Tata Group identifies 3 new sectors to drive growth

As the Tata Group gets ready for generation next to take charge at Bombay house, it is looking to consolidate operations in its flagship companies. But, more importantly, it is identifying new areas that will be nurtured over the next one-year to become stars over the next decade, reports CNBC-TV18's Sajeet Manghat and Shruti Rajkumar.

First, Ratan Tata took his successor Cyrus Mistry for a round of introductions in the corridors of power. Then, Mistry had an introductory meeting with Gujarat Chief Minister Narendra Modi, the latest state that has become home to a Tata Group company. As Cyrus Mistry gets ready to enter Tata House as chairman, he has his work cut out for him.
Over the last three decades, the group grew to command an USD 83 billion market cap, aided by three flagship companies -- TCS, Tata Motors and Tata Steel. IT and communications make up just 16% of the group's revenues, while engineering and automobiles make up 35%, and materials account for 32%. So, it will be up to Cyrus Mistry to identify and nurture those group companies with the potential to become true flag-bearers. So, which companies is the group looking at? First: Tata Projects
Born in 1979, this engineering, procurement and construction (EPC) player is involved in executing power generation and transmission projects, and setting up steel plants and blast furnaces. Currently, 40% of its revenues come from power, while power T&D, and steel plants contribute 20% each. The group has set this company a revenue target of Rs 10,000 crore by 2015. Second: Tata Housing
Set up in 1984, this has burst into the limelight over the last three years. It currently has 40 million square feet of land under various stages of development and has ventured into developing townships and housing projects under the PPP model. It has PPP agreements with Karnataka and Gujarat, and has even ventured into the Maldives and Sri Lanka, and markets like Kenya and Nigeria are on the anvil. It aims to become one of India's top three real estate developers with revenues of over USD 1 billion by 2015. Third: Tata Interactive Systems
This marks the group's foray into the education space through technology-aided learning. It plans to reach 150 cities by the end of 2012. In December 2010, it received Rs 100 crore from Tata Industries to enter the domestic school segment. Under this, it will rollout programmes in 1,000 schools by the summer of 2012 in a phased manner. Its flagship product