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Tata Group

Type Private
Industry Conglomerate
Founded 1868
Founder(s) Jamsedji Tata
Headquarters Bombay House
Mumbai, India
Area served Worldwide
Key people Ratan Tata
(Chairman)[1]
Products Steel
Automobiles
Telecommunications
Power
IT Services/ITES
Hotels
Consumer goods
Retail
Agriculture
Financial services
Defence
Chemicals
Hospitality
Engineering
Beverages
Construction
Aerospace
Pharma
Revenue $67.4 billion (2009-10)[2]
Profit $1.74 billion (2009-10)[2]
Total assets $52.8 billion (2009-10)[2]
Employees 396,517 (2009-10)[2]
Subsidiaries Tata Steel
Tata Steel Europe
Tata Motors
Tata Consultancy Services
Tata Technologies
Tata Tea
Titan Industries
Tata Power
Tata Communications
Tata Sons
Tata Teleservices
Taj Hotels
Tata Chemicals
Tata Global Beverages
Website Tata.com


Bombay House, the head office of Tata Group
Tata Group (Hindi: टाटा समूह) is an Indian multinational conglomerate company headquartered in the Bombay House in Mumbai, India.[3] In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in eight business sectors,[4] 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts.[5] 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.[6] The company is currently in its fifth generation of family stewardship.[7]TATA Group's 114 companies are held by its main Company Tata Sons and the main owner of this Tata Sons is not Ratan Tata but various charitable organizations developed and run by TATA Group.Out of which JRD TATA Trust & Sir Ratan Tata Trust are the main.65% ownership of Tata Sons which is the key holding company of the other 114 Tata Group Company is held by various charitable organizations.[8]
The 2009 annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world.[9] The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India.[10][11] The group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activities.[12]
Contents [hide]
1 History
2 Chemicals
3 Consumer Products
4 Energy
5 Engineering
6 Information systems and communications
7 Services
8 Steel
9 Philanthropy and nation building
10 Corporate Social Responsibility
11 Tata's Ethics
12 Tata acquisitions and targets
12.1 Targets
13 Recognition
14 Revenue
15 Controversies and Criticisms
15.1 Munnar, Kerala
15.2 Kalinganagar, Orissa
15.3 Dow Chemical, Bhopal Gas Disaster
15.4 Supplies to Burma’s military regime
15.5 Land acquisition in Singur
15.6 Dhamra Port
15.7 Soda extraction plant in Tanzania
16 See also
17 References
18 External links
[edit]History

The beginnings of the Tata Group can be traced back to 1868,[13] when Jamsetji Nusserwanji Tata established a trading company dealing in cotton in Bombay (now Mumbai), British India.[14] This was followed by the installation of 'Empress Mills' in Nagpur in 1877. Taj Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji Tata became the chairman of the group after his father's death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals (1939), Tata Motors, Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent chairman of the group succeeded JRD Tata in 1991.[15]
[edit]Chemicals

Tata Chemicals
Rallis India
Tata Pigments Limited
General Chemical Industrial Products
Brunner Mond
Advinus Therapeutics
Magadi Soda Company
[edit]Consumer Products

Tata Salt
I-shakti
Casa Décor
Tata Swach
Tata Global Beverages
Eight O'Clock Coffee
Tata Ceramics
Infiniti Retail
Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea products.
Tetley
Tata Coffee
Tata Industries
Titan Industries
Trent (Westside)
Cromā
Tata Sky
TajAir
Tata International Ltd.
Tanishq
Tata Refractories
Westland
[edit]Energy

Tata Power is one of the largest private sector power companies.
Tata BP Solar, a joint venture between Tata Power and BP Solar
Hooghly Met Coke and Power Company
Jamshedpur Utilities and Services Company
North Delhi Power
Powerlinks Transmission
Tata Power Trading
Tata Projects
[edit]Engineering

TAL Manufacturing Solutions
Tata AutoComp Systems Limited (TACO)
Hispano Carrocera
Tata Motors, manufacturer of commercial vehicles (largest in India) and passenger cars
Jaguar and Land Rover
Tata Daewoo Commercial Vehicle
Tata Projects
Tata Consulting Engineers Limited
Tata Cummins
Telco Construction Equipment
TRF
Voltas, consumer electronics company
Voltas Global Engineering Centre
Tata Advanced Materials
Tata Advanced Systems
Tata Motors European Technical Centre
Tata Petrodyne
Tata Precision Industries
Telco Construction Equipment
[edit]Information systems and communications

Computational Research Laboratories
INCAT
Nelco
Nelito Systems
Tata Business Support Services
Tata Consultancy Services Ltd. (TCS) is Asia's largest software company.
Tata Elxsi
Tata Interactive Systems
Tata Technologies Limited
Tata Teleservices
Virgin Mobile India
Tata Communications
CMC Limited
VSNL International Canada
Tatanet, Managed connectivity and VSAT service provider
Tata Teleservices
Tata Teleservices (Maharashtra)
Tatanet
[edit]Services

Tata Sons
The Indian Hotels Company
Ginger Hotels
Roots Corporation
Landmark
Tata Housing Development Company Ltd. (THDC)
Tata Limited
TATA AIG General Insurance
TATA AIG Life Insurance
Tata AG
Tata Asset Management
Tata Financial Services
Tata Capital
Tata International AG
Tata Investment Corporation
Tata Advanced Systems Limited
Drive India Enterprise Solutions
Mjunction services
Tata Quality Management Services
Tata Realty and Infrastructure Limited
Tata Interactive Systems
Tata Africa Holdings
Tata AutoComp Systems
Tata Industrial Services
Tata NYK
Tata Services
Tata Strategic Management Group
[edit]Steel

Tata Steel
Tata Steel Europe
Tata Steel KZN
Tata Steel Processing and Distribution
JAMIPOL
NatSteel Holdings
Tata BlueScope Steel
Tata Metaliks
Tata Sponge Iron
Tayo Rolls
The Tinplate Company of India
TM International Logistics
[edit]Philanthropy and nation building

The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India.[10][11] The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of the group's long history of philanthropic activities.[12] Some of the institutes established by the Tata Group are:
Tata Institute of Fundamental Research
Tata Institute of Social Sciences
Indian Institute of Science
National Centre for Performing Arts
Tata Management Training Centre
Tata Memorial Hospital
Tata Football Academy
Tata Cricket Academy
Tata Trusts, a group of philanthropic organizations run by the head of the business conglomerate Tata Sons[16]
The JRD Tata Ecotechnology Centre
The Energy and Resources Institute (earlier known as Tata Energy and Research Institute) - which is an NPO completely committed to the cause of research in the field of renewable energy.
The Tata Group has donated a ₨ 220 crore ($50 million) to the prestigious Harvard Business School (HBS) to build an academic and a residential building on the institute’s campus in Boston, Massachusetts. The new building will be called the Tata Hall and used for the institute’s executive education programmes.[17] The amount is the largest from an international donor in Harvard’s 102-year-old existence.
A comprehensive list is available on the company website.
The recent The Brand Trust Report,[18] 2011 has ranked TATA as the second most trusted brands of India.
[edit]Corporate Social Responsibility



Ratan Tata, the chairman of Tata Group; noted philanthropist.
Ratan Tata has thought of many ways to help society before and after the Mumbai bombings in 2008. One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home water-purification device. It was called Tata swach which means “clean” in Hindi and would cost less than 1000 rupees ($21). The idea of Tata swach was thought of from the 2004 tsunami in the Indian Ocean, which left thousands of people without clean drinking water. This device has filters that last about a year long for a family of five. It is a low-cost product available for millions of Indians who have no access to safe drinking water in their homes.[19] The advantage of this device is that it does not require the use of electricity.[20]
TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. “The children of the people who have been through our literacy program are all in school,” says Pankaj Baliga, global head of corporate social responsibility for TCS. Tata adheres to a philosophy of providing some of the poorest people in the world with products that improve their future (and those of their children) at values they can afford, while maintaining enough profit to keep the company competitive.[19]
In 1912, Tata Group expanded their current CEO’s concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before any other company in the world. In 1917, they recommend a medical-services policy for Tata employees. The company would be among the first worldwide to organize modern pension systems, workers’ compensation, maternity benefits, and profit-sharing plans.[19]
In general, about 66% of the profits of Tata Group go to charity and executives made it clear that they have no intention of leaving control to Wall Street.[21] The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science, Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them. This makes the Tata family evidently less wealthy as individuals than other Indian family-owned companies.[19]
Green environment projects, donations, and charity are all examples of ways that companies support their community. Ratan Tata’s gesture after the 2008 Mumbai Attacks was humanitarian; he supported many people in India. He made sure that all the employees were treated on duty during the time the Taj hotel was closed; although the hotel was closed, salaries were still sent by money order. About 1600 employees were provided food, water, sanitation and first aid through employee outreach centers. Ratan Tata personally visited families of all the employees that were affected. The employee’s relatives were flown to Mumbai from outside areas and were all accommodated in Hotel President for 3 weeks and taken care of. Going beyond taking care of their employees and dependents, Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks. A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help. Tata also granted the education of 46 children of the victims of the terrorist attacks.[22][23] “The whole approach was that the organization would spend several hundred crore (Indian currency for $10 million) in re-building the property – why not spend equally on the employees who gave their life?”[22][23] Tata Group is an organization with a unique DNA. The organization has always said that customers and guests are #1 priority.[22][23]
[edit]Tata's Ethics

Tata Group has more than just a rule book of ethics; they have a Code of Conduct in which a Code of Ethics is established. Tata Group is a unique company; Its rigid ethic standards are so well set that most corrupt officials do not bother bribing with the Tata executives.[24] The CEO as well as the directors of Tata Group want their company to be set in the right path. Chairman, Ratan Tata has said, ‘’I will certainly not join politics. I would like to be remembered as a clean businessman who has not partaken in any twists and turns beneath the surface, and one who has been reasonably successful.”[25] They believe that their company should follow good ethics and help society in the ways that they can. Distinguishing the good in the world, society and business community and determining the right actions the company should take, Tata Group and its representatives can go very far in society. Although the good points have been pointed out, many companies also go through hardships. They may encounter politics and accusations; Tata Group may not be seen as "perfect" in every eye. Many Tata executives seem to take on all challenges. They know they could appease some skeptics and critics by conquering high levels of growth ambitions during the financial crisis. However, instead they are reducing costs, putting acquisitions on hold, and investing in innovative endeavors such as supercomputers and manufacturing new materials. Furthermore they are figuring out how to develop their new innovations and ideas to other economies such as Africa and Latin America.[19] Tata Group believes that business is not all about profit. If social benefits are one major goal of Tata’s strategies, another is continuing growth in philanthropic industries as well. “We are hard-nosed business guys,” says Gopalakrishnan (an executive director of Tata Sons Ltd.), “who like to earn an extra buck as much as the next guy, because we know that extra buck will go back to wipe away a tear somewhere.”[19] They raise high profits, but give a lot back to the society, whether from their trusts fund or the CEO’s own pocket money. Tata Group has Trust departments that deal with social projects, etc. The projects had a greater purpose to them than just the profit they had made; they were beneficial to the society. Ratan Tata’s support to the society is an uplift to his reputation as well as his company’s. “In the end, Tata executives stick by the familiar argument that doing well by doing well is simply good business. If the group’s unique business model proves to be financially sustainable, it could provide a lasting example for other companies that — like Tata — seek to serve new markets, build a more solid reputation as global citizens, maintain growth, and above all fulfill their own sense of purpose.”[19]
[edit]Tata acquisitions and targets

Jan 2007 - Corus Group, $12 billion
March 2008 - Jaguar Cars and Land Rover, $2.3 billion
March 2007 - PT Kaltim Prima Coal (KPC) (Bumi Resources), $1.1 billion
February 2008 - General Chemical Industrial Products, $1 billion
February 2000 - Tetley Tea Company, $407 million
August 2004 - NatSteel's Steel business, $292 million
July 2005 - Teleglobe International Holdings, $239 million
June 2006 - Eight O'Clock Coffee, $220 million
November 2006 - Ritz Carlton Boston, $170 million
December 2005 - Millennium Steel, Thailand, $167 million
November 2004 - Tyco Global Network, $130 million
December 2005 - Brunner Mond Chemicals Limited, $120 million
March 2004 - Daewoo Commercial Vehicle Company, $102 million
April 2007 - Campton Place Hotel, San Francisco, $60 million
October 2005 - Good Earth Corporation
March 2008 - Serviplem SA, Spain
April 2008 - Comoplesa Lebrero SA, Spain
May 2008 - Piaggio Aero Industries S.p.A., Italy
June 2008 - China Enterprise Communications, China
June 2008 - Neotel, South Africa.
October 2008 - Miljo Grenland / Innovasjon, Norway
Imacid Chemical Company, Morocco[26]
[edit]Targets
Close Brothers Group, $2.9 billion
Orient-Express Hotels, $2.5 billion
January 2008 - T-Systems International (IT division of Deutsche Telekom)
[edit]Recognition

The international brand consultancy Brand Finance has ranked the $68-billion conglomerate, Tata Group,as 50th most valuable brand in the world.The most recent Global 500 report by Brand Finance shows that despite the controversies, Tata Group's brand value has soared to $15.08 billion for the current year compared to $11.2 billion last year in 2010.[27]
[edit]Revenue

Tata gets more than 2/3 of its revenue from outside India.[26]
[edit]Controversies and Criticisms

[edit]Munnar, Kerala
The Kerala Government had filed an affidavit in the high court saying that Tata Tea had 'grabbed' forest land of 3000 acres at Munnar. The Tatas, on the other hand, say they possess 58,741.82 acres of land, which they are allowed to retain under the Kannan Devan Hill (Resumption of Lands) Act, 1971, and there is a shortage of 278.23 hectares in that. Chief Minister of Kerala V.S. Achuthanandan, who vowed to evict all government land in Munnar formed a special squad for the Munnar land takeover mission. However, later he had to abort the mission as there were many other influential land grabbers and faced opposition from his own party.
[edit]Kalinganagar, Orissa
On 2 January 2006, policemen at Kalinganagar, Orissa, opened fire at a crowd of tribal villagers. The villagers were protesting the construction of a compound wall on land historically owned by them, for a Tata steel plant. Some of the corpses were returned to the families in a mutilated condition. When pushed for comment, TATA officials said the incident was unfortunate but that it would continue with its plans to set up the plant.[28]
[edit]Dow Chemical, Bhopal Gas Disaster
In November 2006, survivors of the Bhopal gas disaster were outraged by Ratan Tata’s offer to bail out Union Carbide and facilitate investments by Carbide’s new owner Dow Chemical. Tata had proposed leading a charitable effort to clean-up the toxic wastes abandoned by Carbide in Bhopal. At a time when the Government of India has held Dow Chemical liable for the clean-up and requested Rs. 100 crores from the American MNC, survivor’s groups felt that Tata’s offer was aimed at frustrating legal efforts to hold the company liable, and motivated by a desire to facilitate Dow’s investments in India.[29]
[edit]Supplies to Burma’s military regime
Tata Motors reported deals to supply hardware and automobiles to Burma’s oppressive and anti-democratic military junta has come in for criticism from human rights and democracy activists. In December 2006, Gen. Thura Shwe Mann, Myanmar’s chief of general staff visited the Tata Motors plant in Pune.[30] In 2009, TATA Motors announced that it would press ahead with plans to manufacture trucks in Myanmar.[31][32]
[edit]Land acquisition in Singur
The Singur controversy[33] in West Bengal led to further questions over Tata’s social record, with protests by locals and political parties over the forced acquisition, eviction and inadequate compensation to those farmers displaced for the Tata Nano plant. As the protests grew, and despite having the support of the Communist Party of India (Marxist) state government, Tata eventually pulled the project out of West Bengal, citing safety concerns. The Singur controversy was one of the few occasions when Ratan Tata was forced to publicly address criticisms and concerns on any environmental or social issue. Ratan Tata subsequently embraced Narendra Modi, the Chief Minister of Gujarat, who quickly made land available for the Nano project.[34]
[edit]Dhamra Port
On the environmental front, the Port of Dhamara controversy has received significant coverage, both within India and in Tata’s emerging global markets.[35][36]
The Dhamra port, a venture between Tata Steel and Larsen & Toubro, has come in for criticism for its proximity to the Gahirmatha Sanctuary and Bhitarkanika National Park, from Indian and international organizations, including Greenpeace. Gahirmatha Beach is one of the world’s largest mass nesting sites for the Olive Ridley Turtle and Bhitarkanika is a designated Ramsar site and India’s second largest mangrove forest. TATA officials have denied that the port poses an ecological threat, and stated that mitigation measures are being employed with the advice of the IUCN.[37] On the other hand, conservation organizations, including Greenpeace, have pointed out that no proper Environment Impact Analysis has been done for the project, which has undergone changes in size and specifications since it was first proposed and that the port could interfere with mass nesting at the Gahirmtha beaches and the ecology of the Bitharkanika mangrove forest.[38][39]
Protests by Greenpeace to Dhamra Port construction is also alleged to be less on factual data and more on hype and DPCL's (Dhamra Port Company Limited) response to Greenpeace questions harbors on these facts.[40][41]
[edit]Soda extraction plant in Tanzania
Tata, along with a Tanzanian company, joined forces to build a soda ash extraction plant in Tanzania.[42] The Tanzanian government is all for the project.[42] On the other hand, environmental activists are opposing the plant because it would be near Lake Natron, and it could possibly affect the lake's ecosystem and its neighboring dwellers.[43]
Tata was planning to change the site of the plant so it would be built 32 km from the lake, but the opposition still thinks it would negatively disturb the environment.[43] It could also jeopardize the Lesser Flamingo birds there, which are already endangered. Lake Natron is where two thirds of Lesser Flamingos reproduce.[44] Producing soda ash involves drawing out salt water from the lake, and then disposing the water back to the lake. This process could interrupt the chemical make up of the lake.[42] Twenty-two African nations are against the creation of the project and have signed a petition to stop its construction.[42]
[edit]
 
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