The document summarizes the evolution of the Tata group from 1991 to the present day under the leadership of Ratan Tata and the upcoming leadership of Cyrus Mistry. It highlights key milestones for the Tata group from 1996 to 2008 during India's economic liberalization and growth. It discusses challenges Cyrus Mistry may face in diversified business sectors and volatile global markets, as well as opportunities from continued growth in India. Major challenges include improving profits, addressing underperformance in some sectors like telecom, and assessing strategies like a focus on the domestic market. The future of sectors like automobiles and how India's economy and policies develop will also impact the Tatas.

1. Evolution of TATAs
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27 Nov, 2011, 06.23AM IST

2. Tata group from Ratan Tata to Cyrus Mistry, and the country & the future
Cyrus Mistry will succeed Ratan Tata as Tata group chairman. Ratan Tata's two-decade-
long reign began in 1991, the year India started economic reforms. The group's
revenues grew to $83 billion from $5 billion in that period. It was also a period in
which India transformed from a third-world backwater to one of the world's fastest-
growing economies.
Before 1991, India was a closed economy. The Tata group too was largely domestic in
nature. Today, India is a globalised economy and the Tata group a global giant that
operates in 80 countries and draws 58% of its revenues from foreign markets. Here's a
look at how India and the Tatas grew together and the challenges that lie ahead of the
corporate giant as the country evolves.

3. The Ratan Years: 1996
India Then: India had launched mobile telephony a year earlier. Growth
initially was slow due to high mobile handset prices and costly (more
than Rs 16 a minute) call tariffs.
Tata Milestone: Group establishes Tata Teleservices to enter the telecom
sector. But it had to wait another nine years to launch mobile operations
under the brand name Tata Indicom.

4. The Ratan Years: 1998
India Then: The government began to free up automobile segments,
accelerating industry growth. India quickly turned into a major magnet
for investments in commercial vehicles and cars.
Tata Milestone: Tata Motors launches Indica, the country's first
indigenous car, spearheading the group's entry into a lucrative segment.

5. The Ratan Years: 1999
India Then: Infosys became the first Indian company to debut on Nasdaq
in 1999. A raft of companies such as ICICI Bank and Dr Reddy's flocked to
American exchanges.
Tata Milestone: The Tatas thought there was no better time to unveil a
new group corporate mark and logo. A new phase of growth kicks in for
the group.

6. The Ratan Years: 2000
India Then: As Indian IT majors like Infosys and TCS started building Brand
India overseas, Indian companies started to venture outside their home
markets. The Tatas led the charge.
Tata Milestone: Tata Tea buys Tetley - the inventor of tea bags - for £271
million in 2000, the first of several acquisitions. Tata set the tone for all
other India Inc overseas acquisitions.

7. The Ratan Years: 2003
India Then: After the 2001 dotcom bust and 9/11, Indian IT sector
experienced a slowdown of sorts. But as US offshoring to India took off,
Indian IT giants like Infosys and TCS began to grow rapidly.
Tata Milestone: In 2003, TCS becomes the first Indian software company
to cross $1 bn in revenue. A year later, Infosys would cross that mark.
That year, TCS went public, raising $1.2 billion.

8. The Ratan Years: 2008
India Then: Indian companies were in the thick of an acquisition spree.
Revenues and profits rode a consumption boom to record peaks. 2008
began well but would not end well.
Tata Milestone: Tata Motors unveils Nano in January 2008. In June, it
buys Jaguar Land Rover. The financial crisis spoils the party. JLR posts
$520-mn loss in 2009, but has since turned profits.

9. How the Cyrus Years May Play Out
How the Cyrus Years May Play Out The group has diversified into more than 100 businesses. Obviously, there
are business challenges to confront. And that will be partly influenced by how India will evolve.
Takeaway: Profits are too little for a globalised company, and for one that operates in so many sectors.
Majority of firms contribute little towards revenues. For comparison, take Apple's market value - it is around
$350 billion. Tata's is $74 billion. Jaguar Land Rover reported record profits of more than £1 billion in the year
to end May 2011. The European steel operations continue to be in the red, but profitable home operations
cushion those losses.
India Factor: Were the Tatas to decide to focus on the home market more, given the economic troubles in the
West, improved domestic investment climate would be critical. Does retail FDI signal a change? Too early to
take a bet. UPA 2 policy capacity will be the group's biggest short-term worry.

10. The Big Nano Problem
1,26,691 No. of Nanos sold since April 2009
Takeaway: Too few Nanos sold, but too early to write off Nano. Tata has launched
a new marketing drive, and more cars are appearing on the road.
India Factor : The auto market will get more competitive, especially in the small
car segment. As incomes and aspirations grow, whether a small car whose selling
point is mostly low price will be the aam aadmi's first choice will remain a big
question.

11. Telecom Disconnect
Rs 40,000 cr Investment in telecom
Takeaway: The group has never been sure-footed in telecom, wobbling from a fixed line
player to a limited mobility wireless to a full mobility wireless, and finally to dual technology.
The group's telecom business is stuck in a ferocious price war with more than a dozen rivals.
It is also woefully short of spectrum. However, the Tatas have always said they are in telecom
for the long haul.
India Factor: Telecom in India is due for a shakeup. Number of players, tariff levels and
technology are all set for a big churn. Tatas' telecom business will therefore face an
especially big challenge as Indian telecom enters the maturity phase.