How Big is Tata Group?

How Massive is Tata Group: Rome was not in-built a day! And nor was Tata. If we check out the corporate as we speak, from the salt we use, the garments we put on, to the automobiles we drive, it’s actually all over the place.

We at occasions neglect that this can be a 150-year-old conglomerate, which may very well be why it has lasted so lengthy. On this article, we try to reply how massive is Tata group? Preserve Studying to search out out.

About Tata Group

A couple of many years in the past most likely the Tata Group can be a reputation nicely acknowledged throughout India, however as we speak after many energy strikes made throughout the globe, Tata is a widely known firm internationally too. 

However like many different giants, Tata discovered its humble beginnings means again in 1868 when its founder Jamsetji Tata, started increasing his household buying and selling enterprise. The corporate was based after Jamsetji Tata based a buying and selling firm with Rs. 21,000 in 1870. 

Jamshedji Tata had 4 objectives that he dreamt of. These included establishing a metal firm, a lodge, a world-class studying establishment, and lastly a hydroelectric plant. 

If not underneath him, these have been based by the generations that adopted him. At the moment the group is current in over 150 nations and there are 29 publicly listed corporations. Put collectively these had a market cap of $314 billion as of December 2021.

Another notable leaders from the Tata Group embody J.R.D Tata and Ratan Tata. It was underneath Ratan Tata that the group obtained a contemporary look to compete with the altering occasions. His achievements included a number of worldwide acquisitions, restructuring enterprise verticals, and growing promoter stake inside Tata corporations. 

Due to a seed planted by Jamsetji Tata, who’s often known as the ‘Father of Indian Trade’ the group has grown to the conglomerate it’s as we speak. 

All of us preserve listening to about its dimension. However how massive is Tata group as we speak? Right here’s a sneak peek at how massive the corporate truly is:

Tata Group and its corporations

Now that you simply’ve gotten to know in regards to the corporations that make up the Tata empire allow us to check out a few of its essential listed corporations.

Automotive Corporations

1. Tata Motors

Tata Motors is among the most essential corporations within the group and can be one in every of India’s largest Vehicle manufacturing corporations. Their portfolio doesn’t restrict itself to solely passenger automobiles which we’re used to noticing on the roads but in addition business automobiles.

Along with this, the corporate has operations within the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia. In whole, the corporate operates throughout +125 nations.

Nevertheless, it could come as a shock to you that Tata doesn’t function utilizing its Tata model alone on this phase. Additionally they personal the world-renowned luxurious automotive firm Jaguar Land Rover which turned part of their group in 2008.

In South Korea, they function in partnership with Tata Daewoo. Tata Daewoo is Korea’s 2nd largest truck producer. They alone export to over 60 nations the world over. 

The corporate has a market capitalization of 1,37,848 crores. Nevertheless, regardless of being based in 1945 the corporate has discovered it arduous to crack the profitability code late. They’ve been affected by losses for 4 years since 2019.

As of FY2021 the income combine included receiving 13.3% from the business automobiles phase. Their Passenger automobile phase solely contributed 6.8% of the revenues. Stunning as it could appear JLR accounts for 78% of the corporate’s revenues.

Whereas Tata Motors Finance Ltd accounts for 1.8% of the corporate’s revenues whereas its different subsidiaries make up 0.1%. Different corporations underneath this group embody Tata Applied sciences, Tata Daewoo, Tata Hispano, and Tata Hitachi Constructions Equipment.

One other firm that comes underneath this group regardless of not being instantly concerned within the manufacture of automobiles is Tata Motors Finance. This part contains NBFCs which help their prospects in financing new automobiles. 

2. Airways

Earlier this yr the TATA group introduced the acquisition of Air India from the federal government of India making them a serious participant within the Airline Trade. This buy contains 3 entities i.e. Air India, Air India Specific, and AI SATS.

Not recognized to many this nonetheless was a repurchase. Air India was initially based by Air India earlier than a forceful takeover by the federal government in 1953.

Nevertheless, earlier than the acquisition, Tata themselves had already begun constructing a portfolio within the Airline Trade. These embody Air Asia the place they maintain an 83.67% stake, Vistara with a 51% stake, and totally owned Taj Air. 

Client and Retail Corporations

1. Tata Chemicals 

Tata Chemical substances is one in every of India’s largest chemical corporations. Headquartered in Mumbai, Tata Chemical substances has an curiosity in chemical compounds, crop safety, and speciality, chemistry merchandise headquartered in Mumbai.

Their operations nonetheless span throughout the globe in India, Europe, North America, and Africa. Along with this, in addition they personal the publicly listed firm Rallis India. 

Their product portfolio contains:

Soda Ash: This is a vital part throughout industries. These embody Detergent. Textiles, Tanneries, dyes. Different purposes embody float glass (which is utilized in development, vehicles, and silicates), container glass( tender drinks, spirits, pharma, tableware, and so on), and sodium silicates. 

Sodium Bicarbonate: The top-users of this product embody pharma, animal and poultry feed, flue fuel remedy, explosion, suppressants, hemodialysis, dyes, textiles, and so on. 

Salt: Not a lot is required to say about this phase as we’re already acquainted with Tata Salt. That is utilized in meals processing. Additionally they produce industrial salt. Different purposes are diary merchandise, water softening, and so on. The patron salt part was later bought to Tata Client Merchandise.

Halogen Merchandise: This phase finds its makes use of in Agri-chemicals, pesticides, pharma intermediaries, hearth retardants, and textile processing. 

The corporate’s earnings nonetheless have been on a decline since 2018 when it made a revenue of 1510 cr. Its earnings lastly rebounded to the touch Rs. 1,179 cr. in 2022. Its revenues nonetheless have repeatedly elevated throughout this era from Rs. 10,269 Cr. in 2018 tp Rs. 12,622 Cr. The group holds a 37.98% stake within the firm.

2. Tata Consumer Products

Based in 1962, Tata Client merchandise is Tata’s FMCG firm headquartered in Mumbai. The corporate was earlier often known as Tata World Drinks Ltd. till it took over the buyer merchandise enterprise of Tata Chemical substances. 

The corporate’s merchandise embody:

Tea: These embody manufacturers like Tetley, Tata Tea, Vitax, good Earth, and tea pigs. 

Espresso: These embody manufacturers like Tata Espresso Grand, Sonnets, Eight O Clock, and Laager. 

Meals: Their merchandise right here embody Salt, Pulses, Besan, Poha, Spices, Breakfast Cereals, and different wholesome snacks. Their manufacturers embody Tata Salt, Tata Sampann, and Tata Soulful.

Drinks: Their merchandise right here embody mineral water, Glucose based mostly hydration drinks, juice, and so on. The manufacturers underneath which they’re bought are Himalayan, Tata Water Plus, Tata Gluco Plus, and Tata Fruski.

Cafe: The corporate has entered right into a partnership with Starbucks in India. Nevertheless, in addition they have their very own model of shops referred to as Tata Cha. 

3. Voltas

Based in 1954, Voltas was shaped as a collaboration between Tata Sons and the Voltkart brothers. Tata’s dwelling equipment and shopper electronics arm. The corporate manufactures and sells merchandise which embody Air Conditioners, Air Coolers, Fridge, Washing machines, microwaves, Air purifiers, Water dispensers Chillers, and so on. 

As of 2021, the corporate held a market share of 25% within the room Airconditioner market. Additionally they tackle engineering initiatives and likewise produce engineering services.

Not recognized to many Voltas holds a 60% market share in spinning equipment. The corporate has a presence in India, Singapore, Mozambique, and GCC nations just like the UAE, Qatar, Oman, and so on.

4. Titan 

Titan was based as the results of a three way partnership between Tata group and Tamilnadu Industrial Improvement Company (TIDCO) in 1984. The corporate began off by manufacturing digital watches and after a decade moved into jewelry. 

At the moment Titan produces watches, jewelry, eyewear, perfumes, sarees, and so on. 

Watch: Of their watch phase the corporate holds a 60% market share within the organized home watch market. Their luxurious manufacturers right here embody Favre Leuba, and mid-market model contains Titan, Zoop Fastrack, and Sonata.

Jewelry: Their Jewelry part has primarily 4 manufacturers. The posh part is made up of Zoya. That is adopted by Tanishq their most well-known jewelry model. Their on-line part contains Caratlane. Whereas currently, their Mia model gives workwear jewelry. 

Eyewear: Titans eyewear has bands corresponding to Titan eye plus, Glares, and Fastrack. These typically cater to mid-market and mass-market prospects.

Fragrance: Their flagship model within the fragrance class is Skinn and Fastrack which caters to the mid-market and mass-market classes. 

Sarees: The corporate has additionally ventured into the clothes enterprise after it launched its saree model referred to as Taneira. The model has 14 Taneira shops unfold throughout 6 cities and is build up its presence throughout India. 

5. Trent

Trent was based in 1998. This occurred when Tata determined to dump their 50% stake in Lakme to HUL for Rs. 200 Cr. Tata used these funds to create Trent. This was accomplished as a result of Tata noticed better development potential in retail. This was as a result of it will now be more durable for an Indian beauty model to compete with international rivals.

At the moment Trent operates greater than 400 shops with totally different product choices throughout the nation. Now let’s check out its totally different verticals.

Westside: This retail part of Trent gives branded vogue put on and footwear. Westside caters to all age teams and likewise gives dwelling furnishing and decor. As of FY21 the corporate had 174 shops throughout 90 cities.

Zudio: That is one other of Trent’s vogue manufacturers that supply vogue put on and footwear throughout all age teams. However in contrast to Westside, Zudio focuses on affordability too. As of FY21, Zudio had 133 shops throughout 57 cities.

Star: You might also know this Trent retail model in your metropolis as Star Market. It’s recognized to promote on a regular basis grocery merchandise which embody on a regular basis staples and drinks. Additionally they promote well being and on a regular basis magnificence merchandise. As of FY21, that they had 60 shops throughout 7 cities.

Landmark: Trent purchased Landmark in 2005, from a Chennai-based retailer. Landmark gives toys, books, stationery, and sports activities merch. As of FY21, that they had 6 shops throughout 4 cities.

Booker/Worth Mandi: This part of Trent companies money and carry shops that service Kirana shops, merchants, wholesalers, accommodations, eating places, and small companies. As of FY21, that they had 9 shops throughout 3 cities.

Others: Along with this Trent additionally operates Zara ( 21 shops throughout 11 cities), Utsa( 4 shops throughout 4 cities), and Massimo Dutti ( 3 shops throughout 2 cities).

Over the previous few years, Trent has skilled good income development from Rs. 2,157 Cr. in 2018 to Rs. 4,498 Cr in 2022. The corporate’s internet revenue, nonetheless, has not adopted this pattern struggling losses in 2021 and posting solely earnings of Rs. 29 Cr. in 2022 which is decrease than earnings of 2018, 2019, and 2020 by Rs. 80 Cr. annually. The Tata group holds a 37.01% stake in Trent.

6. Tata Steel

Based means again in 1907, Tata Metal was based by Jamsetji Tata itself. The corporate was then often known as Tata Iron and metal company (TISCO).

Happily for the corporate, the demand for metal in the course of the world wars labored of their favor. At the moment they’re one of many largest operating metal producers within the nation. 

At the moment Tata Metal produces as a lot as 34 million tonnes of metal each year. They function in over 26 nations. Their metal merchandise embody sizzling rolled metal, Chilly-rolled metal, Coated coiled metal, Wire rods, Rebar, and so on. These merchandise are equipped to a variety of sectors like automotive, agricultural, development, and so on.

Tata Steels revenues have repeatedly elevated from Rs. 1,32,155 Cr in 2018 to Rs. 2,43,959 Cr in 2022. Regardless of struggling a fall in Rs. 17530 Cr in 2018 in the course of the subsequent 3 years the corporate posted spectacular earnings of Rs. 41,100 Cr in 2022. The Tata group holds a 33.92% stake within the firm.

7. TCS

TCS or Tata Consultancy Providers India’s 2nd largest firm. That is Tata’s arm within the IT trade. The corporate focuses on IT companies, consulting, and enterprise options. Based in 1968, as we speak the corporate has a market capitalization of over $100 billion which it crossed in 2018.

The important thing enterprise verticals for Infosys are monetary companies, retail, communication, power & utilities, and the life science and healthcare division.

In terms of its financials TCS revenues have repeatedly elevated from Rs. 1,23,104 Cr in 2018 to Rs. 1,91,754 Cr in 2022. Their earnings too have adopted an analogous pattern by growing from Rs. 25,880 Cr. in 2018 to Rs. 38,449 Cr. in 2022. Tata holds a 72.3% stake within the firm.

8. Tata Elxsi

Based in 1989, Tata Elxsi might be probably the most futuristic corporations within the Tata group. The corporate was based to advertise purposes of electronics, embedded programs, and software program.

At the moment Tata Elxsi is understood worldwide for its premium engineering companies in industries like automotive, media, broadcast, communications, and healthcare. They’re concerned in numerous rising applied sciences like IoT (Web of Issues), cloud, sensible mobility, and AI.

If we check out the income contribution of FY21 a good portion of their income i.e. 36.8% is acquired from the Americas, 36.3% from Europe, and 13.3% from India.

A take a look at their financials reveals us spectacular income development from Rs. 1,389 Cr in 2018 to Rs. 2470 Cr in 2022. Its earnings too have adopted an analogous pattern by growing from Rs. 240 Cr. in 2018 to Rs. 549 Cr. in 2022. The Tata Group holds a 44.08% stake within the firm.

Record of All Listed Tata Group Corporations 

In Closing 

On this article, we took a take a look at how massive is Tata group. Nevertheless, it could shock you that there are nonetheless many extra corporations that haven’t been talked about right here that are additionally a part of the Tata group. This provides them a multi-million greenback valuation.

However its dimension it makes you marvel if an organization like Tata would nonetheless be a market chief or would succumb like many main giants of the previous. Tell us what you suppose within the feedback beneath. Pleased Studying!

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Aron, Bachelors in Commerce from Mangalore College, entered the world of Fairness analysis to discover his pursuits in monetary markets. Outdoors of labor, you possibly can catch him binging on a present, supporting RCB, and dreaming of visiting Kasol quickly. He additionally believes that consuming child’s ice-cream is one of the simplest ways to show them taxes.

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