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Home , Good Earth Tea, Jamsetji Tata, Tanishq, Tata Interactive Systems, Tata Sons, Tata Technologies

India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 118

THE

Revenues of Tata Group from International Operations: Group Background (2002-06) 8.00 7.00 6.70 The Tata Group comprises over 100 companies 6.00 operating in seven business sectors - information 5.00 4.40 systems and communications, engineering, 4.00 3.20 materials, services, energy, consumer products, 3.00 2.50 and chemicals.The Group was established by 2.00 1.00 in the mid-19th century. Some 0.00 of the major companies in the Tata Group are 2002-03 2003-04 2004-05 2005-06 ,Tata Tea,,Tata Consultancy Year Source: Tata Services (TCS), etc. The Geographic break-up for FY 2005-06 The Tata Group is a diversified group providing services to varied clients. It has a strong team of almost 250,000 employees working in its various 30% 23% companies.The Tata Group generated revenues of approximately US$ 22 billion in 2005-06. As of February 1, 2007, the Tata Group had a market capitalisation of US$ 57 billion. 9% 1% Global Footprint of Tata Group 31% 6%

Tata Group's overseas presence started when its Asia and Australasia founder, Jamsetji Tata, began his business career Africa by trading in China and .The first overseas Latin America Tata office was established in London in 1907. Middle East/Gulf Today, the Tata Group has operations in more than 54 countries (in all six continents) from where Source: Tata it serves its customers and clients in over 120 countries.TheTata Group witnessed a 51 per cent TCS,Tata Steel,Tata Tea,and Tata Motors contribute growth in revenues from its international business approximately 78 per cent to the total revenues in 2005 as compared to the previous year.The from the international business of the Tata Group. Group has an aggressive sales and marketing The Group has reported a CAGR of 38 per cent strategy in place to tap the potential in the in revenues from international operations for the international markets. period 2002-03 to 2005-06. 118 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 119

Tata Group Following is a brief discussion on some of the Tata in the United States of America Group companies operating in the US:

Tata Group marked its association with the United Tata Consultancy Services States when Jamsetji Tata came to the US searching for technology for 's first steel mill.Today, the Mode of Operation Tata Group operates in the US through its acquired TCS operates in the USA through its wholly ventures, various subsidiaries, joint ventures, and owned subsidiary,TCS North America. sales and marketing alliances with various partners. The Group established a permanent presence in Overview the USA in 1945 by opening a representative office. TCS established operations in the USA in 1971 Currently, the group has over 80 offices that but opened its first office in New York City in provide high-quality, reliable and cost-effective 1979.The company provides IT services, consulting, products and services to its clients.' business process outsourcing, and engineering corporate office is located in Washington, D.C. services to clients in various industry domains. and the various representatives are spread across Banking, financial services and insurance (BFSI) the US, including at the TCS and Tata Steel is the largest vertical for the company in terms headquarters in New York City. of revenue generation.Apart from BFSI, the manufacturing and telecom verticals are the other The Tata Group has been actively developing major contributors to company revenues. strong relations with its clients and vendors. North America is an important market for the For the financial year 2005-06,TCS generated group and it contributes approximately 31 per revenues of approximately US$ 2 billion.The North cent to its overall revenues from the international American market is the largest contributor to its business. Some of the Tata Group companies revenues i.e. approximately 60 per cent. In North with a significant presence in the US, but not America,TCS has over 50 offices. It has established limited to, are: ten development centers and five key industry- • Eight O'Clock Coffee specific centers in the USA. • Good Earth Teas Industry-Specific Centers in the USA • and Resorts • Tata Autocomp Systems TACO Center’s Competence Location • Tata Consultancy Services Automotive Detroit • Tata Elxsi High-tech Lab Sunnyvale • Tata Inc. (Tata Steel) RFID Lab Chicago • Performance Lab Minneapolis • Tata Johnson Controls • Tata Sons Training Center Buffalo • Tata Tea Inc. • /Incat As of March 31, 2006,TCS had 12,000 skilled • Titan Industries/ professionals in the US market, out of which • North America over 600 professionals have been hired locally. • SerWizSol The company plans to ramp up its local headcount • VSNL International to 1,000 over the coming years. 119 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 120

TCS provides services to various clients, including it has acquired FMALI Herb Inc. (USA) and Good AT&T, Boeing, Canadian Depository for Securities, Earth Corporation to gain a stronger foothold in Citibank, Compaq, Dell Computer Corporation, the market. Fidelity Investment, Ford, General Motors, General Electric, ING America, Microsoft, Nike, Prudential Overview Insurance USA,Texas Instruments,SIS In 1987,Tata tea established its subsidiary Tata Tea SegaInterSettle, etc. Inc. Headquartered in Florida, USA, the company produces a wide variety of instant tea targeted Tata Steel at health-conscious consumers. It manufactures approximately 40 different flavors of instant tea Mode of Operation sourced from India. It manufactures formulations Tata Steel operates in the USA through its wholly- with different flavors and sweeteners by modifying owned subsidiary,Tata Inc. It acts as a trading the physical parameters - such as the density and company for its parent company. particle size - of the tea, or by blending it with other additives. Overview The company has an active international sales and The company has established a strong sales and marketing network spanning the USA, Dubai, South marketing channel to market its products in the Africa, Sri Lanka, Nepal, Bangladesh, Shanghai, Hong USA.The company has been very active in Kong, the UK, and Singapore.The company owns acquisitions in the US market to gain a stronger captive raw material resources that translate into presence. In addition to the Tetley brand of tea, a competitive edge. some of the other major acquisitions made by the company include the acquisition of The company's processes are ISO 14000-certified. and Eight O' clock coffee.Tata Tea Inc. has acquired Tata Steel is an esteemed member of various a 30 per cent equity stake in Energy Brands Inc organizations and associations such as the (USA) for US$ 677 million including a stake in the American Institute for International Steel, the Glaceau vitamin waters brand of the company. American Wire Producers' Association, the Metal These acquisitions have assisted the company Service Centre, the US-India Business Council, in strengthening its presence in the American and the Post-Tensioning Society. beverage market as well as in diversifying its product offering (tea, coffee, flavored tea, energy Tata Steel generated revenues of approximately drinks, and vitamin water). Currently, black tea US$ 3,743.65 million in FY 2005-06, including sales produced by the company has a 10.4 per cent of approximately US$ 90 million from the US share in the American market. It generated region.Tata Inc. acts as a parent body for Tata Steel revenues of approximately US$ 138 million from in the USA and imports steel and allied products sales in North America and Canada. from group companies in India. VSNL Tata Tea Modus Operandi Modus Operandi The company operates in the USA through its The company operates in the USA through its subsidiaries,VSNL America Inc,Teleglobe America holding company,Tetley US Holding Ltd. In addition, Inc, and VSNL International (US) Inc. 120 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 121

Joint Venture Name Partner Company Product Segment

Automotive Composite Owens Corning (USA), Sheet moulded composites Systems International Menzolit-Fibron (Germany) (SMC)

TACO Hendrickson Hendrickson International Suspension systems Suspension Systems (THSL) (USA)

Tata Johnson Controls Johnson Controls (USA) Seating systems Automotive Ltd. (TJCAL)

Overview of its clients i.e. manufacturing, engineering, and VSNL started its operations in the US in 2003, supply chain management. with an objective to establish and provide solutions in Internet Protocol -Virtual Private Network The company has over 50 employees in its US (IP-VPN).The company's service in IP-VPN assists office, mainly working within the several joint it in managing the Internet bandwidth between ventures that the company has formed, to develop India and the USA. automobile products for US automobile companies. Some of the major joint venture operations of the In 2005,VSNL acquired Tyco Global Network, company are: which has facilitated it in gaining a strong submarine cable network.This has also assisted Tata Interactive Systems the company in emerging as one of the leading companies in the world that provide services Modus Operandi in submarine cable bandwidth encompassing Asia, Tata Interactive Systems (TIS) operates in the USA Europe and North America. Its acquisition through its sales and marketing offices. of Teleglobe has extended its reach to over 240 countries. Overview TIS is a pioneer in the custom training solutions Currently, the company employs 281 personnel, segment. Its core offerings include performance out of which 94 per cent are US citizens. In the consulting, content development, simulations, and financial year 2006,VSNL America Inc. generated electronic performance support systems. It has revenues of US$ 27.7 million, up from US$ 0.65 offices in various parts of the US including New million in the previous year. Jersey, Chicago,Washington DC, San Jose, etc.TIS has obtained level 5 in both SEI CMM (Capability Tata Autocomp Systems (TACO) Maturity Model) and SEI P-CMM (People-Capability Maturity Model) quality certifications.The company Modus Operandi provides services to a wide range of industries TACO operates in the USA through joint ventures. such as banking, financial services and insurance, The company has an office near Detroit, Michigan. pharmaceuticals and health care, airlines, publishers, logistics and warehousing, various universities and Overview online schools, etc. It has received various awards The company was established to service the for developing innovative technology solutions Indian and global auto industry. It has three for its clients such as the PCD award from EPSS business divisions catering to the requirement Central in 2006, Silver Brandon Hall Excellence in 121 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 122

Learning Award in 2004 and 2005,APEX Award In addition to these,Taj Hotels manages a portfolio of Excellence in 2005 and 2006, etc. of some of the finest authentic palace hotels in the world.These include the magnificent Umaid Bhawan Indian Hotels Company Ltd. Palace in Jodhpur, recipient of the World Monuments Fund's 2006 Hadrian Award for Overview architectural restoration, and selected by the editors of Robb Report Luxury Hotels 2006 as one Taj Hotels, Resorts and Palaces of the world's 100 most exceptional hotels,The Taj Taj Hotels Resorts and Palaces is part of the Lake Palace in Udaipur, rated tenth in The Top-100, Tata Group, India's premier business house. T + L's Annual Readers' Poll - World's Best Awards Established in 1903, it is one of Asia's largest and 2006, and the Rambagh Palace in Jaipur, rated finest groups of hotels, comprising 59 hotels in 40 among the Top-50 in Asia. locations across India with 16 international hotels in Australia, the Maldives, Mauritius, Malaysia, the Over the past year,Taj Hotels has announced the UK, the US, Bhutan, Sri Lanka,Africa, and the launch of four luxury projects - The Taj Exotica Middle East. From world-renowned landmarks Resort, Spa and Golf (Opening 2008) in Doha, to modern business hotels, idyllic beach resorts Qatar, the Taj Exotica Resort & Spa (Opening 2008) to authentic Rajput palaces, each Taj hotel offers an on the Palm Jumeirah Crescent in Dubai, the Taj unrivalled fusion of warm Indian hospitality, world- Exotica Resort & Spa (Opening 2009) in Phuket, class service and modern luxury.The Taj, a symbol Thailand and a Taj Luxury Hotel (Opening 2008) in of Indian hospitality, has recently completed the Cape Town, South Africa. centenary of its landmark hotel,The Taj Mahal Palace and Tower, . Tata Elxsi

On January 11th, 2007, the 273-room Taj Boston Modus Operandi became the company's second hotel property Tata Elxsi operates through its eight offices located in the US. In 2005,Taj Hotels entered into a lease across the US.These offices are essentially sales agreement to operate and manage , and business development offices that facilitate the luxurious, landmark hotel on New York's Fifth in developing business for the company. Avenue.With a legacy dating back to the launch of its landmark hotel, the Taj Mahal Palace & Tower Overview in 1903,Taj Hotels across the world have become Tata Elxsi is a product design company, delivering destinations in themselves, offering distinctive outsourced product design, R&D services and service and unrivalled luxury.Today, the Taj portfolio technology development solutions to customers encompasses luxury and business hotels, top-end worldwide.Tata Elxsi services the US market leisure resorts and authentic palaces, amongst through offices in Boston, New Jersey, Detroit, others, spread across the globe. Burbank, Irvine, San Diego, while San Jose serves as the US regional headquarters.These offices Its international hotels include the award-winning primarily house business development and Taj Exotica Resort & Spa resorts in Mauritius & customer support staff, facilitating sales and Maldives, 51 Buckingham Gate in London, Blue, easy access for customers to the India Delivery Woolloomooloo Bay in Sydney, and the luxurious Centers.The US offices house close to 40 business Taj Palace in Dubai, amongst others. development and customer support executives, 122 India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 123

facilitating sales and easy access for customers Overview to the global delivery centers in India. SerWizSol is one of the largest third-party business process outsourcing companies with operations in It services embedded design requirements including India and the USA.The company offers round-the- hardware and embedded software to industry clock services related to travel, healthcare, media, sectors such as automotive, consumer electronics, utilities, telecommunications, and government-to- media and entertainment, semiconductor, storage citizen initiatives.The company has two call centers and telecom. in the USA, which are located at the Milton centre in Florida and the Marietta centre in Ohio. The US market contributes to over 40 per cent of the overall revenues for the company, primarily Tata Technologies from services and technology IP sales in multimedia, consumer electronics and wireless Modus Operandi infrastructure segments. The company operates in the USA through its subsidiary, INCAT The company offers world-class styling and industrial design services, complementing the Overview embedded product design offerings.Tata Elxsi Founded in 1989, INCAT is a leading independent also offers high-end animation and special effects international provider of engineering and design services to the film and broadcast industry, through (E&D) services to the world's largest automotive, a specialized division,Visual Computing Labs (VCL). aerospace and durable goods manufacturers. INCAT is focused on services and solutions Titan/Tanishq for product lifecycle management (PLM) and information lifecycle management (ILM)/information Overview technology (IT), creating value for its clients Titan Industries Ltd, a joint venture between the through its unique-in-industry global delivery Tata Group and Tamil Nadu Industrial Development model, its state-of-the-art technology, and a Corporation is the sixth-largest manufacturer pragmatic approach to engineering, manufacturing of watches in the world.Titan is a market leader and IT processes that reduces costs and time to in the watches and jewelry category in the Indian market and helps clients realize superior products. market.Tanishq,Titan's Jewelry brand plans to bring with it a unique combination of design excellence, INCAT's US headquarters are in Novi, Michigan retail service and value engineering to meet the and in Germany it is headquartered in Stuttgart. needs of the American consumer. Initially, the Tata Technologies is headquartered in , India. company plans to launch the brand through INCAT has a combined global work force of more boutique stores in malls. than 3,000 employees serving clients worldwide from facilities in North America, Europe, and the SerWizSol Asia-Pacific.

Modus Operandi SerWizSol operates through its two delivery centers located at Florida and Ohio.

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