Pioneers of TATA Group Jamsetji tata J.R.D. Tata Darobji tata Ratan Tata Naval tata Tata Group Growing History RANKS ACHIEVED TATA Steel 6th largest steel maker in the world. TATA Motors among the top five commercial vehicle manufacturers in the world. TCS leading global software company TATA Tea second largest branded tea company in the world TATA Chemicals world’s second largest manufacturer of soda ash TATA Communications world’s largest wholesale voice carriers History • The Tata Group was founded as a private trading firm in 1868 by entrepreneur and philanthropist Jamsetji Nusserwanji Tata. • In 1932, Sir Nowroji Saklatwala became the group’s chair • Six years later Jehangir Ratanji Dadabhoy Tata (J.R.D.) took over the position • In 1991 J.R.D.’s nephew, Indian business mogul Ratan Naval Tata, succeeded him as chairman of the Tata Group. Market Segmentation Contd… Contd… Aim Of Tata Group 5 The aim of Tata Group is 4 improve the qualities 3 Of society by virtue of 2 integrity , Understanding 1 Excellence ,unity and 0 Responsibility and Reach At the top CORE VALUES • • • • • Integrity Spirit Agility Passion for excellence Unity BUSINESS SECTORS • Tata companies operates in seven business sectors. • The total revenue of Tata companies, taken together, was $62.5 billion (around Rs251,543 crore) in 2007-08, with 61 per cent of this coming from business outside India, and they employ around 350,000 people worldwide. • The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. • There are 27 publicly listed Tata enterprises and they have a combined market capitalization of some $60 billion, and a shareholder base of 3.2 million. Information systems and communications • The Tata group has well-established enterprises in the fields of software and other information systems, telecommunications and industrial automation. • E.g. nelito systems, tata technologies (10) tata sky, virgin mobile India(7) Engineering • The Tata group has a robust presence in engineering, with operations in automobiles and auto components and a variety of other engineering products and services. • E.g. Automotive, jaguar land rover, tata motors(25), Engineering: voltas, TCE consulting engineers Materials • The Tata group is among the global leaders in this business sector, with operations in steel and composites. • E.g.Metals: corus, natsteel asia, • Composites: tata advanced materials Services • The Tata group has widespread interests in the hospitality business, as also in insurance, realty and financial and other services. • E.g. Hotels, property development: Indian hotels,tata housing development company • Financial services: tata capital, tata financial services Energy • The Tata group is a significant player in power generation and is also involved in the oil and gas segment. • E.g. Energy: north delhi power, tata BP solar Consumer Products • The Tata group has a strong and longstanding business in watches and jewellery, and a growing presence in the retail industry. • Consumer products: titan industries, Tetley group Chemicals • The Tata group is one of the largest producers of soda ash in the world. Additionally, it has interests in fertilisers and in the pharmaceuticals business. • E.g. tata pigments, general chemical industrial products Products and Services for CONSUMERS Agriculture Automobiles Beverages Charter flights Cooling appliances Crockery DTH television Financial services Food Holiday homes Hotels Housing Jewellery Leather Retail Solar appliances Telecommunications Watches and clocks Products and Services for BUSINESSES Advanced composites Aerospace Agricultural products Automotive industry Beverages Books Chemicals Construction Consultancy Defence Design services E-learning E-trading Energy Engineering Financial services Food products Funding Hospitality Industrial equipments IT MERGERS AND AQUISITIONS • TATA communications (formerly VSNL) acquired CEC (China enterprises communication) with 50 % stake in June 2008. • TATA motors acquired jaguar and land rovers (UK based) with a value of $ 2.3 billion in March 2008. • Telco construction equipment company acquired Hughes telecom India (Spain based) with 79% stake in March 2008. Specialty in TATA Group • • • • • An extraordinary range of disciplines. Business management skills. Inter-company mobility Continuous Improvement The Tata group is one of the world’s largest private-sector employers Weaknesses Strengths 1)Distribution 1)resources and capabilities 2)value chain innovation 2)vast experience (steel and automobiles) 3)macro environment 4)in order to serve the global markets with high quality and low price. 3)The business model. SWOT Analysis Opportunities Threats 1)new markets 1)India’s recent 2)Exports 2)mergers of global 3)Acquisitions 3)markets e.g. jaguar and land Rover e.g.Vodafone,Reliance CURRENT STRATEGIES • Expending globally (globalization strategy) • acquiring other companies in different countries • No frill strategy; “a low frill strategy combine a low price and low value added, low perceived product/services benefits and a focus on a price sensitive market segment. • invested a huge amount in research and development in order to achieve the highest degree of quality at the lowest price • News Update: (April 12, 09) – tata motors presents new buses, TATA motors marcopolo limited, a joint venture of TATA motors and marc polo of Brazil introduced its starbus range of buses in Punjab. • CONCLUSIONS: In the whole: the group acquiring the different strategy in the different market, in the home country TATA’s strategies are same as to cost leadership and differentiations.