Tata Group

Introduction

One of India’s Largest Conglomerates

India’s Best Known and Most Respected Business House

Main Companies in 7 Business Sectors

Largest Employer in the Private Sector

Aggregate revenues of US$22b (2005-’06)

Revenues Equivalent to 2.8% of India’s GDP

International Income 30% of Group Revenue

Total market capitalisation of US $62.2 bn (as on 12th July, 2007)

1868: Jamsetji Nusserwanji Tata sets up a private trading firm, laying the foundation of the Group

1874: The Central India Spinning, Weaving and Manufacturing Company is set up, marking the Group’s entry into textiles

1874 – 1904: JN Tata commits the Group’s entry into steel, power and hotels.

J N Tata 1839-1904

A nationalist, he believed for India to be truly independent, it needed

a strong industrial base

History

History - Group Firsts

1902 Taj Mahal Palace Hotel - Luxury Hotels

1907 Tata Steel - Asia’s first

1910 Tata Power - Hydro Power

1932 Tata Airlines - Civil Aviation

1968 Tata Consultancy Services - Software

1998 Tata Motors - India’s first indigenous car

Industries

1912 Eight hour working day

1915 Free medical aid

1917 Schooling facilities for children

1920 Leave with pay, workers Provident Fund Scheme

Industrial Practices

Group Corporate Centre Provides Strategic Direction

Finance/HR/M&As/Brand/Legal and Assurance/TQM

Group Structure

Shareholding in Main Operating Companies

66% Public Trusts

3% Family

13% Tata Companies

18% External Shareholder

29% Tata Sons

19% Jardine Matheson Group

52% Other Tata Companies

Promotes Group Entry into New Businesses

Activity PROMOTER COMPANIES Ownership

Tata Sons

Tata Industries

Beyond Business

Annual spend on social welfare (along with Trusts) ~$100 m:

Expenditure budgeted before preparation of P&L account

Commitment incorporated in company Articles of Association

Active volunteering programme Over 10,000 volunteers

Company Examples:

Tata Steel: HIV / AIDS Programme -GBC winner

Tata Consultancy:Adult Literacy Programme

66% Equity of Tata Sons in Public TrustsSir Dorabji Tata Trust Sir Ratan Tata Trust

ACTIVITIES

Endowments for Creation of National Institutions:

(1911) Indian Institute of Science

(1936) Tata Institute of Social Sciences

(1941) Tata Memorial Hospital

(1945) Tata Institute of Fundamental Research

(1966) National Centre for the Performing Arts

(2006) Tata Medical Centre, Kolkata

Development assistance in water harvesting, medical

research, microfinance, bio-diversity

Foreign scholarships - science & engineering

COMPANIES

Tata Council for Community InitiativesFacilitating Role for companies’ CSR activities

Triple Bottom-line Global Reporting Initiative - 16 Cos UN Global Compact 35 CosTata Index for Sustainable Development 14 Cos

GROUP

Steel

HotelsInsurance & Asset ManagementInternational Trade

BeveragesWatchesRetailing

AutomobilesAuto ComponentsAir-Conditioning

Basic ChemicalsFertiliserPesticides

Power

Services (10%)

Materials (21%) Energy(8%)

Chemicals (5%)

Engineering(31%)Consumer

Products (6%)

SoftwareTelecom ServicesAutomation & Control Systems

Information System and Communications (19%)

Group Today - 7 Business Sectors

29 Listed Companies ; 2,46,000 employees

NOTE: The numbers within the brackets indicate % contribution to total group revenues (2005 –’06)

Financial results

Note: converted at US$1 = INR 43.5

14 year CAGR of 14.8% 14 year CAGR of 19.6%

Aggregate profits US$ b

0.0

0.5

1.0

1.5

2.0

2.5

91-9

2

94-9

5

97-9

8

00-0

1

03-0

4

Aggregate sales US$ b

0.0

5.0

10.0

15.0

20.0

25.0

91-9

2

94-9

5

97-9

8

00-0

1

03-0

4

IT and CommunicationsIT Services (Entry 1968)

- Main Company: Tata Consultancy ServicesPioneer & Leader in Indian IT Services and BPO• Asia’s Largest, Global No. 12

Global Footprint• Clients in 55 Countries: 7 of Fortune Top 10• 157 Offices in 34 Countries across 6 Continents• 71,190 Consultants, 44 Nationalities

Total Solutions Provider

● IT Services ● BPO ● Infrastructure Services ●Consulting ● Products ● Engg. & Industrial Services

2005-06 Revenue: ~$ 3.03 bn; Profits $ 0.67 bn

Vision: Global top 10 by 2010 with $ 10 bnRevenues

Other Key Companies:

Tata Interactive Systems – Custom E-Learning

Tata Technologies – Automotive Engg. & Design Services

Tata Elxsi – Graphics Design

IT and CommunicationsTelecom Services (Entry 1995)

Tata Indicom: One Brand

Services: Fixed/Mobile, Voice/Data/VASSegments – Carriers, Corporate, SME andIndividualNetworks – Domestic and International

Companies:

1. Tata Teleservices

Pan-India 3G Ready CDMA NetworkCustomer Base > 11 Mn; 140% Increase in 2005

• Highest Among All Service Providers

No.1 Private Fixed Service ProviderIndia’s Largest Branded Telecom Retail Chain

IT and CommunicationsTelecom Services

2. Videsh Sanchar Nigam Limited (VSNL)India -- International and Domestic Long Distance Services

•Corporate Data and Managed Services•Internet and Broadband

Global – Emerging Challenger

•Wholesale International Voice Carrier: # 1•Submarine Cable/Bandwidth: Top 3•Enterprise Managed Services•Entry into South Africa: Second Network Operator

2005-06: Revenue $ 1.1 bn; Profits $ 15.8 mn

Objective: Top 3 Service Provider in Chosen Markets

EngineeringAutomotive (Entry 1945)

Tata MotorsIndia’s Largest Automobile Company by RevenueLeadership Position in Commercial Vehicles• No. 1 in India; Global No.2 in Heavy Buses and No.5 in

M&HCV Trucks

Domestic No. 2 in Passenger Car Vehicles• Made Country’s First indigenously Developed Car, Indica

• Developing $ 2000 Small Car

Strong Host of Subsidiaries/Associates• Including Tata Daweoo, Hispano, Telcon, Tata

Technologies

2005-06: Revenue $ 5.4 bn; Profits $ 387 mnObjective 2010: Double Sales to > 1 Million Units; Select Global Thrust

EngineeringAutomotive (Entry 1995)

Tata AutoComp Systems (TACO)

Among Top 5 Indian Auto Component Products and Service ProviderBusinesses:

• Manufacturing: 24 Facilities

• Design and Engineering Services

• Supply Chain Management

Own Businesses in Plastics and Interiors, and Stampings16 Global Partners for Manufacturing and Engineering2005-06: Revenue $ 300.7 mn; Profits $ 9.7 mnObjective: Revenues > S 1 bn by 2008

MaterialsSteel (Entry 1907)

Main Company: Tata SteelAsia’s First and India’s Largest Private Sector Steel company• Over 9 MT Production in FY 2006 in 7 Locations

Among Lowest Cost Producers of Steel in the World• Among Select EVA+ Steel Companies in the

World

Green Field Expansions Plans• In India: Jharkhand 12 MTPA Plant / Orissa

6 MT / Chattisgarh 5 MT

• Overseas: Iran: 3 +2 MT/Bangladesh: 2.4 MT

2005-06 Revenue: $ 4.64 bn; Profits $ 842 m

Objective : Global Presence by 2015 with >30 MT Production

Other Company

Tata Advanced Materials --Manufactures composites

ServicesHospitality (Entry 1903)

Indian Hotels (Taj Hotels Resorts and Palaces)One of Asia’s Largest Hospitality Group

75 Hotels; 15 Countries; 5 Continents

• Private Islands, Authentic Indian Palaces

• Includes: The Pierre, New York; Blue, Sydney

Expansion:

• Ginger Hotels• Serviced Apartments

2005-06 Revenue: $ 424.2 m; Profits $ 50.7m

Objective: Double Existing Room Capacity with 25 Major Destinations by 2010

EnergyPower (Entry 1911)

Tata PowerPioneered Power Generation in India

Largest Power Utility in Private Sector

Presence across the Entire Value Chain –Generation (Thermal, Hydro and Wind), Transmission and Distribution

2005-06 Revenue $ 1.4 bn ; Profits $ 144.1 mn

Objective: Seek Generation and Distribution Opportunities in India and Overseas

Consumer ProductsBeverages (Entry 1964)

Tata Tea and Tetley Group (UK)• World’s Second Largest Global Branded Tea Operation• Acquired The Tetley Group in 2000

• Expanding into Specialty and Ready to Drink Teas

• US Convergence into Beverages• Good Earth Acquired through Tetley

• Acquired 8 O’Clock Coffee through Tata Coffee

• $ 677 m Glaceau Investment

2005- 06 Revenue: $ 713 mn; Profits $ 68 mn

Objective: Global Beverage Convergence in Hydration

Consumer ProductsWatches & Jewellery (Entry 1984)

Titan IndustriesIndia’s Largest Manufacturer of Branded Watches

• Annual Output: 8.5 Mn; Customer Base 75 Mn

… And Branded Jewellery

• Tanishq: Premium Range

Expansion Plan: Lifestyle Products; Precision Engineering; Value Watches and Jewellery

2005- 06 Revenue: $ 327 mn; Profits $ 18.3 mn

Objective: $ 1 bn Revenue by 2009

Chemicals(Entry 1939)

Tata ChemicalsManufacturer of Inorganic Chemicals, Fertilisers & Food Additives

• World No. 3 and India’s Largest in Soda Ash

• Acquired UK’s Brunner Mond Group in 2005

• 12% of Country’s Urea Output in the Private Sector

• Pioneer and Market Leader in Branded, Iodised Salt

2005-06: Revenue $ 930 m; Profits $ 97 m

Objective : $ 2 Bn Revenue by FY 2011

International business

•In 05-’06, approx. 76% of the sales growth came from acquisitions

•Acquisition of Millennium Steel did not impact FY’06, since it was completed only in April ’06

•In FY’06, TGN revenues were considered for 9 months and Teleglobe for 45 days

Inorganic – full year impact of NatSteel, Teleglobe, TGN etc.

US$ m 05-'06Tata Chemicals - Europe 279Tata Chemicals - Kenya 62INCAT 74NatSteel 916TGN & Teleglobe 178Tata Motors - Hispano 3Total 1512

US $b

2.53.2

4.4

6.7

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

02-'03 03-'04 04-'05 05-'06

CAGR 38%CAGR 51%

Globalisation strategy

•Operating company driven

•Value addition wherever economic / competitive

•Geographically selective

•Be local, internationally

•Greenfield, JVs and acquisitions

•Group synergies / co-ordination

•Partner development of select countries

International revenues - distribution

revenue mix by larger companies ('05-'06)total US$6.7b

36%

22%

13%

7%

5%

5%

3%

3%3% 3%

Tata Consultancy ServicesTata Steel Ltd.Tata MotorsTata TeaTata Chemicals Ltd.Tata InternationalVSNLIHCLVoltasOthers

Geographical distribution 05-'06total – US$ 6.7b

31%

23%12%

11%

9%

6%4% 3%

1%0.4%

North AmericaEuropeSouth East AsiaEast AsiaAfricaMiddle East / GulfSouth AsiaAustralasiaLatin AmericaCIS

JRD Tata1904 - 1993

Nothing worthwhile is ever achieved without deep thought and hard work.

No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people.

One must forever strive for excellence, or even perfection, in any task however small, and never be satisfied with the second best.

Tata Group