wündsch Weidinger Weidinger

Germany Germany September September 2005 2005

Tata Tata ChemicalsChemicals

Brunner Brunner Mond Mond

UK UK December December 2005 2005

Mar 2006Mar 2006

Indo Maroc Indo Maroc Phosphore Phosphore S.A. S.A. (IMACID) (IMACID)

Morocco Morocco March 2005 March 2005

Hind Lever Hind Lever Chemicals Chemicals

India India June 2004 June 2004

Tata CoffeeTata Coffee Eight 'O Clock Eight 'O Clock Coffee Company Coffee Company

US US June 2006 June 2006

Tata Tata Consultancy Consultancy ServicesServices

Tata Infotech Tata Infotech indiaindia February 2006 February 2006

Comicrom Comicrom Chile Chile November 2005 November 2005

Pearl Group Pearl Group ukuk October 2005 October 2005

Financial Financial Network Network Services Services

australiaaustralia October 2005 October 2005

Phoenix Global Phoenix Global Solutions Solutions

India India July 2004 July 2004

Aviation Aviation Software Software Development Development Consultancy Consultancy India (ASDC) India (ASDC)

India India March 2004 March 2004

Airline Financial Airline Financial Support Services Support Services India (AFS) India (AFS)

indiaindia January 2004 January 2004

Tata Tata IndustriesIndustries

Indigene Indigene Pharmaceuticals Pharmaceuticals Inc Inc

US US July 2005 July 2005

Tata Tata InteractiveInteractive

Tertia Edusoft Tertia Edusoft Gmbh Gmbh

GermanyGermany January January 2006 2006

Tertia Edusoft Tertia Edusoft AG AG

Switzerland Switzerland

Tata Tata MetaliksMetaliks

Usha Ispat, Redi Usha Ispat, Redi Unit Unit

India India January January 2006 2006

Tata Tata SteelSteel

Millenium Millenium Steel Steel

Thailand Thailand April 2006 April 2006

NatSteel NatSteel Asia Asia

Singapore Singapore February February 2005 2005

Corus steelCorus steel Feb 2007Feb 2007

Tata Tata SonsSons

VSNL VSNL India India February February 2002 2002

And many more……..

Group holding structure

The Ratan Revolution Ratan Tata A Man Who Believes In

“18 TILL I DIE”

Post Liberalization Stage

Outdated plant with obsolete and inefficient machinery.

Quality of products was poor and cost of production was high.

Poor financial health.High competition.Wide range of goods.Pricing strategy.

The Globalization ImpactObjectivesReturns must be greater than cost of

capital.  Economies of scale should be derived.  Each company must be the industry leader

occupying one of the top three positions.  The business identified must have

potential for high growth and should be globally competitive. 

Modernization More than 10,000 crore were spent to built

new plans in old campus.Upgrading of the plant.Business process re-engineered.(Total Operating Performance). THE SAME VALUES AND PHILOSOPHY

ADOPTED.

Strategic MovesExit the businesses of soaps and toiletries,

cosmetics, consumer electronics, pharmaceuticals, computer and telecom hardware, branded white goods, paints, exploration services, cement, textiles.

Expansion/entry into businesses identified as having high growth potential- cars , auto companies , retailing, telecom , power and insurance.

Identified the competitive advantage of India.Retirement pan.

ResultsStrong group identity.Greater interaction among companies.Shift in business focus.Change in employee profile.Increase in the share to branded products.Five-fold increase in income per employee.

1 lakh Car StoryProject X3. The target market is likely to be the lower

middle-class Indian family It will be bigger than Maruti 800, but also

lighter with a rear engine and will seat 5 people.

it will meet the safety requirements in India and most other developing nations.

From Sources700cc petrol engine with rear wheel powered

and gearless.Will be a light car and will not be able to

withstand the vibration generated by a diesel engine.

Plastic and other fibre made body.Eliminating the margin of dealers.Adhesives instead of welding.

The Sitara, the four-seater .

Launched by Habib Motors in Pakistan .

175 cc engine .Has a 10-litre fuel

tank.It can achieve a top

speed of 60 kmph.

A Sri Lankan microcar - Rs 2.4 Lakh approx.

Competitor’s Reaction.I don't think we need to worry about

Tata's Rs 100,000 car. It will attract those customers who cannot yet afford existing cars like Maruti 800 and Alto. As such, I do not see the proposed Rs 100,000 car impacting Maruti, though two wheelers could perhaps be affected.

Dr Jamshed Irani

TITAN Vs HMTAggressive Product Strategy Product, the NO 1 weapon in Titan’s mktg

strategyRight Product Choice-Titan Opts for Quartz.Aggressive LaunchingBest TechnologyAddressed to Different Segments

“Always identify customer’s requirements, segregate the market accordingly and then cater to the requirement of that particular market segment".

- Mr Bijou Kurien, vice president, Titan

SegmentationClassique Distinctive watches

combining the elegance of gold and leather, in 135 different designs.

Sonata For the low-end market.

Fast Track Casual watches with

an accent on youth and the outdoors, in 25 different designs.

Royale Stylish dress

watches in all gold and precious metals, in 40 different designs.

Exacta Contemporary

watches in stainless steel to withstand the rigors of daily life, in 100 different designs.

Raga Exclusively for women.

Aurum Jewellery

watches in 18 carat gold, studded with precious gems and colored stones.

•India’s 1st youth-oriented watchbrand.

•Positioned as “Cool watches From Titan”.•Launched to counter Timex.

Fastrack Collections

Fastrack’s Downfall

Initial turnover crossed Rs 15 crore and had grown to Rs 25 crore by 2001-02.

Sales were stagnating and it didn't seem as if Ft would breach the Rs 25 crore barrier.

Repositioned the brand .Slotted as a mix of formal and casual, aimed at

executives between the age group 22 to 25.Sales dropped down to Rs 23 crore.REASON : Price range from Rs1200 to Rs 2700.

Company’s ReactionResearch Conducted.Brand ExtensionFindings- Cell phones, deodorants, sports

shoes, sunglasses and hand bags. Smartly opted for extending into sun glasses.

Why Sun Glasses.Eyewear market in India at that time was

skewed.Top-end was dominated by designer wear

and upscale brands like Ray-Ban.And in grey markets one could easily get a

pair for jus Rs 200.There was an obvious gap between the price

ranges.

Re-Launching FastrackPrice rate between

Rs 500 and 2000.Promoted through a

360-degree media blitz.

Available at Titan showrooms .Lifestyle, Shopper's stop and other departmental stores across the country.

Behind The Tatas’ Success StoryLeadership with trust.Sound HR.Failure is an option - as long as you have

initiative. Initiative will lead to success. You can't achieve anything on your own; you

need the co-operation of managers and workers. Tell the truth. The most important criteria in a

leader is credibility. Be enthusiastic in following through with your

ideas. This will convince the team that you're leading.

Invest in technology. Learn to delegate. A weak company is one in

which the boss solves all the problems.

Last But Not LeastNation Building

And Social Welfare.

THANKS

Any queries ?

Refer

www.tata.com