Tata Group Presentation

India’s Diverse business in Revenues equivalent to

largest business Group 7 sectors 5.3% of India’s GDP international income 61% of Group revenue

Operations in

over 80 countries

Products and services

exported to 85 countries

Largest employer in private sector

over 300,000 employees

Group revenue Group profit

FY 2008: Rs 251,543 cr / $ 62.5 bn FY 2008: Rs 21,578 cr / $ 5.4 bn

Group Purpose

Improve the quality of life of the communities we serve through leadership in sectors of national economic significance

Group Values Integrity Fair, honest, transparent in all dealings

Understanding Care, respect, compassion for customers and colleagues

Excellence Highest possible standards in quality of goods and services

Unity Build strong relationships with partners and customers worldwide

Responsibility What comes from the people goes back to the people many times over

Tata Code of Conduct

Business Sectors Information Technology Information Technology

Consum e r Products 3%

Che m icals 3%

Energy 5%

Inform ation Te chnology 16%

Tata Steel

Service s 4% Engineering 17%

Engineering

Tata Power

Materials Revenue FY 2008: Rs 251,543 cr / $ 62.5 bn

Energy

Consumer products

Tata Motors Tata Consultancy Services

M aterials 52%

Services

Largest Companies

Cons um e r Products 9%

Che m icals 5%

Inform ation Te chnology 11% Engine e ring 11%

Ene rgy 5%

Tata Communications Tata Chemicals Tata Tea Tata Teleservices Tata AutoComp Systems

Se rvice s 3%

Voltas Indian Hotels

Chemicals

M ate rials 56%

Profit FY 2008: Rs 21,578 cr / $ 5.4 bn

Titan

38,607

FY00

FY08

12,574

5,714 9,461

$ 62.5 bn 251,543

FY07

FY06

FY04

3,431

1,987 FY00 FY02

1,956

2,706

CAGR 16%

FY98

FY96

1,132

96,723

65,424

129,994

$ 320m 77.3

FY94

FY92

FY08

FY07

FY06

FY04

49,457

34,591

FY98

FY02

29,100

FY96

18,953

$ 5.8 bn (Rs cr) 14,092

FY94

FY92

Group Revenue Group Profit

CAGR 19.4% $ 5.4 bn 21,578

G ra nts in FY 08 Rs 375.8 c r / $ 93 m

National Institutions  Indian Institute of Science  Tata Institute of Social Sciences  Tata Memorial Hospital  Tata Institute of Fundamental Research  National Centre for the Performing Arts

 Commitment to surrounding communities incorporated in Articles of Association of major companies  CSR expenditure budgeted before preparation profit and loss account by companies  Active volunteering programme in Group • Over 11,500 registered volunteers in 20 companies • 150,000 volunteer man hours

 Illustrative Initiatives • Tata Steel: HIV/AIDS programme • TCS: computer-based Audit Literacy Programme

FY 08 contribution to social welfare Rs. 375 cr / $ 93 m BEYOND BUSINESS

of

Role of Companies

Information Technology Information Technology  Tata Consultancy Services  Tata Technologies  Tata Elxsi  Tata Interactive Systems  Tata Business Support Services

Communications  Tata Teleservices  Tata Communications  Tata Sky

Tata Consultancy Services

Information Technology Established Market Cap

REVENUE 07-08 8.7% 91.3%

1968 Rs 78,557 cr/ $ 18.7 bn

DOMESTIC $m

 Pioneer & leader in Indian IT

6000 5000

 Current global ranking • No 11 : Revenue

• No 5 : Net Profits

• No 6 : Market Cap • No 5 : Number of employees

4000 3000 2000

 Global footprint • Clients in 50 countries: 6 of Fortune Top 10; 49 of Fortune Top 100 • 160 offices in 42 countries: 97 Delivery Centres in 18 countries • Over 1,16,000 Associates; 9.2% foreign nationals from 67 countries

 Full services provider: • IT services

$ 5.7 bn

INTL

•

BPO

• Infrastructure services

• Asset leverage solutions

• Engineering & industrial services

• Global consulting practice

Vision: Global Top by 10 by 2010

1000 0 FY05

FY06

FY07

FY08

Tata Indicom

One Brand Comprehensive Telecom Services Portfolio

 Services – Fixed/mobile, voice/data/VAS  Segments – Carriers, Corporate, SME and individuals  Networks – Domestic and International

Communications Established Market Cap

2002 Rs 13,144 cr/ $ 3.1 bn

 India • Enterprise data and managed services: #1 • International (#1) and domestic long distance services • Internet and broadband services: # 1  Global • • • • •

International wholesale voice carrier: # 1 Submarine cable/ bandwidth: Top 3 IP Networks: Top 10 Enterprise connectivity & managed services Entry into South Africa (Noetel) and China (CEC)

 Listed on NYSE

 Objective: Top 3 service provider in chosen markets

Tata Communications REVENUE 07-08

40

60%

$ 2.12 bn

DOMESTIC INTL $m 2500

2000

1500

1000

500

0 FY05

FY06

FY07

FY08

Communications Established

Tata Teleservices REVENUE 07-08

1995

100%

 Pan-India 3G ready CDMA network

Subscriber growth in million

0%

$ 1.8 bn

DOMESTIC INTL $m 2100

• Rs 27,000 cr / ~ $ 6 bn commitment 28

25

 Licence obtained for Pan-India GSM services; commercial launch underway

22.4

24 20

26.9

20.1 16.6

1800 1500 1200 900

17.9

 Customer base > 27 m;

600 300

16

• Fastest growing telecom operator over the last 3 years

12 8

 No.1 private fixed service provider

4

 India’s largest branded telecom retail chain

JUNE 08

MARC 08

DEC 07

SEP 07

JUN 07

MAR 07

0

 Objective: Trusted service to 80 m happy customers by 2013

0 FY05

FY06

FY07

FY08

Communications Established

2001

 Direct-to-home satellite TV service • JV with Star

 World class TV viewing experience empowering customers with choice, control and convenience • DVD quality picture and CD quality sound • Range of interactive services

 Launched: August 2006; record 2.3 million activations

Tata Sky

Engineering Automotive  Tata Motors  Tata AutoComp Systems  Telco Construction Equipment

Engineering products, projects & services  Voltas  Tata Projects

Automotive Established Market Cap

1945 Rs 16,951 cr / $ 4.0 bn

 India‘s largest automobile company by revenue  Jaguar Land Rover acquired in June

Tata Motors REVENUE 07-08

82%

18%

DOMESTIC $m

INTL

$ 8.8 bn

9000 8000 7000 6000 5000

 Leadership position in commercial vehicles • No.1 in India: Global No.4 in M&HCV trucks

4000 3000 2000 1000



No. 3 in passenger car vehicles in India • Made country’s first indigenously developed car, Indica • Shortly launching Tata Nano – World’s least cost car ($ 2,500)

 Strong Subsidiaries / Associates • Includes Tata Daewoo, Hispano, Telcon, Tata Technologies, European Technical Centre in UK and Tata Motors Thailand

 Objective 2010: Double sales to > 1 m vehicles; Select global thrust; Grow Jaguar Land Rover

0 FY05

FY06

FY07

FY08

Automotive

Tata AutoComp Systems REVENUE 07-08

Established

1995

 Among fastest growing auto components and service provider • Among the Top 5 Indian players

82%

18%

DOMESTIC $m

$ 737 m

INTL

900 800 700 600

 Businesses:

500 400

• Manufacturing: 35 facilities → Including one each in Germany and China • Design and Engineering • Supply Chain

300 200 100 0 FY05

FY06

FY07

FY08

 16 global partners  Own business in interiors and plastics, suspension parts for passenger vehicles and Mobility Telematics  Customers from all major global and Indian auto OEMs  Objective: To become a preferred Tier I supplier to the Global automotive industry

Automotive Established Revenue 07-08

1999

Rs 2,735 cr / $ 680 m

Telco Construction Equipment Company

 60:40 JV of Tata Motors & Hitachi Construction Machinery  Domestic market leader in products & services for Construction, Mining and Earthmoving industries  Design, manufacturing, marketing, sales and servicing capabilities  Main products: Hydraulic Excavators, Backhoe Loaders, Wheeled Loaders, Off-Highway Dumpers, Crawler & Tyre mounted Cranes, Compactors, Motorgraders  Two manufacturing plants at Jamshedpur & Dharwad and third state of the art world class plant under construction at Kharagpur  Acquired Serviplem S.A. in Spain in March’08, a company engaged in design, manufacturing, sales & service of Concrete Equipments  Acquired Comoplesa Lebrero S.A. in Spain in April’08, a company engaged in design, manufacturing, sales & service of Compaction Equipments

Engineering Products, Projects & Services Established Market Cap



1954 Rs 4,264 cr / $ 1,014 m

Engineering solutions in:

Voltas REVENUE 07-08

75%

25%

DOMESTIC

$ 774 m

INTL

$m 800

• Electro-mechanical projects and services

700 600

→ Largest exporter from India → Leading central air conditioning company in India • Cooling products: commercial/ homes → India’s no 2 air conditioner brand

500 400 300 200 100 0 FY 05

FY06

FY07

• Engineering products & services → Textiles, material handling, mining & construction equipment and machine tools

 Objective: Rs 10,000 cr ($ 2.5 bn) revenue by 2010-11

Architect’s model of the Burj Tower in Dubai, set to be the world’s tallest building: A Voltas project site

FY08

Materials



Metals • Tata Steel

 Composites • Tata Advanced Materials

Tata Steel Group

Metals Established Market Cap



1907 Rs 46,113 cr / $ 11.0 bn

Asia’s first and India’s largest private sector integrated steel plant • Fortune 500 company



6 largest steelmaker, capacity 30 MTPA, incorporating: th

• Corus • NatSteel Asia • Tata Steel, Thailand



Balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing operations in 24 countries



Seeking raw material security through JVs in Australia, Mozambique,Ivory Coast and Oman



Expansion plans • Jamshedpur Works – From 6.8 MTPA to 10 MTPA by 2010 • Greenfield projects → India – Orissa, Jharkhand and Chattisgarh → Overseas – Vietnam, Bangladesh and Iran

REVENUE 07-08 63% 37%

$ 32.83 bn

DOMESTIC INTL $m 33000 30000 27000 24000 21000 18000 15000 12000 9000 6000 3000 0 FY 05

FY06

FY07

FY08

Composites Established

1989 Revenue 07- 08 Rs 26 cr / $ 6.45 m



Design, engineering and manufacture of advanced composites



Products and services: • • • •

Aerospace & aircraft components Design & engineering services Personnel armour products – largest in India Vehicle armour solutions

ISO 9001, AS-9100 and NADCAP certified



Objective: Rs 1000 cr / $ 240 m revenue by 2012-13

Tata Advanced Materials

Services Hotels and Realty  Indian Hotels (Taj Hotels, Resorts and Palaces)  Tata Realty and Infrastructure  Tata Housing

Financial Services  Tata AIG Life and General Insurance  Tata Asset Management  Tata Investment Corporation  Tata Capital

Taj Hotels, Resorts and Palaces

Hotels Established Market Cap

REVENUE 07-08

1903

75%

Rs 5,048 cr / $ 1.2 bn*

25%

$ 1.08 bn

DOMESTIC INTL $m

 One of Asia’s largest hospitality Groups

1200 1000

• Leading chain in India

 87 hotels; 10,391 rooms; 12 countries; 5 continents

800 600 400 200

• Indian Ocean Rim: Luxury properties

0 FY05

FY06

FY07

• Key gateway cities – New York, Boston, San Francisco, London, Dubai, Sydney

 Expansion – “Smart Basics” hotels • Ginger Hotels, existing – 13; 30 in the pipeline

 Objective: Reinforce India leadership, expand to 25 major global destinations, reach 20,000 room capacity by 2010

* Indian Hotels only

FY08

Energy  Power • Tata Power

 Renewable Energy • Tata BP Solar

Tata Power

Power Established Market Cap

1911 Rs 22,812 cr / $ 5.4 bn

 Pioneered power generation in India  Generation capacity >2300 MW – largest in private sector

REVENUE 07-08 100%

0%

$ 2.8 bn

DOMESTIC INTL $m 3000

2500

2000

 Presence in generation (thermal, hydro, solar and wind), transmission and distribution joint ventures with public sector → Maithon India Ltd – with Damodar Valley Corporation for 1000 MW generation → Powerlinks Transmission Ltd – with Power Grid Corporation Ltd for transmission → North Delhi Power Ltd – with Delhi Vidyut Board for distribution in North Delhi

 Expansion: > 7,500 MW additional generation capacity by 2012 → 4,000 MW Ultra Mega Power Project in Mundra, Gujarat → 30% stake in Bumi Resources, Indonesia, coal mines for fuel security

 Objective: Aggressive addition in generation, transmission and distribution capacities in India

1500

1000

500

0 FY 05

FY06

FY07

FY08

Consumer Products  Tata Coffee • Tata Tea

 Watches and Jewellery • Titan Industries

 Retailing • Trent • Infiniti Retail

Tata Tea

Tea, Coffee Established Market Cap

1964 Rs 4,730 cr / $ 1,125 m

 World’s second largest global branded tea operations: • Acquisitions – Tetley (2000), Good Earth (2005), Jemca & Joekels (2006). Vitax (2007) • Developing capabilities in green, specialty, RTD, polyphenol extract teas

REVENUE 07-08 26%

74%

$ 1.1 bn

DOMESTIC INTL $m 1200

1000

800

600

 Coffee: driving growth through: • Higher value roast & grounded coffee (acquisition of Eight O’ Clock Coffee-2006) • Freeze dried/instant coffee • Specialty/quality oriented plantations

 Water: Himalayan Brand starts water portfolio development  Objectives: • To create beverage solutions for emerging consumer requirements of well being, nutrition and hydration • Aim to be global force in the beverages industry with a growth ambition of increasing size by over 5 times in five years

400

200

0 FY 05

FY06

FY07

FY08

Watches and Jewellery Established Market Cap

1984 Rs 4,870 cr / $ 1,158 m

 India’s largest manufacturer of branded watches … • Titan, Sonata, Fasttrack & Xylys • Annual output: 10.25 m; customer base 100 m

… And branded jewellery • Tanishq: Premium range • Gold Plus: Plain jewellery for mass market

Titan Industries REVENUE 07-08 95%

5%

$ 746 m

DOMESTIC INTL $m 800

600

400

200

0

Also: Prescription Eyewear & Precision Engineering

 India’s largest speciality retailer • • • •

259 exclusive watch showrooms 134 exclusive jewellery boutiques 20 exclusive eyewear showrooms 11,334 multi brand dealer outlets

 Objective: Rs 4500 cr / $ 1.1 bn revenue by 2009

FY 05

FY06

FY07

FY08

Chemicals  Tata Chemicals  Rallis India  Advinus Therapeutics

Chemicals Established Market Cap

Tata Chemicals REVENUE 07-08

1939

70%

Rs 7,106 cr / $ 1.7 bn

 Manufacturer of inorganic chemicals, fertilisers and food additives

30%

$ 1.7 bn

DOMESTIC INTL $m 1800

1500

1200

 World No.2 and India’s largest producer of soda ash with manufacturing locations in Asia, Europe, Africa and US

900

600

300

0 FY 05

FY06

 Pioneer and market leader in branded, iodised salt  JV with Total Produce, Ireland, for fruits and vegetables distribution  Setting up facilities for bio-fuels production in India  Objective: Rs. 16,000 cr/$ 4 bn revenues and EVA+ in all businesses by 2012

FY07

FY08

Business Entered and Exited

Entries ← • Passenger cars

• Insurance

• Auto components (Mostly JVs)

• Home entertainment

• Retailing

• Biotechnology

• Telecommunications

Exits • Soaps and toiletries

• IT Hardware

• Cosmetics

• Telecom hardware

• Consumer electronics

• Oil drilling services

• Pharmaceuticals

• Cement

• Branded white goods

• Textiles

• Paints

• Printing and publishing

Internationalisation

Group International Revenue CAGR 86% 61% of Group revenue

38.3% 32%

27%

38.3

24%

$ bn

24% of Group revenue

254% 60% 44%

48% 2.5 FY03

26%

3.2

4.7

FY04

FY05

International Revenue ($ bn)

10.8 6.8 FY06

% of Total Revenue

FY07

FY08

International Revenues - Distribution Revenue mix by larger companies 2007-08

Geographical distribution 2007-08

Total International revenue Rs 154,125 cr / $ 38.3 bn

3

4

2

4

6

6

4

11 2 15

11

13

Figures in %

68

Tata Consultancy Services Tata Motors Tata Tea Others

3

Tata Steel Tata Power Tata Communictions

57

North America South East Asia Africa South Asia Latin America

Europe East Asia Middle East / Gulf Australasia

Internationalisation

Global Ranking

Volume Tata Communications Tat a Tea/ Tetley Tata Chemicals Tata Motors Tata Steel +Corus TCS

1st 2nd 2nd 5th 6th 11th

Revenue

International voice (wholesale) Tea products Soda ash Medium/ heavy CVs Steel IT services

Expanding Domestic Addressable Market

Tata Motors - Ace  India’s first mini-truck for last mile transportation • Price: 2.4 lakh ($ 6,000)

 Launched May 2005, hit capacity in 4 months  Also introduced in Sri Lanka and Nepal  Passenger variant, Magic, launched in June 2007  New 225,000 / year capacity plant set up in Uttarakhand

Expanding Domestic Addressable Market

Tata Motors - Nano

Address the Larger Part of the Pyramid

 Price Rs 100,000 - ~ $ 2,400 (exclusive of VAT + freight) • World’s least cost car

 Family car – seats four comfortably  Fully compliant with safety & emission norms  Engine: 623 cc, 33 PS  Launch: Later in the year  250,000 / year capacity plant coming up in West Bengal

Expanding Domestic Addressable Market Address the Larger Part of the Pyramid

Indian Hotels - Ginger  Rs 999 – 2,499 (Single room) ($ 25 - 60) “Smart Basics”  100+ rooms per hotel  Open in New Delhi, Bengaluru, Pune, Bhubaneswar, Nashik, Mysore, Thiruvananthapuram, Durgapur, Haridwar, Agartala, Vadodara, Puducherry and Pantnagar  Aggressive roll out: 30 hotels in 2 years; 100+ by 2011

“We have two guiding arrows. One points overseas, where we want to expand markets for our existing products. The other points right here, to India, where we want to explore the large mass market that is emerging—not by following but by breaking new ground in product development and seeing how we can do something that hasn’t been done before”

Ratan Tata Group Chairman