With its listed firms adding over $100 billion to market capitalisation in the last 15 years, the Tata Group is looking at an increase of nearly $250 billion by 2025, including through acquisitions.
The group will not shy away from global buyout activity and will continue to make significant investments in both existing as well as new businesses, including in the digital space to meet its vision 2025 targets.
It is looking to build on the platform set up by its previous Chairman Ratan Tata, who made “the difference” and transformed the group from a largely India-oriented entity into a global multinational.
“At the turn of the century, we had a relatively small market cap of just under $8 billion. We have added a 100 billion dollars plus to that in the last 15 years. I am quite confident that this will continue to grow,” said Mukund Rajan Member – Group Executive Council and Brand Custodian, Tata Sons.
The Tata group has over 100 independent operating companies out of which 29 are publicly-listed. The listed entities had a combined market capitalisation of about $134 billion as on March 31, 2015. It has presence in over 100 countries across six continents.
The main listed Tata group companies, include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.
When asked about the target M-cap under the group’s 2025 vision, Rajan said: “Today we are well over $100 billion. By 2025, if we want to be amongst the 25 most valuable companies in the world, the number we would need to hit would be around $350 billion.”
As per its 2025 vision, Tata group aims to be amongst “the 25 most admired corporate and employer brands globally, with a market capitalisation comparable to the 25 most valuable companies in the world”.
Recollecting how the Tata group has grown, Rajan said: “In 2000, we were principally an India-based group with 20 per cent of our turnover generated outside India. Fast forward 15 years, and we are now substantially a global group with $108 billion of turnover, 70 per cent of it generated outside of India.”
The group has been growing both in the publicly listed space and also in the unlisted space, he added.
“If you look at the true valuation of Tata enterprises (today) as a group, it would in fact be substantially higher than what the additional $100 billion of market cap represents,” he said.