House of Tata
House of Tata : Acquiring a Global Footprint. In order for Tata Group to implement acquisition and/or restructuring strategies, it would be helpful to know existing scope of the group operating company structure, especially, profitability and financing activities. The following table shows the detail information of Tata group company structure. Additionally, the financing and profitability of each operating company under Tata group in year 2007 (FY07).
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• The following table shows the Liquidity, Profitability, Efficiency and Financial Ratio of each Tata operating group companies in year 2007.
|Group company |Liquidity Ratio |Profitability Ratio |Efficiency Ratio |Financial Ratio |
| |Current Ratio |Gross margin |EBIT margin |Net income |ROE |ROA |Debt to Equity |
| | | | |margin | | | |
|Indian hotel |0.8970 |31.1% |24.9% |14.2% |18.4% |8.5% |98% |
|Tata Steel |2.4954 |49.0% |25.3% |16.6% |33.5% |11.4% |170.5% |
|Tata Motors |0.8527 |28.2% |10.7% |6.7% |31.3% |10.1% |94.6% |
• Tata group SWOT analysis
|Strengths |Weaknesses |
|Tata group is the one of India’s largest business houses. |Over Diversification in unrelated product lines from core business such as |
|Nano, a passenger car of Tata was the world’s cheapest car and half the |Tata Tea, Titan which unrelated from Tata Motors.
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• The following table shows the Liquidity, Profitability, Efficiency and Financial Ratio of each Tata operating group companies in year 2007.
|Group company |Liquidity Ratio |Profitability Ratio |Efficiency Ratio |Financial Ratio |
| |Current Ratio |Gross margin |EBIT margin |Net income |ROE |ROA |Debt to Equity |
| | | | |margin | | | |
|Indian hotel |0.8970 |31.1% |24.9% |14.2% |18.4% |8.5% |98% |
|Tata Steel |2.4954 |49.0% |25.3% |16.6% |33.5% |11.4% |170.5% |
|Tata Motors |0.8527 |28.2% |10.7% |6.7% |31.3% |10.1% |94.6% |
• Tata group SWOT analysis
|Strengths |Weaknesses |
|Tata group is the one of India’s largest business houses. |Over Diversification in unrelated product lines from core business such as |
|Nano, a passenger car of Tata was the world’s cheapest car and half the |Tata Tea, Titan which unrelated from Tata Motors.