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House of Tata – Acquiring a Global Footprint

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House of Tata – Acquiring a Global Footprint
Group 1
Bhuvan Bajaj Karan Bahl Raki Jain Trivikram Apte Vinayak Pareek Yan Yan Huang

House of Tata – Acquiring a Global Footprint Executive Summary
What and how did TATA emerge as a Multi Brand? Founded in 1868 by Jamshetji N. Tata as a trading firm Textiles in 1874 India’s first luxury hotel in 1903 First private steel company in 1907 First airline in 1932 First software firm in 1968 Liberalization of the Indian Economy and the changes that it brought to TATA’s way of doing business Ratan Tata becomes chairperson in 1991 • • First objective: Streamline group portfolio Some groups diversified and others organized around seven sectors


Major global expansions In 2000, Tata groups started internationalized operations and 65% of collective revenues were expected to come from outside India 1. Tata Consultancy ServicesWhy TCS, the group’s tech and consulting giant underwent its evolution at a much faster rate than the other Tata companies, in a sense became more global. And they perceived more growth in the foreign market and had to expand globally, TCS accounted for $27.8 billion of Tata’s $59.5 billion market capitalization as of August 2007 2. TitanExpanded globally but suffered high losses thus established itself as an NRI brand, especially in the Middle East.

3. Indian Hotels Company – TAJ Hotel Group Began globalization in 1982, Tata purchased 51 Buckingham gate and St. James court hotel which was later branded as Crowne Plaza under a franchise agreement in 1999. But suffered losses and had to sell a share to external player.

House of Tata – Acquiring a Global Footprint
Thus they shifted to the strategy of management contracts with small equity positions rather than outright ownership


4. Tata Tea and TETLEY Tata Tea had been a commodity tea producer, acquired Tetley at a staggering £271…...

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