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 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.

1874

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 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.

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.

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.

1998

1999

The new Tata Group corporate mark and logo are launched.

2000

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.

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 In 1975 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 SERVICESFOR 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