1. The house of Tata: Acquiring a Global Footprint
--by Zach, Charlie & Sam

2. Tata Group: Background
• Founded by J. N. Tata in 1868
• At the forefront of developing industries in India
• Opening India’s first luxury hotel in 1903
• first private steel in 1907
• first airline in 1932
• first software firm in 1968
• One of India’s largest business houses
• Has over 100 global operating companies
• Operates in various different sectors
›Communications and information technology,
engineering, materials, services, energy, consumer
products and chemicals

3. The Main Sectors
Tata
Motors
Tata Steel
Tata
Consultancy
Services
Tata
Power
Telecommu
nications
provider
VSNL
Tata
Chemicals

4. 4
Parent of the group’s hospitality businesses
Strategy for globalization: management contracts with small
equity positions in properties instead of outright ownership
Although the company’s stated this preference, IHC later
acquired several properties outright:
Sydney’s W Hotel in 2005, the Ritz-Carlton, Boston, in 2006,
and Campton Place in San Francisco in 2007.
Indian Hotels Company
(IHC)

5. Tata Tea
Tata Tea is a commodity tea producer in India.
Tata Tea saw M&A (Mergers and Acquisitions) as the best route both to
seek new growth opportunities and transform itself into a branded tea
company.
So in 2000, Tata Tea acquired Tetley, which is an UK tea company that 3
times the size of Tata Tea, and was not owned by large consumer-goods
firms, at the price of 271 million pounds, which is the largest oversea
acquisition in India at that time.
In 2005-06, Tata Tea acquired Good Earth (US), Jemca (Czech), Eight
O’Clock Coffee (US), 30% stake in Energy Brands Inc (EBI), Glaceau- brand
(Water)

6. Tata Steel
Established in 1907
India’s first and largest (2007)-private-sector steel company
Six “Connectors” to grow in India and overseas
Domestic expansion De-integrated strategy
Mature market M&A Raw materials security
Logistics control Downstream products

7. Tata Motors
Largest operating company of TATA
Largest automaker of India
Market:
country’s passenger-car and India’s commercial truck
Strategy:
reduce the prices of its spare parts
Acquisition:
21% stake in Hispano Carrocera (Spanish), collaborated with Marcopolo
(Brazil), Jont venture with Thonburi Automotive Assembly Plant(
Thailand), cooperate with Fiat (Italy)
Established technical center in UK

8. Tata’s market strategies

9. Business Strategies
BCG Matrix of TATA Group
Starts
Indian Hotels
Tata Steel
Tata Motors
Tata Power
TCS
Cash Cows
Tata Tea
Tata Chemicals
Question Marks
Tata Communications
Voltas
Tata Teleservices
Dogs
Titan
Tata AIG
Trent

10. ACQUISITION’S
Tata company Acquired company Country Stake acquired
January
2011
Tata Communications BT Group's (BT) Mosaic business UK 100 per cent
August
2011
Tata Chemicals EPM Mining Ventures Canada 30.6 per cent
Dec
2010
Tata Chemicals British Salt UK 100 per cent (wholly-
owned)
January
2009
Tata Communications Neotel South Africa 30 per cent
March
2009
Tata Global Beverages Grand Russia 33.2 per cent
June
2008
Tata Communications China Enterprise Communications
Limited (CEC)
China 50 per cent equity interest
August
2008
Voltas Rohini Industrial Electricals India 51 per cent
January
2007
Tata Steel Corus UK 100 per cent

11. • Tata & Fait since 2006
• Tata & Starbucks 50/50 JV
Starbucks Coffee “A Tata Alliance”.
Joint Venture

12. Tata nano, the cheapest car in the world
Tata Motors launched the Ace truck
Business level strategy

13. Tata Motors new series to regain its lost market share.
Tata is looking at doubling SUV annual volumes to over
70,000 units
Tata Motors is set to offer utility vehicles at
every price point right
Product differentiation
strategy

14. The role of the Tata Group centre
in Globalisation

15. Dynamic tensions
- Decentralised natural
- Resistance of management
- Project Prune
15
Tata group centre as an umbrella for
all Tata companies
-Globalisation
Reassurance for target companies
-Topping- up
-Collaboration between Tata employees

16. 16
Assessment
What they did’t do:
- Large economies
-Autonomy of Tata companies
What they did:
-Financial economies
-Work on portfolio management
-Adopt internal competitive market
-Exploit the intranet value

17. Should Tata Motors Purchase Jaguar and Land Rover?

18. What are the Cons?
Pre tax losses of 4.8 BILLION between 2004-2006
Jaguar was the biggest contributor to the loss for trying to compete with BMW and
Mercedes-Benz

19. MORE CONS!?
Unions!
Conditions were TATA could not purchase Jaguar and Range Rover,
without Ford maintaining a minority stake to keep 3 factories open

20. How about some pros?
Both Jaguar and Range Rover are Historic
Brands!
Jaguar 1922! Land Rover 1947!

21. Recommendation?

22. Why Yes?
With Proper marketing and branding, Jaguar and
Land Rover can be one of the top cars again.
New Jaguar Ad

23. Thank You