Tata Group – An Overview

http://www.youtube.com/user/TataCompanies?feature=watch

Tata Motors Insurance Broking and Advisory Services Ltd

Our Group Chairman Statement

"One hundred years from now, I expect the Tata’s to be much bigger
than it is now. More importantly, I hope the group comes to be
regarded as being the best in India — best in the manner in which we
operate, best in the products we deliver, and best in our value
systems and ethics. Having said that, I hope that a hundred years
from now we will spread our wings far beyond India...“

— Ratan N Tata

Tata Motors Insurance Broking and Advisory Services Ltd

Tatas - India’s largest business group

ƒFounded by Jamsetji Tata in 1868

ƒBusinesses in seven sectors- information systems and communications,
engineering, materials, services, energy, chemicals and consumer products

ƒOperations in over 80 countries

ƒProduct and services available in over 85 countries
ƒOver 425,000 employees
ƒGroup revenues of 2010-11: $83.3 billion
ƒInternational revenues2010-11: $48.3 billion
ƒGeographies 58% other than India

ƒTata’s contribution to India’s GDP is nearly 5.5% and 60% of its revenue comes
from foreign countries.

ƒBrand Finance, a UK-based consultancy firm, valued the Tata brand at

$15.75 billion in 2011 2

Tata Motors Insurance Broking and Advisory Services Ltd

Leadership
ƒTata Steel - Among the top ten steelmakers in the world
ƒTata Motors - Among the top five commercial vehicle manufacturers in the world

ƒTata Global Beverages - Second-largest player in tea in the world

ƒTata Chemicals - World’s second-largest manufacturer of soda ash
ƒTata Communications - One of the world's largest wholesale voice carriers
ƒIndian Hotels- first property, the Taj Mahal Palace, in Bombay in 1903
ƒShareholder base - 3.6 million
ƒNumber of companies - Over 100 operating companies
ƒListed companies - 31 on the Bombay Stock Exchange combined market
capitalisation of about $80.59 billion (as on January 19, 2012)

ƒCompanies Listed on NYSE - Tata Motors and Tata Communications

Tata Motors Insurance Broking and Advisory Services Ltd

Pioneering initiatives in India

ƒEstablished the first steel plant

ƒIntroduced labour welfare benefits long before they were enacted by law
ƒStarted the first power plant
ƒPioneered civil aviation
ƒBrought insurance to the country
ƒStarted the country’s first chain of luxury hotels
ƒLargest commercial vehicle producer in India
ƒPioneered software development
ƒManufactured the country’s first indigenous passenger car, the Indica and
affordable, innovative such as the Tata Nano,

Tata Motors Insurance Broking and Advisory Services Ltd

 Risk Philosophy (Source Annual Report FY 2010-11)

Tata Motors
Risks Philosophy:
All of the Company‘s operating plants in India have been certified to OHSAS - 18001 and ISO - 14001 standards and all the
CVBU units have been conferred with the ‘Golden Peacock Award’ on Safety & Health. Jamshedpur plant was adjudged first
and was awarded by CII (Confederation of Indian Industry) Eastern Region in Safety, Health & Environment Practices. The
Company took steps towards ensuring that every single individual working within its plant premises is protected from any
harmful impact of his/her working and the inherent risks. Towards this end, the Company recently completed a diagnostic of
the existing safety systems through DuPont and is taking steps to raise the safety standards to world class levels.

Concern - Political instability, wars, terrorism, multinational conflicts, natural disasters, fuel shortages / prices,
epidemics, labour strikes:
The Company’s products are exported to a number of geographical markets and the Company plans to expand international
operations further in the future. Consequently, the Company is subject to various risks associated with conducting the
business both within and outside the domestic market and the operations may be subject to political instability, wars,
terrorism, regional and / or multinational conflicts, natural disasters, fuel shortages, epidemics and labour strikes. In addition,
conducting business internationally, especially in emerging markets, exposes the Company to additional risks, including
adverse changes in economic and government policies, unpredictable shifts in regulation, inconsistent application of existing
laws and regulations, unclear regulatory and taxation systems and divergent commercial and employment practices and
procedures.
TCS
Risks Philosophy:
A comprehensive and integrated risk management framework forms the basis of all the de-risking efforts of the Company.
Formal reporting and control mechanisms ensure timely information availability and facilitate proactive risk management.
These mechanisms are designed to cascade down to the level of the line managers so that risks at the transactional level are
identified and steps are taken towards mitigation in a decentralized manner.

Legal risks
Litigation regarding intellectual property rights, patents and copyrights is significantly high in the software industry. In addition,
there are other general corporate legal risks. 5
1
Tata Motors Insurance Broking and Advisory Services Ltd
Risk Philosophy (Source Annual Report FY 2010-11)

Tata Steel

Risks Philosophy:
The Company’s focus, at all times, is to identify the hazards, determine the risks and ensure that effective controls are in
place to minimize the potential of a major incident. The Company assesses sites for potential risks and creates and
implements effective process safety. The Group’s philosophy is that all injuries can be prevented.

Concern - Health, Safety & Environmental Risks:

The manufacture of steel involves steps that are potentially hazardous if not executed with due care. The Group’s
businesses are subject to numerous laws, regulations and contractual commitments relating to health, safety and the
environment in the countries in which it operates and these rules are becoming more stringent. In Europe, auction based
proposals by the EU Commission for Phase 3 of the Emission Trading Scheme (‘ETS’) could, as they currently stand, have a
significant negative financial impact post 2012.

Tata Chemicals
Risks Philosophy:
TCL’s risk identification and assessment process is dynamic and hence the Company has been able to identify, monitor and
mitigate the most relevant strategic and operational risks both during periods of accelerated growth and recessionary
pressures.

Concern - Safety and Environment related risks:

TCL is conscious of its strong corporate reputation and the positive role it can play by focusing on social and environmental
issues. Towards this, the Company has set very exacting standards in safety, ethics and environmental management.

6
1
Tata Motors Insurance Broking and Advisory Services Ltd
Risk Philosophy (Source Annual Report FY 2010-11)

Tata Power
Risks Philosophy:

As part of the Risk Management Process (RMP), during the year, the Company reviewed the various risks and finalized
mitigation plans. These were reviewed periodically by the Risk Management Committee. Further, seven Risk Management
Sub-Committees (RMSCs) closely monitored and reviewed the risk plans periodically. Employees contribute to the risk
identification process through the web-based Risk Perception System.

Concern – India Scenario

In view of the inherent risks and challenges in developing and executing new projects and rising fuel costs, the cost of
generation is likely to increase.

7
1
Tata Motors Insurance Broking and Advisory Services Ltd
Tata Group – Premium output (approx)

At present the overall premium output of the TATA Group is INR 500 crores

Employee Benefits will be at 60% (approx) of the overall portfolio

Property & Casualty will be at 40% (approx) of the overall portfolio

8
1
Tata Motors Insurance Broking and Advisory Services Ltd
 About – Tata Motors Insurance Broking & Advisory Services Ltd

Tata Motors Insurance Broking & Advisory Services Ltd was granted a Direct Broker License by the Insurance
Regulatory and Development Authority (IRDA) in May 2008 for undertaking Direct Insurance Broking in Life and
Non-Life insurance businesses. It has placed business with all public and private insurance companies to enable
offering customized solutions to customers. As a Total Insurance Risk Solutions provider, Tata Motors Insurance
Brokers plays an integral role in managing the portfolios of the customer through Risk Advisory & Risk
Management.

Tata Motors Insurance Broking and Advisory Services Ltd (TMIBASL) forms a part of Tata Motors Ltd as their
wholly owned subsidiary. Tata Motors Ltd, is India’s largest Automobile company with a consolidated revenues of
Rs.1,23,133 crores (USD 27 billion) in 2010-11. Tata Motors Limited is a leader in commercial vehicles in each
segment, and among the top three automobile manufacturers in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. Tata Motors Limited is the world's fourth largest truck
manufacturer, and the world's third largest bus manufacturer.

To provide world-class, cost-effective, performance-backed insurance products to automobile customers, value-

added insurance services to corporate and retail customers and spread awareness of insurance.
Apart from being the insurance broker for the Tata Group companies, Tata Motors Insurance Broking and
Advisory Services Ltd (TMIBASL) is also a insurance broker for Ford, Nissan & Rennault.

We undertake to deliver world class broking services in compliance with IRDA Insurance Broking 2002 guidelines.

9
1
Tata Motors Insurance Broking and Advisory Services Ltd
Portfolio – Tata Motors Insurance Broking & Advisory Services Ltd

Corporate Exposure (approx)

Total Sum Insured - INR. 40,000 Crores

Total Premium - INR. 86 Crores

Retail Exposure (approx)

Total Sum Insured - INR 15,000 Crores

Total Premium - INR 650 Crores

Total Policies issued - 5,00,000

10
1
Tata Motors Insurance Broking and Advisory Services Ltd
Thank You

Tata Motors Insurance Broking and Advisory Services Ltd