CHAPTER: 4

BRIEF PROFILE OF

TATA GROUP & SELECTED GROUP

COMPANIES

72
 PAGE
SR. No. CONTENTS
No.
4.1 Tata Group of Companies 75
4.1.1 Introduction 77
4.1.2 Values of TATA Group 77
4.1.3 Leadership of Group 78
Largest Group Companies – Group as Of 31st March,
4.1.4 78
2015
4.1.5 Pioneering Businesses and Industrial Practices 79
4.2 Tata Consultancy Services 80
4.2.1 Introduction 80
4.2.2 Mission 80
4.2.3 Values 81
4.2.4 Services by TCS That Advances the Businesses 81
4.2.5 Board of Directors 81
4.2.6 Tata Consultancy Services & Citi Group 82
4.3 Tata Chemicals Limited (TCS) 82
4.3.1 Introduction 84
4.3.2 Product Classification of Tata Chemicals 84
4.3.3 Manufacturing Plants of Tata Chemicals 85
4.3.4 Tata Chemicals Limited & British Salt 86
4.3.5 Tata Chemicals Limited& General Chemicals 86
4.4 Tata Motors 87
4.4.1 Introduction 87
4.4.2 Board of Directors 88
4.4.3 Product Range of Tata Motors 89
4.4.4 Subsidiaries of Tata Motors 90
4.4.5 Tata Motors and Jaguar and Land Rover 90
4.4.6 Tata Motors and Hispano Carrocera S.A 91
4.5 TRF 91
4.5.1 Introduction 91
4.5.2 TRF Business Units 92
4.5.3 Vision of TRF 92
4.5.4 Mission of TRF 93
4.5.5 TRF Values 93
4.5.6 TRF Business Principles 93
4.5.7 Subsidiaries of TRF 93
4.5.8 Board of Directors 94
TRF Limited Dutch Lanka Trailer Manufacturer
4.5..9 94
Limited

73
 95
4.6 Tata Steel
95
4.6.1 Introduction
96
4.6.2 Vision of the Company
96
4.6.3 Mission of Tata Steel
96
4.6.4 Board of Directors
97
4.6.5 Tata Steel and Corus
97
4.7 Tata Global Beverages
97
4.7.1 Introduction
99
4.7.2 Strategic Alliances
100
4.7.3 TGBL's Timeline
101
4.7.4 TGBL Structure
101
4.7.5 TGBL and Grand
102
4.8 Tata Communications
103
4.8..1 Introduction
104
4.8.2 Tata Communications in numbers
104
4.8.3 Board of Directors
104
4.8.4 Tata Communications and BT Group
Tata Communications and China Enterprises 105
4.8.5
Communications

74
4.1 TATA GROUP OF COMPANIES

4.1.1 Introduction:

“… What came from the people has gone back to the people many times
over.” J R D Tata

The founder of Tata Group, JamsetjiNusserwanji Tata was born to Nusserwanji Tata
and Jeevanbai Tata on 3rdMarch 1839 at Navsari, in the state of Gujarat. Jamsetji Tata
founded the first company of Tata Group with the capital of Rs.21000 at the age of 29
in the year 1868. It is said that Jamsetji Tata was the man ahead of his times; the
creation of Wealth has been possible. Jamsetji Tata has gifted India the great heritage
by creating the wealth in the form of various pioneer industries. The core values of
Tata, integrity, understanding, excellence, unity and responsibility lead Tata group to
be the most respected business conglomerate of India. The devotion of five
generations has made Tata group one of India's oldest, largest groups of industries.
The group's businesses are spread over seven business sectors. It has its headquarters
in Mumbai, Maharashtra, India. The establishment of Tata group is ranged from
sectors namely communications and information technology, engineering, materials,
services, energy, consumer products and chemicals. It has operations in more than
100 countries across six continents. Tata Group consists of over 100 operating
companies. There are 32 are publicly listed companies in the group. The major Tata
companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata
Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries,
Tata Communications and Taj Hotels. The combined market capitalization of all the
30 listed Tata companies was INR 832,374 crore (134 billion US$) as of 31st March,
2015. The group revenue as on 31st March, 2015 is of $ 108.78 billion with more than
68% of its revenue from outside India.

66% of the holding is with the philanthropic trusts Approximately two third of the
equity of the parent firm, Tata Sons Ltd., is held by philanthropic trusts gifted by Sir
Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata. Tata Group employs 610000
employees. Tata Group has contributed to the nation in many wonderful gifts. Tata
Group has given the first steel plant, hydroelectric plant, inorganic chemistry plant to

75
the nation. They have created reservoir of scientific and technological work force for
the country as well. The founder trust have established the Tata Institute of Social
Sciences in 1936, India’s first cancer hospital, the Tata Memorial in 1941, the Tata
Institute of Fundamental Research (Cradle of India’s Atomic Energy Program) in
1945.

The seed of Tata Group has propagated in the year 1868 with the establishment of
private trading company by Jamsetji Tata. In the year 1874, he positioned the group’s
entry in the textile industry with the Central India Spinning Weaving and
Manufacturing Company Limited. The year 1887 was the year of partnership firm
“Tata & Sons” between Sir Dorabji Tata, elder brother of Jamsetji Tata and his cousin
brother RatanjiDababhoy Tata. In the year 1896, the younger son of Jamsetji Tata, Sir
Ratan Tata joined the firm. One of the finest gifts to India by Tata Group is hotel Taj
“Tata’s White Elephant”. The Indian Hotels Company incorporated in the year 1902
to set up India’s first luxury hotel. The TISCO (Tata Iron and Steel Company)
established in the year 1907. It was the first integrated plant of India. Tata Hydro
Electric Power Supply Company (Tata Power) set up in the year 1917. In the year
1932, Tata Group entered the aviation industry. The largest producer of soda ash in
India, Tata Chemicals is established in the year 1939. Tata Engineering and
Locomotive Company (Tata Motors) established in 1945. In the year 1954, Voltas,
the marketing, engineering and manufacturing organization was established. Andin
1962 alliance with James Finlay to enter into fast moving consumer goods industry
was formed and later in the year 1980 Tata Finlay was bought out to form Tata Tea
(TGBL, the second largest tea company in the world).Tata Group is a pioneer in
several areas. They are the holder of credit to pioneer India’s steel industry, starting
country’s first power plant, India’s first luxury hotel, the first Indigenous car and
many more in the employee’s welfare.

Tata Sons and Tata Industries are the two promoter companies of Tata Group. Tata
Sons is the promoter of all the main and major companies of the Tata Group and it has
set up Tata Industries in the year 1945 as a managing agency for businesses of Tata
Sons. Tata Sons is the owner of the Tata name and Tata trademark.

Tata Group remains a family-owned business, as the descendants of the founder (from
the Tata family) own a majority stake in the company. The current chairperson of the
76
Tata group is Cyrus PallonjiMistry, who took over from Ratan Tata in 2012. The
chairperson of Tata Sons has traditionally been the chairperson of the Tata group.
About 66% of the equity of Tata Sons is held by philanthropic trusts endowed by
members of the Tata family.

The Tata Group and its companies & enterprises are perceived to be India's best-
known global brand within and outside the country as per an ASSOCHAM(The
Associated Chambers of Commerce & Industry of India) survey. The 2009, annual
survey by the Reputation Institute ranked Tata Group as the 11th most reputable
company in the world. The survey included 600 global companies. The Tata Group
has helped establish and finance numerous quality researches, educational and
cultural institutes in India. The group was awarded the Carnegie Medal of
Philanthropy in 2007 in recognition of its long history of philanthropic activities.
Tata group has total 73 brands in the market all over the world in the different sectors.

4.1.2 Values of Tata Group

The Tata Group has always driven by five core values:

Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our
day-to-day work and in the quality of the goods and services, we provide.

Unity: We must work cohesively with our colleagues across the group and with our
customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.

77
Responsibility: We must be responsible and responsive to the countries, communities
and environments in which we work, always ensuring that what comes from the
people goes back to the people many times over.

4.1.3 Leadership of Group:

SR.NO. NAME OF GROUP HEAD PHRASE

1 JAMSETJI TATA 1868-1904

2 DORABJI TATA 1904-1932

3 NOWROJI SAKLATWALA 1932-1938

4 J.R.D. TATA 1938-1991

5 RATAN TATA 1991-2012

6 CYRUS PALLONJI MISTRY 2012- PRESENT

Table: 4.1 Leadership of Group

4.1.4 Largest Group Companies – Group as of 31st March, 2015

TATA MOTORS TATA AIA LIFE INSURANCE

TATA STEEL INDIAN HOTELS (TAJ GROUP)
TATA CONSULTANCY SERVICES TATA AUTOCOMP SYSTEMS
TATA POWER TATA HOUSING
TATA COMMUNICATION TATA PROJECTS
TATA CHEMICALS TATA CAPITAL
TITAN COMPANY TATA AIG GENERAL INSURANCE
TATA INTERNATIONAL INFINITI RETAIL
TATA GLOBAL BEVERAGES TATA SKY
VOLTAS TATA TELESERVICES
TRENT

(Source: Tata_Group_presentation.pdf)

Table: 4.2Largest Group Companies

78
4.1.5 Pioneering Businesses and Industrial Practices

1903 TAJ GROUP- LUXURY HOTELS

TATA STEEL - INDIA'S FIRST INTEGRATED STEEL
1907 PLANT
1910 TATA POWER - HYDRO POWER
1932 TATA AIRLINES - CIVIL AVIATION
PIONEERING 1968 TATA CONSULTANCY SERVICES - IT SERVICES
BUSINESSES 1998 TATA INDICA - INDIA'S FIRST INDIGENOUS CAR
EKA- INDIA'S FIRST SUPER COMPUTER IN THE
2007 PRIVATE SECTOR
2009 TATA NANO - INNOVATIVE PEOPLE'S CAR
WORLD'S FIRST WHOLLY OWNED CABLE NETWORK
2012 RING AROUND THE WORLD
1877 PENSION AND GRATUITY
1901 WORKER'S PROVIDENT FUND SCHEME
1912 EIGHT HOUR WORKING DAY
1915 FREE MEDICAL AID
PIONEERING
1917 SCHOOLING FACILITIES FOR CHILDREN
INDUSTRIAL
LEAVE WITH PAY, WORKMEN'S ACCIDENT
PRACTICES
1920 COMPENSATION SCHEME
1934 PROFIT SHARING BONUS
1937 RETIRING GRATUITY
2008 TATA SECOND CAREER INTERNSHIP PROGRAMME

(Source: Tata_Group_presentation.pdf)

Table: 4.3Pioneering Businesses and Industrial Practices

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4.2 TATA CONSULTANCY SERVICES

4.2.1 Introduction:

Tata Consultancy Services is India’s first software company. Tata Consultancy

Services has the market capitalization of Rs. 4, 95,770crores (74.83 billion $) as on
31st March, 2016 which is 64.29% of the market capitalization of 29 listed companies
of Tata Group. It is the largest and highest revenue generating company of Tata
Group. Tata Consultancy Services (TCS) was established in 1968 as a division of Tata
Sons Limited. TCS Ltd. got the Certificate of Incorporation to initiate its business
separately on January 19, 1995. TCS is the largest company of the Tata group, India’s
most respected and the largest conglomerates. Tata Consultancy Services is into IT
services, consulting and business solutions organization. It delivers real-time solutions
to their global business clients with the help of their 324000 well trained IT
professionals and consultants all over the world. It has its unique Global Network
Delivery Model, which is considered as the benchmark of excellence in software
development. It is listed on the National Stock Exchange and Bombay Stock
Exchange in India. TCS has more than 60 subsidiaries all over the world.

4.2.2 Mission:

 To help customers achieve their business objectives by providing innovation,

best-in-class counting, IT solutions and services
 To make it a joy for all stakeholders to work with us

4.2.3 Values:

 Leading change
 Integrity
 Respect for the individual
 Excellence
 Learning and sharing

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4.2.4 Tata Consultancy Services serves the businesses in below mentioned
portfolio:

 Global Consulting
 Enterprise Solutions
 IT Infrastructure Services
 Business Process Services (BPS)
 Assurance Services

 TCS BaNCS—Financial Services Software Suite

 Application Development, Re-engineering, Maintenance & Support

 Engineering and Industrial Services

4.2.5 Board of Directors:

Tata Consultancy Services has 9 non-executive and 2 executive Board Members. Out
of 11 Directors, 6 are Independent Directors.

Sr. No. Name of Board Member Designation Status

1 Cyrus Mistry Chairman Non Independent,

Non-Executive

2 N.Chandrasekaran CEO & MD Non Independent,

Executive

3 Aarti Subramanian Global Head of Delivery Non Independent,

Excellence Group Executive

4 Aman Mehta Independent Director Non-Executive

5 VenkatramanThyagarajan Independent Director Non-Executive

6 Prof.Clayton M.christensen Independent Director Non-Executive

7 Dr.Ron Sommer Independent Director Non-Executive

8 Dr. Vijay Kelkar Independent Director Non-Executive

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 9 Isshat Hussain Non Independent Director Non-Executive

10 Phiroz A Vanrevala Non Independent Director Non-Executive

11 O.P.Bhatt Independent Director Non-Executive

4.2.6 TATA CONSULTANCY SERVICES & CITI GROUP

$505 million deal has taken place on October 7th, 2008 between Indian IT service
provider leader and Citi Group to acquire its interest in Citigroup Global Services
Limited (CGSL). Citigroup Global Services Limited is the India based captive
business processing outsourcing (BPO) arm of Citi. The deal was all cash deal.
Citigroup is a US banking giant and wanted to set up its own IT arm in India. It has
businesses in more than 100 countries. They are into financial products and services
including banking, wealth management, credit, brokerage etc.
Company Acquired: Citigroup Global Services Limited
Acquiree Company: Tata Consultancy Services
Consideration: US$2.5 billion
Synergies:
 Broadened portfolio of IT and BPO services in banking and financial services
in the global market
 Synergy of service improvement to Citi from TCS’s enhanced scale and
expertise
 Reduced operating expenses
 Improved core financial services competencies

4.3 TATA CHEMICALS LIMITED (TCL)

4.3.1 Introduction:

Tata Chemicals Limited is a public company founded by J.R.D. Tata at Mithapur,

Gujarat in the year 1939. Jamsetji Tata created the plant to raise a wealth of marine
chemicals from the ocean. The objective was to reach the lives of human in many
lives. Tata Chemicals was the conveyor to reach the lives of human all over the world.

82
It has its presence across four continents. It is a subsidiary of Tata Group. It is an
Indian multinational, which has significant presence in the chemical industry. Tata
Chemicals has it’s headquarter at Mumbai, India. It is the largest chemical company
of India having major operations in India and Africa. Tata Chemicals employ over
4800 employees.

The company has recognized for its clear commitments to their mission of
sustainability and its good environmental management practices. Tata Chemicals is
the world’s second largest producer of soda ash. It has its manufacturing facilities
in Asia, Europe, Africa and North America.

Tata Chemicals Limited is a company with interests in businesses that focus on

LIFE:

 L-Living
 Industry
 L- Farm
 E-Essentials

The company believes in harnessing the fruits of science for goals that go beyond
business.

Tata Chemicals is an integral part of the life of millions of Indians by the portfolio of
its products. Tata Chemicals is the pioneer and market leader in India’s’ branded
Iodised salt segment. Tatas are always been thinking for people. As a result, to get the
clean and safe drinking water after Tsunami, Tata Chemicals have introduced an
innovative, low-cost, nanotechnology-based water purifier that will provide
affordable, safe drinking water to the masses.

The strong routes of Mission, Vision and Values have made Tata Chemicals to be
strengthened on principles of sustainability.

Tata Chemicals classifies its products under three categories. Living Essentials,
Industry Essentials, Farm Essentials.

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 4.3.2 Product Classification of Tata Chemicals

LIVING ESSENTIALS INDUSTRY ESSENTIALS FARM ESSENTIALS

Consumer Salt Soda Ash Fertilizers
Pulses Allied Chemicals Customized Fertilizers
Water Purifier Industrial Salt

4.3.3 Manufacturing Plants of Tata Chemicals

LOCATION MITHAPUR, GUJARAT, INDIA

Chemicals: Soda ash, chloro-caustic group, marine
chemicals, cement
PRODUCTS Consumer products: Salt, cooking soda
Installed capacity of 875,000 tpa – about 34 per cent of the
country's capacity.
PLANT
One of the largest producers of synthetic soda ash in the
INFORMATION
world.
It has a 5-star rating from the British Safety Council.
LOCATION Babrala, Uttar Pradesh, India
PRODUCTS Crop nutrition: Urea
Installed capacity of 8, 64,600 tonnes of urea per year, which
INDIA
constitutes nearly 12 per cent of the total urea produced by
the country’s private sector.
Two identical streams, each of 1,310 tonnes per day capacity
PLANT
of urea.
INFORMATION
Ammonia plant with a capacity of 1,520 tonnes per day.
The plant has been awarded the Sword of Honors four times
by the British Safety Council. It is the only fertilizer plant in
the country that uses dual feedstock: natural gas and naphtha.
LOCATION Haldia, West Bengal, India
Chemicals: Sulphuric acid, phosphoric acid, sodium
PRODUCTS tripolyphosphate (STPP)

Crop nutrition: Di-ammonium phosphate (DAP), NPK

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 complexes, single super phosphate (SSP)

Capacity is over 1.2 MTPA.

PLANT
Sole manufacturing unit for DAP/NPK complexes in West
INFORMATION
Bengal, India
LOCATION Green River Basin, Wyoming
PRODUCTS Chemicals: Soda ash
The site contains the world's largest reserves of trona ore, a
unique, naturally occurring deposit of exceptionally pure
USA sodium carbonates, readily convertible to high quality soda
PLANT
ash.
INFORMATION
The facility has a 2.5 million metric tonnes capacity
It consists of an underground trona mine and a surface
refining plant that processes the ore into soda ash.
Northwich West (Winnington) and Northwich East (Lostock)
LOCATION sites
Chemicals: Soda ash, sodium bicarbonate, calcium chloride,
UK
PRODUCTS associated alkaline chemicals
PLANT A new 50,000 tpa sodium bicarbonate plant, targeted at flue
INFORMATION gas treatment applications, is coming up on site
LOCATION Lake Magadi, Kenya
PRODUCTS Chemicals: Soda ash, crushed refined soda, salt
The facility recovers trona from one of the purest surface
deposits in the base of the Rift Valley and converts it into
KENYA
PLANT sodium carbonate (soda ash).

INFORMATION It produces dense soda ash or anhydrous sodium carbonate

It produces crushed refined soda, a chemical composition
similar to that of natural sodium sesquicarbonate
Table: 4.4 Manufacturing Plants of Tata Chemicals

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 4.3.4 TATA CHEMICALS LIMITED & BRITISH SALT:

21stDecember 2011 the media has released news of 100% acquisition of British Salt,
UK based chemical company and the largest producer of pure white salt by Brunner
Mond, a wholly owned subsidiary of Tata Chemicals, Europe. The deal was done for
Rs.650 crores (93 million pound sterling). The acquisition is entirely debt financed.
Brunner Mond was the producer of soda ash and sodium bicarbonate based in three
countries, UK, Netherland and Kenya. In the year 2005, Tata Chemicals has spread its
wing global by acquiring 63.5% stake in Brunner Mond and later bought a remaining
stake at INR 3.9 billion. Thus Brunner Mond has become the wholly owned
subsidiary of Tata Chemicals. In February 2008, Tata Chemicals has gone for another
acquisition of The General Chemical Industrial Products Inc. (GCIP) that was one of
the largest soda ash producers in US. The deal was finalized for US$1.005 billion.
Company Acquired: British Salt
Acquiree Company: Tata Chemicals
Consideration: 93 million pound sterling
Synergies:
 Strengthen presence of Tata Chemicals in food market
 Low cost manufacturing position in Europe
 Benefitted distribution synergy having readymade distribution channels of
British Salt
 Potentials to generate additional cash flow with gas storage business of British
Salt
 Prospected revenue of 456 million pounds annually by leasing empty caverns
of salt deposits for gas storage
 Increase in operating profit by 15 million pounds annually
 Savings of 2 million pounds annually

4.3.5 TATA CHEMICALS LIMITED& GENERAL CHEMICALS

March, 2008 Tata Chemicals entered into agreement with General Chemicals
Industrial Products Inc (GCIP). GCIP is the US based chemical company. Tata
Chemicals Limited acquired the 100% stake for US$1005 million. This acquisition
made Tata Chemicals the world second largest soda ash company.

86
Company Acquired: General Chemicals Industrial Products Inc
Acquiree Company: Tata Chemicals Limited
Consideration: US$1005 million
Synergies:
 Second largest soda ash producer of the world
 Access to lowest cost natural soda ash reserves at US, Magdi, Kenya and
Wyoming
 Marketing synergy in North America, Latin America and Far East

4.4 TATA MOTORS

4.4.1 Introduction:

Tata Motors is an Indian multinational automotive manufacturing company. It has it’s

headquarter in Mumbai, Maharashtra and it is the subsidiary company of Tata Group.
Tata Engineering and Locomotive Co. Ltd. Was the predecessor of Tata Motors
established in the year 1945 to manufacture locomotive and other engineering
products. It is India’s largest automobile company. In the year 2003, the company
changed its name to Tata Motors. The company's 90,485 employees are guided by the
vision to be 'best in the manner in which they operate best in the products they deliver
and best in their value system and ethics. Tata Motors, the first company from India's
engineering sector to be listed in the New York Stock Exchange (September 2004),
has also emerged as an international automobile company. Through subsidiaries and
associate companies, Tata Motors has operations in the UK, South Korea, Thailand
and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic
British brands that was acquired in 2008. In 2004, it acquired the Daewoo
Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these products to several
international markets. Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as
in Argentina, South Africa, Thailand, and the United Kingdom. It has research and
development centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and in
South Korea, Spain, and the United Kingdom. Tata Motors has done the related

87
diversification by entering the passenger vehicle market in the year 1991 with the
launch of Tata Sierra. In the year 1998, Tata Motors launched the first fully
indigenous Indian passenger car Tata Indica. In the year 2008, Mr.Ratan Tata has kept
the promise given to the common man by launching the World’s cheapest car Tata
Nano – the People’s car. In 2005, Tata Motors created a new segment by launching
the Tata Ace, India's first indigenously developed mini–truck.

4.4.2 Board of Directors

The Board of Director of Tata Motors consists of 6non-executive independent

directors, 1non-executive non independent director, 1 non-executive director, 1
managing director and 2 executive directors

Sr.No. Name of Director Status

1 Mr. Cyrus P Mistry Non-Executive, on-Independent Director

2 Mr. Nasser Munjee Non-Executive, Independent Director

3 DrRaghunathMashelkar Non-Executive, Independent Director

4 Mr. Nusli N Wadia Non-Executive, Independent Director

5 Mr. SubodhBhargava Non-Executive, Independent Director

6 Mr. Vinesh Kumar Jairath Non-Executive, Independent Director

7 Dr.RalfSpeth Non-Executive Director

8 Mr. GuenterButschek CEO & Managing Director

9 Ms. FalguniNayar Non-Executive, Independent Director

10 Mr. RavindraPisharody Executive Director (Commercial

Vehicles)

11 Mr. SatishBorwankar Executive Director (Quality)

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4.4.3 Product Range of Tata Motors

Indica Vista
Indica V2
Indica V2 Turbo
Indica V2 Xeta
Indica V2 Dicor
Aria
Passenger Car Zest
Bolt
Indigo XL
Indigo
Indigo Marina
Indigo CS
Nano
Safari Dicor
Sumo Grande
Utility Vehicles
Sumo
Xenon XT
Medium & Heavy Comm. Vehicles
Tata Novus
Intermediate Comm. Vehicles
Trucks
Light Commercial Vehicles
TL 4×4
Small Commercial Vehicles
Buses
Commercial Passenger Vehicles Winger
Magic

Table: 4.5 Product ranges of Tata Motors

89
4.4.4 Subsidiaries of Tata Motors
Tata Motors has total 76 direct and indirect subsidiaries in India and abroad. The
major subsidiaries are listed below.
NAME OF THE SUBSIDIARY WEBSITE
Jaguar Land Rover Automotive Plc. www.jaguarlandrover.com
Tata Daewoo Commercial Vehicle Company Ltd.
(TDCV) www.tata-daewoo.com
Tata Marcopolo Motors Ltd. (TMML)
Tata Motors (Thailand) Limited (TMTL) www.tatamotors.co.th
Tata Motors (SA) (Proprietary) Ltd (TMSA)
TML Drivelines Limited www.tmldrivelines.com
TAL Manufacturing Solutions Ltd. (TAL) www.tal.co.in
Tata Motors European Technical Centre plc. www.tmetc.com
Tata Technologies Ltd. (TTL) www.tatatechnologies.com
TML Distribution Company Limited (TDCL)
Concorde Motors (India) Ltd. (Concorde) www.concordemotors.com
Tata Motors Finance Limited www.tmf.co.in
Tata Motors Insurance Broking & Advisory Services
Ltd (TMIBASL)
TML Holdings Pte. Ltd. (TML)
Sheba Properties Ltd. (Sheba)
PT Tata Motors Indonesia
TrilixS.r.l.
Tata Precision Industries Pte. Ltd.

Table: 4.6Subsidiaries of Tata Motors

4.4.5 TATA MOTORS & JAGUAR AND LAND ROVER

On 2nd June 2008 Tata Motors announced that they have acquired Land Rover and
Jaguar. The deal was done for $2.05 billion. Tata Motors is the India’s largest
carmaker. Ford Motors bought jaguar Cars in 1989 from BMW. Tata Motors bought
JLR UK from Ford Motors Company.
Company Acquired: Jaguar and Land Rover
Acquiree Company: Tata Motors
Consideration: $2.05 billion
Synergies:
 Access to world class engineering capability

90
  Establishment of global footprint
 Entry into global car industry
 Entry in the high end premier car segment

4.4.6 TATA MOTORS & HISPANO CARROCERA S.A.

From 2005, Tata Motors was holding 21 stakes in Hispano Carrocera S.A., Spain.
Hispano Carrocera, S.A. is Spain based largest manufacturer of bus and coach cabins
in Europe. In October2009, Tata Motors acquired remaining 79% stake and Hispano
Carrocera S.A. has become the 100% subsidiary of Tata Motors. Hispano Carrocera
S.A. was rechristened as Tata Hispano Motors CarroceraS.A.on 1stMarch, 2010. Tata
Hispano is the world’s second largest bus manufacturer and world’s fourth largest
truck manufacturer.
Company Acquired:HispanoCarrocera S.A
Acquiree Company: Tata Motors
Synergies:
 Opportunity to improve operational efficiency
 Set up in global bus and coach market
 Strong force in Spanish market

4.5 TRF LIMITED

4.5.1 Introduction:

TRF Limited is the part of Tata Group of Companies. TFR Limited established in the
year 1962. Over the last five decades, TRF has emerged as a pioneer in solutions for
material handling equipment and processing systems required in the infrastructure
development. In the quest for rapid growth, TRF has also diversified into automotive
applications business. It envisages to grow five times in five years and become a Rs
2500 crore Company by 2013 by enhancing focus on material handling business and
auto applications business.

The TRF is spread over nearly 22 acres land and it has six covered manufacturing
bays on nearly 21,250 square metres. It has its plant at Jamshedpur. TRF’s employs
skilled work force that meets the expectation of its customers by continuously
adapting new technology, upgrading skills and serving its customers on time. TRFalso

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use several process improvement tools and techniques like TOC-CCPM, quality
circles, cross-functional teams, etc to attain the highest level of productivity. TRF,
with the help of advanced design and analysis software, constantly innovates,
enhances efficiency and improves reliability of its products and systems that enable it
to maintain leadership in the market.

4.5.2 TRF Business Units:

Material handling requirements of customers is the core infrastructure sectors of the
economy. TRF Limited has been catering constantly to this sector since last five
decades. TRF Limited undertakes turnkey projects for infrastructure development
industries such as power and steel plants, cement, ports, fertilisers and mining. TRF's
material handling products and systems are well known in the market, in India and
overseas, for their reliability, productivity and longevity. The Company been
constantly upgrading and developing new products and systems with the help of
internationally reputed enterprises having innovative technical expertise.

1. The Bulk Material Handling Equipment Division: This division is specialized in

the design and manufacture of a wide range of material handling equipment used in
the infrastructure industries, such as wagon tipplers, stacker reclaimers, ship loaders
and unloaders, travelling wagon loaders, etc.

2. The Bulk Material Handling Systems Division: This division offers a complete
package of material handling and allied systems and services on a turnkey basis.

3. The Port and Yard Equipment Division: This division focuses on the design,
supply, erection and the commissioning of material handling equipment for ports and
stockyards including level luffing cranes, ship loaders and unloaders, container
cranes, stacker-reclaimers and special purpose cranes for power and metallurgical
plants.

4.5.3 Vision of TRF:

TRF will achieve technological leadership in Bulk Material Handling Equipment and
Services business. Upgradation of our people skills, engineering processes,
manufacturing practices and project management techniques would underpin our
ability to achieve the leadership. We shall strive to be the preferred choice of

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customers based on superior technology, product quality and delivery capability for a
sustainable value growth.

4.5.4 Mission of TRF:

To be an international leader in material handling equipment, processes and systems

4.5.5 TRF Values:

 Trust
 Respect
 Fellowship
 Excellence
 Responsibility

4.5.6 TRF Business Principles:

 Sense of urgency
 Continuous improvement
 Consistency and detail

4.5.7Subsidiaries of TRF:

The TRF Group comprising TRF India, York TEA, Dutch Lanka Trailers and Adithya
Automotive Applications, has a presence in nearly 30 countries today. The group has
witnessed phenomenal growth and is constantly exploring new business opportunities
to accelerate its growth.

TRF group has following four subsidiaries.

1. Adithya Automotive Applications Pvt. Ltd

2. Hewitt Robbins International Ltd.
3. York Tea
4. Dutch Lanka Trailer Manufacturers Ltd. Srilanka

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4.5.8 Board of Directors

Sr. No. Name of Director Designation

1 Mr. SubodhBhargava Chairman

2 Mr. RanaveerSinha Director

3 Mr. R.V. Raghavan Director

4 Mr. DipankarChatterji Director

5 Mr. SabyasachiHajara Director

6 Ms. NeeraSaggi Director

7 Mr. Alok R. Kanagat Director

8 Mr. Sudhir L. Deoras Managing Director

9 Mr. P.S. Reddy Dy. Managing Director

4.5.9 TRF & DUTCH LANKA TRAILER MANUFACTURER LIMITED

TRF is the pioneer in engineering and supplying material handling equipments. It is

the Tata Group Company. On 7th July, 2009 TRF entered into an agreement with
Dutch Lanka Trailer Manufacturers Limited to acquire 51% of equity shares. The
consideration has fixed of US$8.67 million. Apart, company have entered into an
agreement for Call, Put option for acquiring the balance stake of 49% for the
consideration of US $8.67 million, and bought the same at $8.33 million through its
Singapore subsidiary, TRF Singapore Pvt. Ltd.

Acquired Company: Dutch Lanka Trailer Manufacturers Limited

Acquiree Company: TRF
Consideration: US$8.67
Synergies:
 Grown five times in five years
 Operations in 30 countries

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  Enhanced material handling business

4.6 TATA STEEL

4.6.1 Introduction:

The story of Tata Steel is century old. It has completed hundred years of its century in
the year 2007. The world of Tata Steel is one without boundaries - growing, changing
and challenging every day. Tata Steel is a world that embraces different skills,
continuous innovation, financial investment, responsible use of natural resources.
Above all, there is the enduring commitment of giving back to society that helps make
the vision of sustainable growth a reality. It was the vision of a positive change that
led JamsetjiNusserwanji Tata to pave the path for industrialization in India. He firmly
believed that only steel could fuel the country’s’ industrial and economic
independence. In his lifetime J.N. Tata was driven by three guiding stars - building an
iron and steel company, generating hydro-electric power and creating an institution
that would offer the best-in-class education in science.

Tata Steel was established in 1907 as Asia's first integrated private sector steel
company by JamsetjiNusserwanji Tata. Tata Steel has operations in 26 countries in
the world. It has commercial presence in over 50 countries and employees 80,000
employees across five continents. Tata Steel founded India’s first industrial city that is
Jamshedpur. Tata Steel Group is among the top-ten global steel companies. It is now
the world's second-most geographically diversified steel producer. The Group
recorded a turnover of Rs. 139,504 crores in FY 15. Tata Steel operates has its
operations all over world.

 Tata Steel – Indian Operations

 Tata Steel – European Operations
 UK (& Ireland) - There are three steelmaking facilities (Port Talbot,
Rotherham and Scunthorpe).
 Port Talbot Works, UK: Port Talbot Plant
 Rotherham Works UK:
 Scunthorpe Works UK
 Ijmuiden Works Netherlands:

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  Tata Steel South East Asian Operations:
 NatSteel Singapore:
 Tata Steel Thailand:

4.6.2 Vision of the Company: We make the difference through:

• Our people, by fostering team work, nurturing talent, enhancing leadership

capability and acting with pace, pride and passion.
• Our offer, by becoming the supplier of choice, delivering premium products and
services, and creating value for our customers.
•Our innovative approach, by developing leading edge solutions InTechnology,
processes and products
• Our conduct, by providing a safe working place, respecting the environment, caring
for our communities and demonstrating high ethical standards.

4.6.3 Mission of Tata Steel:

• Consistent with the vision and values of the founder JamsetjiTata, Tata Steel strives
to strengthen India’s industrial base through the effective utilization of staff and
materials. The means envisaged to achieve this are high technology and productivity,
consistent with modern management practices.
• Tata Steel recognizes that while honesty and integrity are the essential ingredients of
a strong and stable enterprise, profitability provides the main spark for economic
activity.
• Overall, the Company seeks to scale the heights of excellence in all that it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values.

4.6.4 BOARD OF DIRECTORS

Sr.No. Name of Director Designation

1 Mr.CyrusMistry Chairman, non-executive, non-independent

director

2 Mr.SubodhBhargava Independent, non-executive director

3 Mr. O.P.Bhatt Independent, non-executive director

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 4 Mr.KaushikChatterjee Group Executive Director

5 Mr.IshaatHussain Non-Independent, non-executive director

6 Mr.D.K.Mahrotra Non-Independent, non-executive director

7 Mr.T.V.Narendran Managing Director

8 Mr.Andrew Robb Independent, non-executive director

9 Mr.JacobusSchraven Independent, non-executive director

10 Ms.MallikaSrinivasan Independent, non-executive director

11 Mr.Nusli Neville Wadia Independent, non-executive director

4.6.5 TATA STEEL & CORUS

Tata Steel acquired Corus on 2nd April, 2007 which was four times larger than its size.
Corus was the Anglo Dutch largest steel maker. The acquisition of Corus made Tata
Steel the fifth largest steel maker of the world. The deal was done for $12 billion. In
addition, it was all debt deal. Corus was headquartered in London. The deal was the
100% acquisition.

Acquired Company: Corus

Acquiree Company: Tata Steel
Consideration:$12 billion
Synergies:
 Fifth largest steel maker of the world
 World platform for business
 Entry into European market
 Broadened distribution network

4.7 TATA GLOBAL BEVERAGES

4.7.1 Introduction:

Tata Global Beverages formerly known as Tata Tea has established in the year 1983.
Company isthe global beverage company in the production and distribution of tea,
coffee and water. Tata Global Beverages is the second largest tea company in the

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world. The company is the market leader in the domesticbranded tea market and a
dominating player in the branded tea and coffee in the markets of UK, US and
Canada.TGBL entered the branded tea business in 1991 and has grown over theyare
through acquisitions and joint ventures. Till date, the largestacquisition for the
company has been the European tea brand Tetley in2000 for $450 million. The other
major acquisitions by TGBL include tea company Good Earth in the US (2005), Eight
O’ Clock (EOC) coffee branding the US (2006) and coffee brand Grand in Russia
(2009). Apart from tea and coffee, the company has expanded its beverage offerings
to the mineral water business by investing in Mount Everest Mineral Water Company
(2007) that owns the Himalayan brand. With the diversification in the product basket
of Tata Tea, the company changed its name to Tata Global Beverages in 2010 with
the aim of establishing itself as a global beverage company from a branded tea
marketing company.
In November, 2010, TGBL entered into a 50:50 joint venture with PepsiCoLtd. The
aim was to develop, manufacture, sell and distribute hydration beverages with
NourishCo Beverages. Further, in 2012, TGBL entered into a50:50 JV with Starbucks
Coffee International Inc, US to set up Starbucks Coffee stores in India.
With a long history and experience in the beverages market, and a heritage of
innovation and development, the Company has evolved from a predominantly
domestic Indian tea farming entity to a marketing and brand-focussed global
organisation. TGBL’s ambition is to expand our global footprint by entering new
markets and fresh channels with its brands. TGBL has a strong portfolio of brands
like Tata Tea, Tetley, Jemca, Vitax, Eight O’Clock Coffee, Himalayan, Grand Coffee
and Joekels. Sustainability is at the heart of the plans for long-term success of TGBL.
Tata Global Beverages has grown through innovations, strategic alliances and
acquisitions, and organic growth.
The Company has branded beverage business operations in India, Europe, United
States, Canada and Australia, plantation business in India/Sri Lanka and extraction
business mainly in United States and China.

The Company’s business segments includes –

 Tea: Cultivation, manufacture, and sale of tea in packet, bulk and value added
forms.

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  Coffee and Other Produce: Cultivation of coffee and related plantation crops
and conversion of coffee into products such as roast and ground coffee and
instant coffee
 Others: Sale of water products and other businesses

4.7.2 Strategic Alliances:

Tata Global Beverages has a joint venture with Starbucks called Tata Starbucks
Limited, to own and operate Starbucks cafés in India. The Company also has a JV
with PepsiCo called NourishCo, and Tata Gluco Plus — a healthy, glucose-based
flavored drink. Himalayan water is also marketed and distributed through NourishCo.
Tata Global Beverages also has a presence in the high-growth contemporary 'single-
serve' business in the USA through an agreement with Green Mountain Coffee
Roasters’ Keurig single-serve machines for Eight O'Clock Coffee, MAP Coffee, and
with Tassimo in Canadafor Tetley tea.

(Source: Company, ICICI direct.com Research)

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4.7.3 TGBL's TIMELINE

Tata enters into alliance with James Finlay to form Tata Finlay
1964

1988 Tata Tea is born, James Finlay is bought out

1991 Tata Tea enters brand businesses
JV with Allied LysonsPlc, Tata Tetley is established
1993

2000 Tata Tea acquired the Tetley Group Ltd.

2005 Tetley Group acquires the Good Earth US
Group acquires EOC, US & energy water brand ‘Glaceau’; Tetley
2006 group acquires Jemca in Czech Republic & 33% in Joekels Tea, South
Africa
Investments in Mount Everest Mineral Water, which owns Himalayan
Water brand; Tetley group acquires Polish tea brand Vitax; Sells
2007 ‘Glaceau’ to Coca Cola

Integration of beverage brands announced; group acquires Grand

2009 Coffee Russia
Tata Global Beverages Corporate brand announced
2010
Acquires stake in The Rising Beverage Co. LLC, which owns Activate
2011 Brand; JV with PepsiCo named NourishCo; Increases stake in Joekels
Tea
JV with Starbucks; Eight O'Clock signs agreement with Green
2012 Mountain Coffee Roasters Inc
(Source: Company, ICICI direct.com Research)Table: 4.7 TGBL Timeline

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 4.7.4 TGBL STRUCTURE

Tata Global Beverages (Holding Company)

SUBSIDIARIES
BRAND SEGMENT
NAME GEOGRAPHY

Tata Tea (Premium, Gold. Tea

Tata Global Beverages Gold Darjeeling)
(Standalone) - 100% India
Tata Tea Agni Tea Tea
stake
Tata Tea Chakra Tea
KananDevan Tea
Tetley Tea Across the world
Joekels Tea South Africa
Tata Global Beverages Tea
Good Earth USA
Group Ltd. - 88.7%
stake Jemca Tea Czech Republic
Vitax Tea Poland
Grand Tea & Coffee Russia
Tata Coffee Plantation India Exports
Tata Coffee Ltd
(57.48% stake) Eight O'Clock Coffee Coffee USA
Activate Functional Water USA
Mount Everest Mineral
Water Ltd. (50.1% Himalaya Water India
stake)
JOINT VENTURES

NourishCo Beverages
Tata Water Plus Functional Water India
(50:50) with PepsiCo
Tata Gluco Plus Functional Water India
Tata Starbucks Ltd
(50:50) with Starbucks Starbucks (Coffee Retail) Coffee India
Coffee Inc US
(Source: Company, ICICI direct.com Research)Table: 4.8 TGBL Structure

4.7.5 TGBL & GRAND

Tata Global Beverages Limited acquired the 51% stake from the owner of Grand,
SuntyCo Holding in March 2009. The financial details of the deal were not disclosed.
Later in 2012, rest of 49% holding was acquired by TGBL and now Grand is the
wholly owned subsidiary of TGBL in Coffee market. SuntyCo Holding was the
Russian Coffee maker.

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Acquired Company: SuntyCo Holding, Russia
Acquiree Company: Tata Global Beverages Limited
Consideration: Not disclosed
Synergies:
 Leveraged deep heritage of TATA in coffee
 Innovative blend of finest coffee
 Strengthen the footprints in coffee business

4.8 TATA COMMUNICATIONS

4.8.1 Introduction:

The parent company of Tata Communications is the Tata Group. Tata

Communications is a global telecommunication provider. Originally, today’s Tata
Communication was Videsh Sanchar Nigam Limited (VSNL) founded in the year.
Tata Communication acquired 25% stake in the VSNL. Later stage it acquired the
remaining holding of VSNL from Government of India and renamed it as Tata
Communications Limited on 13th February, 2008. It has it’s headquarter in Mumbai
and Singapore. It employs more than 8000 employees across 38 countries in the
world. Tata Communication is the $3.2 billion company listed on BSE and NSE in
India. Tata Communication provides the varieties of services. Following is the list of
services provided by Tata Communication.
 Transmission,
 IP, managed security
 Converged voice
 Mobility
 Managed network connectivity
 Hosting and storage
 Managed collaborations
 Business transformation for global enterprises
 Internet, retail broadband and content service

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Tata Communications has most advanced & largest submarine cable networks. Its

Tier–1 IP network connectivity is spread over 200 countries with 300 Pops (Point–of–

Presence).28

4.8.2 Tata Communications in numbers:

 $3.2 billion in annual revenue in FY13-14 with 77% of this revenue generated
outside of India
 Over 8000 employees globally, 30% of which are located outside India,
and over 40 nationalities represented
 Largest wholesale voice carrier carrying 53 billion minutes of wholesale voice
traffic annually – that’s 1 in 10 voice calls globally
 1,600 telcos use our network to connect to you (70% of the world’s mobile
network operators)
 World’s largest wholly owned submarine fibre network – more than 500,000
km of subsea fibre, and more than 210,000 km of terrestrial fibre
 Only Tier-1 provider that is in the top five in five continents, by internet routes
 Over 24% of the world’s internet routes are on Tata Communications’
network
 400+ PoPs reach more than 200 countries and territories
 44 data centres and colocation centres with over one million sq. ft. of space
 7,600 petabytes of internet traffic travel over the Tata Communications’
internet backbone each month
 15+ terabits/s of international bandwidth lit capacity

(Source: http://www.tatacommunications.com/about)

28
(Business: Tata Communications, 2016)

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4.8.3 Board of Directors

Sr.No. Name of Director Designation

1 Mr.SubodhBhargava Chairman

2 Mr.VinodKimar Managing Director & CEO of Tata Comm.

Group

3 Mr.N.Srinath Director

4 Mr.KishorChaukar Director

5 Dr.AshokJhunjhunwala Director

6 Mr.UdayB.Desai Director

7 Mr.Saurabh Kumar Tiwari Director

8 Mr.BharatVassani Director

9 Ms.RenukaRamnath Director

10 Dr.GopichandKatragadda Director

4.8.4 TATA COMMUNICATION & BT GROUP

On 2ndJune, 2009 it was understood that Tata Communication has signed a deal with
British Telecom Group to acquire BT Mosoic worth $1 billion. British Telecom is the
leading provider of communication solutions and service operations in the world. It
has its operations in 170 countries. BT Telecommunication plc is the wholly owned
subsidiary of British Telecom Group. The deal was signed for the consideration of $1
billion.
Company Acquired: British Telecommunication plc
Acquiree Company: Tata Communication
Consideration: $1 billion
Synergies:
 Distribution synergy in K market
 Benefit from shared and complementary resources
 BT as Tata’s main distribution channel for IDD traffic into UK
 Expansion in European markets

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  Tata Communication as BT’s supplier of IDD outside BT companies
 Access to additional capacity and flexibility

 To achieve additional economies of scale

4.8.5 TATA COMMUNICATION & CHINA ENTERPRISE

COMMUNICATION
18thJune 2008, Tata Communication signed an agreement to acquire 50% equity
interest in China Enterprise Communication. It is a Equity Joint Venture Agreement.
The agreement was signed among the subsidiary of Tata Communication, Tata
Communications International. Tata Enterprise Communication is Beijing based
telecom and integrated IT solution provider. The consideration for the deal was not
disclosed.

Company Acquired: China Enterprise Communication

Acquiree Company: Tata Communication
Synergies:
 Explored China as a market
 Development of domestic market
 High quality network services to global customers

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