tata group presentation
TRANSCRIPT
India’s largest business Group
Diverse business in 7 sectors
Revenues equivalent to 5.3% of India’s GDP
international income 61% of Group revenue
Operations in over 80 countries
Products and services exported to 85 countries
Largest employer in private sector over 300,000 employees
Group revenue FY 2008: Rs 251,543 cr / $ 62.5 bn
Group profit FY 2008: Rs 21,578 cr / $ 5.4 bn
Improve the quality of life Improve the quality of life of the communities we serve of the communities we serve
through leadership in through leadership in sectors of national economic significancesectors of national economic significance
Group Purpose
Integrity
Fair, honest, transparent in all dealings
Understanding Care, respect, compassion for customers and colleagues
Excellence Highest possible standards in quality of goods and services
Unity Build strong relationships with partners and customers worldwide
Responsibility
What comes from the people goes back to the people many times over
Group Values
Tata Code of Conduct
Information Technology
Information Technology
Engineering
Consumer products
Services
Energy
Chemicals
Materials
Consum er Products
3%
Energy5%
Services4%
Materials52%
Engineering17%
Chem icals3%
Inform ation Technology
16%
Revenue FY 2008: Rs 251,543 cr / $ 62.5 bn
Inform ation Technology
11%
Chem icals5%
Engineering11%
Materials56%
Services3%
Energy5%
Consum er Products
9%
Profit FY 2008: Rs 21,578 cr / $ 5.4 bn
Tata Steel
Tata Motors
Tata Consultancy Services
Tata Power
Tata Communications
Tata Chemicals
Tata Tea
Tata Teleservices
Tata AutoComp Systems
Voltas
Indian Hotels
Titan
Largest CompaniesBusiness Sectors
18,95
3
29,10
0
34,59
1
38,60
7
49,45
7
65,42
4 96,72
3
129,9
94
FY92
FY94
FY96
FY98
FY00
FY02
FY04
FY06
FY07
FY08
1,132 2,7
06
1,956
1,987 3,4
31 5,714
9,461
12,57
4
FY92
FY94
FY96
FY98
FY00
FY02
FY04
FY06
FY07
FY08
$ 5.8 bn 14,092(Rs cr) $ 320m
77.3
CAGR 16% CAGR 19.4%
Group Revenue Group Profit
$ 62.5 bn251,543
$ 5.4 bn21,578
G rants in FY 08 Rs 375.8 cr / $ 93 m
Indian Institute of Science
Tata Institute of Social Sciences
Tata Memorial Hospital
Tata Institute of Fundamental Research
National Centre for the Performing Arts
National Institutions
Commitment to surrounding communities incorporated in Articles of Association of major companies
CSR expenditure budgeted before preparation of profit and loss account by companies
Active volunteering programme in Group • Over 11,500 registered volunteers in 20 companies
• 150,000 volunteer man hours
Illustrative Initiatives • Tata Steel: HIV/AIDS programme
• TCS: computer-based Audit Literacy Programme
BEYOND BUSINESS
Role of Companies
FY 08 contribution to social welfare Rs. 375 cr / $ 93 m
Information Technology Tata Consultancy Services
Tata Technologies
Tata Elxsi
Tata Interactive Systems
Tata Business Support Services
Communications Tata Teleservices
Tata Communications
Tata Sky
Information Technology
Established 1968Market Cap Rs 78,557 cr/ $ 18.7 bn
Pioneer & leader in Indian IT
Current global ranking • No 11 : Revenue • No 5 : Net Profits
• No 6 : Market Cap • No 5 : Number of employees
Global footprint • Clients in 50 countries: 6 of Fortune Top 10; 49 of Fortune Top 100
• 160 offices in 42 countries: 97 Delivery Centres in 18 countries
• Over 1,16,000 Associates; 9.2% foreign nationals from 67 countries
Full services provider: • IT services • BPO
• Infrastructure services • Asset leverage solutions
• Engineering & industrial services • Global consulting practice
Vision: Global Top by 10 by 2010
8.7% 91.3% $ 5.7 bn REVENUE 07-08
DOMESTIC INTL
Tata Consultancy ServicesInformation Technology
0
1000
2000
3000
4000
5000
6000
FY05 FY06 FY07 FY08
$m
Services – Fixed/mobile, voice/data/VAS
Segments – Carriers, Corporate, SME and individuals
Networks – Domestic and International
Tata IndicomOne BrandComprehensive Telecom Services Portfolio
India
• Enterprise data and managed services: #1 • International (#1) and domestic long distance services • Internet and broadband services: # 1
Global
• International wholesale voice carrier: # 1 • Submarine cable/ bandwidth: Top 3 • IP Networks: Top 10 • Enterprise connectivity & managed services • Entry into South Africa (Noetel) and China (CEC)
Listed on NYSE
Objective: Top 3 service provider in chosen markets
Established 2002Market Cap Rs 13,144 cr/ $ 3.1 bn
0
500
1000
1500
2000
2500
FY05 FY06 FY07 FY08
40 60% $ 2.12 bnDOMESTIC INTL
REVENUE 07-08
Tata CommunicationsCommunications
$ m
Pan-India 3G ready CDMA network
• Rs 27,000 cr / ~ $ 6 bn commitment
Licence obtained for Pan-India GSM services; commercial launch underway
Customer base > 27 m;
• Fastest growing telecom operator over the last 3 years
No.1 private fixed service provider
India’s largest branded telecom retail chain
Objective: Trusted service to 80 m happy customers by 2013
0
4
8
12
16
20
24
28
MAR 0
7
JUN 07
SEP 07
DEC 07
MARC
08
JUNE 0
8
16.6 17.9
20.122.4
25 26.9
Subscriber growth in million
Established 1995
Tata TeleservicesCommunications
0
300
600
900
1200
1500
1800
2100
FY05 FY06 FY07 FY08
100% 0% $ 1.8 bnDOMESTIC INTL
REVENUE 07-08
$m
Direct-to-home satellite TV service • JV with Star
World class TV viewing experience empowering customers with choice, control and convenience
• DVD quality picture and CD quality sound • Range of interactive services
Launched: August 2006; record 2.3 million activations
Established 2001 Tata SkyCommunications
Automotive Tata Motors
Tata AutoComp Systems
Telco Construction Equipment
Engineering products, projects & services Voltas
Tata Projects
Engineering
India‘s largest automobile company by revenue Jaguar Land Rover acquired in June
Leadership position in commercial vehicles • No.1 in India: Global No.4 in M&HCV trucks
No. 3 in passenger car vehicles in India
• Made country’s first indigenously developed car, Indica
• Shortly launching Tata Nano – World’s least cost car ($ 2,500)
Strong Subsidiaries / Associates • Includes Tata Daewoo, Hispano, Telcon, Tata Technologies, European Technical Centre in UK and Tata Motors Thailand
Objective 2010: Double sales to > 1 m vehicles; Select global thrust; Grow Jaguar Land Rover
Established 1945Market Cap Rs 16,951 cr / $ 4.0 bn
Automotive Tata Motors
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
FY05 FY06 FY07 FY08
82% 18% $ 8.8 bn REVENUE 07-08
DOMESTIC INTL$m
Among fastest growing auto components and service provider
• Among the Top 5 Indian players
Businesses:
• Manufacturing: 35 facilities → Including one each in Germany and China • Design and Engineering • Supply Chain
16 global partners
Own business in interiors and plastics, suspension parts for passenger vehicles and Mobility Telematics Customers from all major global and Indian auto OEMs Objective: To become a preferred Tier I supplier to the Global automotive industry
0
100
200
300
400
500
600
700
800
900
FY05 FY06 FY07 FY08
82% 18% $ 737 m
DOMESTIC INTL
REVENUE 07-08
$ m
Tata AutoComp SystemsAutomotive
Established 1995
60:40 JV of Tata Motors & Hitachi Construction Machinery
Domestic market leader in products & services for Construction, Mining and Earthmoving industries
Design, manufacturing, marketing, sales and servicing capabilities
Main products: Hydraulic Excavators, Backhoe Loaders, Wheeled Loaders, Off-Highway Dumpers, Crawler & Tyre mounted Cranes, Compactors, Motorgraders
Two manufacturing plants at Jamshedpur & Dharwad and third state of the art world class plant under construction at Kharagpur
Acquired Serviplem S.A. in Spain in March’08, a company engaged in design, manufacturing, sales & service of Concrete Equipments
Acquired Comoplesa Lebrero S.A. in Spain in April’08, a company engaged in design, manufacturing, sales & service of Compaction Equipments
Established 1999Revenue 07-08 Rs 2,735 cr / $ 680 m Telco Construction Equipment Company
Automotive
Engineering solutions in: • Electro-mechanical projects and services → Largest exporter from India
→ Leading central air conditioning company in India
• Cooling products: commercial/ homes → India’s no 2 air conditioner brand
• Engineering products & services
→ Textiles, material handling, mining & construction equipment and machine tools
Objective: Rs 10,000 cr ($ 2.5 bn) revenue by 2010-11
Established 1954Market Cap Rs 4,264 cr / $ 1,014 m
75% 25% $ 774 m REVENUE 07-08
DOMESTIC INTL
Architect’s model of the Burj Tower in Dubai, set to be the world’s tallest
building: A Voltas project site
0
100
200
300
400
500
600
700
800
FY 05 FY06 FY07 FY08
$ m
VoltasEngineering Products, Projects & Services
Metals• Tata Steel
Composites• Tata Advanced Materials
Materials
Asia’s first and India’s largest private sector integrated steel plant • Fortune 500 company 6th largest steelmaker, capacity 30 MTPA, incorporating:
• Corus• NatSteel Asia• Tata Steel, Thailand
Balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing operations in 24 countries
Seeking raw material security through JVs in Australia, Mozambique,Ivory Coast and Oman
Expansion plans• Jamshedpur Works – From 6.8 MTPA to 10 MTPA by 2010• Greenfield projects
→ India – Orissa, Jharkhand and Chattisgarh→ Overseas – Vietnam, Bangladesh and Iran
Established 1907Market Cap Rs 46,113 cr / $ 11.0 bn
Metals Tata Steel Group
0
3000
6000
9000
12000
15000
18000
21000
24000
27000
30000
33000
FY 05 FY06 FY07 FY08
63% 37% $ 32.83 bn REVENUE 07-08
DOMESTIC INTL$ m
Tata Advanced MaterialsComposites
Design, engineering and manufacture of advanced composites
Products and services:
• Aerospace & aircraft components• Design & engineering services• Personnel armour products – largest in India• Vehicle armour solutions
ISO 9001, AS-9100 and NADCAP certified
Objective: Rs 1000 cr / $ 240 m revenue by 2012-13
Established 1989Revenue 07- 08 Rs 26 cr / $ 6.45 m
Hotels and Realty
Indian Hotels (Taj Hotels, Resorts and Palaces)
Tata Realty and Infrastructure
Tata Housing
Financial Services Tata AIG Life and General Insurance
Tata Asset Management
Tata Investment Corporation
Tata Capital
Services
One of Asia’s largest hospitality Groups
• Leading chain in India
87 hotels; 10,391 rooms; 12 countries; 5 continents
• Indian Ocean Rim: Luxury properties
• Key gateway cities – New York, Boston, San Francisco, London, Dubai, Sydney
Expansion – “Smart Basics” hotels • Ginger Hotels, existing – 13; 30 in the pipeline
Objective: Reinforce India leadership, expand to 25 major global destinations, reach 20,000 room capacity by 2010
75% 25% $ 1.08 bn REVENUE 07-08
DOMESTIC INTL
Established 1903Market Cap Rs 5,048 cr / $ 1.2 bn*
Taj Hotels, Resorts and PalacesHotels
* Indian Hotels only
0
200
400
600
800
1000
1200
FY05 FY06 FY07 FY08
$ m
Power• Tata Power
Renewable Energy• Tata BP Solar
Energy
Pioneered power generation in India Generation capacity >2300 MW – largest in private sector
Presence in generation (thermal, hydro, solar and wind), transmission and distribution joint ventures with public sector
→ Maithon India Ltd – with Damodar Valley Corporation for 1000 MW generation → Powerlinks Transmission Ltd – with Power Grid Corporation Ltd for transmission → North Delhi Power Ltd – with Delhi Vidyut Board for distribution in North Delhi
Expansion: > 7,500 MW additional generation capacity by 2012 → 4,000 MW Ultra Mega Power Project in Mundra, Gujarat
→ 30% stake in Bumi Resources, Indonesia, coal mines for fuel security
Objective: Aggressive addition in generation, transmission and distribution capacities in India
Established 1911Market Cap Rs 22,812 cr / $ 5.4 bn
0
500
1000
1500
2000
2500
3000
FY 05 FY06 FY07 FY08
100% 0% $ 2.8 bn REVENUE 07-08
DOMESTIC INTL
Power Tata Power
$ m
Tata Coffee • Tata Tea
Watches and Jewellery • Titan Industries
Retailing • Trent
• Infiniti Retail
Consumer Products
World’s second largest global branded tea operations:• Acquisitions – Tetley (2000), Good Earth (2005), Jemca & Joekels (2006). Vitax (2007)
• Developing capabilities in green, specialty, RTD, polyphenol extract teas
Coffee: driving growth through: • Higher value roast & grounded coffee (acquisition of Eight O’ Clock Coffee-2006)
• Freeze dried/instant coffee
• Specialty/quality oriented plantations
Water: Himalayan Brand starts water portfolio development
Objectives:• To create beverage solutions for emerging consumer requirements of well being, nutrition
and hydration
• Aim to be global force in the beverages industry with a growth ambition of increasing size by over 5 times in five years
Established 1964Market Cap Rs 4,730 cr / $ 1,125 m
0
200
400
600
800
1000
1200
FY 05 FY06 FY07 FY08
26% 74% $ 1.1 bn
DOMESTIC INTL
REVENUE 07-08
Tata TeaTea, Coffee
$m
India’s largest manufacturer of branded watches …• Titan, Sonata, Fasttrack & Xylys• Annual output: 10.25 m; customer base 100 m
… And branded jewellery
• Tanishq: Premium range• Gold Plus: Plain jewellery for mass market
Also: Prescription Eyewear & Precision Engineering
India’s largest speciality retailer • 259 exclusive watch showrooms • 134 exclusive jewellery boutiques • 20 exclusive eyewear showrooms • 11,334 multi brand dealer outlets
Objective: Rs 4500 cr / $ 1.1 bn revenue by 2009
Watches and Jewellery Titan IndustriesEstablished 1984Market Cap Rs 4,870 cr / $ 1,158 m
0
200
400
600
800
FY 05 FY06 FY07 FY08
95% 5% $ 746 m REVENUE 07-08
DOMESTIC INTL$m
Tata Chemicals
Rallis India
Advinus Therapeutics
Chemicals
Manufacturer of inorganic chemicals, fertilisers and food additives
World No.2 and India’s largest producer of soda ash with manufacturing locations in Asia, Europe, Africa and US
Pioneer and market leader in branded, iodised salt
JV with Total Produce, Ireland, for fruits and vegetables distribution
Setting up facilities for bio-fuels production in India
Objective: Rs. 16,000 cr/$ 4 bn revenues and EVA+ in all businesses by 2012
Tata ChemicalsChemicalsEstablished 1939Market Cap Rs 7,106 cr / $ 1.7 bn
0
300
600
900
1200
1500
1800
FY 05 FY06 FY07 FY08
70% 30% $ 1.7 bn REVENUE 07-08
DOMESTIC INTL$m
Entries ←• Passenger cars
• Auto components (Mostly JVs)
• Retailing
• Telecommunications
Exits • Soaps and toiletries
• Cosmetics
• Consumer electronics
• Pharmaceuticals
• Branded white goods
• Paints
• Insurance
• Home entertainment
• Biotechnology
• IT Hardware
• Telecom hardware
• Oil drilling services
• Cement
• Textiles
• Printing and publishing
Business Entered and Exited
4.7 6.810.8
38.3
2.5 3.2
24%27%
32%
38.3%
FY03 FY04 FY05 FY06 FY07 FY08
InternationalRevenue ($ bn)
% of TotalRevenue
61% of Group revenue
24% of Group revenue
Group International Revenue
44%
60%
254%$ bn
CAGR 86%
48%
26%
Internationalisation
6423 4
68
13
Tata Consultancy Services Tata SteelTata Motors Tata PowerTata Tea Tata CommunictionsOthers
63 4 1 1 2
15
57
11
North America EuropeSouth East Asia East AsiaAfrica Middle East / GulfSouth Asia AustralasiaLatin America
International Revenues - Distribution Revenue mix by larger companies 2007-08 Geographical distribution 2007-08
Total International revenue Rs 154,125 cr / $ 38.3 bn
Figures in %
Tata Communications 1st
Tat a Tea/ Tetley 2nd
Tata Chemicals 2nd
Tata Motors 5th
Tata Steel +Corus 6th
TCS 11th
Revenue
International voice (wholesale)Tea productsSoda ashMedium/ heavy CVsSteelIT services
Internationalisation
Global Ranking
Volume
India’s first mini-truck for last mile transportation
• Price: 2.4 lakh ($ 6,000)
Launched May 2005, hit capacity in 4 months
Also introduced in Sri Lanka and Nepal
Passenger variant, Magic, launched in June 2007
New 225,000 / year capacity plant set up in Uttarakhand
Tata Motors - Ace
Expanding Domestic Addressable Market
Price Rs 100,000 - ~ $ 2,400 (exclusive of VAT + freight)
• World’s least cost car
Family car – seats four comfortably
Fully compliant with safety & emission norms
Engine: 623 cc, 33 PS
Launch: Later in the year
250,000 / year capacity plant coming up in West Bengal
Address the Larger Part of the Pyramid Tata Motors - Nano
Expanding Domestic Addressable Market
Address the Larger Part of the Pyramid
Expanding Domestic Addressable Market
Indian Hotels - Ginger
Rs 999 – 2,499 (Single room) ($ 25 - 60) “Smart Basics”
100+ rooms per hotel
Open in New Delhi, Bengaluru, Pune, Bhubaneswar, Nashik, Mysore, Thiruvananthapuram, Durgapur, Haridwar, Agartala, Vadodara, Puducherry and Pantnagar
Aggressive roll out: 30 hotels in 2 years; 100+ by 2011
“We have two guiding arrows. One points overseas, where we want to expand markets for our existing products. The other points right here, to India, where we want to explore the large mass market that is emerging—not by following but by breaking new ground in product development and seeing how we can do something that hasn’t been done before”
Ratan TataGroup Chairman
