The Internationalisation Process of the Tata Group

This report is going to analyse and evaluate the internationalisation process of the Tata group. Therefore the three major global acquisitions of Tata companies will be examined and evaluated after a brief introduction concerning the history and important chairmen of the group. Following there will be an analysis of Tata’s competitive advantage as well as a recommendation for their future direction in order to sustain these advantages.

During the last couple of years India, the world’s largest democracy, has also become an important economy not only concerning the inward foreign direct investments from other countries. According to the Investment Country Profiles report on India, the foreign direct investment (fdi) flows abroad have steadily increased since 2000 and peaked in 2007 with US $18.73 billion. In 2011, India reached fdi outflows of US $11.1 billion and most of it flowed to developing economies for example to Africa.

This development is due to the increasing internationalisation of Indian firms like Infosys, Wipro or Ranbaxy. Yet, there is one Indian conglomerate that has shaped this development more significantly than any other, the Tata group. It is the largest private group in India in terms of market share and revenues and it has also played a significant role in the economic history of India Moreover, the Tata group is the leading company in terms of the internationalisation of Indian firms due to some important investments abroad.