Tata Technologies debut propels Tata Group’s market cap to Rs 26.20 lakh crore The bumper debut of Tata Technologies on Dalal Street led to a surge in the conglomerate’s overall market capitalization, reaching a new high of Rs 26.20 lakh crore on Thursday. The engineering unit of Tata Motors witnessed an astounding 180% rally on its debut, marking one of the most substantial gains for a public offering of its size. With the exception of Rallis India, all Tata Group companies have posted positive returns in 2023. Notably, Benares Hotels, Automotive Stampings & Assemblies, and Trent have more than doubled their stock values since January, while Tata Motors and Tata Investment Corporation recorded impressive surges of 81% and 94%, respectively. Tata Motors also holds the title of the top gainer on the Nifty 50 for the year. Tata Technologies, boasting a market capitalization exceeding Rs 53,000 crore, now stands as the ninth most valued Tata Group company. Notably, the newly listed company contributes more than 2% to the overall group market capitalization, surpassing the contributions of Tata Elxsi, Tata Communications, Voltas, and Tata Chemicals. In a shift from previous trends, most group companies have actively participated in the ongoing market rally. TCS, the group’s largest firm, which once represented nearly 75% of the group’s overall market capitalization in 2020, now constitutes less than 50% of the total. Leading contributors to the market capitalization addition include Tata Motors, Titan, and Trent. Tata Motors alone has witnessed a staggering Rs 1.2 lakh crore increase in market capitalization in 2023, while Titan and Trent have seen growths of ₹75,000 crore and ₹50,000 crore, respectively.
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.
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