SUPRAJA B
RAJAPPAH
PRASANNA
MUNAVAR
SHRIRAM ARVIND
Tata Group is an Indian multinational conglomerate holding
company headquartered in Mumbai, Maharashtra, India.
Founded in 1868 by Jamsetji Tata, the company gained international
recognition after purchasing several global companies.
One of India's largest conglomerates, Tata Group is owned by Tata Sons.
Each Tata company operates independently under the guidance and
supervision of its own board of directors and shareholders.
Significant Tata companies and subsidiaries include Tata Steel, Tata
Motors, Jaguar Land Rover, Tata Consultancy Services, Tata Advanced
Systems Limited, Tata Power, Tata Chemicals, Tata Global Beverages, Tata
Coffee, Tata Teleservices, Titan, Voltas, Tata Cliq, Tata Communications,
and The Indian Hotels Company Limited (Taj Hotels), TATA Autocomp
Systems Ltd.
The Indian Hotels Company Limited (IHCL) i- a subsidiary of the Tata
Group Manages a portfolio of hotels, resorts, jungle safaris, palaces, spas
and in-flight catering services.
It has more than 160 hotels in 80 locations and 17 countries, with over
20,000 rooms and 25,000 employees
Subsidiaries under IHCL:
Taj Group of hotels
Vivanta group of hotels
Ginger
The Gateway
Globalization strategy:
Licensing agreement with UK based Bass Hotels – for the name Crowne
Plaza for its hotel in London.
Focus on high end properties in attractive markets
Changed from ownership to contract with small equity positions
Acquisition of properties in attractive markets. (Ex; 100- room hotel in
Sydney of Starwood )
In India, IHL - premier hospitality provider. Leveraged in international
markets as well.
World's second-largest manufacturer and distributor of tea and a
major producer of coffee.
Major brands :Tata Tea(India), Tetley(US & Canada), Good Earth
Teas and JEMČA (Czech)
Starbucks Coffee—A Tata Alliance- 50:50 joint venture
with Starbucks Coffee Company (sourcing from Tata Tea). Starbucks
Reserve Tata Nullore Estates, Indian roasted coffee in Seattle. Starbucks
began selling Himalayan bottled mineral water.
Acquisition of the Tetley Group in 2000. It was a $432 million leveraged
buyout. Tata Tea had the largest takeover of a foreign company by
an Indian one to date.
Himalaya water bottle - on board all flights of Vistara, a joint venture
between the Tata Group and Singapore Airlines.
Tata Steel Limited, Tata Iron and Steel Company Limited (TISCO),
top steel producing companies globally
Second largest steel company in India
In 1990, established its subsidiary, Tata Inc., in New York.
Tata Steel in 2015 – acquisition of three strip product services centers in
Sweden, Finland and Norway from SSAB (Nordic region expansion)
Tata Steel acquired the steel making operations of the Singapore-based
NatSteel ,Thailand-based steelmaker Millennium Steel ,Anglo-Dutch
company, Corus.
After Corus, it became world’s 6th largest from 56th.
Tata Sons hired Alan Rosling as executive director and member of
GEO.
The Group facilitated globalization of group companies in US, UK,
Bangladesh, China to establish government relationships and brand
promotion.
Financial support was offered for all companies which were
looking at acquisitions.
Established offices in key markets
Internal integration committees were established to combine
synergies and make acquisitions quicker.
Project Prune
Cut costs amongst all companies including SAP, rental cars, cafeteria
products, routers etc.
Best deals across all Tata companies
Tata Group launched a global intranet in 2007 to help all
companies share information and co-ordinate activities.
Tata Group Centre primarily helps increase the visibility of group
and quickly became a key asset in establishing, growing and
globalizing the brand and its subsidiaries.
Tata Motors acquired Jaguar and Land Rover from Ford in 2008 for $2.3 bn,
merging the two marques into a single company in 2013.
WHY THE DEAL WAS SUCCESSFUL
Decentralized decision making given to Jaguar Land Rover’s managers. This
allowed TATA’s to Keep the existing working practices in place and maintain the
goodwill of existing managers
Easy entry into US market
Portfolio enhancement
Advance technology
Well know brand acquisition
Enhanced market distribution channels
RIGHT TIME FUNDING
The global slowdown put the company under tremendous pressure.
CASH MANAGEMENT
“Cash remained “priority No. 1” as JLR was hemorrhaging money and the
company sought outside help”. The key aim was cost control on a continuous
basis.”
MAJOR CONS OF DEAL:
Stringent acquiring conditions
Premium band segment
High cost of maintenance
Poor operating profitability
THANK YOU
