A Marketing Presentation On TATA

Submitted to : Prof. S. K. Pandey

Submitted by : Bijeet Kumar ( 81071 )

 Agenda
Agenda

• Historical Overview
• Company Profile
• Company Statistics
• Deep rooted history
• Introduction to Tata Steel
• Tata Steel Mission & Vision
• Global Steel Industry
• Company growth phases
• Business strategies
• Porters five force
• Future outlook
• Mergers & Acquisition
• Conclusion
 Historical Overview
• Jamsetji Nusserwanji Tata started a private trading firm, laying
the foundation
of the Tata Group in 1868.

• The Central India Spinning, Weaving and Manufacturing

Company is set up,
marking the Group's entry into textiles in 1874.

• Ratan Tata joined the TATA group in December 1962.

• In 1981, Ratan Tata named as chairman of TATA Industries.

 Company profile
• TATA group of industries is India’s largest
business group in India.

• Diverse businesses in 7 sectors.

• Group revenue: FY 2008: US$ 62.5 billion/ Rs

251,543 cr.

• Group profit: FY 2008: US$ 5.4 billion/ Rs

21,578 cr.

• International income: 61% of group

revenue.
 Company profile

• Operations: over 80 countries.

• Products & Services exported to 85

countries.

• It is one of the Largest employer in

private sector over 300,000
employees.
 Company profile
• TATA group of companies is diverged in 7
business sectors.

– Materials
– Engineering
– Chemicals
– Information technology & communications
– Energy
– Services
– Consumer products
Company Statistics
 Core Values
• Integrity

• Understanding

• Excellence

• Unity

• Responsibility
 Mission & Vision
• Mission: to be a competitive value
provider in international business for
Group companies and all our partners.

• Vision: Become a globally networked

enterprise seizing opportunities
worldwide to generate USD 25 million
annual profits by 2008.
 Deep Rooted History
Expansion
Foundation Consolidation
1990
1868-1931 1932-1989
onwards
 Central India Spinning, Weaving and Manufacturing
1874 Company

1902 TAJ MAHAL PALACE AND TOWERS

1907 TISCO, TATA LIMITED IN LONDON

1910 TATA ELECTRIC COMPANIES

1911 INDIAN INSTITUE OF SCIENCE

1912 EIGHT HOUR WORKING DAYS

1917 TATA OIL MILLS

1932 tata airlines
1939 Tata chemicals
1945 Tata engineering (telco)

1952 Lakme was launched. Later sold to hul

1954 voltas
1962 Tata finlay and tata exports

1968 tcs
 Consolidation

• The Tata group ventured into new

areas and built on the
foundations, iN spite of the
restraints imposed by a
controlled economy.
 Expansion

• The liberalization of the Indian economy

unleashed a period of remarkable growth
for the Tata group, in India and worldwide.

• Tata ventured in to mergers and

acquisitions in the late 1990s.
 Introduction to TATA STEEL
 Established – 1907

 Fortune 500 Company

 Worlds 6th largest steelmaker: 28 MTPA(million ton per annum)

 Presence in 50 markets; manufacturing in 24 countries.

 Revenue is $32.83 bn. (domestic – 37%, International – 63%).

 Expansion Plan

– Brownfield: Jamshedpur works

– Greenfield: India and Overseas

Revenue of 2007-08
TATA Steel

Source: Tata Annual Report (2008)

 Mission & Vision ( Tata Steel)

• Vision - “We aspire to be the global steel

industry benchmark for Value Creation and
Corporate Citizenship”.

• Mission – Create differential value for the

customers with the help of continuous
improvement in their business process and
technology.
Global Steel Industry

Source: Krishnamurthy 2005

 Company Growth Phases

First Phase :

• The First phase is the year up to 1991.

• Tata Steel was the first integrated steel company

in Asia.

• There were price control – an administered control

of the economy.

• Tata Steel was not greatly innovative, not greatly

business minded.

• Technology-wise, Tata Steel was a dead company by

1991.
 Company Growth Phases
• The ten years from 1991 to 2001 was about laying
business foundations.

• Tata Steel threw out the old furnaces and scrapped

capacity.

• Tata Steel spent Rs. 10,000cr doing all the

restructuring.

• Tata steel re-engineered its business processes.

• Tata Steel became one of the lowest-cost producers

and one of the most modern companies in the world
( 2001).
 Company Growth Phases Cont…

Source: Iron & Steel Statistics Bureau USD $1= Rs 50.

 Company Growth Phases
Third Phase :

• After 2001, Tata Steel Started thinking of

growth and globalization.

• In last 3 to 4 years, Tata Steel has been

trying to do Mergers & Acquisitions
globally.

• Tata Steel is now the 6th largest Steel

Producer in the world.
Worlds 6th
largest steel
producer
Major Mergers & Acquisitions

Source: Goldman, M 2007

Brand Profile
 Business strategy
• Green field project:

– Primary steel will be produced in India,

where there are large deposits of iron ore.

– Other Asian market like Thailand, Vietnam,

Shanghai etc.

• Brown field project:

– Its target is nearly on the way of

completion e.g. Jamshedpur.
Porters 5 force
 Porter Five Forces Model

• Threat of New entrants – High - steel industry is a

capital intensive business.

• Intensity of rivalry among existing competitors =

High = The major domestic rivals are SAIL, JSW,
ISPAT & ESSAAR steel.

• The bargaining power of suppliers – High – Since the

domestic raw material sources are insufficient to
supply the Indian steel industry, a considerable
amount of raw materials has to be improved.
 Continued
• The threat of substitute products – Low – Plastic and
composites pose a threat to Indian steel in one of its
biggest markets- automotive manufacture.

• The bargaining power of buyers – Mixed - some of the

Major steel consumption sectors like automobiles,
oil and gas, shipping, consumer durables and power
generations enjoy high bargaining power and get
favourable deals.
 Future Outlook

• The Tata steel group will pursue strategic

growth through capacity expansions and
securing access to raw materials.

• Tata group is also looking at further

integration upstream in raw materials with
an ambition to achieve 100% self sufficiency
in India and around 50% self-sufficiency in
Europe over time.
 M&A
• Tata Tea -acquires the Tetley Group, UK. This is the
first major acquisition of an international brand by
an Indian business group in 2000.

• IHCL- The Indian Hotel Company And its subsidiaries

are collectively known as Taj Hotels Resorts and
Palaces, which is recognized as one of Asia's largest
and finest hotel companies. Incorporated by the
founder of the Tata group Jamsetji Tata.

• Tata AIG - Tata AIG Life Insurance Company Limited

(Tata AIG Life) is a joint venture company , formed by
the Tata Group and American International Group,
Inc.
 Continued
• Tata Coffee – In 2003 TATA Coffee acquires US based
Eight o’ Clock Coffee co.

• Telco Construction - Tata Group company, signed a

deal in March 2008 to acquire a 79 per cent
controlling stake in Spain-based Serviplem SA at a
cost of Euros 45 million.

• Tata Motors – The Tata Motors has signed the

Jaguar and Land Rover (JLR) deal with Ford last
evening, which is estimated to be valued between
2.5 billion dollars.
 Continued

• TCS – Acquires Sydney-based Financial

Network Services (FNS).

• Tata communications - The Tata Group

acquires a controlling stake in VSNL.
Company Logos
TATA Nano
 Conclusion

• After conducting an in depth study of one of

India’s most admired companies, I find that the
company has many strengths and opportunities
which it may capitalize on to truly become a
world leader in steel making along with setting
high standards for corporate citizenship and
social responsibility towards a long term
sustainable growth.
 References :
• Corus Group, 2008, Corus is a part of Tata group, viewed on 18 October
2009, <http://www.corusgroup.com>

• Goldman, M 2007, India’s Tata Group: Shifting Gears; viewed on

13 October 2009, <http://www.gibsreview.co.za/>.

• Gopalkrishnan, R 2003, Experiences at Tata Group, viewed on

15 October 2009, <http://www.tata.com>.

• Johnson G., Scholes K., and Whittington R 2005, Exploring Corporate

Strategy, Prentice Hall; Harlow; Ed. 7th; ISBN: 0273687395.

• Krishnan, R 2007, Land Rover, Jaguar bid fits into Tata strategy;
The Hindustan Times, viewed on 08 October 2009,
<http://www.hindustantimes.com/>.

• Krishnamoorthy, V 2005, The McKinsey Quarterly: An interview with

Ratan Tata, viewed on 16 October 2009,
<http://venkatkrish.blogspot.com/>.
 References :
• Sriwastawa, S 2006, More Steel for emerging India, viewed on
16 October 2009, <http://www.atimes.com/>.

• Tata Leadership with Trust, 2009, Heritage, viewed on

12 October 2009,<http://www.tata.com>.

• Tata Steel company, 2009, Annual Report 2008, Viewed on

14 October 2009, <http://wwwtatasteel.com>.

• Tata Chemical, 2009, News Report 2008, viewed on

17 October 2009,<http://www.tatachemical.com>

• Tata Motors, 2009, Tata nano media report 2009, viewed on

16 October 2009 <http://www.tatamotors.com>.

• Tata Indicom, 2009, Press Realiese, viewed on

18 October 2009, <http://www.tataindicom.com>.
Bijeet Kumar ( 81071