The Tata Group, India’s largest and most diversified conglomerate, has achieved a remarkable feat of surpassing the gross domestic product (GDP) of Pakistan in terms of its market capitalisation. According to various reports , the aggregate market value of the Tata Group enterprises is around $365 billion or over Rs 30 lakh crore, which is higher than the GDP of Pakistan, estimated by the International Monetary Fund (IMF) at around $341 billion or Rs 28 lakh crore.
TCS: The Crown Jewel of Tata Group
The biggest contributor to the Tata Group’s market cap is its flagship company, Tata Consultancy Services (TCS), which is India’s second-largest company and the world’s largest IT services provider. TCS alone has a market cap of nearly Rs 15 lakh crore or $170 billion, which is almost half the size of Pakistan’s economy. TCS has been consistently delivering strong revenue growth, margin expansion and cash generation, despite the challenges posed by the Covid-19 pandemic. TCS has also been investing heavily in digital transformation, cloud computing, artificial intelligence and automation, which are the key drivers of demand in the IT sector.
Tata Motors and Trent: The Multibaggers
Another major factor behind the Tata Group’s market cap surge is the stellar performance of Tata Motors and Trent, both of which have given multibagger returns in the past year. Tata Motors, which owns the luxury car brand Jaguar Land Rover (JLR), has seen its share price soar by 110% in one year, as it has benefited from the recovery in global demand for automobiles, especially in China and Europe. Tata Motors has also been focusing on improving its operational efficiency, reducing its debt and increasing its market share in India with new launches and electric vehicles.
Trent, which operates retail chains such as Westside, Star Bazaar and Zudio, has witnessed a whopping 200% gain in its share price in one year, as it has emerged as one of the leading players in the organised retail sector in India. Trent has been expanding its store network, enhancing its online presence and offering a wide range of products at affordable prices to attract customers.
Other Notable Performers
Apart from TCS, Tata Motors and Trent, several other Tata Group companies have also contributed to the rise in the conglomerate’s market value. These include Tata Technologies, TRF, Beneras Hotels, Tata Investment Corporation, Automobile Corporation of Goa and Artson Engineering. These companies have shown resilience and growth in their respective domains, such as engineering services, industrial equipment, hospitality, investment banking and auto components.
The Unlisted Gems
The Tata Group also has several unlisted companies that are not reflected in its market cap but are equally valuable and profitable. These include Tata Sons, the holding company of the group; Tata Capital, the financial services arm; Tata Play, the gaming venture; Tata Advanced Systems, the defence and aerospace unit; and Air India, the national carrier that was recently acquired by the group. These businesses have immense potential to grow and create value for the group in the future.
The Professional Management and Philanthropic Trusts
One of the key strengths of the Tata Group is its professional management and governance structure that ensures transparency and accountability. The group is not run by a single individual or promoter but by a board of directors that oversees the strategic direction and performance of each company. The group is also predominantly owned by philanthropic trusts that support various social causes such as education, health care, environment and community development. The group follows a philosophy of “leadership with trust” that has earned it respect and admiration from all stakeholders.
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