ASSIGNMENT

Name of the candidate

Anshu Gupta

Enrolment No.

03715903911

Course

MBA

Batch

2011-2013

Subject

E- business

Subject code

MS 112

Topic of assignment

Study on Large Business Houses

Subject Teachers name

Ms. Meenakshi Singh

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Three large business houses carried by future generation are:1. Birla Group 2. Tata Group 3. Bajaj Group

BIRLA GROUP The Birla family is one of the famous business houses in India. The fore-father of the Birla family is Shiv Narain Birla, a member of the Marwari community from Pilani, in the westerly state of Rajasthan. He moved to Bombay around 1857 to establish a trading house. His son, Baldeodas Birla moved to Calcutta in 1961 to set up his own business. Since then, the Birla family has grown into one of the wealthiest families in India and even today, the Birla name is considered synonymous with wealth and power in India. The family businesses vary from commodities and textile to automobiles, Information Technology and telecom. Their businesses have expanded and stroked across the entire world from Australia to Americas. Aditya Birla Success Grasim Limited (Cement Manufacturing Division) and Ultratech Cements are a part of the renowned Aditya Birla group having their manufacturing utilities spread over the length and breadth of the country. It has been a great matter of pride for us to have been given an opportunity to design and implement a voice network for various units of the Grasim Industries (Cement Manufacturing) units at Vikram Cement Khor (Madhya Pradesh), Aditya Cement Chittorgarh (Rajasthan),Grasim Cement Panipat (Haryana),Grasim Cement Kotputli (Rajasthan), Ultratech Cement Awarpur (Maharashtra) and Ultratech Cement Ginigera (Andhra Pradesh). We have provided the state of the art IP based voice network in the above units on Avaya platform. The network provided ensures the optional provision of the VOIP connectivity across their LAN/WAN network thereby eliminating

altogether their inter plant communication costs and the distance barriers since the networks is on IP platform. The above network also provides flexibility in terms of providing additional voice gateways via Ethernet interfaces in far spread mines areas / colony areas of each manufacturing unit thereby reducing the cumbersome copper cabling costs drastically. The provided network ensures the ROI in minimal time since the effective utilization of the network shall entail tremendous cost saving on the cabling front and the interplant communication costs. Aditya Birla Failures Brokerage firm Aditya Birla Moneys fancy scheme for the rich incurred heavy losses amid wrong bets. It has required intervention from the very top to set things right In the high stakes game of wealth management, where revenue generation usually takes precedence over client welfare, all it takes is a few overzealous people to run a portfolio to the ground. Aditya Birla Money, a financial services firm, discovered this the hard way recently, when a fancy scheme tailored for individuals with deep pockets ran into heavy losses apparently due to wrong and slipshod bets. The scheme, Options Maxima, involved trading in equity options where fund managers either short sold Nifty and bought options or did it the other way, a person familiar with the development told Moneylife. The scheme promised returns of around 1%-1.5% every month based on the arbitrage opportunities through this activity, which ensured what was considered a very fair 12%-15% return annually. The managers, however, made wrong calls on the movement of the index and stocks. The resulting losses supposedly amounting to a sizeable sum of nearly Rs100 crore caused panic in the company.

TATA GROUP Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. It is one of the largest conglomerates in India by market capitalization and revenue. It has interest in communications and information technology, engineering, materials, services,energy, consumer products and chemicals. Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. It comprises 114 companies and subsidiaries in eight businesssectors, 27 of

which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels. The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the major international business figures in the age of globality. The company is currently in its fifth generation of family stewardship. TATA Group's 114 companies are held by its main company Tata Sons and the main owner of Tata Sons are various charitable organisations developed and run by Tata Group. Out of which JRD Tata Trust & Sir Ratan Tata Trust are the main holders. About 65% ownership of Tata Sons which is the key holding company of the other 114 Tata Group Company is held by various charitable organisations. Tata Motors Success Tata Motors Limited has produced invincible auto and in the heavy vehicle segment and it is the world's 4th leading Truck manufacturer. It has attained the second place among world's leading passenger vehicle manufacturers. It has a rapid growth in its performance and it is a listed company with the Bombay Stock Exchange and the NSE. In 2010, Tata Motors has won the award - "India's most admire brand" and it is still in a dominating position among the top three passenger car producing buy out of the British vehicle business, the Jaguar Land Rover. In its acquisition history, Tata Motors acquired the commercial vehicle operations of the South Korean car company - Daewoo and now Tata Motors is the second biggest heavy commercial car producer of South Korea. As an achievement in its global growth it has the 2 auto design centres and 2 plants in the United Kingdom. By the first quarter of 2011, Tata Merlin, the new vehicle of Tata Motors in the Sports Utility Vehicle segment is going to be launched as a replacement to Tata Safari. This new launch is likely to be a challenging model to its competitor Ford Endeavour. Recently, Tata Motors has established its new production unit in Sanand of Gujarat State to produce its little car Nano and it is planning to produce 250,000 cars per annum. With its 24,000 workers and with its innovative plans and strategies, Tata Motors is making amazing achievements in the Indian and overseas auto markets.

Tata Motors Failures (Tata Nano) Though great initial success Tata Nano has suffered big setbacks with the Nano. Some of the problems are: 1. The heat and sound caused by its engine, which is mounted rear below the seats. 2. Long waiting list. 3. Interior of the car giving impression of make shift design.

4. Fixed tailgate making access to engine difficult. 5. Less than 30km/l average.

BAJAJ GROUP Bajaj Group is an Indian conglomerate founded by Jamnalal Bajaj in 1926, Mumbai. Bajaj Group is one of the oldest & largest conglomerates based in Mumbai, Maharashtra. The group comprises 34 companies & its flagship company Bajaj Auto is ranked as the world's fourth largest two- and three-wheeler manufacturer. Some of the notable companies are Bajaj Electricals, Mukand Ltd & Bajaj Hindusthan Ltd. Involvement in various industries that include automobiles (2- and 3-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The Group is headed by Rahul Bajaj. Bajaj Group Success The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, edication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of

Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. Bajaj Group Failures The recentlydemerged entities of Bajaj Group Bajaj Auto and Bajaj Finserv failed to keep up to investor expectations with both scrips settling in the negative territory on their debut trade. Bajaj Auto fell 36.03% to Rs 604, while Bajaj Financial service fell 26.47% at Rs 514.65 on the Bombay Stock Exchange. The scrip opened at Rs 945 and then fell to touch an intra-day low of Rs 556 before ending the trade at Rs 604.50 on the BSE. Similarly on the National Stock Exchange, the scrip opened at Rs 898 and ended the day at Rs 604.75, after touching a low of Rs 551.35. Over 62.76 lakh shares changed hands on both the bourses. Further, the scrip of Bajaj Financial service which opened at Rs 700 on the BSE, touched an intra-day high of Rs 999, fell during the day's trading to Rs 503.15, and finally settled at Rs 514.65. Similarly, on the NSE the scrip opened at Rs 600 and touched a low of Rs 501 before ending the day at Rs 509.10. Over 53.33 lakh shares changed hands on both the bourses. Last year Bajaj group was demerged into three separate entities Bajaj Auto Ltd, Bajaj Finserv and Bajaj Holdings and Investment Ltd. Bajaj Holdings and Investment Ltd would administer the two and three wheeler manufacturing business, Bajaj Finserv Ltd would be responsible for thecompany's financial services business including insurance and auto finance. For 2007-08, Bajaj Auto board has declared a dividend of 200% at the rate of Rs 20 on shares with face value of Rs 10, Bajaj Finserv has declared a dividend of 20% on shares of face value Rs 5.