Tata Group
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Transcript of Tata Group
The Ratan RevolutionThe Ratan Revolution
Ratan TataRatan Tata
A Man Who Believes InA Man Who Believes In ““18 TILL I DIE”18 TILL I DIE”
57%32%
8% 3%0%0%0% SAIL
Tata Steel
JSW Steel
Essar Steel
Visa Steel
Facor Steels
Steel Exchange
51%34%
11% 4% 0%0%SAIL
Tata Steel
JSW Steel
Essar Steel
Visa Steel
Facor Steels
Market Capitalization
Net Profit
In a giant leap, Tata Steel's acquisition of the Anglo-Dutch steel In a giant leap, Tata Steel's acquisition of the Anglo-Dutch steel major Corus has vaulted the former to the fifth position from 56th major Corus has vaulted the former to the fifth position from 56th
in global steel production capacity. in global steel production capacity.
STEEL PARIVARSTEEL PARIVAR
Increase in Income Levels
Improvement in quality of life
Strengthening of cultural fibre of the community
In Kalinganagar at Duburi
We could have just built a Steel Plant Instead , we built Tata Steel Parivar
Type PublicBSE: 532540
Founded 1968
Headquarters Mumbai, Maharastra, India
Key people Ratan Tata, Chairman of the BoardS. Ramadorai, CEO & MDS. Mahalingam, CFON. Chandrasekhar, COOS. Padmanabhan, EVP, Head - HR&ODP. Vandrewala, EVP, Head- Corporate Affairs
Revenue US $ 4.3 Billion (FY 06-07)
Employees ~100,000(Oct 1, 2007)
Slogan Experience Certainty
Website http://www.tcs.com
RANKINGS
Ranking by Revenue # 11th - 4286 USD m.
Ranking by net income # 5th - 950 USD m.
Ranking by market cap. # 4th – 27,716 USD m.
Ranking by no. of employees – 5th – 1 lakh.
Business Week ranks TCS among the Top 10 most profitable IT companies
Price*
Volume*
MF holdings
Sales
Net profit margin
How hot is this stock?
* Computed on last 15 days' trading figures.
Tata Consultancy Services Ltd. vs...
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Annual results in brief
Mar ' 07 Mar ' 06 Mar ' 05
Sales 15,471.99 11,230.50 8,027.58
Operating profit
4,300.97 3,272.96 2,377.27
Interest 3.43 4.49 10.40
Gross profit 4,514.09 3,331.73 2,441.87
Revenue in Rs Crore Net Income in Rs. Crore
1976
2966
4212
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY05 FY06 FY07
9748
13263
18685
02000400060008000
100001200014000160001800020000
FY05 FY06 FY07
Areas of business
Services Consulting IT services Business process outsourcing Engineering and industrial services Infrastructure outsourcing
Industries
Banking and financial services Energy and utilities Government Healthcare and life sciences Hi technology Insurance Manufacturing Retail Telecom Travel and hospitality
TCS Know-How
Largest Outsourcing Deal worth $1.2 billion (around Rs $1.2 billion 4,800 crore), with the Netherlands-based Nielsen — a leading provider of consumer and media information services.
TCS is headquarter in Mumbai and operates in more than 50 countries and has more than 170 offices across the world
TCS currently has 21 branch offices in India TCS currently has 19 labs spanning across 4 countries Recent established laboratory is TCS Innovations Lab, located in
Peterborough, U.K. Tata Consultancy Services assigned 'BBB' rating with positive outlook
- S&P
Social Initiatives
Maitree is a social platform of all members of the Tata Consultancy Services Limited family
1996
Tata Teleservices (TTSL) is established to spearhead the Group's foray into the telecom sector. Tata Indicom delivers cellular services through itCDMA mobile telephony platform. It has pre-paid and post-paid options, enhanced through tie-ups for handsets with leading manufacturers.
TATA TELESERVICES
OverviewPart of Tata group of companies
It was incorporated in 1996
It currently offer services under the brand name Tata Indicom to more than 17.1 million customers in over 3400 towns
Market leader in fixed wireless telephony with a total customer base of 3.8 million
First company in India to launch CDMA mobile services specially in Andhra Pradesh
Partnership with Motorola,Ericsson,Lucent & ECI Telecom
First company to launch incoming free offer in India
Provides its wireless landline phone service by the brand
WALKY with no. series of 6
Tata group had committed investment of Rs.36000 crore (US $7.5 billion) in Telecom sector in 2006
Launches phone with dual technology
Launches India’s first internet radio service on mobile phones
First mobile web browser in association with samsung telecommunication “SAMSUNG EXPLORE “ handset
Tata in Telecom – Full Service Capability
VSNL Tata Teleservices
46%
Public
Indian Government
26%
28%
100%
TATA Group acquired VSNL in February 2002
Key Financials FY2003-04 Revenue $703M Net Profit $ 84M
Fixed Line and Mobile (CDMA) operator
License to provide services in 19 states
VSNL International
100%
TATA Group
Tata Indicom TTML
Services provided by Tata
Teleservices Mobile Services
CMBU (Customer Marketing Business Unit)
EHNI ( Enterprise and High Network Individual)
Wireless desktop phones Public booth telephony & Wireless services
ABU (Access Business Unit)
PTB (Paid Telephone Business)
Smart PCO
Rural walky
Calling Card
Parsec
Full calling value on recharge
Tata to Tata free on selector coupans
Free incoming offer
Wi-Fi internet services
Calling cards
Post-paid
3-way conferencing
Roaming
Group calling
USB modems
Voice portal
Data cards
Enterprise services
Value added services
To improve the quality of life of the communities
it serves
Integrity
Understanding
Excellence
Responsibility
Unity
Ethics
Customer involvement
Employee respect
Empowerment
Business values
Joint venture deal with virigin mobileIs direct competitor with reliance communication in India
Tata-Birla Row over Idea Cellular Reachers
Parsec
a)Voice calling & billing
b)Speakerphone
c)Large menu driven display
d)Sms facility
e)Hybrid card reader
f)Hot keys
g)Emv complaint posterminal
Tatas to invest Rs 1,600 cr in telecom services arm
Tata Teleservices on an aggressive growth path
Tata Teleservices launches basic telephony in Vishakhapatnam
Tata Teleservices crosses 1,000-user mark
Current happenings
Ratan Tatachairman
Darryl GreenCEO
Yogesh KochharHead corporate socialresponsibility
S RamakrishnanManaging Director
Swami Krishnan, VP
President Amit Bose (L) and Chief, Dr Naresh Operating Officer for Delhi Circle Malhan(R)
Key people
MARKET OVERVIEWThe Indian telecom market grew 14%, from $5.9 billion in 2002-03 to $6.7 billion last year. The following top ten vendors contributed 58% in the overall equipment market size. Rank Vendor Revenue ($ Mil) Category 1 Nokia 707 Mobile phones, network 2 LG Elec. 622 Mobile Phones3 Ericsson 550 Network Infrastructure4 Motorola 366 Mobile Phones, Network infrastructure5 Lucent 329 Network Infrastructure6 ITI 284 Network Infrastructure
Sales prospectsBuyer Project name Potential(US millions)
BSNL Fixed and Mobile Network Expansion
$2900
MTNL Fixed and Mobile Network Expansion
$120
Reliance Reliance CDMA & Optic Fiber Network
$4000
Bharti Bharti Tele-Ventures $250
Idea Idea GSM Rollout $1100
Hexcom Expansion of GSM Network in Rajasthan
$10
Hutchison Hutchison-Essar GSM Network Expansion
$400
BPL GSM Expansion $700
Tata Expansion of CDMA fixed and mobile services
$4000
TYPE Public (NYSE: TTM)
Founded 1960
Headquarters Mumbai, India
Key people Ratan Tata, Chairman
Industry Automotive
Products AutomobilesEngines
Revenue INR 369.88 billion (US$ 9.07 billion)(F.Y. 2006, converted)([2])
Subsidiaries Tata Daewoo Commercial Vehicle
Website www.tatamotors.com
BACKGROUND
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is currently headed by Ratan Tata
The company has the workforce of 22001 employees working in its three plants and other regional and zonal offices across the country
Tata Motors commands an imposing 65% market share in the domestic heavy commercial market
The company plans to build a car that will cost just under Rs 1,00,000 considering that 2 wheelers in India cost Rs50,000/-.
Time line and milestones
1977-1986 - largest commercial
vehicle maker in India
1987-1996 – Tata mobile introduced
in 1989
1997-2006 - In 2000, it launched
CNG buses and also filled the
product line gap through the
introduction of the 1109 vehicle
Tata merger WITH DAEWOO
In 2004, it acquired the Daewoo Commercial Vehicle Company of Korea. The reasons behind the acquisition were:
Company’s global plans to reduce domestic exposure
To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform
WITH Hispano Carrocera Tata Motors acquired 21% stake in Hispano
Carrocera SA, Spanish bus manufacturing company and introduced its high-end inter-city buses in the country
WITH Tata Ace Latest hit of Tata Motors is its mini truck Ace.
Ace, India's first indigenously developed sub-one ton mini-truck, was launched in 2005
Effect of Government Policy on TATA Motors CV Division Commercial Vehicles The cut in excise duty that enabled
manufacturers like TATA Motors
to reduce prices
The attractive financing offers
enabled by low interest rate
policies by Government
the need to transport higher
volumes of agricultural and
industrial goods
Low interest rates
Global competition Tata Motors have some distinct
advantages in comparison to other MNC competitors. There is definite cost advantage as labor cost is 8-9 per cent of sales as against 30-35 per cent of sales in developed economies.
Present global challenge Volvo, a leading manufacturer of
trucks, buses, cars, construction equipment, and aero engines, has entered in India in 1998. Its main focus is in the area of fully built buses.
PRODUCTS Tata Ace Tata TL/Telcoline/207 DIPickup Truck Tata 407 Tata 709 E Tata 1109 (Intermediate truck) Tata 1510/1512 Medium bus) Tata 1610/1616 (Heavy bus) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Novus (Heavy truck designed
by Tata Daewoo) Military vehicles Tata 407 Troop Carrier, available in
hard top, soft top, 4x4, and 4x2 versions
Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6) Tata LPTA 1615
Future challenges Mahindra and Mahindra: JV with ITEC, North American leader in
heavy trucks. M&M has formed a 51:49 JV called Mahindra International with ITEC, USA, (parent NAVISTAR), to manufacture commercial vehicles and to bolster its position in the CV business.
Ashok Leyland: Acquisition of Czech Republic-based Avia Ashok Leyland (ALL) recently acquired the truck unit of Czech Republic-based Avia for US$35m.
Force Motors: JV with MAN for manufacturing high-tonnage vehicles Force Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles
Farmers are agitating against the
land acquired by the firm in
Singur for its ambitious Rs
1,00,000 car project. Farmers are
protesting that the land is fertile
land and the government
acquired the land without their
consent.
ControversiesControversies