TATA

 TATA GROUP OF
INDUSTRIES
 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.

MILESTONES

1868

The TATA Group was founded by

Jamsetji Nusserwanji Tata in the mid 19th century,
a period when India had just set out on the road to
gaining independence from British rule.
 1874

The Central India Spinning, Weaving and

Manufacturing Company is set up, marking
the Group's entry into textiles.
 1902

The Indian Hotels Company is incorporated to set

up the Taj Mahal Palace and Tower, India's first
luxury hotel, which opened in 1903.
 1907

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.
 1910

The first of the three Tata Electric Companies, The

Tata Hydro-Electric Power Supply Company, (now
Tata Power) is set up.
1911

The Indian Institute of Science is established in

Bangalore to serve
as 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.
1917
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.
1954
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.
1991
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.
1996

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.
1998

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.
1999 2000

Tata Tea acquires the

The new Tata Group Tetley Group, UK. This is
corporate mark and the first major acquisition
logo are launched. 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 Tata
re-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.

2005
 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
 2005
 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

2006
 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

2009

TATA DOCOMO is Tata Teleservices Limited's (TTSL) telecom service

on the GSM platform-arising out of the Tata Group's strategic alliance
with Japanese telecom major NTT DOCOMO in November 2008. Tata
Teleservices has received a pan-India license to operate GSM telecom
services, under the brand TATA DOCOMO and has also been allotted
spectrum in 18 telecom Circles. TTSL and has already rolled out its
services in various circles.
 Ratan Naval Tata
(born December 28,
1937, in Mumbai) is
the present Chairman
of the Tata Group,
India's largest
conglomerate
established by earlier
generations of his
family.
 Ratan Tata was born into an old Parsi family of
Bombay, the first child of Soonoo & Naval
Hormusji Tata.
 Ratan's childhood was troubled, his parents
separating in the mid-1940s, when he was about
seven and his younger brother Jimmy was five.
 His mother moved out and both Ratan and his
brother were raised by their grandmother Lady
Navajbai.
 He did his schooling in Mumbai
 In 1962, He graduated with a degree in
Architecture and Structural Engineering from
Cornell University
 Management at Harvard,
 Ratan joined the family business.
 Ratan turned down a job offer from IBM,
following the advice of J.R.D. Tata, and entered
the family business.
 Today, Ratan maintains that he came back
because of his ailing grandmother who had
raised him.
 Ratan joined the Tata Group in December 1962,
when he was sent to Jamshedpur to work at
Tata Steel.
 He worked on the floor along with other blue-
collar employees, shoveling limestone and
handling the blast furnaces.
 During the 10 years that he spent in the US, Tata
took up all kinds of jobs, including washing
dishes, to make ends meet.
IN 1971
 Ratan was appointed the Director-in-Charge of The
National Radio & Electronics Company Limited
(Nelco).
 a company that was in dire financial difficulty. Ratan
realized the opportunity that Nelco provided and
assumed that hi-tech was the way to go in the future. He
conveyed this vision to J.R.D. Tata and asked for further
investment.
 Further, Nelco had 2% market share in the consumer
electronics market and a loss margin of 40% of sales
when Ratan took over. Nonetheless, J. R. D. followed
Ratan's suggestions. From
 1972 to 1975, Nelco eventually grew to have a market
share of 20%, and wiped out its losses.
1975 & 1975
 In1975 however, India's Prime Minister
Indira Gandhi declared a state of emergency, and
the demand for consumer goods slumped. This
was followed by union problems In 1975 , so
even after demand improved, production did not
keep up. Finally, the Tatas confronted the unions
and, following a strike, a lockout was imposed
for seven months. Ratan continued to believe in
the fundamental soundness of Nelco, but the
venture did not survive.
IN 1977,
 Ratan was entrusted with Empress Mills, a textile mill controlled by the
Tatas. When he took charge of the company, it was one of the few sick units
in the Tata group. Ratan managed to turn it around and even declared a
dividend.
 On Ratan's insistence, some investment was made, but it did not suffice.
With the market for coarse and medium cotton cloth turning adverse, the
Empress went into an inevitable financial tailspin.
 Bombay House, the Tata headquarters, was clearly unwilling to divert large
funds from other group companies .
 some Tata directors, chiefly Nani Palkhivala, took the line that the Tatas
should liquidate the mill.
 In a later interview with the Hindustan Times, Ratan would claim that the
Empress needed just Rs 50 lakhs to turn it around. But Palkhivala opposed
further investment and the mill was closed down in 1986.
 Ratan was severely disappointed with the decision.
1981 1991
 In 1981, Ratan was named Chairman of Tata Industries,
the Group's other holding company, where he became
responsible for transforming it into the Group's strategy
think-tank and a promoter of new ventures in high-
technology businesses.
 In 1991, he took over as group chairman from
J.R.D. Tata, pushing out the old guard and ushering in
younger managers. Since then, he has been instrumental
in reshaping the fortunes of the Tata Group, which today
has the largest market capitalization of any business
house on the Indian Stock Market.
IN MID 1990’S
Under Ratan's guidance It stewardship that , Tata
Consultancy Services went public and Tata Motors was
listed on the New York Stock Exchange.
His dream was to manufacture a car costing Rs 1 lakh
(approx. US$2200).
In 1998, Tata Motors introduced his brainchild, the
Tata Indica.
IN 2007,
 On January 31st, 2007, Ratan Tata successfully pulled
off one of the biggest acquisitions in Indian corporate
history. Corus Group - an Anglo-Dutch steel and
aluminum producer, was acquired by Tata Sons for an
astounding £6.7 billion at the rate of 608 pence per share
against a Brazilian steel company that had bid 603
pence. With the merger, Ratan Tata became a celebrated
personality in Indian corporate business culture.
 The merger created the sixth largest steel producing
entity in the world.
 Corus is its 22nd acquisition, the largest by an Indian
company and the second largest in the global steel sector.
AWARDS AND RECOGNITION
 Mr. Tata was honoured by the Government of India with the
Padma Bhushan on 26th January 2000, on the occasion of the 50th
Republic Day of India.
 He serves in senior capacities in various organisations in India and he is a
member of the Prime Minister's Council on Trade and Industry.
 In March 2006 Mr. Tata was honoured by Cornell University as the 26th
Robert S. Hatfield Fellow in Economic Education, considered the highest
honor the university awards to distinguished individuals from the corporate
sector.
 He recently received an honoury doctorate from the
London School of Economics.
 He was also conferred an honorary doctorate in business administration by
Ohio State University.
 An honorary doctorate in technology by the Asian Institute of Technology,
Bangkok.
 An honorary doctorate in science by the University of Warwick.
 Ratan Tata's foreign affiliations include membership of the
international advisory boards of the Mitsubishi Corporation, the
American International Group, JP Morgan Chase and
Booz Allen Hamilton.
 He is also a member of the board of trustees of the
RAND Corporation, and of his alma maters: Cornell University and
the University of Southern California.
 He also serves as a board member on the
Republic of South Africa's International Investment Council and is
a Asia-Pacific advisory committee member for the
New York Stock Exchange.

 Tata is on the board of governors of the East-West Center, the

advisory board of RAND's Center for Asia Pacific Policy and
serves on the programme board of the
Bill & Melinda Gates Foundation's India AIDS initiative. In
February 2004, Ratan Tata was conferred the title of honorary
economic advisor to Hangzhou city in the Zhejiang province of
China.
PRODUCTS AND SERVICES
FOR HOMES AND INDIVIDUALS

 Agricultural appliances (Tata Agrico)  

 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)

 Credit card (Tata Sons)

 Electronics (Infiniti Retail)

FOR HOMES AND
INDIVIDUALS
   Entertainment (Tata Sky)
  Fertilisers (Tata Chemicals)

  Financial services (investment: Tata Asset

Management, Tata Investment Corporation)  
 Garments and home products (Westside)  
 Holiday homes (Tata Coffee)
 Home appliances (Tata BP Solar)
   Hotels (Indian Hotels)
 Food products (food additives: Tata
Chemicals; spices: Tata
Tea Tata Coffee)
FOR HOMES AND INDIVIDUALS

 Housing (THDC)

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

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)
 FOR INDUSTRIES AND COMPANIES

 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, Tata DOCOMO)
 Telecommunications (Tata Indicom, Tata DOCOMO)
Tata Teleservices and VSNL, through their common brand Tata Indicom, Tata
DOCOMO 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)  
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 IMPACT
Objectives
 Returns 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 MOVES
 Exit 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.
RESULTS
 Strong 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 STORY
 Project 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 SOURCES
 700cc 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.

BEHIND THE TATAS’ SUCCESS
STORY
 Leadership 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 LEAST

Nation Building
And
Social Welfare.
THANK YOU

Yours

M.Vikram Kumar

V.Anil Kumar