Tata group, the biggest multinational conglomerate in India


Introduction

TATA, we all have already heard of the giant conglomerate from adding a taste in our dishes to booking a cheap flight for a trip. TATA groups have always been working in different sectors to make a better living for the economical people of the society. At present, the TATA group is known among the biggest Indian multinational conglomerate holding company with its diversified industries in steel, hydro-power, hospitality, and airlines in India. The group has set up many plants and industries across the globe producing profits for the company and providing employment for the locals. The headquartered of the TATA group is located at Mumbai, Karnataka in India and composed of over 100 independent operating companies and 695,699 employees across the world.

TATA

The group has widened its operations in more than 100 countries across six continents, with a mission ‘to improve the quality of life of the communities and services globally, through long-term stakeholders value creation based on leadership with trust’. The Tata groups are owned and run by TATA sons, the promoter of the major operating TATA groups and hold significant shareholding also. The TATA companies are commonly referred to as TATA groups and Chairmen of the TATA sons and TATA group are same.  About 66 percent of the equity capital of TATA sons is held by philanthropic trusts endowed by the member of the TATA family which supports education, health, livelihood generation and art and culture. Each TATA company operates separately under the supervision of its own board of directors and shareholders. At present, there are 29 publicly listed Tata enterprises with a combined market capitalization of about $151.62 billion as of March 1, 2018. The group includes companies like Tata Steel, Tata Motors, Jaguar, Land Rover, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Coffee, Tata Teleservices, Titan, Tata Communications, and The Indian Hotels Company Limited.  

The Beginning of the Tata era

jamshed jiThe Tata group was founded by the Jamshedji Nusserwanji Tata (3 March 1839 – 19 May 1904) in 1868 with a 21,000 capital. It was started as a trading company. By the time he was 29, had learned all the business skills while working in his father’s bank firm. After that, he got its first big industrial project called Empress Mill, a textile mill, in 1877.

From the starting he had the four ambitious goals of his life: setting up of Iron and steel industry, generating hydroelectricity power, create a science institution for Indians and a unique hotel. He even established the JN Tata Endowment to encourage Indian scholars to take up higher studies. During his lifetime he had been able to make only a luxurious hotel (today called as Taj hotel) and it was the only hotel in India which had the electricity.

After the death of Jamshedji, the legacy of Tata was succeeded by his elder son Sir Dorab ji. He was already fascinated by the ideas of the Jamshedji. In 1907, he built the first Iron and steel plant in Jamshedpur in the eastern part of the company and after a few years later, he set up a hydroelectric power plant near Bombay in 1915. The foremost dream of the Jamshedji was to build an institute to cultivate the Indian scholars, was accomplished in 1911 which today is known by Indian Institute of Science in Bangalore. Sir Dorab Tata died in 1932, by than Tata group had expanded its business in new areas like insurance, production of soaps, detergents and cooking oils.

After the Sir Dorab, Sir Nowroji Sakalatwala became the chairman of the group. He joined the TATA group as a clerk and become the head member of the company within 20 years. He was the first Non-Tata to become the chairman of the TATA group after the death of Sir Dorab.

In 1938, JRD Tata was appointed as the chairman of the group after Sir Nowroji’s demise. JRD Tata was fond of flying planes from the childhood days. He was also among the first Indians to have received a commercial pilot license. It leads him to built Tata Aviation services, the forerunner to Tata Airlines and Air India. The Air India was nationalized by the Indian government in 1953.  He served in Company for 53 yrs and escalated the growth of the company to its peak. During his time period in the company, the Tata group continue expanding regularly to new areas of business. They set up new ventures also like Tata Chemicals (1939), Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea [(1962) now known as Tata Global Beverages], Tata Consultancy Services (1968) and Titan Industries (1984).

At the inception of the 1900 many business and economic reforms were taken by the Indian government to attract many foreigner companies which increase the competition for the Tata groups. 

Ratan Tata became chairman in 1991 and guided the Tata groups through a fast-changing business environment. He retired as Chairman of Tata Sons on December 28, 2012.

Global Achievements:

Many of the Tata companies have achieved global leadership in their business. Tata Communication, a global telecommunication service and solutions provider, is among the top international wholesale voice provider and operates in around 240 countries. Tata communication is officially connectivity provider for the formula 1 and MotoGP.

tata motors

Tata Motors, an Indian multinational automotive manufacturing company, is among the top 10 commercial vehicle manufacturers in the world. Its global manufacturing plants are in Argentina, South Africa, Great Britain and Thailand. In 1991, it became the first Indian automotive manufacturer to achieve the capability of developing a competitive indigenous automobile.

Tata Steel is among the top fifteen steel manufacturers and TCS (Tata Consultancy Services), IT service and consulting company, is the world’s second largest IT services provider and operates in 46 countries globally. TCS became the first Indian company to reach $100 billion market capitalization goal in April 2018.

Tata Global Beverage, former name Tata Tea, is the second largest tea producing company in the world. Tetley, a product of Tata global beverage, is the best selling tea brand in Canada and the second most selling tea brand in UK and United /states.

Future of the Tata Groups

As the Group is growing the Tata companies are seeking to differentiate themselves through customer-centricity, innovation, entrepreneurship, trustworthiness, and values-driven business operations while balancing with the interest of stakeholders including shareholder, employee and civil society. The future goal of the Tata group can be more understood by the words of the former chairman Ratan Tata, he said “One hundred years from now, I expect the Tata to be much bigger than it is now. Most importantly, I hope the group comes to be regarded as being the best in India in terms of manner we operate and the products we deliver”.

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