Tata Group is world's renowned group with a group revenue of 83.3 Billion$. This Presentation is a brief summary of all about Tata Group as a whole and some of their major business sectors.

1. TATA Business Sector Analysis
Team Symbiosis

2. AGENDA
Portfolio • TATA Group – An Introduction
Assessment
• Financial Analysis
• Comparison Across Sectors
Business Sectors
• Sector Analysis
Globalization
– Financial Overview
– Strategic Overview
– Global Overview
• Tata Globalization Strategy
– Current Focus
– Way Ahead

3. TATA GROUP
An Introduction

4. TATA Group Revenue
$ bn

5. Where lies the future??
Tata’s statement leaves Mistry with two
Ratan Tata has given his options: to run it like Ratan Tata – by
chosen successor, Cyrus physically being present as chairman of all
Mistry, the option of running
the group differently once he flagship companies such as Tata Steel, Tata
takes over at the end of this Motors, TCS, Indian Hotels, et al- or to run it
year. like JRD Tata, at arm’s length. JRD allowed his
key managers to run their companies as if they
were the owners.

6. Tata Group – Leading the Way
Background
• 140-year-old
• 100 operating companies - 31 publicly traded
• 425,000 employees
Leaders
• India‘s largest private-sector employer; Biggest taxpayer; Greatest foreign-exchange earner
• India's largest private steel manufacturer
• Largest chain of luxury hotels; Largest private power utility
• Largest Indian IT company
Financials
• Accounting for 5.2% of India’s GDP
• Revenue amounting to a whopping USD 83.3 billion in 20; Profit has grown at a CAGR of 18.8%
• Group revenue has grown at a CAGR of 15.1%
Accolades
• Pitch Marketing Summit 2010 - Tata DOCOMO in 'value for money', and Tata Magic and Tata Swach in
'bottom of the pyramid‘.
• Tata Power won three awards at the CMO Asia Awards 2011 for excellence in Brand and Marketing
• Tata Chemicals wins at prestigious Employer Branding Award 2012

7. Business Sectors
Information technology and •The Tata group has well-established enterprises in the fields of software and other information
systems, telecommunications and industrial automation.
communications:
Engineering products and •The Tata group has a robust presence in engineering, with operations in automobiles and auto
components and a variety of other engineering products and services.
services:
•The Tata group is among the global leaders in this business sector, with operations in steel and
Materials: composites.
•The Tata group has widespread interests in the hospitality business, as also in insurance, realty and
Services: financial and other services.
•The Tata group is a significant player in power generation and is also involved in the oil and gas
Energy: segment.
•The Tata group has a strong and longstanding business in watches and jewellery, and a growing
Consumer products: presence in the retail industry.
•The Tata group is one of the largest producers of soda ash in the world. Additionally, it has interests
Chemicals: in fertilisers and in the pharmaceuticals business.

8. Business Sectors
Information
Consumer
Technology and Engineering Materials Services Energy Chemicals
products
Communications
Titan, Tata
TCS Tata Motors Tata Steel Indian Hotel Tata Power
Infiniti Retail Chemicals
Tata
Voltas Tata Capital
Teleservices
Tata Sky

9. BUSINESS SECTORS
Largest companies
Tata Steel
Tata Motors
Tata Consultancy
Services
Tata Power
Tata
Communications
Tata Teleservices
Tata Chemicals
Tata Global
Beverages
Titan
Voltas
Tata Autocomp
systems
Indian hotels
-100 operating
Companies

10. Profitability Growth Matrix
450%
400%
Consumer
R 350%
e
t
u 300%
r
n
250%
Engineering
o
n
200% Chemicals
A
s
Materials
s 150%
e
t
s 100% Communications & IT
50% Energy
Services
0%
10% 15% 20% 25% 30% 35% 40%
CAGR Past 10 Years

11. Group Today- Market
value
>Market Capitalisation of 31 listed companies on Feb 23,2012
$95.78 bn
>Over 7.3% of Bombay Stock Exchange’s market cap
>3.6 mn shareholders
60
50.09
50
40
30
5 LARGEST
COMPANIES 20 17.31
9.19
10 5.39 4.05
0
TCS Tata Motors Tata Steel Tata Power Titan Industries
5 Largest Companies
Market value in bn $

12. Market capitalisation
of Tata companies as
on March 1, 2012
Name of the Company Rs Cr $ billion
Tata Consultancy Services 239,023 48.56
Tata Elxsi 655 0.13
Tata Communications 6,715 1.36
Tata Motors 84,933 17.26
Voltas 3,739 0.76
Tata Steel 44,339 9.01
Taj Hotels, Resorts and Palaces 5,157 1.05
Tata Power 27,500 5.59
Tata Global Beverages (Tata Tea) 7,616 1.55
Titan Industries 20,322 4.13
Trent 1,846 0.38
Tata Chemicals 9,165 1.86
Rallis 2,446 0.5
Note: Exchange rate $ = Rs 49.22

13. Return on Assets
Asset Breakup Revenue Break-up
Consumer
Products Consumer Chemicals
Chemicals
Products
Engineering
Engineering Services
Services
Energy
Energy
Communicatio
ns and IT
Materials
Communicatio
ns and IT Materials

14. Export Focus for Sectors
Export Intensity (Export/Sales)
Exports (in Rs. million )
Consumer 45%
Chemicals
Products
Energy
Services 40%
35%
Materials
30%
25%
20%
Engineering
15%
10%
5%
0%
Communicatio
ns and IT

15. Export Intensity
15%
E
10%
x
p
o Chemicals
5%
r
t Energy
0%
I
n
t
-5%
e Engineering
n
Consumer
s -10%
i
t Communications & IT
y Materials
-15%
G
r -20%
o
w Services
t -25%
h
-30%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Export Intensity

16. Globalization Strategy
TATA GROUP

17. Basis for Globalisation Strategy

18. Globalisation
Various
Motivation Routes
for
globalization
Sustainability
Globalization

19. Globalisation
• Competing with foreign companies in
Expansion into domestic environment and holding a
leadership position is also an indicator
foreign domains? of globalisation
• Firms in smaller countries like Holland
(Philips) have no other option than to
Leveraging the move into foreign markets
Domestic Market • However for Indian firms, the domestic
market itself provides huge
opportunity
Globalisation for
• Ego Reason
the sake of • Misguided
globalisation

20. Why Globalisation?
• “Unless you have the ability to hit the foreigner in his home market, he will always have an
advantage when he attacks you in your domestic market”
Strategic
Reason
• Demand Side Economies of Scale (Market Seeking Multinational)
• Seek More Markets
• Domestic Markets are saturated
• Faster growth
Economies • Supply Side Economies of Scale
• Fixed cost is not affected
of Scale • Economies of Scale on R&D, manufacturing and branding

21. Why Globalisation?
Resources and
Capabilities
• Technology Government
Risk
• Superior Human Regulation
Diversification
Resources and Taxation
• Innovation

22. Various Routes to Globalisation
Export
• Transport Costs
• Tariff Barriers
• Free Trade Agreements
Set-up Subsidiary
• Marketing
• Manufacturing
Full Scale Operations
• Joint Venture or Alliance
• Independent Operations

23. Sustainability
Growth Markets –
Brazil, India, China, Russia
• India
Manufacture abroad • 1 bn population – 5 times US
• Japanese car makers • Threat: Diversification by
• Tata Nano Chinese
Seek markets apart from
US and EU
• Deficit countries
• Aggressive Selling does not make
sense
• Technology and Capital

24. ENERGY
SECTOR ANALYSIS

25. Energy Sector
Sector Overview
• A significant player in power generation and Oil and Gas segment
• Energy sector contributes just 6% of Tata Group’s total revenue
TATA Power
• Established in 1911 as the Tata Hydro-Electric Power Supply Company
• India’s largest power utility in the private sector
• Presence in generation, transmission, distribution and trading
• Installed power generation capacity of over 3,182 MW
Areas of business
• Operates across the entire power value chain
• Generation
• Transmission and Distribution(NDPL)
• Trading and consultancy(TPTC)
• Increasing focus on renewable energy, particularly wind and solar power

26. Strengths & Weaknesses
Strength
• India’s largest power utility in the private sector
• Presence in generation, transmission, distribution and trading
• Potential for growth in this sector (demand exceeding supply
Weakness
• Still a low level contributor in the overall share
• Distribution, financing and manpower are other concerns
• High AT&C losses and slow rate of discom reforms
Opportunities
• Planned Capacity Enhancement in XIth and XIIth 5-year plan
• Focus on Solar Energy and other renewable sources of energy
• Nuclear energy is shaping up in a big way in India lately
• low “power penetration” levels indicate large demand
Threat
• Captive power seems the way ahead for power intensive / power dependant mission critical industries
• Supply constraints for domestic coal
• Equipment shortages in the core components of Boilers, Turbines and Generators
• Land Acquisition and Environment Clearance
• Huge financial investment for UMPPs

27. Financials
Revenue Market Share of top 10 power Co
• Energy sector contributes just 6% of Tata Group’s total revenue
• Operating Revenue was lower at Rs. 7,098.27 crore
Rate of Return
• Operating Profit was higher by 65%
• PAT of Rs. 938.76 crore, as against Rs. 922.20 crore for the previous year
Growth Rates
• Growth of 2% in PAT; 65% rise in Operating profit
• 2% decline in revenue
Market Share
• 8.25% of top 10 players of Industry
NTPC
Power Grid Corp
Export Intensity = Exports as % of Sales Reliance Power
NHPC
• Approximately 5% in the FY 2012-13 Tata Power
Adani Power

28. Global Network
Tata Power : Global Strides
BP Solar Power Geodynamics PT Kaltim Prima Coal
and PT Arutmin
• UK • Australia Indonesia
• Joint Venture • 10 per cent
• Indonesia
• $37.5 million
• 30 per cent equity stake

29. Tata Power – Global Foot Print
Global Revenue Set-up Subsidiary Full Scale Operations
• India – 67 % (2010-11) • Tata Power Trading Company Ltd. • Tata BP Solar India Ltd. (TBSIL)
• International – 33 % (2010-11) • Tata Power Delhi Distribution Ltd • PT Kaltim Prima Coal
• Maithon Power Ltd • PT Arutmin Indonesia
• PT Itamaraya Tbk.

30. Tata Power – Business Result
•Operating Profit Margin : 23.62 %
Profit Margin
•Net Profit Margin : 10.36 %
•Return on Capital Employed : 10.35 %
Rate of •Return on Net Worth : 14.67 %
Return
•Debt to Equity : 1.75
Leverage •Interest Coverage Ratio : 4.64
Ratio
•Assets Turnover Ratio : 0.97
Turnover •Investments Turnover Ratio : 17.17
Ratio
•Market Share – 12 %
•Market Share Opportunity - High
Market Share •Strength of Assets & Competencies - High

31. Pillars of Sustainability
Technology Innovation Environment Ethics
Usage of purified and better
Coal based plants at pithead or Increasing focus on renewable
quality coal which reduces CO2 Replenishment of natural
coastal locations which are sources of energy
emission resources by afforestation
untapped
Renovation, modernisation, up- Lack of necessary infrastructure to Competition to domestic players
Rehabilitation of displaced
rating and life extension of old transport and store fuel, high cost from foreign Pvt. players as 100%
population
thermal and hydro power plants. risk involved in transporting fuel FDI permitted
Hydel power potential of 150,000 large coastline of 7500 Kms for
Community development
MW is untapped as assessed by Emphasis on achieving reduced T realising on-shore & offshore
programmes for employees and
the Government of & D losses wind, highest solar irradiance of 5
their families
trillion kWh/yr

32. MATERIALS
SECTOR ANALYSIS

33. Materials
Contributes 33% to the overall financial makeup of the group
Main businesses:-
• Tata Metaliks Ltd.
• Tata Sponge Iron Ltd.
• Tata Steel Ltd.
• Tayo Rolls Ltd.
• Tinplate Co. Of India Ltd.
Tata Steel contributes maximum to this sector

34. Tata Steel
35 32.8 32.1
30 26.6
25 22.8
20
15
10
5
0
FY08 FY09 FY10 FY11
Tata Steel Revenue 10-11 ($26.6 bn)

35. Strengths & Weaknesses
Strengths
• Sixth largest steel producer in the world
• Self-sufficient in iron ore through its captive mines
• It is 60% self sufficient for coking coal
• Bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining
Weaknesses
• The steel industry being a cyclical industry goes through peaks and troughs
• For Corus operations, needs to source raw materials through contracts with mining
companies in UK and the Netherlands
• Demand in countries like the US, Japan and South Korea has plateaued
Opportunities
• Countries like China and India with robust growth are going to be large consumers
• Finishing facilities in places where customers exist
• Primary manufacturing facilities in places where manufacturing is competitive
Threats
• Soaring Freight cost
• Shortage of iron ore and coking coal in the world
• Other private players like Essar Steel, Jindal Steel etc focusing on expansion of operation
and production in India
• Entry of global players like Posco Steel and Arcelor-Mittal increasing competion in
domestic market

36. Tata GlobalGlobal Strides
Steel: Network
January 2007 : 2005 February :
April 2006 : Millenium
March 2007: NatSteel Asia Pte
Corus UK Steel Thailand
Rawmet Singapore
100 per cent 67.11 per cent in $167
Industries, India 100 per cent (wholly-
Sixth largest steel million (Baht6.5
in Rs101 crore owned) in S$468.10
producer in the world billion)
million
Raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory
Coast (West Africa) and Oman
19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining

37. Tata Steel – Global Foot Print
Global Revenue Set-up Subsidiary Full Scale Operations
• India – 26 % (2010-11) • Tata Steel Europe: • Corus UK - 100 per cent
• International – 74 % (2010-11)
• NatSteel Holdings • NatSteel Asia Pte Singapore
• Tata Steel Thailand
• Tata Ryerson etc.

38. Tata Steel – Business Results
•Operating Profit Margin : 13.46 %
Profit Margin
•Net Profit Margin : 7.49 %
•Return on Capital Employed : 12.84 %
Rate of •Return on Net Worth : 25.37 %
Return
•Debt to Equity : 1.76
Leverage •Interest Coverage Ratio : 4.53
Ratio
•Assets Turnover Ratio : 1.04
Turnover •Investments Turnover Ratio : 5.46
Ratio
•Market Share – 13 %
•Market Share Opportunity - Moderate
Market Share •Strength of Assets & Competencies - High

39. Tata Steel: Strategy for the New World
The value chain of steel can be divided into two parts - primary steel-making and finishing
Tata Steel's strategy is based on breaking up this value chain and putting each part where it's
the most cost-effective
So primary steel will be produced in India, where there are large deposits of iron ore
But the Asian markets, now a key focus for Tata Steel, will be better addressed by taking
these mi-finished steel to these countries for finishing and then selling there
For Example, for now, Jamshedpur will provide the semi finished steel for the NatSteel
bases. Tomorrow, it could well come from Iran or Ukraine; these countries have abundant
iron ore and are therefore ideal for primary steel making

40. Prospective Target Market: South America
South America has a number of the world’s largest- and most competitive - deposits
of alumina, bauxite, copper, iron ore, nickel, and zinc. Thus huge opportunities for
multinational mining companies abound.
The overall political and institutional risk for foreign investments in the mining sector
is relatively low in most of Latin America, especially compared with the risks in some
other places that have attractive mineral reserves.
Global demand drives the markets for copper, iron ore, and the like, so the region’s
comparatively slow growth has little effect on them.
More attractive growth opportunities can be found in South America in green-field
investments rather than through acquisitions of existing assets.
Except for countries such as Bolivia and Venezuela, which are hostile to foreign
investment, most of Latin America welcomes multinationals, imposing few
restrictions on foreign companies and reasonably low royalty and tax rates.

41. Realize that risks differ by country
Act decisively and do not wait
Build, don’t buy
Test project proposals against specific risks
Go local

42. Technology Innovation Environment Ethics
Usage of purified Community
and better quality Increasing focus on development
coal which reduces MARKETING STEEL renewable sources programmes for
CO2 emission of energy employees and their
families
Difficult: Replenishment of
1. Highly natural resources by
Commoditized afforestation
2. Well known product
attributes
Solutions:
Effective Mix
Management which
involves segmenting the
market to match
customer requirements
with company
capabilities

43. ENGINEERING
SECTOR ANALYSIS

44. Tata Motors
30 27.6
25
20.5
20
15.4
15
8.8
10
5
0
FY08 FY09 FY10 FY11
Tata Motors Revenue 10-11 ($27.6 bn)

45. Tata Motors
India’s largest automobile company
Leader in commercial vehicles in each segment
World’s 4th largest truck manufacturer
World’s 2nd largest bus manufacturer
Over 5.4 mn units plying on Indian roads
First Company from India’s Engineering Sector to be listed in NYSE
Tata Motor’s innovation revolves around low cost, for which more than 400,000 qualify for the TG.
In its innovation strategy TATA Motors use help of European Partners such as BASF, which supplies
plastic component
I.D.E.A. of Italy helps in the design aspect
Future outlook: India to be a global centre to drive low cost innovation

46. Strengths & Weaknesses
Strengths
• Recent acquisition leading to internationalization - Jaguar/Land Rover, Daewoo Commercial
Vehicle company, Hispano Carocerra
• Successfully entered countries having a demand similar to India like South Africa, Thailand and
Argentina
• Engineering Orientation – Processes & Systematic manner of execution
Weaknesses
• Areas of improvement needed in product reliability, service network and channel reach
• Myopia of operating in seller’s market
Opportunities
• Light Commercial Vehicle : Consistent growth rate of 20% in past 5 yrs
• Medium and Heavy Commercial Vehicle – Expected growth of 10 % for next 5 yrs
• Fuel Efficient & Hybrid vehicles
Threat
• Small no. of large companies with intense competition

47. Tata Motors : Network Strides
Global Global
Company name Country Relationship type Contribution or changes to the
value chain due to this
MarcoPolo Brazil JV Core competency in designing
buses and coaches
Jaguar Land Rover UK Acquisition (2008) Exceptional design and
engineering capabilities
Tata Daewoo South Korea Acquisition (2004) Heavy Commercial Vehicles
Commercial Vehicle
Company
Tata Motors European UK 100 % subsidiary Design engineering and the
Technical Centre development of products for the
automotive industry.
Hispano Carrocera Spain 21 % stake of TM Bus Manufacturing

48. Technology
• In Product Development Knowledge Based
Engineering Tools
• Enhanced digital collaboration with Vendors A mild-hybrid on the Ace
• Improved fuel injection systems
Innovation
• Prima World Truck Variants in Ace platform
• The Aria, India’s first indigenously developed crossover vehicle Variants of the Nano
• TDCV: development and introduction of the first Liquefied Natural Gas (LNG) tractor trailer
Environment
• Golden Peacock Award for Safety & Environment
• National Award for Energy Conservation
• Working on developing Diesel and CNG hybrid solutions for city bus applications in India
Ethics
• Replenishment of natural resources by afforestation
• Rehabilitation of displaced population
• Community development program for employees and their families

49. Tata Motors – Global Foot Print
Global Revenue Set-up Subsidiary Full Scale Operations
• India – 38 % (2010-11) • Tata Motors Thailand • Jaguar Land Rover
• International – 62 % (2010-11)
• Tata Motors European • Tata Marcopolo Motors
Technical Centre • Tata Daewoo Commercial
• Hispano Carrocera S.A etc. etc.

50. Tata Motors – Business Results
•Operating Profit Margin : 13.67 %
•Net Profit Margin : 7.48 %
Profit Margin •Revenue : 27.6 Billion $
•Return on Capital Employed : 25.24 %
Rate of •Return on Net Worth : 48.74 %
Return
•Debt to Equity : 1.72
Leverage •Interest Coverage Ratio : 5.87
Ratio
•Assets Turnover Ratio : 2.08
Turnover •Investments Turnover Ratio : 9.21
Ratio
•Market Share - 61.1% CVBU; 12.5% PCBU
•Market Share Growth - Moderate Opportunity
Market Share •Strength of Assets & Competencies - High