e

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w
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v
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s
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a
V
p
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G
a
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a
T

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amitrangnekar@gmail.com
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Tata Group 2008 (1868)

Always aligned biz with nation building & values

Indias biggest private group, most respected, 3% GDP
Sales- $50 bn (incl Corus & JLR), $29 bn excl
Tata Steel + Tata Motors + TCS= 75% of sales
98 companies, 3 Lakh employees
Total market cap $66b ($12bn in 2003) Indias highest
27 listed firms, 3mn Shareholders
Operations- 80+ countries, exports- 85 countries.
5 core values: integrity, understanding, excellence, unity
and responsibility- enshrined since inception

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amitrangnekar@gmail.com

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7 sectors: engineering, materials,

services, information systems,
Services

Engineering

Energy &
communications

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Tatas

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Consumer
products

Chemicals

r
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Materials

Information
systems

Tatas

Founder- Jamshetjee Tata- 1868, Trading

1903- Taj, Mumbai- Luxury Hotels
1907- Tata Steel- Asias 1st steel plant
1910- Tata power- Hydro Power
1932- Tata Airlines- Civil Aviation
1968- TCS- Software
1998- Tata Indica
2008- Tata Nano- Worlds cheapest car

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At Tatas, we have retained the fire of idealism and in its glow we have
come to recognise that no wealth or power can be more valuable than
our dignity; no loss of profit can be more critical than the loss of our
credibility; no skills or qualifications
can substitute the integrity of our
amitrangnekar@gmail.com
character- JRD Tata

Other firsts
Industrial
1912- 8 hour work day
1915- Free Medical Aid
1917- Free Schooling
1920- Paid Leave, PF

Educational
Foreign scholarships
IIS, Bangalore
TISS, TIFR, NCPA
Tata Memorial Hosp

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2008 Trust Grants300 crores

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amitrangnekar@gmail.com

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Bombay
House

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Group HQ 1926
Trusts & holding Co.s
9 Board Members
Provide strategic vision
Control Tata brand
Big Deals
Mentor managers
Perspective
amitrangnekar@gmail.com
Promote values & CSR

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Tata Sons Board

RK Krishna Kumar
Director
al a
w
a
on

N So Chairman
Vice

Ala
Ex n Ro
e
In c Di sling

t er

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Ratan Tata
Chairman
Tata Sons

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na recto
tio
na r
l

JJ Irani
Director
TQM

R Gopalakrishnan

Exec Director
Brand, HR

Ishaat Hussain
Fin Director
Finance, Legal

amitrangnekar@gmail.com

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Aru
Ex n Ga
ec
n dh
D
M& irec i
A,
t
Tax or

ar
k
a u Inds
h
C ta es s
A
K Ta sin
u
MD w b
Ne

Sir Dorabji Tata Trust + Sir Ratan Tata Trust + Other Tata Trusts
66% shareholding
29%
shareholding

Tata Sons (1868)

(Major Holdings)

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Tata Industries (1945)

Promoter of all Tata companies

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(Major Holdings)

TCS
Tata Steel
Tata Motors
Tat Power
VSNL
Tata Chemicals
Tata Tea
Indian Hotels
Tata Infotech

Titan
Voltas
Tata Elxsi
Trent
Rallis
Tata Investment
Tata Teleservices
Tata International

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amitrangnekar@gmail.com

Tata Advanced Materials

Idea Cellular
Tata Teleservices
Information Tech Park
Tata Autocomp Systems

JRD

RNT

led
Tatas from
1938 to 1991
(200cr to
10600cr)
53 years

leads Tatas
since 1992
till date
(10600+ cr
to
(200,000 cr)

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amitrangnekar@gmail.com

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Ratan Tata

Born December 28, 1937

School- Campion, Mumbai
US- Age 15, for further studies
Degree- Arch & Structural Engg- Cornell
AMP- Harvard Business School.
Joined Tata Group, 1962
Director in Charge- Nelco 1971-94
Chairman Tata Steel- 1977
Chairman Tata Motors, Industries- 1981
Chairman Tata Sons, Tea- 1991
Chairman VSNL- 2002-2005
Chairman 1991- As India liberalised

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amitrangnekar@gmail.com

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RNT Restructuring 1992

Exit

Enter

Build

Marginal biz

Potential biz

Core biz

Cosmetics
Paints
Oil
Soaps
Pharma
Cement

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Retail
Telecom
Biotech
Technology

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Steel
Motors
Chemicals
Power

Pare group companies to 12

Transform group revenues, retain values
Ease outamitrangnekar@gmail.com
satraps, from fiefdoms

Tata Motors (1945)

Indias largest auto company- 32500 cr, 1 trucks, 2 cars

World- 5th M&H CV maker, 2nd M&H Bus maker
1999- Indica (UK, SA, Spain & Italy)
M&A- Daewoo's truck business, 465 cr, 2004
We acquired Daewoo as we saw an opportunity in an entity that
had a certain market share, that had a product line that we did
not have, and that was a strategic fit for us. We brought in our
marketing reach and made the company more profitable. RNT

2005- Ace mini-truck < Rs 3L, hit, 250,000 units

Fiat JV- India, South America- cars & trucks
Plants- Pune, Jamshedpur, Lucknow, Pantnagar, Singur
2,000 touch points

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amitrangnekar@gmail.com

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Ace Magic

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amitrangnekar@gmail.com

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Ace Ad
The success of Tata
Ace, a 4-wheeler, in a
market dominated by
3-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.

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World's ULCC
Set to revolutionise
Indian car market
Global implications
Huge export potential

Nano2008

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amitrangnekar@gmail.com

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Innovation

1998- Tata Safari, Indias 1st SUV

1999- Indica, Indias 1st fully indigenous car
2005- Ace, sub-1Ton CV, new segment
Innovation is primarily implementing a new idea to give the
company a competitive edge, in all aspects of the value
chain Kant
I cant think of any other product or service which has built
up such a strong brand without spending money. Within 24
hours of the launch, the Nano website had four million hits.
Now thats a hit. Kant.

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amitrangnekar@gmail.com

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Jaguar-Land Rover M&A

Marquee brands acquired from Ford

Apr08- $2.3 billion
Access to premium markets
SUV global entry
Distribution set-up for Tata Motors
Unique- Worlds cheapest (Nano), most rugged (Land
Rover) & costliest (Jaguar)

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amitrangnekar@gmail.com

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Tata Chemicals (1939)

Rs 5,800 cr
Tata Salt- India's largest salt
brand
2005- M&A Brunner Mond UK,
526 cr
2008- M&A General
Chemicals US, 4020 cr
Global No.2 soda ash
producer
Fertilisers

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amitrangnekar@gmail.com

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Indian Hotels (1903)

Taj
PalacesLuxury
Taj
ResortsLeisure
Taj
ResidencyBusiness

1903- Taj Mahal Hotel, Mumbai

1974- 1st Intl beach resort- Aguada, Goa
2008- Rs 2600 Cr, India's largest10500 rooms, 88 hotels, India 72, 12 nations
16% share of organised hotel sector
M&A 2005- The Pierre (New York) 202 Cr
2005- The Ritz Carlton (Boston)
2007- Campton Palace, San Francisco 235 Cr
Taj Air- luxury private jets & luxury yachts
Expansion Rs 2100 crores over N3-4Y
147 hotels, 20000 rooms

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GingerBudget

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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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Tata Teleservices (1995)

6000 cr
M&A Hughes Telecom in 2001
Largest retail chain, 5,000 outlets
India's 2nd largest CDMA mobile-phone &
Early CDMA entrant, but distant second (25 mn
subscribers) to Reliance (45 mn)
Excellent response in L2Y
Tata Indicom- broadband & wireless service
provider
Alliance- Virgin Mobile, target India's fast-growing
youth market

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amitrangnekar@gmail.com

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m
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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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Tata Power (1911)

6000 cr
India's largest private-sector power generator
2,300 mw installed base
Secret of Mumbais superb power situation
Expansion- invest $4 bn, double capacity 4500 mw
Building power plants in Arabia, Africa & Asia
30% stake in PT Koltim, Indonesia to acquire coal
deposits

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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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Tata Steel (1907)

In the early '90s, Tata Steel was saddled with antiquated plants, bloated
payroll & no market orientation. . . we were a good study in demise"
Muthuraman

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Mid-90s, slashed workforce from 78,000 to 38,000

Early retiring workers- full pay till 60, lifelong health care
Jamshedpur- Spend $40mn/year supply all civic services & schools
but employ only 20,000 of 700,000 residents

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Spent $2.5 billion on modernization

M&A NatSteel Singapore (2004) 1282 cr
M&A Millennium Thailand (2005) 1818 cr

2008- 23000 cr, nimble player, Key group dynamo

One of the world's lowest cost producers of steel
Triple capacity to 15 million metric tons by 2010

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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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Corus Acquisition 2007

Use
own
RM

M&A- Corus (UK-Dutch) steelmaker $12bn

Global No.5
Asia, Middle East, Europe & Africa
Focus on high-value specialized steels- automobiles
$7.4 billion debt? Lay offs? High-cost ops? Margins?
Strategy

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Make
low cost
raw
steel

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Ship
to
Corus

Finish
goods at
Corus
plants

amitrangnekar@gmail.com

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Earn
higher
Margins

Tata Tea (1950)

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JV- James Finlay, UK

1980s- From commodity player to branded tea producer
Operate 54 tea estates in India
Industry- rising inputs, shrinking margins, MNC
M&A- Tetley UK (2000) 1831 cr
Rationale- Tata plantations + Tetleys global reach
M&A- Good Earth Tea (US) 144cr, JEMCA(Czech) 100cr, Eight
O' Clock coffee (US) 990 cr
M&A- Himalayan Mineral water- Premium, at source
Glaceau- M&A, sold in 9 months to Coke- $400 mn profit
Now- Build Tata Tea brand, NPL, exit tea plantation biz
Overtook HUL in beverage volumes in 2007 in India

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amitrangnekar@gmail.com

Tata BP Solar

$260 million JV- BP (UK)

Renewable energy- Solar power, home & street lighting
Exporting solar cells, modules, and power systems
Germany- Rooftop solar-electric systems for buildings
EMs- Bring affordable power to villages not in power grid
Low-cost, solar-powered water pumps, refrigerators, &
Rs 1200 lanterns that burn for 2 hours on charging
Fitted 50,000 homes with Rs 12000 systems that can
power 2 lights, a hot plate, a fan, and 14-inch TV
This is a drop in the ocean, we ought to be touching
millions" Tata BP Solar CEO K. Subramanya

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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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TCS (1968)

India's oldest & Asia's largest software firm

$4.3 bn, 1 lakh+ employees
Major home player, unlike most others
2004- 10% equity, IPO raised $1.3 billion
Poised to tap outsourcing boom & growing geographies
Gen-next IT products- Transportation, retail, finance,
M&A to extend geographic reach- TKS 360 cr Technosoft
Software for Fiat, Ferrari F1, Iveco, CNH

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amitrangnekar@gmail.com

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Titan (1984)

JV- TIDCO, introduced India to quartz

Rare Indian company to acquire collaborator, Ebauches
JV- Timex, discontinued 1998
2008- Sales 3041cr, Profit 150cr, 60% MS, 12000 outlets
Global No. 6, Indias largest, 9mn watches, 30 countries
Began watches as gifts, Psychographic segmentation
Titan, Edge, Raga, Heritage, Wall Street, Regalia, Classique,
Royale, Aviator, Nebula, Octane, Fastrack
Market Xylys, Tommy Hilfiger & Hugo Boss
Sonata, India's largest selling watch brand
Tanishq (1994)- India's largest jewellery brand Rs 2000 cr
Jewellery (66%), Watches (31%), Others (3%) sunglasses,
Rx eye wear, precision components

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amitrangnekar@gmail.com

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m
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amitrangnekar@gmail.com

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Voltas (1954)

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2400 cr
AC & Engg-services
Turnaround
Tapping AC boom in malls,
offices, residences
Middle East major- Bahrain City
Centre, Royal Palaces & Burj
Dubai Tower- world's tallest
amitrangnekar@gmail.com
building

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Trent (1998)

632 cr, Retail foray

3 formats
Westside- 29 lifestyle dept stores,17 cities
Star Bazaar- Hypermarket (3)
Landmark- Books & Music (10)
Target- Indian middle-class
Indian franchisee-Sisleys (3)
Run by Noel Tata

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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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Infiniti Retail (2006)

100% subsidiary of Tata Sons

Croma- consumer durables & electronics
21 large stores (15-20,000 sq ft each)
6000 products, 8 categories, 200 brands
World class in-store experience
Woolworths (Australia)- technical support
& strategic sourcing

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amitrangnekar@gmail.com

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amitrangnekar@gmail.com

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Tata Communications (2002)

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7200 cr
Global thro M&A
VSNL (2002)
Tyco (04) 585 cr
TeleGlobe (2005)
1075 cr
Global voice and
data services leader
India's top ISP &
intl wholesale voice
carrier
2008- India WiMax
rollout, worlds
largest

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amitrangnekar@gmail.com

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Other Tata Firms

Firm

Estd

Sales
Cr

Autocomponent Sys

1995

2600

Engineering

Autocomponents

Tata International

1962

2300

Materials

Leather Exports

Tata Asset Mgt

2000

2100

Finance

Financial planning

Telco Construction Equip

1998

1617

Engineering

JV Hitachi- Earthmovers

Tata Technologies

1994

961

IT

Auto /Aerospace Design

Tata Projects

1979

938

Engineering

Engineering , Construction

Rallis

1948

702

Chemicals

Agrochemicals

Tata Elxsi

1989

308

IT

Product design

145

IT

BPO

93

IT

Custom e-learning

Comm

DTH Satellite TV

Finance

Insurance Premium 2100cr

Chemicals

Drug discovery

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Tata Business Support

2004

Tata Interactive

1990

Tata Sky

2001

Tata AIG
Advinus

2000

Sector

Business

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amitrangnekar@gmail.com

2005

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Strategy Mix
Year

Strategy

Motive

90s

Divest businesses

Beauty, Pharma, Oil, Soaps- Focus

1998 NPD Indica

Passenger car entry, indigenous

2003 M&A Daewoo trucks (SK)

Chinese market & small truck segment entry

2003 Strategic stake

Indonesian coal mine, SE Asian steel mills

00s

M&A- Hotels in US

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Consolidate, enter premium segment

2004 M&A Tyco Intl- $130 mn

Tata, one of the world's biggest carrier of
(Undersea telecom cables) international phone calls
2004 M&A Incat International
(UK), $91 million

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2007 M&A Corus $13 bn, UK

Tata Tech- major outsourced industrial

design supplier for US auto & aerospace
Scale, range, access to global automakers

2007 Divest Glaceau to Coke

Tata Tea made $523mn profit in 9 months

2008 M&A Ford's JLR brands

Global auto map, distribution setup, SUV

2008 NPD Nano

ULC car, redefined

amitrangnekar@gmail.com

global auto dynamics

Diversification Synergies
Power
Consumer

Hotels

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IT

Synergy

Retail

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Steel

Automobile

Voltas

Finance

amitrangnekar@gmail.com

Telecom

Firm

Shareholding in
Group firms
2002- Fortify promoter
holdings in group firms to
ward off predators
Huge funds involved, but
critical
Creeping acquisitions (5-10%
pa)
Crossholdings in group firms
Tata Steel
4%(1970s)
18%(2000)
27%(2002)

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Tata Steel

27%

Tata Motors

34%

BSE 31 Mar 2006

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Tata Coffee

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amitrangnekar@gmail.com

Holding

51%

Tata Chem

29%

Tata Power

32%

Tata Tea

29%

Tata Elxsi

38%

Trent

27%

Voltas

26%

Growth strategies in a globalizing economy

We have 2 guiding arrows. One points overseas,
where we want to expand markets for our existing
products. The other points to India, where we want
to explore the emerging large mass market- not by
following but by breaking new ground in product
development and seeing how we can do something
that hasnt been done before.

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We expand into geographies where we can have a

meaningful group presence, and where we could make
an impact and participate, in that countrys
development, as in India. When you visit a country or
examine a company, you intuitively know if theres an
opportunity, and then you flesh out that opportunity in
one form or other.
amitrangnekar@gmail.com

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Domestic Expansion

N5Y outlined $28 billion capital investments

Steel
Auto
Telecom
Power
Chemicals
Technology

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amitrangnekar@gmail.com

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The RNT era

Rocky first decade as chairman

Commissioned sweeping review to plot strategy
Eased out group veterans
Focus- emerging businesses, technology, geographies
Unorthodox group structure
Agile, individual companies to respond to new
opportunities and threats
"We rescaled our thinking in terms of growth. We just
forced and cajoled our businesses to make this happen

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amitrangnekar@gmail.com

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Key issues

Successor, with values & CSR

Tata family members own just 3% shares in Tata Sons
Building coherent vision, retaining diverse focus
Cases- Daewoo (South Korea), Charoen Pokphand
(Thailand) & Salim Group (Indonesia)
Compete in developed and developing markets
In tough times- growth, retain talent, value system &
ethics
CSR initiatives- tempting targets for cuts

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amitrangnekar@gmail.com

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Group Numbers 2005-07 (000 Cr)

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Market Cap (000 Cr)

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5%

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ap
C
M
E
S
of B

Sectoral Contribution %
Sales

PAT

Exports

HR

Services

18

10

Materials

21

34

18

Engineering

31

21

14

14

Tata Motors

Energy

Tata Power

16

Titan

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Key Firm

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Taj Hotels
Tata Steel

Consumer

Chemicals

Tata Chemicals

Info & Comm

25

11

67

38

TCS

amitrangnekar@gmail.com

Top 12 Firms (2006-07)

Firm

Estd

Sales Cr

Tata Motors

1945

30000

26

Engineering

Tata Steel

1907

23000

20

Materials

TCS

1968

17000

15

IT

Tata Communications

2002

7200

Communications

Tata Teleservices

1995

6000

Communications

Tata Power

1911

6000

Energy

Tata Chemicals

1939

5200

4.5

Chemicals

Titan

1984

2800

2.5

Consumer

Autocomponent Systems

1995

2600

Engineering

Taj Hotels

1903

2600

Services

1954

2400

Engineering

International

Voltas

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Tata International

% Contr Sector

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1962
2300
amitrangnekar@gmail.com

92

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Company M-Cap (%) Apr 08

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M-Cap of Top 5= 87%amitrangnekar@gmail.com

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How Do they Innovate

Global innovation- think, aspire & experiment

Tetley- beverage-dispensing machine without electricity
Tata Chemicals- bio-fuels & ethanol from biowaste
TCS - academia (Stanford & MIT) interaction
Ginger Hotels- Profitable from year1
Innometer- thermometer to gauge degree of innovation
at every Tata company
R&D teams across the Tata universe share learnings
We dont believe that what we are doing is innovative. It
is just a part of the days work

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References
http://images.businessweek.com/ss/08/03/0312_tata/ind
ex_01.htm?campaign_id=rediff
http://www.rediff.com/money/2007/dec/28sld1.htm
http://images.businessweek.com/ss/07/08/0802_tata/ind
ex_01.htm?campaign_id=rediff
Ratan Tata: India's shining jewel
Pete Engardio, BusinessWeek
Business World Jan, 2008
Business Today Jan, 2008
Mckinsey Quarterly- Interview 2005

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 Tatas understand the Indian consumer

and have a passion for growing India. The
Tata Group has always been
professionally run and has paid attention
to building very high intellectual capital
and has the financial strength to mount
big, audacious and innovative projects V
Govindrajan

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