A Marketing Presentation On TATA

Submitted to : Prof. S. K. Pandey

Submitted by : Bijeet Kumar ( 81071 )

Agenda

• Historical Overview• Company Profile

• Company Statistics

• Deep rooted history• Introduction to Tata Steel

• Tata Steel Mission & Vision

• Global Steel Industry• Company growth phases• Business strategies• Porters five force• Future outlook• Mergers & Acquisition• Conclusion

Agenda

Historical Overview

• Jamsetji Nusserwanji Tata started a private trading firm, laying the foundationof the Tata Group in 1868.

• The Central India Spinning, Weaving and Manufacturing Company is set up,marking the Group's entry into textiles in 1874.

• Ratan Tata joined the TATA group in December 1962.

• In 1981, Ratan Tata named as chairman of TATA Industries.

Company profile• TATA group of industries is India’s largest business group in India.

• Diverse businesses in 7 sectors.

• Group revenue: FY 2008: US$ 62.5 billion/ Rs 251,543 cr.

• Group profit: FY 2008: US$ 5.4 billion/ Rs 21,578 cr.

• International income: 61% of group revenue.

Company profile

• Operations: over 80 countries.

• Products & Services exported to 85 countries.

• It is one of the Largest employer in private sector over 300,000 employees.

Company profile• TATA group of companies is diverged in 7 business sectors.

– Materials– Engineering– Chemicals– Information technology & communications– Energy– Services– Consumer products

Company Statistics

Core Values

• Integrity

• Understanding

• Excellence

• Unity

• Responsibility

Mission & Vision

• Mission: to be a competitive value provider in international business for Group companies and all our partners.

• Vision: Become a globally networked enterprise seizing opportunities worldwide to generate USD 25 million annual profits by 2008.

Deep Rooted History

Foundation1868-1931

Consolidation1932-1989

Expansion1990onwards

1874

1902

1907

1911

1917

1912

1910

Central India Spinning, Weaving and Manufacturing Company

TAJ MAHAL PALACE AND TOWERS

TISCO, TATA LIMITED IN LONDON

TATA ELECTRIC COMPANIES

INDIAN INSTITUE OF SCIENCE

EIGHT HOUR WORKING DAYS

TATA OIL MILLS

1932

1939

1945

1952

1954

1962

1968

tata airlines

Tata chemicals

Tata engineering (telco)

Lakme was launched. Later sold to hul

voltasTata finlay and tata exports

tcs

Consolidation

• The Tata group ventured into new areas and built on the foundations, iN spite of the restraints imposed by a controlled economy.

Expansion

• The liberalization of the Indian economy unleashed a period of remarkable growth for the Tata group, in India and worldwide.

• Tata ventured in to mergers and acquisitions in the late 1990s.

Introduction to TATA STEEL

Established – 1907

Fortune 500 Company

Worlds 6th largest steelmaker: 28 MTPA(million ton per annum)

Presence in 50 markets; manufacturing in 24 countries.

Revenue is $32.83 bn. (domestic – 37%, International – 63%).

Expansion Plan

– Brownfield: Jamshedpur works

– Greenfield: India and Overseas

Revenue of 2007-08

TATA Steel

Source: Tata Annual Report (2008)

Mission & Vision ( Tata Steel)

• Vision - “We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship”.

• Mission – Create differential value for the customers with the help of continuous improvement in their business process and technology.

Global Steel Industry

Source: Krishnamurthy 2005

Company Growth Phases

First Phase :

• The First phase is the year up to 1991.

• Tata Steel was the first integrated steel company in Asia.

• There were price control – an administered control of the economy.

• Tata Steel was not greatly innovative, not greatly business minded.

• Technology-wise, Tata Steel was a dead company by 1991.

Company Growth Phases

• The ten years from 1991 to 2001 was about laying business foundations.

• Tata Steel threw out the old furnaces and scrapped capacity.

• Tata Steel spent Rs. 10,000cr doing all the restructuring.

• Tata steel re-engineered its business processes.

• Tata Steel became one of the lowest-cost producers and one of the most modern companies in the world ( 2001).

Company Growth Phases Cont…

USD $1= Rs 50.Source: Iron & Steel Statistics Bureau

Company Growth Phases

Third Phase :

• After 2001, Tata Steel Started thinking of growth and globalization.

• In last 3 to 4 years, Tata Steel has been trying to do Mergers & Acquisitions globally.

• Tata Steel is now the 6th largest Steel Producer in the world.

Worlds 6thlargest steelproducer

Major Mergers & Acquisitions

Source: Goldman, M 2007

Brand Profile

Business strategy

• Green field project:

– Primary steel will be produced in India, where there are large deposits of iron ore.

– Other Asian market like Thailand, Vietnam, Shanghai etc.

• Brown field project:

– Its target is nearly on the way of completion e.g. Jamshedpur.

Porters 5 force

Porter Five Forces Model

• Threat of New entrants – High - steel industry is a capital intensive business.

• Intensity of rivalry among existing competitors = High = The major domestic rivals are SAIL, JSW, ISPAT & ESSAAR steel.

• The bargaining power of suppliers – High – Since the domestic raw material sources are insufficient to supply the Indian steel industry, a considerable amount of raw materials has to be improved.

Continued

• The threat of substitute products – Low – Plastic and composites pose a threat to Indian steel in one of its biggest markets- automotive manufacture.

• The bargaining power of buyers – Mixed - some of the Major steel consumption sectors like automobiles, oil and gas, shipping, consumer durables and power generations enjoy high bargaining power and get favourable deals.

Future Outlook

• The Tata steel group will pursue strategic growth through capacity expansions and securing access to raw materials.

• Tata group is also looking at further integration upstream in raw materials with an ambition to achieve 100% self sufficiency in India and around 50% self-sufficiency in Europe over time.

M&A• Tata Tea -acquires the Tetley Group, UK. This is the first major acquisition of an international brand by an Indian business group in 2000.

• IHCL- The Indian Hotel Company And its subsidiaries are collectively known as Taj Hotels Resorts and Palaces, which is recognized as one of Asia's largest and finest hotel companies. Incorporated by the founder of the Tata group Jamsetji Tata.

• Tata AIG - Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company , formed by the Tata Group and American International Group, Inc.

Continued

• Tata Coffee – In 2003 TATA Coffee acquires US based Eight o’ Clock Coffee co.

• Telco Construction - Tata Group company, signed a deal in March 2008 to acquire a 79 per cent controlling stake in Spain-based Serviplem SA at a cost of Euros 45 million.

• Tata Motors – The Tata Motors has signed the Jaguar and Land Rover (JLR) deal with Ford last evening, which is estimated to be valued between 2.5 billion dollars.

Continued

• TCS – Acquires Sydney-based Financial Network Services (FNS).

• Tata communications - The Tata Group acquires a controlling stake in VSNL.

Company Logos

TATA Nano

Conclusion

• After conducting an in depth study of one of India’s most admired companies, I find that the company has many strengths and opportunities which it may capitalize on to truly become a world leader in steel making along with setting high standards for corporate citizenship and social responsibility towards a long term sustainable growth.

References :• Corus Group, 2008, Corus is a part of Tata group, viewed on 18 October 2009, <http://www.corusgroup.com>

• Goldman, M 2007, India’s Tata Group: Shifting Gears; viewed on 13 October 2009, <http://www.gibsreview.co.za/>.

• Gopalkrishnan, R 2003, Experiences at Tata Group, viewed on 15 October 2009, <http://www.tata.com>.

• Johnson G., Scholes K., and Whittington R 2005, Exploring Corporate Strategy, Prentice Hall; Harlow; Ed. 7th; ISBN: 0273687395.

• Krishnan, R 2007, Land Rover, Jaguar bid fits into Tata strategy; The Hindustan Times, viewed on 08 October 2009, <http://www.hindustantimes.com/>.

• Krishnamoorthy, V 2005, The McKinsey Quarterly: An interview with Ratan Tata, viewed on 16 October 2009, <http://venkatkrish.blogspot.com/>.

• Sriwastawa, S 2006, More Steel for emerging India, viewed on 16 October 2009, <http://www.atimes.com/>.

• Tata Leadership with Trust, 2009, Heritage, viewed on 12 October 2009,<http://www.tata.com>.

• Tata Steel company, 2009, Annual Report 2008, Viewed on 14 October 2009, <http://wwwtatasteel.com>.

• Tata Chemical, 2009, News Report 2008, viewed on 17 October 2009,<http://www.tatachemical.com>

• Tata Motors, 2009, Tata nano media report 2009, viewed on 16 October 2009 <http://www.tatamotors.com>.

• Tata Indicom, 2009, Press Realiese, viewed on 18 October 2009, <http://www.tataindicom.com>.

References :

Bijeet Kumar ( 81071 )