Tata Sons’ current Market Value

Tata Group and it’s subsidiaries

Tata Group is an Indian multinational conglomerate holding company headquartered in Mumbai, Maharashtra, India. It was founded in 1868 by Jamsetji Tata. The company gained international recognition after purchasing several global companies. One of India’s largest conglomerates, Tata Group is owned by Tata Sons.

Tata Sons is the holding company of the Tata Group and holds the bulk of shareholding in the Tata group of companies including their land holdings across India, tea estates and steel plants. Tata Group is a very solid group and Tata Sons is the holding company of the group. Tata Group has a noticeable presence in almost all sectors. The profits or the dividends that the company receives are majorly used for CSR activities or for the betterment of the society.

TATA Group list of subsidiaries

Below is the list of listed companies that are owned by Tata Sons and have major stake in. Tata Sons also has stake in many other unlisted companies such as Tata Capital or Air Asia.

1. Indian Hotels Co Ltd (Taj)
2. Tata Chemicals Ltd
3. Tata Communications Ltd
4. Tata Consultancy Services (TCS) Ltd
5. Tata Consumer Products
6. Tata Elxsi Ltd
7. Tata Investment Corp. Ltd
8. Tata Motors Ltd
9. Tata Power Co. Ltd
10. Tata Steel Ltd
11. Titan Co. Ltd
12. Trent Ltd (West side)
13. Voltas Ltd

Let’s have look at the listed subsidiaries of Tata Group and Tata Sons stake in those subsidiaries.

Brief about Tata’s major subsidiaries

• Tata Chemicals consumer business and Tata Global Beverages were merged in 2020 and new company – Tata Consumer Products Limited (TCPL) was formed.
• TCPL was formed to have diversified FMCG business under one company and tap into the under-penetrated Food & Beverage (F&B) industry.
• The IT Business, TCS is the biggest jewel to the Tata Group. TCS is also the highest profit-making company for Tata Group. Mr. Natarajan Chandrasekaran was the chairman of TCS and now he has also been as the chairman of Tata Sons as his performance has been incredible and is a big asset to Tata Group.
• The Tata Elxsi is an Indian design company. It provides design and technology services for product engineering and solutions across industries including broadcast, communications, and automotive.
• Tata Investment Corp. is a holding company. Holding companies always run at discounted prices. So, the real market value of Tata Investment Corp might be around Rs. 6,000 Cr.
• The automobile business, Tata Motors and Tata Motors DVR jointly have 39.5% stake of Tata Sons in them. The value of Tata Group stake in Tata Motors used be much high but it has come down owing to the severe corrections that have been made in the stock of Tata Motors.
• Power is a challenging one and is facing some debts. The sector is a capital-intensive sector and it requires high investments. The sector is a little sluggish and the growth rate will also be average.
• On the website of Titan, the promoter holding is been shown as around 52%. From that ~21% is owned by Tata Sons and ~28% holding is of Tamil Nadu Industrial Development Corporation (TIDC) [for example, in Maharashtra it is MIDC]. Titan is another gem in Tata Group with brands like Tanishq, Fasttrack, Skinn, etc in its kitty.
• Tata Group is an excellent Group from corporate governance perspective
• Recently, Shapoorji Pallonji (SP) group has taken a decision to give up their stake of 18.37% in Tata Sons. With this, Tata Sons need to buy out the SP group’s stake in Tata Sons currently valued at $20 billion. How Tata Sons will finance this deal is currently uncertain, however it is unlikely to dent the trustworthy brand image that Tata has created over the years.
• The total stake of Tata Sons in listed Tata Group companies is of Rs. 7.58 Lakh Cr. This comes to ~ $100 billion.

This does not include the stake in unlisted companies, real estate holdings, etc. If you include those too, then the valuation of Tata Group is close to $120 to $130 billion.

Notes: –

• The numbers that are used are approximate and have been rounded for presentation purposes.
• We are also not suggesting anyone to immediately go and buy these stocks or invest in the stock markets.
• Only an analysis has been presented here.