BCG Analysis TATA Group

Group 4
Shruti Mehta Malvika Bhagat Rohan Kulkarni Aditya Kannan Vivek Bakshi Parveen Rathi Sandeep Siva

TATA Profile
Founded by Jamsetji Tata in 1868 The Tata group comprises over 90 operating companies in seven business sectors:
Communications and information technology Engineering Materials Services Energy Consumer products Chemicals

TATA Profile Contd.

The total revenue of Tata companies, taken together, was $67.4 billion in 2009-10. There are 28 publicly listed Tata enterprises and they have a combined market capitalisation of about $101.96 billion Tata companies also extend social welfare activities to communities around their industrial units

Segment - Communications & IT

Facts Founded in 1970s Listed on NSE and BSE 76th most trusted brand according to brand trust report 2011

TCS

Finance Revenue$8.2bn - 29.1% year on year rise . Net income- $1.9bn - 31.1% year on year rise EPS $0.97 Market cap $52 billion

Future Global Network Delivery Model To deliver services from remote countries such as India,China,Hungary,Brazil. Growth Largest addition to workforce of 69,685 professional in 2010-11 23% in quarterly net profit. Ahead of Infosys in EPS & Revenue year on year.

TATA Teleservices
Facts Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India Tata Docomo first private player to launch 3G services in India Tata Teleservices Ltd serves 85 million customers in 450,000 towns and villages

Finance RevenueRs. 111.94 billion -9.67% year on year rise Net income- Rs. 33.83billion 15.60% year on year fall

Future TTSL entered into a franchise agreement with Future group to offer GSM service under the name T24 Growth Tata Docomo has great potential in the GSM arena Company has diversified into many sectors :

Mobile Services Wireless Desktop Phones Public Telehphony Services Wireline Services

Segment - Engineering
Tata Motors
Facts Worlds 4th largest truck manufacturer and the 2nd largest bus manufacturer Operations in UK, South Korea, Thailand and Spain 70% share in Light and Heavy Commercial Vehicles segment Passenger vehicles 13%

Finance Gross revenue Rs. 52,136 crore 35.9% year on year fall Revenues - Rs.48,040 crores 35% year on year fall

Future Focus on small car market packed with accessories for fuel efficient buyers. Eg Nano Trying to tap markets in US and Europe in the small car space

Growth Tata motors is forming JVs with multiple foreign players to grow globally Turned around JLR into a profit making unit after 3 years of takeover

Segment Materials
Tata Steel
Facts Formerly known as TISCO (Tata Iron & Steel Company) Worlds 7th largest steel company Annual crude steel capacity of 31 million tonnes

Finance Total revenue $22.741 billion (2010) Profits - $-423.5 million (2010) Total Equity - $5.082 billion (2010)

Future Targets to achieve 100 million tonnes by 2015 Overseas acquisitions have added a capacity of 21.4 million tonnes Growth A slew of greenfield projects in Odisha, Jharkhand, Chhattisgarh etc.

Segment Services Indian Hotels (Taj)

Facts Started in 1903 as Taj Mahal Palace hotel in Mumbai Also operates budget hotels under the brand name of Ginger Hotels Company also operates in diversified areas such as Taj Air, Taj Safaris, Taj Yachts etc.

Finance Gross revenue Rs. 1724.92 crore up 13.45% year on year Profits Rs. 141.25 crore down 7.74% year on

Future With the increase in tourism and travel in India, the company needs to gear up with innovative ideas to keep up with competition They will have to differentiate on offerings

Growth Continues to pursue contracts in India as well as South East Asia Associate companies viz. GVK hotels and Oriental hotels are also in the process of setting up new properties

Segment Energy
Tata Power
Facts Tata Power pioneered the generation of electricity in India with the commissioning of Indias first large hydro-electric project in 1915. The Company has to its credit the installation of Indias first 500 MW unit at Trombay Over the last 30 years, Tata Power has continued to contribute to ecorestoration and eco-development programmes in the Western Ghats

Finance Revenue- Rs. 19450.76 Crores Net income- 970 cr EPS 40.88 cr Market cap 30123Cr

Future Over the next 3 years, the Company plans to add 8000 MW Tata Power has announced its partnership with Sunengy an Australian firm to build India's first floating solar plant based on Liquid Solar Array technology Tata Power has entered into a 51:49 joint venture with PowerGrid Corporation of India for the 1200km Tata Indias 1st transmission project

Growth The company also plans to commission the first unit of the Mundra ultra mega power project

Tata AIG
Facts Established in 2001 with 74% stake of Tata Sons and 26% stake of American International Holdings (AIG) Ranked as No 1 in customer service satisfaction and No 2 in claims settlement satisfaction

Finance Income Rs. 469 crore up by 34% PAT Rs. 11.5 crore from a loss of Rs. 7.2 crore the previous year

Future The company will launch products in four different categories - rural, well assurance, SMEs and high networth individuals Tata AIG also plans to open 12-15 branch offices in Tier II and Tier III cities in the next six-months

Growth

H In d u st ry gr o w th

communication Hotel Steel

Stars
Motors Tata AIG Power Tata sky TCS Tea Tata salt

Q u e stio n m a rk
Tele services Voltas

C a sh co w s
Power

Housing

D og s

Chemicals

L H R e la tiv e m a rk e t sh a re L