One huge conglomerate with its operations spread far and wide in almost every field, and this one is a pioneer, right there at the top. It is only natural then that the Tata Group has grabbed any opportunity thrown up by new technology developments. As chairman Ratan Tata says, "The group is constantly changing. It is pursuing new opportunities created by developments in technology. At the same time, we continue to retain our strengths in the core business sectors that form our foundation."

The Tata Group, with 80 companies in seven sectors—engineering, materials, energy, chemicals, consumer products, communication and information systems and services—has two promoter companies, Tata Sons and Tata Industries. The IT companies in the stable are Tata Consultancy Services, still a division of Tata Sons, Tata Infotech, Tata Liebert and Tata Elxsi. Together, they accounted for Rs 4,032 crore in 2000-01—that’s 10% of the entire group’s revenues of Rs 40,000 crore. IT flagship TCS alone brought in Rs 3,142 crore.

An enviable quartet

The Tatas grew TCS into Asia’s largest software exporter after creating it as a logical alternative to the lapsed management agency system in the sixties. A year ago, succeeding in the new economy might have posed a dilemma for TCS, among nimble faster growing companies like Infosys, Wipro and Satyam.

The rate at which TCS grew, there were those that claimed that others would overtake it in revenues in a few years—the fear was that sheer base size would make high growth figures difficult in a fast-moving economy. But numbers posted in 2000-2001 and other developments scoff at all negativity—a growth of 54.5% in 2000-01, up from 23% in 1999-00; revenues shoot up from Rs 2,034 crore to Rs 3,142 crore; over 800 clients, seven of them in the Fortune 10 list in 2000; 4,000 new recruitments during the year, bucking the layoff trend afflicting most of the industry; and finally, a new Asia-Pacific hub set up in Singapore. That’s TCS for you.

The next in line as far as group IT entities go is Tata Infotech, another steady performer that offers a broad portfolio of services through third-party alliances and technologies. It is involved in software consulting, hardware manufacturing, offshore software development, systems integration, distribution of international software products and education services. The company seems to have one aim—consolidation, broadening its systems integration portfolio, spreading its wings abroad with partnerships with local developers. Tata Infotech doubled its growth from 11% in 1999-00 to 21% this fiscal, revenues were at Rs 524 crore this year, up from Rs 432 crore.

Power supply systems major Tata Liebert has its own potion for success in the future—identifying emerging markets while constantly designing new products and stabilizing existing business. Growth here has gone up from 28% last year to 47% this year; revenues from Rs 127% crore to Rs 188 crore. The year saw a Rs 26-crore turnkey power solution project from Power Grid Corp, the single-largest order even for 50:50 partner Liebert Corp.

And finally, Bangalore-based Tata Elxsi—the technical computing arm which is primarily engaged in advanced technologies like CAD/CAM, film and video, scientific computing and commercial and networking markets. While the film and video segments showed the highest growth, the CAD/CAM order book has also shown healthy trends. During the period, the company completed one of the largest campus networks in the country for Bharat Heavy Electricals, Hardwar. Revenues jumped from Rs 146 crore in 1999-2000 to Rs 179 crore in the fiscal under review.

Tomorrow’s roadmap

Where are the future growth areas? Tata Power is laying fiber-optic cables, the first step towards faster broadband services. Tata Power’s plans of identifying and entering new islands of opportunity have seen initiatives like Mumbai Broadband, Metro Broadband and National Highway projects, where it will lay optical fiber cables. Tata Industries, Tata Steel and Tata Power have posted bids for acquisition of the government’s stake in Videsh Sanchar Nigam, the country’s biggest Internet service provider.

With Tata Industries playing the lead role of a catalyst for the introduction of new businesses within the group in high-technology areas, it seems likely that the new business opportunities being pursued might end up as pioneering acts again, some time in the future. And though the group has been slow to take off in some of its ventures, like broadband services and the Internet access business, it still has enough experie nce and muscle to continue leading from the front.