tata
The Internationalization of Indian Companies:
The Case of Tata
Andrea Goldstein
TCFGS Conference
“The Asian Economy and the World Economy”
Tokyo, 13-14 November 2007
Why Tata?
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Turnover > US$28 bn, equivalent to over 2.5% of India’s GDP
Traditionally the biggest market capitalization (now Reliance)
India’s largest employer in the private sector (222,000+, 85 companies) many firsts/largests for India:
– first private sector steel mill (TISCO 1907)
– first private sector power utility
– first luxury hotel (Taj)
– first airline (now Air-India)
– India’s largest software company (TCS)
– India’s largest watch & jewellery firm (Titan)
– India’s largest cross-border M&As (Tetley, Corus)
Some unique characteristics
– Family
– Philanthropy
– Outward orientation
Source: Tata
Group holding structure
Jamshedpur Utilities and Services
Company Limited (JUSCO), a wholly owned subsidiary of Tata
Steel, is dedicated for comprehensive and sustainable development and management of
Civic Infrastructure and Allied services. It is committed towards accomplishment of the national vision 2020 of making infrastructure available for growth and development.
Growth (over the last 15 years)
26%
Revenue CAGR 15%
Profit
CAGR 20%
22%
15%
CAGR
$5 bn
$28 bn
13%
$10 bn
* - Estimate
Source: Tata
Growth (Company)
CAGR
25%
Revenue $ billion
12%
72%
254%
58%
38%
(P): Projections
Source: Tata
Tata Steel
• Established in 1907, Asia’s first and India’s largest integrated private sector steel company.
• steel making and finishing facilities at Jamshedpur in eastern India are one of the world’s most modern
• captive iron ore and coal mines
• tops World Steel Dynamics ranking chart
• capacity to raise to 15 million tonnes per annum by
2010 through organic growth and acquisitions
– NatSteel
– Corus
Internationalisation Strategy
• Driven by operating companies
•
The Case of Tata
Andrea Goldstein
TCFGS Conference
“The Asian Economy and the World Economy”
Tokyo, 13-14 November 2007
Why Tata?
•
•
•
•
•
Turnover > US$28 bn, equivalent to over 2.5% of India’s GDP
Traditionally the biggest market capitalization (now Reliance)
India’s largest employer in the private sector (222,000+, 85 companies) many firsts/largests for India:
– first private sector steel mill (TISCO 1907)
– first private sector power utility
– first luxury hotel (Taj)
– first airline (now Air-India)
– India’s largest software company (TCS)
– India’s largest watch & jewellery firm (Titan)
– India’s largest cross-border M&As (Tetley, Corus)
Some unique characteristics
– Family
– Philanthropy
– Outward orientation
Source: Tata
Group holding structure
Jamshedpur Utilities and Services
Company Limited (JUSCO), a wholly owned subsidiary of Tata
Steel, is dedicated for comprehensive and sustainable development and management of
Civic Infrastructure and Allied services. It is committed towards accomplishment of the national vision 2020 of making infrastructure available for growth and development.
Growth (over the last 15 years)
26%
Revenue CAGR 15%
Profit
CAGR 20%
22%
15%
CAGR
$5 bn
$28 bn
13%
$10 bn
* - Estimate
Source: Tata
Growth (Company)
CAGR
25%
Revenue $ billion
12%
72%
254%
58%
38%
(P): Projections
Source: Tata
Tata Steel
• Established in 1907, Asia’s first and India’s largest integrated private sector steel company.
• steel making and finishing facilities at Jamshedpur in eastern India are one of the world’s most modern
• captive iron ore and coal mines
• tops World Steel Dynamics ranking chart
• capacity to raise to 15 million tonnes per annum by
2010 through organic growth and acquisitions
– NatSteel
– Corus
Internationalisation Strategy
• Driven by operating companies
•