This presentation is about organic and inorganic growth strategies of TATA group

1. TATA GROUP`S
GROWTH STRATEGIES

2. 
Industry Conglomerates
Founder Jamsetji Tata
Headquarters Bombay House, Mumbai,
Maharashtra, India
Area Served Worldwide
Key People Natarajan Chandrasekaran
Revenue US$100 billion (2017)
Total Assets US$126 billion (2017)
Number of Employees 695,699 (2017)
Owner Tata Sons
Website www.tata.com
INTRODUCTION

3.  The Tata Group was founded by Jamsetji Tata in 1868,
began with textile mill and inaugurated the empress mill
in 1877.
 In 1904, Sir Dorabji Tata started the flagship hotel of
India's first luxury chain - the Taj Group of Hotels.
 In 1932, Jehangir Ratanji Dadabhoy (JRD) Tata created
the Tata Aviation service, which later led to the creation
of Air India.
 In 1938, JRD Tata became chairman of Tata group.
 1962,Ratan Tata joined the Tata group as blue collar
employee and later became chairman of TISCO (1977)
and TELCO (1981).

4. 
 Restructuring:- Replacement of non performing
executives with fresh talent.
 Created the Group Executive Office for greater
integration among the Group companies.
 Introduced Tata Business Excellence Model (TBEM).
 Voluntary retirement scheme.
 Offloading of out-dated unit.
TATA GROUP - UNDER RATAN
TATA

5. GROWTH STRATEGIES
Company Growth
Organic
Growth
Inorganic
Growth
Increasing Turnover of
existing Business
Strategies:
• Asset Replication.
• New Market.
• New Technology.
• New Customer.
Acquisition of other
Business
Strategies:
o Takeover/Acquisition.
o Joint Venture.
o Strategic Alliance.

6.  Under Ratan Tata’s leadership, group came up
with many innovative products.
 TCS started to cater the needs of various fields
such as custody, brokerage, stock exchange, etc.
 Developed Tata Research Design and
Development Centre (TRDDC) .
 Tata Motors developed Indica car which became
one of the best selling cars in the motors
industry.
 The Tata Steel also came up with inventions
such as fuel and gas reducing generator.
 A major area of focus was on e-business.

7. 
 Relatively inexpensive than Inorganic growth strategy.
 Organic growth has created better control and coordination
for Tata Group.
 Helped in avoiding culture clashes that arise from acquiring
new corporate.
BENEFITS OF ORGANIC GROWTH
STRATEGY

8. INORGANIC GROWTH STRATEGY
Acquisitions:
 February 2000 – Tetley Tea Company, $407 million
 August 2004 – NatSteel's Steel business, $292 million
 November 2004 – Tyco Global Network, $130 million
 October 2005 – Good Earth Corporation
 December 2005 – Millennium Steel, Thailand, $165 million
 June 2006 – Eight O'clock Coffee, $220 million
 January 2007 – Corus Group, $12 billion
 April 2007 – Campton Place Hotel, San Francisco, $60 million
 January 2008 – Imacid Chemical Company, Morocco
 March 2008 – Jaguar Cars and Land Rover, $2.3 billion
 May 2008 – Piaggio Aero Industries, Italy
 June 2008 – China Enterprise Communications, China
 October 2008 – Miljo Greenland / Invasion, Norway
 April 2010 – Hewitt Robins International, United Kingdom
 December 2014 – Energy Products Limited, India
 June 2016 – Welspun Renewables Energy, India

9. BENEFITS OF INORGANIC GROWTH
STRATEGY
 Reduced competition.
 Helped Tata Group to enter new markets
and to expand customer base.
 Quick growth and consolidation in size.
 Increased technological innovation.

10. Tata Group has more than 300 subsidiaries with 40
businesses. The group faces many short term and long
term problems in its pursuit of organic and inorganic
growth strategies.
 Divesting Non-performing Firms.
 Huge debt
 Integration challenges
 Large portfolio of business
 Brand dilution
 Capital expenditure

11. RESULT
 Success attributed to global acquisition.
 International revenue reported for financial year 2011
was US$ 48.3 billion.
 Car of the year awarded to Tata Nano in 2010,reported
59% growth in 2010.
 Tata Steel acquisition of Corus made it 5th largest steel
company in world.
 Market development in China, Western Europe, South
Africa and Latin America.