The house of Tata: Acquiring a Global Footprint

Tata Group: Background

• Founded by J. N. Tata in 1868

• At the forefront of developing
• Industries in India
• Opening India’s first luxury hotel in
• 1903
• first private steel in 1907
• first airline in 1932
• first software firm in 1968
• One of India’s largest business houses
• Has over 100 global operating companies
• Operates in various different sectors
›Communications and information technology, engineering, materials, services,
energy, consumer products and chemicals
The Main Sectors

TataTata
Tata
Chemicals
Telecommunications Tea
provider
Tata Power
Tata Consultancy ServicesVSNL
Steel
 Tata Tea

Tata Tea is a commodity tea producer in India.

Tata Tea saw M&A (Mergers and Acquisitions) as the best route both to
seek new growth opportunities and transform itself into a branded tea
company.

So in 2000, Tata Tea acquired Tetley, which is an UK tea company that 3

times the size of Tata Tea, and was not owned by large consumer-goods
firms, at the price of 271 million pounds, which is the largest oversea
acquisition in India at that time.

In 2005-06, Tata Tea acquired Good Earth (US), Jemca (Czech), Eight
O’Clock Coffee (US), 30% stake in Energy Brands Inc (EBI), Glaceau- brand
(Water)
 Tata Steel

Established in 1907
India’s first and largest (2007)-private-sector steel company
Six “Connectors” to grow in India and overseas

Domestic expansion De-integrated strategy

Mature market M&A Raw materials security

Logistics control Downstream products

 Tata Motors
Largest operating company of TATA
Largest automaker of India

Market:
country’s passenger-car and India’s commercial truck

Strategy:
reduce the prices of its spare parts

Acquisition:
21% stake in Hispano Carrocera (Spanish), collaborated with Marcopolo
(Brazil), Jont venture with Thonburi Automotive Assembly
Plant( Thailand), cooperate with Fiat (Italy)

Established technical center in UK

Other companies by TATA
 ACQUISITION’S

  Tata company Acquired company Country Stake acquired

January Tata Communications BT Group's (BT) Mosaic business UK 100 per cent
2011

August
2011 Tata Chemicals EPM Mining Ventures Canada 30.6 per cent

Dec Tata Chemicals British Salt UK 100 per cent (wholly-

2010 owned)

January Tata Communications Neotel South Africa 30 per cent

2009

March Tata Global Beverages Grand Russia 33.2 per cent

2009

June Tata Communications China Enterprise Communications China 50 per cent equity interest
2008 Limited (CEC)

August Voltas Rohini Industrial Electricals India 51 per cent

2008

January Tata Steel Corus UK 100 per cent

2007
 Joint Venture

• Tata & Fait since 2006

• Tata & Starbucks 50/50 JV
∗ Starbucks Coffee “A Tata Alliance”.
Business level strategy

∗ Tata nano, the cheapest car in the world

∗ Tata Motors launched the Ace truck
Product differentiation
strategy

∗ Tata Motors new series to regain its lost market share.

∗ Tata is looking at doubling SUV annual volumes to over
70,000 units
∗ Tata Motors is set to offer utility vehicles at
every price point right
The role of the Tata Group
centre in Globalisation
Why Ratan Tata is not a billionaire
on the Forbes  magazine list of
billionaire people of the world?

The reason is that, TATA Group’s 96 companies are held by

its main  Company “TATA Sons” and the main owner of
this  TATA Sons is not Ratan  Tata but various charitable
organizations developed and run  by TATA  Group  Out of
which JRD TATA Trust & Sir Ratan Tata Trust are the main
groups
Initiatives taken by TATA Trusts
Thank You