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Tata Group's International Strategy
At the Geneva International Auto Show held in 2005, a model of a multi-purpose off-road vehicle was particularly eye-catching: the small silver body shone. However, the most striking thing is that this car, which will be officially rolled off the assembly line within two years, will not be produced in Wolfsburg or Stuttgart in Germany, Detroit in the United States or Tokyo in Japan, but in Pune, a city in southern India. Five years ago, it was incredible that Indian cars could make their mark at such an international auto show. At that time, when India's Tata Group was preparing to enter the automobile field, it was generally believed that it would be a gamble, and the result of the gamble was not optimistic. Some analysts even think that this decision will bring down Tata's flagship company Turko (now called Tata Motors).

Turko originally made trucks and engineering parts. Indica, the first mini-car with independent intellectual property rights, has just been listed because of quality problems, and its actual market share is less than half of what was expected when it was first developed. In the fiscal year 1998- 1999, Turco suffered serious losses.

However, Ratan Tata, Chairman of Tata Group, did not waver in his insistence. He has always believed that India's manufacturing industry can compete with other manufacturing powers on the world stage. In his long-term plan for Tata Group, the automobile industry is a very important part. Tata Group has a long history in China. 1859, Mr. Zhan Mu Schet Ji Tata, founder of Tata Group, worked in his uncle's company and was sent to Hongkong to open a branch. A few months later, he moved to Shanghai and didn't leave China until 1863.

With the continuous advancement of the internationalization process of Tata Group, Tata Group once again takes China as its strategic focus. Judging from the current overseas investment scale of Tata Group, its market share in China is smaller than that in the United States and Britain, but the company is making corresponding plans to rapidly expand its business in China. 20 1 1 year, the group's sales in China are about 6.4 billion dollars, and the purchase amount in China is about/kloc-0.3 billion dollars. Tata Group currently has about 3,300 employees in China.

1996, Tata international opened an office in Shanghai to carry out foreign trade business of steel products. Since then, other subsidiaries of Tata Group have also come to China to seek development opportunities.

In order to help its subsidiary expand the China market, Tata Group set up a group office in Beijing in August 2006. With her help, many subsidiaries of the group started to do business in China, selling products in China, purchasing from China and using China as a production and export base.

-Tata Consultancy Services (TCS) has about 2000 employees in China. In early 2007, TCS established a joint venture with Microsoft and three other China partners. TCS has five global delivery centers in Beijing, Shanghai, Hangzhou, Tianjin and Shenzhen.

-Tata Steel Group has two rolling mills and a considerable steel trading business in China. From June 5438 to February 2006, Tata Refractory Company opened a factory in Yingkou, Liaoning. At the beginning of 2007, Tata Steel acquired British collis Steel Company (later renamed Tata Steel Europe Company), which also has large-scale trading business in China market.

Tata Auto Parts Company has set up a factory in Nanjing to produce plastic parts for customers in China and overseas.

-In May 2007, Tata Global Beverage Company (formerly Tata Tea Company) and China Zhejiang Tea Import and Export Co., Ltd. set up a joint venture to produce and sell green tea and green tea extracts and other high value-added tea products.

In the first half of 2008, Tata Motors acquired Jaguar and Land Rover. In 20 1 1 year, the sales of Land Rover and Jaguar in China were 36,087 and 5,976 respectively, up by 54% and 123% respectively over the same period of last year.

-Tata Telecom Services purchases mobile phones and communication equipment from telecom equipment manufacturers such as Huawei and ZTE.

-Tata Motors works closely with Tata International to speed up the procurement of auto parts in China.

-Tiekem International Freight Forwarding (Shanghai) Co., Ltd. was established in June 2009 in Shanghai, China. Its parent company, India TM International Freight Forwarding Co., Ltd., is a joint venture between India Tata Steel and Germany IQ Martrade.

Tata Engineering Co., Ltd. set up a representative office in Shanghai to provide engineering supervision services for customers.

Tata Group and China have a history of 150 years. With the deepening of cooperation with China, Tata Group will also realize its long-term commitment of common development with China through a series of strategic measures. Tata Consultancy Services, the largest software manufacturer in India, was founded by software engineers of Tata Group on 1968. However, in recent years, it has been under increasing competitive pressure from other domestic software outsourcing giants, such as Infosys and Wipro, resulting in a decline in profits.

The successful listing of Tata Consulting Services has made Ratan more and more believe in the direct financing method of selling shares in the capital market. Now he is considering further selling the shares of Tata Consultancy Services to provide sufficient financial support for the development of other enterprises under the Group. The financing place will no longer be the Indian stock market, but the most developed and largest American stock market in the world. The raised funds will be mainly used to support the development of VSNL and Tata Telecom Services, two major telecom businesses under the Group. VSNL was originally a state-owned monopoly enterprise providing international telecommunication services, and it is also the largest international telecommunication service provider in India. Later, with the relaxation of government policy control, Tata Group bought 46% of the shares of the troubled enterprises at that time and became its largest shareholder in 2002, while the government's shares were reduced to 26%. Tata's equity acquisition cost $530 million. Although VSNL is still in a difficult period of operation, the real value of Tata's equity is increasing because the market is generally optimistic about its development potential in mobile phone services.

Just like entering the automobile field at the beginning, Tata entered the telecommunications business with a bad start. A director of Tata Group once said with a wry smile: The difference between these two businesses is that the bet spent on Indica cars is only $400 million, while the group's investment in telecommunications business is more than ten times.

Now, Tata Group plans to spend $4 billion to integrate the resources of its VSNL and Tata Telecom Services Company, not only to provide customers with software solutions, but also to provide them with the global security network needed to transmit software. Part of the $4 billion will be sold from the capital market to Tata Information Services.

Of course, Tata is fully capable of providing this better service to customers. Last June165438+1October, it bought AT&T's submarine optical cable network from Tyco Global Network Company for $65438+300 million. Initially, AT&T spent as much as $3 billion to develop this network.