tata group, concentrated, or faltering

Tata group includes several companies, listed and unlisted, making a variety of things, and of course, contributing to the economy and society. 

Employment is a massive contribution.

Yet, something is going awry for the group. Yeah, there was this Chairman spat. More importantly, though, it was always about the group companies. You incorporate the business so that the shareholders make money.  

Tata group has total market capitalization of Rs.8482 b. 

TCS (Rs.4726 b) and Tata Motors (Rs.1534 b) make up close to 74% of the market value of the group. Then you have Tata Steel (Rs.543 b) and Titan (Rs.473 b). These four companies are worth over 85% of the group. The concentration appears to be a little too much. When less modest, it means that other companies in the group are faltering.

Let's take revenues. The group had revenues of Rs.6662 b in 2016.

TCS had revenues of Rs.1086 b, Tata Motors had Rs.2755 b, and Tata Steel had Rs.1171 b in 2016. These three companies contributed over 75% of the group revenues. The story is similar with profits.  

Now Tata Motors MD has something to say. 

Tata Motors domestic business never did well, did it? All consolidated profits came from JLR. You can't bet on JLR and China all the time, can you? Remember that ever-loss-making Nano? 

With headwinds on the IT, and no investments in product development, cloud computing, and whatever the shit they call it these days, how can the Indian IT companies move ahead with their head held high? TCS, like others, has got to do something special and urgent.

Tata Steel's story isn't great either. Corus acquisition, large debt, dropping profits have been haunting the business.

Imagine a situation wherein TCS falters and JLR slows down. Tata Sons will then aptly be asked to show the money. Well, it has to start thinking about those lines, and actually be ready to show the money.