International Business

Assignment
Name: Sumit Paul Roll no. 749/22
Course: B.com(p) Section: C
University Roll no. 22010503028
 Tata Industries: A Journey of
Transformation and Growth in the Era
of Economic Liberalization

Tata Engineering and

Locomotive Company (TELCO) GROUP
A SHORT OVERVIEW
OF TATA
Founded by Jamsetji Tata in 1868, the Tata Group is a global enterprise,
headquartered in India, comprising 30 companies across ten verticals. The group
operates in more than 100 countries across six continents, with a mission 'To
improve the quality of life of the communities we serve globally, through long-
term stakeholder value creation based on Leadership with Trust’.

In 2022-23, the revenue of Tata companies, taken together, was $150 billion (INR
12 trillion). These companies collectively employ over 1 million people.

Each Tata company or enterprise operates independently under the guidance and
supervision of its own board of directors. There are 29 publicly listed Tata
enterprises with a combined market capitalisation of $300 billion (INR 24 trillion)
as on July 31, 2023.
TATA’S ENTRY IN
FOREIGN MARKET
Tata Group's international journey began with the
establishment of the Tata Group's first overseas office in
1907 London in 1907. This marked the beginning of Tata
Group's global presence and set the stage for future
international expansions. The mode of entry was through
the establishment of an overseas office in London, UK.

Tata Motors (then Tata Engineering and Locomotive Co.

Ltd.) set up its first overseas office in Bahrain in 1979.
1979 This move was an early step towards internationalization,
allowing Tata Motors to explore business opportunities in
the Middle East, particularly in the automotive industry.

In 1980, Tata Consultancy Services (TCS) established its

first international office in New York, USA. This marked
1980 TCS's entry into the global IT services market, providing
the company with access to clients, talent, and business
opportunities in the United States.
YEARS AFTER
LIBERALISATION

1991 LIBERALIZATION ERA BEGINS:

India embarked on a path of economic liberalization

in 1991, opening up its markets to foreign investment
and reducing trade barriers. This was a pivotal
moment for Indian companies like Tata Group to
expand internationally.
Tata Motors (then Tata Engineering and Locomotive
Co. Ltd.) entered the passenger vehicle market in
Malaysia in 1992. This move was a result of India's
liberalization policies, which allowed Indian
companies to explore foreign markets more freely.
The mode of entry was through exporting passenger
vehicles.
1995 ACQUISITION OF TATA TETLEY:
In 1995, Tata Tea acquired Tetley, a leading British tea
company. This marked a significant entry into the global
beverage market for Tata Group. The acquisition was a
strategic move to expand internationally, taking
advantage of liberalized policies and tapping into the
global market. The mode of entry was through
acquisition.

1998 ENTRY INTO SOUTH AFRICA:

In 1998, Tata Motors established a joint venture in South
Africa, known as Tata Africa Holdings (Pty) Ltd. This move
allowed Tata Motors to enter the South African market
for commercial vehicles. The liberalization policies in
India and the opening up of global markets made it
feasible for Tata Motors to expand its international
footprint. The mode of entry was through a joint
venture.
IMPACT OF LIBERALISATION
Liberalization had a significant
impact on Tata Industries, as it did
on many other Indian businesses.
When India began its economic
liberalization policies in 1991, Tata
Industries, part of the Tata Group,
experienced several key effects:
 IMPACT OF
LIBERALISATION ON:
1991:
Employment Total Employees: Around 146,000
Liberalization Era (1991-2000):
Tata Group's total employee count increased from around 146,000 in 1991 to
800000 approximately 289,500 by 2000.
Growth in employment due to expansion into new sectors and acquisitions.
Post-2000:
600000 Tata Group's total workforce further
expanded to approximately 419,000
employees by 2008-09.
400000 Continued growth and diversification led to
increased job opportunities.
Present (2022 data as an example):
200000
As of 2022, Tata Group employs over
730,000 people worldwide.
The workforce has continued to grow,
reflecting the expansion and diversification
0
1991 2000 Present of Tata Group's businesses.
 IMPACT OF
LIBERALISATION ON:
Revenue 1991:
Total Revenue: Approximately ₹10,000 crores
& Sales Liberalization Era (1991-2000):
By 2000, Tata Group's total revenue had increased to approximately ₹86,000 crores.
1000000 Significant growth in sales due to diversification and acquisitions.
Post-2000:
In 2008-09, Tata Group's total revenue had
800000
further grown to around ₹366,000 crores.
Major acquisitions such as Jaguar Land Rover
(2008) and Corus Steel (2007) contributed to
600000
revenue growth.
Continued expansion in sectors like IT,
400000 automotive, and steel.
Present (2022 data as an example):
In 2021-22, Tata Group's total revenue reached
200000 approximately ₹887,000 crores.
This represents continued growth over the
years, driven by various sectors including Tata
0
1991 2000 Present Consultancy Services (TCS), Tata Motors, and
Tata Steel.
 IMPACT OF
LIBERALISATION ON:
Liberalization Era (1991-2000):
Profits Tata Group's net profit surged from ₹386 crores in 1991
to approximately ₹4,677 crores in 2000.
70000
Strong profitability growth due to increased sales and
60000
operational efficiencies.
50000
Post-2000:
By 2008-09, Tata Group's net profit had reached around ₹23,240 crores.
40000
The acquisition of profitable entities like Jaguar Land Rover and Corus
30000
contributed to higher profits.
Continued focus on operational efficiency and cost management.
20000
Present (2022 data as an example):
10000
In 2021-22, Tata Group reported a net profit of approximately ₹62,500
crores.
0
1991 2000 Present This reflects sustained profitability and strategic acquisitions.
The impact of liberalization on Tata Industries has been transformative over
the past three decades.
Beginning with the economic reforms in 1991, Tata Group witnessed
remarkable growth in sales, revenue, profit, and employment.
From humble beginnings with a revenue of around ₹10,000 crores in 1991,
the group's revenue surged to approximately ₹887,000 crores by 2021-22.
This growth was fueled by strategic diversification into sectors such as IT,
telecommunications, automotive, and steel, alongside major acquisitions
like Jaguar Land Rover and Corus Steel.
Net profits also saw a substantial increase, from ₹386 crores in 1991 to
approximately ₹62,500 crores in 2021-22, showcasing the group's
profitability.
In terms of employment, Tata Group's workforce expanded from around
146,000 in 1991 to over 730,000 employees globally in 2022, reflecting its
commitment to creating job opportunities.
 THANK YOU
The journey of Tata Industries since liberalization
exemplifies not just business success, but also a
commitment to growth that is both profitable and
humane, impacting millions of lives through employment
generation and economic contributions to society.