PowerPoint Presentation

The house of Tata: Acquiring a Global Footprint

Presented By :Group 7

Tata Group: Background Founded by J. N. Tata in 1868At the forefront of developing industries in IndiaOpening Indias first luxury hotel in 1903 first private steel in 1907 first airline in 1932 first software firm in 1968One of Indias largest business housesHas over 100 global operating companiesOperates in various different sectors Communications and information technology, engineering, materials, services, energy, consumer products and chemicals

The Main Sectors

4Parent of the groups hospitality businesses

Strategy for globalization: management contracts with small equity positions in properties instead of outright ownership

Although the companys stated this preference, IHC later acquired several properties outright:

Sydneys W Hotel in 2005, the Ritz-Carlton, Boston, in 2006, and Campton Place in San Francisco in 2007.Indian Hotels Company (IHC)

Tata TeaTata 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 OClock Coffee (US), 30% stake in Energy Brands Inc (EBI), Glaceau- brand (Water)

Tata SteelEstablished in 1907Indias first and largest (2007)-private-sector steel companySix Connectors to grow in India and overseas

Domestic expansionDe-integrated strategyMature market M&ARaw materials security Logistics controlDownstream products

Tata MotorsLargest operating company of TATA Largest automaker of India

Market: countrys passenger-car and Indias 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

Tatas market strategies

Business StrategiesBCG Matrix of TATA Group

StartsIndian HotelsTata SteelTata MotorsTata Power

TCS

Cash CowsTata TeaTata Chemicals

Question MarksTata Communications VoltasTata Teleservices

Dogs

TitanTata AIGTrent

ACQUISITIONS

Tata companyAcquired companyCountryStake acquiredJanuary2011Tata Communications BT Group's (BT) Mosaic businessUK100 per centAugust2011Tata ChemicalsEPM Mining VenturesCanada30.6 per centDec2010Tata ChemicalsBritish SaltUK 100 per cent (wholly-owned)January2009Tata Communications NeotelSouth Africa30 per centMarch2009Tata Global BeveragesGrandRussia33.2 per centJune2008Tata CommunicationsChina Enterprise Communications Limited (CEC)China50 per cent equity interestAugust2008VoltasRohini Industrial ElectricalsIndia51 per centJanuary2007Tata SteelCorusUK100 per cent

Tata & Fait since 2006Tata & Starbucks 50/50 JVStarbucks Coffee A Tata Alliance.Joint Venture

Tata nano, the cheapest car in the worldTata Motors launched the Ace truck Business level strategy

Tata Motorsnew series to regain its lost market share.Tata is looking at doubling SUV annual volumes to over 70,000 units Tata Motorsis set to offer utility vehicles at everypricepoint rightProduct differentiation strategy

The role of the Tata Group centre in Globalisation

Dynamic tensions- Decentralised natural- Resistance of management- Project Prune15

Tata group centre as an umbrella for all Tata companies-GlobalisationReassurance for target companies-Topping- up-Collaboration between Tata employees

16Assessment What they didt do:- Large economies -Autonomy of Tata companies

What they did:-Financial economies -Work on portfolio management-Adopt internal competitive market-Exploit the intranet value

Should Tata Motors Purchase Jaguar and Land Rover?

What are the Cons?Pre tax losses of 4.8 BILLION between 2004-2006Jaguar was the biggest contributor to the loss for trying to compete with BMW and Mercedes-Benz

MORE CONS!?Unions!Conditions were TATA could not purchase Jaguar and Range Rover, without Ford maintaining a minority stake to keep 3 factories open

How about some pros?Both Jaguar and Range Rover are Historic Brands!Jaguar 1922!Land Rover 1947!

Recommendation?

Why Yes?With Proper marketing and branding, Jaguar and Land Rover can be one of the top cars again.

Thank You