SUBSIDIARY AND

HOLDING
COMPANY: TATA
GROUP

SUBMITTED TO: SUBMITTED BY:

DR.RAJINDER KAUR GEETANJALI BHATIA
18/15
SECTION-A
BALLB(HONS)

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 ACKNOWLEDGEMENT
I would like to express my immense gratitude to our teacher ‘Dr. Rajinder Kaur’ for
providing me with this golden opportunity. I was able to learn a lot of information which
opened my mind into new horizons. I would also like to thank the library staff for helping
me and providing me with the books.

Thank you

Geetanjali Bhatia

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 INDEX
SERIAL TOPIC PAGE
NO. NO.
1 Introduction 4
2 Holding Company 4
3 Subsidiary Company 6
4 Unique features of transaction between holding and subsidiary 12
company
5 TATA Groups 13
6 Introduction 13
7 TATA Subsidiaries 15
8 Tata Consultancy Services 18
9 Tata Chemicals Limited 20
10 Tata Motors 21
11 Tata Steel 24
12 Tata Global Beverages 25
13 Bibliography 27

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 SUBSIDIARY AND
HOLDING COMPANY
 INTRODUCTION:
One of the popular firms of business combination is by means of holding company or
Parent Company. A holding company is one which directly or indirectly acquires either all
or more than half the number of Equity shares in one or more companies so as to secure a
controlling interest in such companies, which are then known as subsidiary companies.
Holding companies are able to nominate the majority of the directors of subsidiary
company and therefore control such companies. Holding company meet directly from such
subsidiary company or it may acquired majority or shares in existing company. Such
company also considered as subsidiary company in which holding company acquired
majority shares.

 HOLDING COMPANY:

 Definition:
As per provisions of The Companies Act 2013 Section 2(46), a company controlled by
another company is called a subsidiary company and the controlling company is called a
holding company. Thus control is used as the key parameter in the Act to determine
company holding status and holding company / subsidiary company relationship. The
control can be through various reasons including control of management or through
ownership of shares, management rights, voting rights etc. As per Companies Act, 2013
the world holding company is defined as a company in relation to one or more other
companies, meaning a company of which such companies are subsidiary companies.

 Types of Holding Company:

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The following are the different types of holding companies:
1. Parent holding company: It comes into existence when an organization in existence
acquires controlling stake in existing companies or starts new companies under its control.
For e.g. Tata Tea has acquired controlling stake in Tetley, a UK tea company. In this case,
Tata Tea is the parent holding company.
2. Offspring company: A new company started by some existing company with the
objective of exercising control. For example, ECC (Engineering Construction Corporation
Ltd.,) was set up by L&T (Larsen & Toubro Ltd.,) as its subsidiary. L&T is the parent
holding company and ECC is the offspring company.
3. Pure holding company: A company which is established primarily for uniting and
controlling the subsidiaries. For e.g. in the Tata group, Tata Sons Ltd., was established for
uniting and controlling the various subsidiaries. TV Sundaram Iyengar and Sons is the
holding company of the TVS group.
4. Proprietary holding company: A company which holds the entire stock issued by its
subsidiaries.
5. Intermediate holding company: A holding company of a subsidiary, but is itself
controlled by another holding Company.
6. Finance holding company: It does not control the affairs of other companies. It earns
profits by financing the operations of other firms.
7. Investment holding company: It does not control the affairs of other companies. It
invests in the securities of a number of companies. Its members derive the benefit of
diversified investment.
8. Primary holding company: A holding company which is not a subsidiary of any other
company. For example, Unilever Ltd., set.up HLL (Hindustan Lever Limited) as its
subsidiary. Unilever Ltd., which is the holding company is not a subsidiary of any other
company and is therefore a primary holding company
9. Mixed holding company: A holding company which runs its own business and also
controls the business of its subsidiaries. For e.g. ICI Ltd., set up Indian Explosive as its
subsidiary. ICI Ltd., runs its own business and also controls the business of Indian
Explosives.

 Advantages of Holding Companies:

Following are the advantages of Holding Company:
1) Subsidiary company maintained their separate identity.
2) The public may not be aware the existence of combination among the various
company.
3) Holding company need not to be invest entire amount in the share capital in subsidiary
company still enjoy controlling power in such company.
4) It would be possible to carry forward losses for income tax purposes.

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5) Each subsidiary company prepares its own accounts and therefore financial position and
profitability of each undertaking is known.
6) Holding company may additional acquired or disposed of and the shares in subsidiary
company in market whenever if desired.

 Disadvantages Of Holding Companies:

1) There is a possibility of fraudulent manipulation of accounts.
2) Inter company transaction may not be at a fair prices.
3) Minority share holders interest may not be properly protected.
4) The accounts of various companies may be made upon different dates to, manipulate
profit or financial position of Group companies.
5) The shareholders in the holding company may not be aware of true financial position of
subsidiary company.
6) Creditors and outsiders shareholder in the subsidiary company may not be aware of
true financial position of subsidiary company.
7) The Subsidiary Companies may be force to appoint person of the choice of holding
company such as Auditors, Directors other officers etc. at in dually high remuneration.
8) The Subsidiary Company may be force for purchases or sale of goods, certain assets
etc. as per direction of holding.

 SUBSIDIARY COMPANY:

 Definition:

Section 2(87) of the Companies Act, 2013 defines the Subsidiary Company. The
subsidiary company is the company that is controlled by the holding or parent company. It
is defined as a company/body corporate where the holding company controls the
composition of the Board of Directors. As per the Companies Amendment Act, 2017,
Section 2(87)(ii), if the holding company have control over more than one-half of the
voting power of another company, that particular company will be identified as the
subsidiary company.

 Controls Composition Of Board Of Directors:

What do we understand about “Controls the composition of Board of Directors?
The composition of a company’s Board of Directors shall be deemed to be controlled by
another company, even if the same is not actually so controlled, if that other company by
exercise of some power exercisable by it at its discretion can appoint or remove all or a
majority of the directors [explanation (b)].

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 Sometimes companies enter into an agreement or an understanding with other companies
to procure/receive some financial/technical/marketing/copyright/royalty /other sorts of
assistance, in return of some powers to exercise their discretions in their
Financial/Economic/Commercial decision processing. It means they allow other
companies to play a strategic role in their management as they were provided with some
sort of assistance, which is very important in running the business.

 Definition Of Control:
The term ‘control’ is defined u/s 2(27) as under: ‘Control’ shall include the right to
appoint majority of the directors or to control the management or policy decisions
exercisable by a person or persons acting individually or in concert, directly or indirectly,
including by virtue of their shareholding or management rights or shareholders agreements
or voting agreements or in any other manner.
Where more than one-half of the total share capital of a company (including body
corporate), S Ltd., is controlled by another company (holding company), H Ltd., either
directly (on its own) or together with is one or more subsidiaries, then such company (or
body corporate), S Ltd., is said to be subsidiary of the other company, H Ltd. Such control
can be through any one or more subsidiary / subsidiaries of the holding company
[explanation (a)].

Let’s put it in simple words to understand about “Controls the Composition of Board of
Directors”

ABC Ltd company can appoint a director when ABC Ltd is favoured by the exercise of
power by XYZ Ltd .Otherwise ABC ltd cannot appoint its director. ABC Ltd needs an
approval from XYZ Ltd to appoint its director. It is clear that ABC Ltd cannot appoint a
director of its choice.

 Total Share Capital:

The term ‘total share capital’ is not defined under the Companies Act, 2013.However, the
term ‘share’ is defined u/s.2(84) to mean a share in share capital of a company and
includes stock. U/s. 43 share capital can be of two kinds, equity share capital and
preference share capital.

Some companies have allotted Preference Shares and the same has been more that of
Equity share capital. For example, the Company “ S” Ltd paid up share capital is Rs.5
crore ,Equity share capital Rs.2 crore ( out of which 40% is held by one of the group
company) Preference Share capital Rs.3 crores ( entire shares held by the same group
company where it hold Equity shares).

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As per the Companies Act, 1956, the above company is an Associate company not a
subsidiary company .Now Present Companies Act 2013, as per the definition of Subsidiary
company provides that sub clause (ii) exercises or controls more than one-half of the total
share capital either at its own or together with one or more of its subsidiary companies:

The above sub clause denotes total share capital either at its own or together with one or
more of its subsidiary companies. Share capital is both Equity and Preference Share
capital.
What is the total share capital and how to see its classification.
The term ‘total share capital’ is defined under the Rules1 as:
In these rules, unless the context otherwise requires, “Total Share Capital” , for the
purposes of sub-sections (6) and (87) of section 2, means aggregate of the:-
(a) paid-up equity share capital- and
(b) convertible preference share capital.
Thus, where more than one-half of the aggregate of
(i) paid-up equity share capital, and
(ii) convertible preference share capital of a company (including body corporate) is
exercised or controlled by another company, the former company becomes subsidiary
company.
The Central Government (Ministry of Corporate Affairs or MCA) have authority to limit
number of layers of subsidiary companies that certain kinds of companies can have. MCA
to specify number of subsidiary companies that a subsidiary of certain kinds of companies
can have. [explanation (d)].

Going by the Total share capital definition, if the company is having the convertible
preference share capital , then only it will have taken into consideration for Total share
capital .Now we need to see how the companies issued Preference Share Capital.

Many companies issued Preference Share Capital as Redeemable Preference Share Capital
, which means they need to maintain as an Associate company irrespective of Preference
shares issued to their Group company or holding company.

To conclude, The companies which have issued convertible Preference Share capital will
come under the subsidiary status.

 Corresponding Provisions of the Companies Act, 1956:Section 2(47) and Section 4.

As per Section 4(1)(b)(ii) of the companies act 1956,if a company holds more than half in
the nominal value of equity share capital of another company, than such another company
is a subsidiary of first mentioned company .The wording of section i. more than half
clearly says that it is more than 50% & not exactly 50% even.

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There is an interesting case on the above subject. In the case of Oriental Industrial
Investment Corporation of India vs Union of India 1, the effect of section 4 in relation to
sections 255,256 and 257 came up for consideration.

In this case The High Court observed, inter alia, that the contention of the counsel for the
Union of India that "the control of Oriental over the composition of the Board of Poonam
Hotels which they exercise by virtue of their agreement dated August, 1975 is in
contravention of the provisions of Sections 255,256 and 257 of the Act overlooks the
important fact that section 255 excludes from its purview cases which have been otherwise
expressly provided in the Act. The words "save as otherwise expressly provided in this
Act" used in section 255(1)(b) are of commanding significance. Section 4(2) is an express
provision for the appointment of the directors on the Board of Subsidiary. This provision
is not hit by Section 255 because it is expressly excluded."
The High Court also observed that "there is no denying the fact that the right of the
members of a public company to appoint directors of their choice at a general meeting is
greatly abridged when there comes into being a relationship of a Holding and Subsidiary
Company. But this restriction inheres in the definition of the Holding Company. It is
firmly embedded in section 4 of the Act. The ability to control the conduct of the
Subsidiary is the hall-mark of the Holding Company. The Holding Company is the
controlling company. The controlled company is called a Subsidiary."

 Revised clarification by DCA

Following the Judgment of the Delhi High Court, the Department of Company Affairs
(DCA) issued a clarification modifying their earlier views on the above matter which is
reproduced below;-

"Department views";- The Department has issued a circular 14\74 dated 28-8-1974 to the
effect that the Articles of a company which confer upon another company the right to
make provisions for appointment of director upon another company with a view to make
the company a subsidiary is invalid under section 9 of the Companies Act. On a combined
reading of the provisions of sections 255, 256 and 257 and because section 257 is a
mandatory provision, this view does not seem to be well founded. The appointments made
pursuant to an arrangement whether by the Articles or by an agreement is not invalid
merely because any shareholder may seek election at an annual general meeting. Section
257 only deals with the right of a person other than a retiring director to stand for election
at the annual general meeting. The agreement or Article of a company, in so far as it or
they invest a company with the status of holding company in relation to the company of
which the board is controlled cannot be said to be inconsistent with section 257 which
comes into operation only when elections are to be held at the annual general meeting.

1
(1981)51 Com Cases 487(Del)
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It follows from the above that a public company is not required to comply with the
requirements of sections 255 to 257, if it is a Holding Company having the right to appoint
majority of directors on the Board of the Subsidiary company pursuant to section 4 of the
Act.

 Layers of subsidiaries:
The word layer as used in the section 2(87) of the act implies subsidiary or subsidiaries of
a holding company. The context in which it is used in the section, it implies it means
vertical subsidiaries. Section 186 and proviso to Section 2(87) of the Companies Act
restricts the number of layers that holding companies can have. It must be read in
conjunction with the Companies (Restriction on Number of Layers) Rules, 2017.

The wholly owned subsidiaries have now been excluded from being treated as a separate
layer as per the rules above.

The restriction on layered structuring also does not apply when a specific law requires a
layer to be created. We have discussed this later.

Step-down subsidiary company:

This phrase is not defined anywhere in the Companies Act, 2013. In common parlance, it
is used to specify a subsidiary of the subsidiary company.

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llustration 1: Layering – Distinction between subsidiary and step-down subsidiary

Here Company A is the holding Company.

Company B, F, G and H are the horizontal subsidiaries of the holding company where the
restrictions are not applicable. They can have as many horizontal subsidiaries.
Company F, G and H can have step down/layer subsidiaries just like company B.
Company B, C, D and E as the vertical subsidiaries company of the holding company A.
Here, we have to test the restrictions.
As company B is wholly owned subsidiary of company A, it will not be considered
separately as a layer. Therefore, it can be said that in the given illustration, holding
company A has 3 step down subsidiaries or layer companies i.e. company C, D and E.
As the rules specifies, any holding company can have only two layers, therefore company
C and D are well within laws. However, company A can’t have company E as its
subsidiary.
Illustration 2: Layering: Single and Two-Level Subsidiaries (with exceptions)

 COMMERCIAL REASONS FOR CREATION OF A HOLDING SUBSIDIARY

STRUCTURE:
1. To segregate the business structure and to create the distinct entities with separate
management. For example, FMCG products can be housed under one vertical and
consumer durables and electronics can be in another. This enables the value of different

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 businesses to be captured separately. It facilitates buying and selling of an individual
business. An investor can directly acquire shares of the company it is interested in. If
an investor wants exposure (i.e. stake or benefit) in both segments then it can invest at
the parent company level.
2. Holding-subsidiary structure can also be used by companies to create different brands
and brand categories for different kinds of products. For example, Vivanta is the budget
brand of the Taj Group of Hotels. Companies may prefer to house different brands
under different verticals. It enables them to bundle a brand and its intellectual property
together in the event of a sale. This planning is typically done beforehand or when the
company’s operations expand and they need to be ‘organized’ or ‘restructured’ in a
new way.
3. Companies use subsidiary structures to when they do business internationally, where
they incorporate a separate subsidiary company in each country. This enables a
company to enter and exit from business with respect to a particular country.
4. Sometimes, this form of structuring enables companies to take advantage of lower tax
rates in other jurisdictions. For example, many international venture capital funds have
structured investments into India through a Mauritius entity to take advantage tax
exemptions under India and Mauritius Double Taxation Avoidance Agreements
(DTAAs).
5. The structure can be expanded and extrapolated further by adding more layers of
subsidiaries. For example, a global company may have a South Asia Holding company
which has a parent India subsidiary, and further subsidiaries for different industry
segments that the company sells products/ services in.

 UNIQUE FEATURES OF TRANSACTION BETWEEN HOLDING AND

SUBSIDIARY COMPANIES:
1. All transactions qualify as related party transactions and need to comply with the
relevant restrictions on related party transactions. These restrictions are of multiple
kinds, depending on the type of transaction. They could range from disclosure of
interest, abstention from voting or taking approval of a specific majority of
shareholders before entering into the transaction. These principles seek to ensure that
the transaction does not get influenced merely by the relationship between the parties
and is executed on an arm’s length basis.
2. There are certain stamp duty relaxations available on transactions between holding and
subsidiary companies, especially if they are wholly owned. Since the holding and
subsidiary are different legal entities, their relationship and transactions between them
will require various kinds of contracts to be executed, and payment of stamp duty on
each contract can be onerous. Hence, stamp duty relaxations are beneficial. These
exemptions have been done with a view to facilitate such structuring and organization
of a company’s business. These exemptions are made available through separate
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 notifications hence they are not ordinarily visible in the text of the state-level Stamp
Act or schedule.
3. From an income tax perspective, arm’s length pricing principles may have to apply
especially, if the holding-subsidiary relationship is international. In certain cases, arm’s
length pricing applies in domestic situations also under Indian law.
4. Transferring dividend from a level 2 or level 3 subsidiary (where permitted) to the
holding company can be cumbersome and have unintended tax implications if the
structuring is not done carefully.
5. For loan transactions, one or more holding companies may issue guarantees for the
obligations of the subsidiary.

TATA GROUPS
Introduction:
“… What came from the people has gone back to the people many times
over.” J R D Tata

The founder of Tata Group, Jamsetji Nusserwanji Tata was born to Nusserwanji Tata and
Jeevanbai Tata on 3rd March 1839 at Navsari, in the state of Gujarat. Jamsetji Tata founded
the first company of Tata Group with the capital of Rs.21000 at the age of 29 in the year
1868. It is said that Jamsetji Tata was the man ahead of his times; the creation of Wealth
has been possible. Jamsetji Tata has gifted India the great heritage by creating the wealth
in the form of various pioneer industries.
The core values of Tata, integrity, understanding, excellence, unity and responsibility lead
Tata group to be the most respected business conglomerate of India. The devotion of five
generations has made Tata group one of India's oldest, largest groups of industries.
The group's businesses are spread over seven business sectors. It has its headquarters in
Mumbai, Maharashtra, India. The establishment of Tata group is ranged from sectors
namely communications and information technology, engineering, materials, services,
energy, consumer products and chemicals. It has operations in more than 100 countries
across six continents. Tata Group consists of over 100 operating companies. There are 32
are publicly listed companies in the group. The major Tata companies are Tata Steel, Tata
Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global
Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The
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combined market capitalization of all the 30 listed Tata companies was INR 832,374 crore
(134 billion US$) as of 31st March, 2015. The group revenue as on 31st March, 2015 is of
$ 108.78 billion with more than 68% of its revenue from outside India. 66% of the holding
is with the philanthropic trusts Approximately two third of the equity of the parent firm,
Tata Sons Ltd., is held by philanthropic trusts gifted by Sir Dorabji Tata and Sir Ratan
Tata, sons of Jamsetji Tata. Tata Group employs 610000 employees. Tata Group has
contributed to the nation in many wonderful gifts.
Tata Group has given the first steel plant, hydroelectric plant, inorganic chemistry plant to
76 the nation. They have created reservoir of scientific and technological work force for
the country as well. The founder trust have established the Tata Institute of Social
Sciences in 1936, India’s first cancer hospital, the Tata Memorial in 1941, the Tata
Institute of Fundamental Research (Cradle of India’s Atomic Energy Program) in 1945.
The seed of Tata Group has propagated in the year 1868 with the establishment of private
trading company by Jamsetji Tata. In the year 1874, he positioned the group’s entry in the
textile industry with the Central India Spinning Weaving and Manufacturing Company
Limited. The year 1887 was the year of partnership firm “Tata & Sons” between Sir
Dorabji Tata, elder brother of Jamsetji Tata and his cousin brother RatanjiDababhoy Tata.
In the year 1896, the younger son of Jamsetji Tata, Sir Ratan Tata joined the firm. One of
the finest gifts to India by Tata Group is hotel Taj “Tata’s White Elephant”. The Indian
Hotels Company incorporated in the year 1902 to set up India’s first luxury hotel. The
TISCO (Tata Iron and Steel Company) established in the year 1907. It was the first
integrated plant of India. Tata Hydro Electric Power Supply Company (Tata Power) set up
in the year 1917. In the year 1932, Tata Group entered the aviation industry. The largest
producer of soda ash in India, Tata Chemicals is established in the year 1939. Tata
Engineering and Locomotive Company (Tata Motors) established in 1945. In the year
1954, Voltas, the marketing, engineering and manufacturing organization was established.
Andin 1962 alliance with James Finlay to enter into fast moving consumer goods industry
was formed and later in the year 1980 Tata Finlay was bought out to form Tata Tea
(TGBL, the second largest tea company in the world).Tata Group is a pioneer in several
areas. They are the holder of credit to pioneer India’s steel industry, starting country’s first
power plant, India’s first luxury hotel, the first Indigenous car andmany more in the
employee’s welfare.
Tata Sons and Tata Industries are the two promoter companies of Tata Group. Tata Sons is
the promoter of all the main and major companies of the Tata Group and it has set up Tata
Industries in the year 1945 as a managing agency for businesses of Tata Sons. Tata Sons is
the owner of the Tata name and Tata trademark. Tata Group remains a family-owned
business, as the descendants of the founder (from the Tata family) own a majority stake in
the company. The current chairperson of the 77 Tata group is Cyrus PallonjiMistry, who
took over from Ratan Tata in 2012. The chairperson of Tata Sons has traditionally been

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the chairperson of the Tata group. About 66% of the equity of Tata Sons is held by
philanthropic trusts endowed by members of the Tata family.

The Tata Group and its companies & enterprises are perceived to be India's bestknown
global brand within and outside the country as per an ASSOCHAM(The Associated
Chambers of Commerce & Industry of India) survey. The 2009, annual survey by the
Reputation Institute ranked Tata Group as the 11th most reputable company in the world.
The survey included 600 global companies. The Tata Group has helped establish and
finance numerous quality researches, educational and cultural institutes in India. The
group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long
history of philanthropic activities. Tata group has total 73 brands in the market all over the
world in the different sectors.

 TATA GROUP SUBSIDIARIES:

List of entities associated with Tata Group:

The following are articles related to the Tata Group,large multinational conglomerate from

India, with many of its operations based abroad in the US and the UK. The Tata Group is
owned by the Tata Sons.

Companies with TATA label

o Subsidiaries within  Tata Group :

 Tata AIA, an insurance based joint-venture company with American International

Group.

 Tata Capital, a wholly owned subsidiary of Tata Sons Limited, the apex holding
company of the Tata Group.

 Tata Communications, also known as Tata VSNL, a communication company

acquired in 2002.

 Tata Consulting Engineers Limited, Engineering, Design and consultancy for all
types of infrastructure and industrial developments. Specialized in power sector.
(Established in 1962)

 Tata Consultancy Services, Asia's largest IT company and World's Largest Software
and Services Company

 Tata DoCoMo, a GSM based mobile company with alliance with NTT docomo

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 Tata Chemicals

 Tata Defence

 Tata Elxsi, another Tata IT company.

 Tata Global Beverages, the world's second largest tea business.

 Tetley (Subsidiary of Tata Global Beverages)

 Tata Housing Development Company, Real estate development company

 Tata Value Homes Limited (100% Subsidiary of Tata Housing, operating in

value and affordable segments)

 Titan Industries, World's 5th largest watch manufacturer.

 Tata Interactive Systems (TIS), is a provider of performance support systems and e-

learning platforms.

 Tata Marcopolo Motors

 Tata Motors, the world's fifth largest and India's largest automobile company. Tata
Motors' principal subsidiaries include

 Jaguar Land Rover the British company making Jaguar and Land Rover
(including Range Rover) cars

 Fiat-Tata, was a joint venture with Fiat which manufactures automotive

components and Fiat and Tata branded vehicles

 Tata Technologies

 Tata Daewoo

 Tata Marcopolo

 Tata Hispano, coach builder

 Tata Hitachi Construction Machinery)

 Tata Motors Cars produces passenger cars under the Tata Motors marque

 Tata Power, India’s largest private sector electricity producer

 Tata Salt

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  Tata Sky, a Direct To Home service company in alliance with British Sky
Broadcasting and Newscorporations STAR

 Tata Starbucks

 Tata Steel, World's 12th largest steel company.

 Tata Steel Europe, formerly Corus group

 Tata Teleservices, India's second CDMA telecom company.

 Tata Technologies

 TRL Krosaki Refractories Limited, a refractory company, formerly Tata

Refractories Limited with Krosaki Harima Corporation.

 Tata CLiQ, e-commerce website, selling apparel, footwear and electronics.

Subsidiaries without the TATA Label:

 Mjunction, A Tata Steel & SAIL Joint venture- It is India's Largest B2B E-
Commerce company with GMV more than 3500000 Crore

 C-Edge Technologies, TCS-SBI joint Venture

 CMC Limited Computer maintenance corporation, Information Technology

services, consulting and software company

 Corus Group plc, former name of Tata Steel Europe

 Tetley, UK based international tea brand

 Taj Hotels Resorts and Palaces, Owner of 'Taj' hotels

 Computational Research Laboratories, Tata initiative in high performance

computing

 VSNL International Canada in Canada

 Titan Industries, clock and watch maker in India

 Tanishq, a jewellary brand in India

 Trent (Westside), retail chain

 Brunner Mond, subsidiary of Tata Chemicals

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  Voltas

 Vistara, an Indian airline that is a joint venture with Singapore Airlines

 Taj Air Chartered flights

 Infiniti Retail Cromā

 Jaguar Land Rover, British car manufacturer, formed when Tata

Motors acquired Jaguar and Land Rover from US multinational Ford in June 2008

 e-Nxt Financials ltd., Enterprise solutions provider

 The Dhamra Port Company Limited

 Rallis India Limited Rallis is an Agricultural Research Company, They provide

Agricultural products and Services. For more info visit

o Educational and Research Institutes:

 Tata Institute of Fundamental Research

 Tata Institute of Social Sciences
 Indian Institute of Science
 Nettur Technical Training Foundation R D Tata Technical Education
Centre Jamshedpur
 National Centre for Performing Arts
 Tata Management Training Centre
 Tata Memorial Hospital
 Tata Ecotechnology Centre

 TATA CONSULTANCY SERVICES:

Introduction:
Tata Consultancy Services is India’s first software company. Tata Consultancy Services
has the market capitalization of Rs. 4, 95,770crores (74.83 billion $) as on 31st March,
2016 which is 64.29% of the market capitalization of 29 listed companies of Tata Group.
It is the largest and highest revenue generating company of Tata Group. Tata Consultancy

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Services (TCS) was established in 1968 as a division of Tata Sons Limited. TCS Ltd. got
the Certificate of Incorporation to initiate its business separately on January 19, 1995. TCS
is the largest company of the Tata group, India’s most respected and the largest
conglomerates. Tata Consultancy Services is into IT services, consulting and business
solutions organization. It delivers real-time solutions to their global business clients with
the help of their 324000 well trained IT professionals and consultants all over the world. It
has its unique Global Network Delivery Model, which is considered as the benchmark of
excellence in software development. It is listed on the National Stock Exchange and
Bombay Stock Exchange in India. TCS has more than 60 subsidiaries all over the world.

Tata Consultancy Services serves the businesses in below mentioned portfolio:

 Global Consulting
 Enterprise Solutions
 IT Infrastructure Services
 Business Process Services (BPS)
 Assurance Services
 TCS BaNCS—Financial Services Software Suite
 Application Development, Re-engineering, Maintenance & Support
 Engineering and Industrial Services

Key Business Highlights FY 2017-2018

 Signed several industry-defining mega deals in FY18, including the largest IoT deal
with Rolls Royce, and the core transformation deal with Transamerica
 Revenue of $19.09 billion represented a growth of 8.6% in dollar terms over the prior
year, which translates into 6.7% growth in constant currency (cc) terms  
 Six industry verticals experienced double-digit growth in cc terms, collectively
growing 13.2%, while the Banking, Financial Services and Retail (BFSI) and Retail
verticals experienced single-digit growth. 
 By geography, cc growth was led by Continental Europe (19.1%), the UK (8.6%),
Latin America (7.8%), and India (6.9%)
 Revenue from digital engagements grew 35.3% over the prior year in cc terms and
accounted for 21.2% of total revenue
 Delivered an industry-leading operating margin of 24.8% and a net margin of 21%
 Organic talent development initiatives resulted in over 247,000 employees getting
trained in digital technologies, and over 208,000 employees trained in Agile methods,
giving TCS the largest Agile-ready workforce in the world.

Financial Highlights 2018

No. Label 2017-18 (Rs crore)
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1 Revenue 126,746
2 EBITDA 36,158
3 EBIT 34,144
4 PAT 25,880

 TATA CHEMICALS LIMITED (TCL)

Introduction:
Tata Chemicals Limited is a public company founded by J.R.D. Tata at Mithapur, Gujarat
in the year 1939. Jamsetji Tata created the plant to raise a wealth of marine chemicals
from the ocean. The objective was to reach the lives of human in many lives. Tata
Chemicals was the conveyor to reach the lives of human all over the world. It has its
presence across four continents. It is a subsidiary of Tata Group. It is an Indian
multinational, which has significant presence in the chemical industry. Tata Chemicals has
it’s headquarter at Mumbai, India. It is the largest chemical company of India having
major operations in India and Africa. Tata Chemicals employ over 4800 employees. The
company has recognized for its clear commitments to their mission of sustainability and its
good environmental management practices. Tata Chemicals is the world’s second largest
producer of soda ash. It has its manufacturing facilities in Asia, Europe, Africa and North
America.
Tata Chemicals Limited is a company with interests in businesses that focus on
LIFE:
 L-Living
 Industry
 L- Farm
 E-Essentials
The company believes in harnessing the fruits of science for goals that go beyond
business.
Tata Chemicals is an integral part of the life of millions of Indians by the portfolio of its
products. Tata Chemicals is the pioneer and market leader in India’s’ branded Iodised salt
segment. Tatas are always been thinking for people. As a result, to get the clean and safe
drinking water after Tsunami, Tata Chemicals have introduced an innovative, low-cost,
nanotechnology-based water purifier that will provide affordable, safe drinking water to

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the masses. The strong routes of Mission, Vision and Values have made Tata Chemicals to
be strengthened on principles of sustainability.
Tata Chemicals classifies its products under three categories. Living Essentials, Industry
Essentials, Farm Essentials.

Business Highlights FY18

 Witnessed highest-ever production and sales (India operations) for salt and sodium .
bicarbonate
 Expanded the consumer products range from Tata Salt to pulses, including organic
pulses, nutri-mixes and khichdi with a strong pipeline of value-added products
 Seeded two investments totalling Rs 565 crore in Specialty Chemicals for our
Nutritional Solutions plant in Nellore, Andhra Pradesh and Silica based products in
Cuddalore, Tamil Nadu.
 Tata Salt was ranked the third Most Trusted Food Brand in the Economic Times
Survey 2017
 Divested the Urea and Customised Fertiliser Business at Babrala, Uttar Pradesh
effective 12th January 2018 to Yara by way of a slump sale.
Financial Highlights FY18
No. Label 2017-18 (Rs crore)

1 Revenue 10,345

2 EBITDA 2,191

3 EBIT 1,673

4 PAT 2,702

 TATA MOTORS:
Introduction:

Tata Motors is an Indian multinational automotive manufacturing company. It has it’s

headquarter in Mumbai, Maharashtra and it is the subsidiary company of Tata Group. Tata
Engineering and Locomotive Co. Ltd. was the predecessor of Tata Motors established in
the year 1945 to manufacture locomotive and other engineering products. It is India’s
largest automobile company.

In the year 2003, the company changed its name to Tata Motors. The company's 90,485
employees are guided by the vision to be 'best in the manner in which they operate best in

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the products they deliver and best in their value system and ethics. Tata Motors, the first
company from India's engineering sector to be listed in the New York Stock Exchange
(September 2004), has also emerged as an international automobile company. Through
subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea,
Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo
Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these products to several international
markets. Tata Motors has auto manufacturing and assembly plants in Jamshedpur,
Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South
Africa, Thailand, and the United Kingdom. It has research and development centres in
Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Spain, and the
United Kingdom. Tata Motors has done the related 88 diversification by entering the
passenger vehicle market in the year 1991 with the launch of Tata Sierra. In the year 1998,
Tata Motors launched the first fully indigenous Indian passenger car Tata Indica. In the
year 2008, Mr.Ratan Tata has kept the promise given to the common man by launching the
World’s cheapest car Tata Nano – the People’s car. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini–truck.

Key Subsidiaries

 Concorde Motors (India) Limited: Concorde Motors India Ltd. (CMIL) is a fully-
owned subsidiary of Tata Motors. A pioneer in professionalising the automobile retail
business in the country, CMIL is a one-stop shop for the complete range of Tata
Motors’ passenger vehicles, sales, service and spare parts.
 Jaguar Land Rover Automotive Plc: Jaguar Land Rover brings together two
prestigious British car brands. Tata Motors acquired the brands from Ford in 2008,
merging them into a single company in 2013. One of the world’s leading premium car
brands, Jaguar Land Rover presents the future of sustainable mobility.
 TAL Manufacturing Solutions Limited (TAL): A 100% subsidiary of Tata Motors,
TAL Manufacturing Solutions was formed in 2000, and delivers manufacturing
solutions to the automotive, heavy engineering, aerospace and defence sectors through
its state-of-the-art facility at Nagpur, India.
 Tata Motors European Technical Centre PLC (TMETC): Based in Coventry, UK,
Tata Motors European Technical Centre PLC (TMETC) is a wholly-owned subsidiary
of Tata Motors. As a centre of excellence for automotive design and engineering,
TMETC is an active partner in a number of collaborative projects in low carbon
technology, and electric and hybrid vehicle technology for future passenger and light
commercial vehicles.
 Tata Motors Insurance Broking and Advisory Services Limited (TMIBASL): A
wholly-owned subsidiary of Tata Motors, TMIBASL undertakes to deliver customer-
focused broking services in compliance with IRDAI broking guidelines. TMIBASL
plays an integral role in advising and managing customer portfolios through risk
advisory and risk management.

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 TMF Holdings Limited: TMF Holdings Limited came into existence in 2003, a
merger of the Bureau for Hire Purchase and Credit (BHPC), the vehicle financing arm
of Tata Motors, and the asset financing arm of the erstwhile TMF Holdings Limited is
the largest financier of vehicles manufactured by Tata Motors.
 TML Distribution Company Limited (TDCL): TML Distribution Company Limited
(TDCL) is engaged in the distribution, logistics, and sale of commercial and passenger
vehicles manufactured by Tata Motors.
 Tata Hispano Motors Carrocera S.A.: Tata Hispano Motors Carrocera S.A.
(formerly Hispano Carrocera, S.A.) is one of the largest manufacturers of bus and
coach cabins in Europe. A wholly-owned subsidiary of Tata Motors, the company also
provides spare parts and after-sales services .
 TRILIX Srl: Trilix Srl, founded in 2006, is a mid-sized commercial art and graphic
design company, located in Nichelino, Italy.
 Tata Precision Industries Pte. Limited.: Set up in 1995, Tata Precision Industries Pte.
Limited. is a 50:50 joint venture between Tata Precision Industries Pte.Ltd. and Tata
International Limited, India. A world-class manufacturer of precision engineering parts,
its state-of-the-art facility at Dewas, India, manufactures telecommunications and
automobile parts.
 Tata Technologies Limited: A global leader in engineering services outsourcing and
product development IT services to the global manufacturing industries, Tata
Technologies is a company of innovators, specialists in the design engineering space,
who apply cutting-edge technologies to provide competitive advantage to customers in
the manufacturing sector. The company is headquartered in Singapore.
 Tata Marcopolo Motors Limited (TMML): Tata Marcopolo Motors Limited
(TMML) is a 51:49 joint venture company of Tata Motors Ltd. (TML) India and
Marcopolo S.A. Brazil for manufacturing of buses in India.
 TML Holdings Pte. Limited: TML Holdings Pte. Limited is a 100% subsidiary of
Tata Motors with effect from 2008.
 Tata Daewoo Commercial Vehicle Company Limited: Since its inception in 2004,
Tata Daewoo Commercial Vehicle has established a solid foothold in the industry as
one of the nation’s most reputed truck makers. Today, it exports its products to more
than 60 countries. Tata Daewoo has worked with Tata Motors, its parent company to
develop a medium and long-term plan to grow into a global market leader.
 Tata Motors (Thailand) Limited: Tata Motors has been an integral part of the large
and vibrant economy of Thailand ever since it set up Tata Motors Thailand in 2008.
The company assembles the Xenon pickup locally, and imports other products in the
small, medium and heavy commercial vehicle categories.
Financial Highlights FY18 (India Operations)
No. Label 2017-18 (Rs crore)

1 Revenue 58,457

2 EBITDA 3,391

3 EBIT 292
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4 PBT (947)

 TATA STEEL
Introduction:
The story of Tata Steel is century old. It has completed hundred years of its century in the
year 2007. The world of Tata Steel is one without boundaries - growing, changing and
challenging every day. Tata Steel is a world that embraces different skills, continuous
innovation, financial investment, responsible use of natural resources. Above all, there is
the enduring commitment of giving back to society that helps make the vision of
sustainable growth a reality. It was the vision of a positive change that led Jamsetji
Nusserwanji Tata to pave the path for industrialization in India. He firmly believed that
only steel could fuel the country’s’ industrial and economic independence. In his lifetime
J.N. Tata was driven by three guiding stars - building an iron and steel company,
generating hydro-electric power and creating an institution that would offer the best-in-
class education in science.
Tata Steel was established in 1907 as Asia's first integrated private sector steel company
by JamsetjiNusserwanji Tata. Tata Steel has operations in 26 countries in the world. It has
commercial presence in over 50 countries and employees 80,000 employees across five
continents. Tata Steel founded India’s first industrial city that is Jamshedpur. Tata Steel
Group is among the top-ten global steel companies. It is now the world's second-most
geographically diversified steel producer. The Group recorded a turnover of Rs. 139,504
crores in FY 15.
Tata Steel operates has its operations all over world.
 Tata Steel
 Indian Operations Tata Steel
 European Operations
 UK (& Ireland) - There are three steel making facilities (Port Talbot, Rotherham and
Scunthorpe).  Port Talbot Works, UK: Port Talbot Plant  Rotherham Works UK: 
Scunthorpe Works UK
 Ijmuiden Works Netherlands
 Tata Steel South East Asian Operations:
NatSteel Singapore:
Tata Steel Thailand

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Financial highlights 2018:
No. Label 2017-18 (Rs crore)
1 Revenue 133,016
2 EBITDA 22,045
3 PAT 17,763

 TATA GLOBAL BEVERAGES :

Introduction:

Tata Global Beverages formerly known as Tata Tea has established in the year 1983.
Company is the global beverage company in the production and distribution of tea, coffee
and water. Tata Global Beverages is the second largest tea company in the 98 world. The
company is the market leader in the domestic branded tea market and a dominating player
in the branded tea and coffee in the markets of UK, US and Canada. TGBL entered the
branded tea business in 1991 and has grown over they are through acquisitions and joint
ventures. Till date, the largest acquisition for the company has been the European tea
brand Tetley in 2000 for $450 million. The other major acquisitions by TGBL include tea
company Good Earth in the US (2005), Eight O’ Clock (EOC) coffee branding the US
(2006) and coffee brand Grand in Russia (2009). Apart from tea and coffee, the company
has expanded its beverage offerings to the mineral water business by investing in Mount
Everest Mineral Water Company (2007) that owns the Himalayan brand. With the
diversification in the product basket of Tata Tea, the company changed its name to Tata
Global Beverages in 2010 with the aim of establishing itself as a global beverage company
from a branded tea marketing company.
In November, 2010, TGBL entered into a 50:50 joint venture with PepsiCoLtd. The aim
was to develop, manufacture, sell and distribute hydration beverages with NourishCo
Beverages. Further, in 2012, TGBL entered into a 50:50 JV with Starbucks Coffee
International Inc, US to set up Starbucks Coffee stores in India. With a long history and
experience in the beverages market, and a heritage of innovation and development, the
Company has evolved from a predominantly domestic Indian tea farming entity to a
marketing and brand-focussed global organisation. TGBL’s ambition is to expand our
global footprint by entering new markets and fresh channels with its brands. TGBL has a

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strong portfolio of brands like Tata Tea, Tetley, Jemca, Vitax, Eight O’Clock Coffee,
Himalayan, Grand Coffee and Joekels. Sustainability is at the heart of the plans for long-
term success of TGBL. Tata Global Beverages has grown through innovations, strategic
alliances and acquisitions, and organic growth. The Company has branded beverage
business operations in India, Europe, United States, Canada and Australia, plantation
business in India/Sri Lanka and extraction business mainly in United States and China.

The Company’s business segments includes –

 Tea: Cultivation, manufacture, and sale of tea in packet, bulk and value added forms.
 Coffee and Other Produce: Cultivation of coffee and related plantation crops and
conversion of coffee into products such as roast and ground coffee and instant coffee
 Others: Sale of water products and other businesses

TGBL Structure:

Financial Highlights FY18

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No. Label 2017-18 (Rs crore)

1 Revenue 6,910
2 EBITDA 839
3 EBIT 723
4 PAT 557

BIBLIOGRAPHY
 https://accountlearning.com/holding-company-meaning-definition-types/
 http://newhorizonindia.edu/nhc_kasturinagar/wp-content/uploads/2018/01/MCOM-Ac-
Paper-I.pdf
 http://www.simpletaxindia.net/2015/05/subsidiary-company-under-companies-act.html
 https://blog.ipleaders.in/difference-between-holding-and-subsidiary-company/
 https://blog.udemy.com/holding-company-structure/
 https://smallbusiness.chron.com/advantages-disadvantages-creating-subsidiary-
operating-companies-25733.html
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%20Profile.pdf
 https://www.tata.com/business/tcs
 https://www.tatamotors.com/about-us/subsidiaries/
 https://www.tata.com/business/tata-motors
 https://www.tata.com/business/tata-steel
 http://www.tataglobalbeverages.com/brands/coffee

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