Tata Group An Overview

Transcription

1 Tata Group An Overview

2 Our Group Chairman Statement "One hundred years from now, I expect the Tata s to be much bigger than it is now. More importantly, I hope the group comes to be regarded as being the best in India best in the manner in which we operate, best in the products we deliver, and best in our value systems and ethics. Having said that, I hope that a hundred years from now we will spread our wings far beyond India... Ratan N Tata

3 Tatas - India s largest business group Founded by Jamsetji Tata in 868 Businesses in seven sectors- information systems and communications, engineering, materials, services, energy, chemicals and consumer products Operations in over 80 countries Product and services available in over 85 countries Over 425,000 employees Group revenues of 200-: $83.3 billion International revenues200-: $48.3 billion Geographies 58% other than India Tata s contribution to India s GDP is nearly 5.5% and 60% of its revenue comes from foreign countries. Brand Finance, a UK-based consultancy firm, valued the Tata brand at $5.75 billion in 20 2

4 Leadership Tata Steel - Among the top ten steelmakers in the world Tata Motors - Among the top five commercial vehicle manufacturers in the world Tata Global Beverages - Second-largest player in tea in the world Tata Chemicals - World s second-largest manufacturer of soda ash Tata Communications - One of the world's largest wholesale voice carriers Indian Hotels- first property, the Taj Mahal Palace, in Bombay in 903 Shareholder base million Number of companies - Over 00 operating companies Listed companies - 3 on the Bombay Stock Exchange combined market capitalisation of about $80.59 billion (as on January 9, 202) Companies Listed on NYSE - Tata Motors and Tata Communications 3

5 Pioneering initiatives in India Established the first steel plant Introduced labour welfare benefits long before they were enacted by law Started the first power plant Pioneered civil aviation Brought insurance to the country Started the country s first chain of luxury hotels Largest commercial vehicle producer in India Pioneered software development Manufactured the country s first indigenous passenger car, the Indica and affordable, innovative such as the Tata Nano, 4

6 Risk Philosophy Tata Motors (Source Annual Report FY 200-) Risks Philosophy: All of the Company s operating plants in India have been certified to OHSAS and ISO standards and all the CVBU units have been conferred with the Golden Peacock Award on Safety & Health. Jamshedpur plant was adjudged first and was awarded by CII (Confederation of Indian Industry) Eastern Region in Safety, Health & Environment Practices. The Company took steps towards ensuring that every single individual working within its plant premises is protected from any harmful impact of his/her working and the inherent risks. Towards this end, the Company recently completed a diagnostic of the existing safety systems through DuPont and is taking steps to raise the safety standards to world class levels. Concern - Political instability, wars, terrorism, multinational conflicts, natural disasters, fuel shortages / prices, epidemics, labour strikes: The Company s products are exported to a number of geographical markets and the Company plans to expand international operations further in the future. Consequently, the Company is subject to various risks associated with conducting the business both within and outside the domestic market and the operations may be subject to political instability, wars, terrorism, regional and / or multinational conflicts, natural disasters, fuel shortages, epidemics and labour strikes. In addition, conducting business internationally, especially in emerging markets, exposes the Company to additional risks, including adverse changes in economic and government policies, unpredictable shifts in regulation, inconsistent application of existing laws and regulations, unclear regulatory and taxation systems and divergent commercial and employment practices and procedures. TCS Risks Philosophy: A comprehensive and integrated risk management framework forms the basis of all the de-risking efforts of the Company. Formal reporting and control mechanisms ensure timely information availability and facilitate proactive risk management. These mechanisms are designed to cascade down to the level of the line managers so that risks at the transactional level are identified and steps are taken towards mitigation in a decentralized manner. Legal risks Litigation regarding intellectual property rights, patents and copyrights is significantly high in the software industry. In addition, there are other general corporate legal risks. 5

7 Risk Philosophy (Source Annual Report FY 200-) Tata Steel Risks Philosophy: The Company s focus, at all times, is to identify the hazards, determine the risks and ensure that effective controls are in place to minimize the potential of a major incident. The Company assesses sites for potential risks and creates and implements effective process safety. The Group s philosophy is that all injuries can be prevented. Concern - Health, Safety & Environmental Risks: The manufacture of steel involves steps that are potentially hazardous if not executed with due care. The Group s businesses are subject to numerous laws, regulations and contractual commitments relating to health, safety and the environment in the countries in which it operates and these rules are becoming more stringent. In Europe, auction based proposals by the EU Commission for Phase 3 of the Emission Trading Scheme ( ETS ) could, as they currently stand, have a significant negative financial impact post 202. Tata Chemicals Risks Philosophy: TCL s risk identification and assessment process is dynamic and hence the Company has been able to identify, monitor and mitigate the most relevant strategic and operational risks both during periods of accelerated growth and recessionary pressures. Concern - Safety and Environment related risks: TCL is conscious of its strong corporate reputation and the positive role it can play by focusing on social and environmental issues. Towards this, the Company has set very exacting standards in safety, ethics and environmental management. 6

8 Risk Philosophy (Source Annual Report FY 200-) Tata Power Risks Philosophy: As part of the Risk Management Process (RMP), during the year, the Company reviewed the various risks and finalized mitigation plans. These were reviewed periodically by the Risk Management Committee. Further, seven Risk Management Sub-Committees (RMSCs) closely monitored and reviewed the risk plans periodically. Employees contribute to the risk identification process through the web-based Risk Perception System. Concern India Scenario In view of the inherent risks and challenges in developing and executing new projects and rising fuel costs, the cost of generation is likely to increase. 7

9 Tata Group Premium output (approx) At present the overall premium output of the TATA Group is INR 500 crores Employee Benefits will be at 60% (approx) of the overall portfolio Property & Casualty will be at 40% (approx) of the overall portfolio 8

10 About Tata Motors Insurance Broking & Advisory Services Ltd Tata Motors Insurance Broking & Advisory Services Ltd was granted a Direct Broker License by the Insurance Regulatory and Development Authority (IRDA) in May 2008 for undertaking Direct Insurance Broking in Life and Non-Life insurance businesses. It has placed business with all public and private insurance companies to enable offering customized solutions to customers. As a Total Insurance Risk Solutions provider, Tata Motors Insurance Brokers plays an integral role in managing the portfolios of the customer through Risk Advisory & Risk Management. (TMIBASL) forms a part of Tata Motors Ltd as their wholly owned subsidiary. Tata Motors Ltd, is India s largest Automobile company with a consolidated revenues of Rs.,23,33 crores (USD 27 billion) in Tata Motors Limited is a leader in commercial vehicles in each segment, and among the top three automobile manufacturers in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. Tata Motors Limited is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer. To provide world-class, cost-effective, performance-backed insurance products to automobile customers, valueadded insurance services to corporate and retail customers and spread awareness of insurance. Apart from being the insurance broker for the Tata Group companies, Tata Motors Insurance Broking and Advisory Services Ltd (TMIBASL) is also a insurance broker for Ford, Nissan & Rennault. We undertake to deliver world class broking services in compliance with IRDA Insurance Broking 2002 guidelines. 9

11 Portfolio Tata Motors Insurance Broking & Advisory Services Ltd Corporate Exposure (approx) Total Sum Insured - INR. 40,000 Crores Total Premium - INR. 86 Crores Retail Exposure (approx) Total Sum Insured - INR 5,000 Crores Total Premium - INR 650 Crores Total Policies issued - 5,00,000 0

12 Thank You