While revenues have increased 10-fold for the group as a whole, net profit has gone up only 4-fold. But it has delivered to shareholders.
No. of companies: 32 (1991) 29 (2010)
Employees: 119,209 (1991) 320,258 (2010)
Revenues: Rs 30,920 cr (1991) Rs 293,562 cr (2010) CAGR: 11.6%
Net Profit: Rs 2,627 cr (1991) Rs 10,867 (2010) CAGR: 17.1%
Market cap: Rs 26,172 cr (1991) Rs 367,145 (2010) CAGR: 34.1%
Figures for listed companies. CAGR: Compounded annual growth rate
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MUMBAI—During his 18-year tenure as chairman of India's venerable Tata Group, 71-year-old Ratan Tata has led a drive to expand internationally, a strategy India's other sprawling companies seek to emulate.
With annual revenue above $70 billion, Tata Group now derives 65% of its sales outside of India and employs 357,000 people world-wide. It has interests in tea, hotels, cars, steel, chemicals and information technology, among others.
But the last two years have been among its rockiest as the company, which was founded in 1868, swallowed two big overseas acquisitions just in time for a global financial crisis.
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Wall Street journal
Ratan Tata may have another surprise up his sleeve before he leaves. Though he often comes off as shy and soft spoken, since taking over the company in 1991 he has shown he is not afraid of bold moves. He has said in the past he is ready to break from tradition and consider handing over the reins to a non-family member, non-group member and even a non-Indian.
Heading a diverse group with interests in many of the fastest growing industries in one of the world’s fastest expanding economies could be lucrative and exciting enough for any executive to jump at. However it will also include the heavy yoke of spreading the good news about the Tata way of doing business, which often puts communities and employees before profit and requires its people to stick to a strict code of conduct in a country which often runs on rule bending.
These Tata values are the heart and soul of the Tata Brand and the head of the group is like the Pope, the protector and promoter of the way.
That’s no exaggeration. The cult-like following of past leaders is obvious at Jamshedpur, the town that Tata built (and still controls) in eastern India. In the steel-making city, offices and museums are plastered with the posters of past chairmen and executives and parks hold statues and fountains dedicated to the founder. The sprawling J.R.D. Tata Sports complex has a giant billboard of the smiling face of J.R.D. that would make North Korea’s Dear Leader Kim Jong Il jealous.
Who but a Tata, or at least a long-time veteran of the group, is pure of heart and brave enough to bear this burden? Applications for the crown are now being accepted.
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