Presented By :

Group 7

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 Indias first luxury hotel in 1903

first private steel in 1907

first airline in 1932

first software firm in 1968

One of Indias largest business houses
Has over 100 global operating companies
Operates in various different sectors
Communications and information
technology, engineering, materials, services,

The Main Sectors

Tata
Tata
Chemicals
Motors
provider
Telecommunications
Tata
Steel
Tata Consultancy
ServicesVSNL
Tata Power

ndian Hotels
Company (IHC)
Parent 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.
4

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

Tata Steel
Established in 1907
Indias 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:
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
Strategies
BCG Matrix of TATA Group
Starts
Indian Hotels
Tata Steel
Tata Motors
Tata Power

Question Marks
Titan
Tata Communications
Tata AIG
Voltas
Trent
Tata Teleservices

TCS

Cash Cows
Tata Tea
Tata Chemicals

Dogs

ACQUISITIONS

Tata
company

Acquired company

Countr
Stake acquired
y

January Tata
2011
Communications

BT Group's (BT) Mosaic

business

UK

100 per cent

August
Tata Chemicals
2011

EPM Mining Ventures

Canada

30.6 per cent

British Salt

UK

100 per cent (whollyowned)

January Tata
2009
Communications

Neotel

South
Africa

30 per cent

March
2009

Tata Global
Beverages

Grand

Russia

33.2 per cent

June
2008

Tata
Communications

China Enterprise
Communications Limited
(CEC)

China

50 per cent equity

interest

August Voltas
2008

Rohini Industrial Electricals

India

51 per cent

January Tata Steel

2007

Corus

UK

100 per cent

Dec
2010

Tata Chemicals

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 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 right

The role of the Tata Group

centre in Globalisation

Tata group centre as an

umbrella for all Tata companies
-Globalisation
Reassurance for target companies
-Topping- up
-Collaboration between Tata
employees

15

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

Assessment
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

16

Should Tata Motors Purchase Jaguar and Land

Rover?

What are the Cons?

Pre tax losses of 4.8 BILLION between 2004-2006

Jaguar 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