TATA SONS

INTRODUCTION
One of the largest conglomerate in India and voted the most trusted company in the
country. Tata group has completed 146 years successfully after its incorporation in the
year 1868 by the Jamsetji Tata regarded as the father of Indian industry.
The 146 years of shared culture and heritage Tata group has contributed in many ways to
Indias socio-economic development with the core purpose to improve the quality of life
of the communities it serves globally, through long-term stakeholder value creation.
Tata group is a global enterprise headquartered in India, and comprises over 100
operating companies in seven business sectors: communications and information
technology, engineering, materials, services, energy, consumer products and chemicals.
Tata companies have operations in more than 100 countries across six continents, and
export products and services to over 150 countries. The revenue of Tata companies, taken
together, was $96.79 billion (around Rs527, 047 crore) in 2012-13, with 62.7 percent of
this coming from businesses outside India. Tata companies employ over 540,000 people
worldwide.
Good corporate citizenship is part of the Tata groups DNA. Sixty-six percent of the
equity of Tata Sons, the promoter holding company, is held by philanthropic trusts,
thereby returning wealth to society. As a result of this unique ownership structure and
ethos of serving the community, the Tata name has been respected for more than 140
years and is trusted for its adherence to strong values and business ethics.
Each Tata company or enterprise operates independently and has its own board of
directors and shareholders, to whom it is answerable. There are 32 publicly-listed Tata
enterprises and they have a combined market capitalization of about $133.53 billion (as
on July 17, 2014), and a shareholder base of 3.9 million. Tata companies with significant
scale include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power,
Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications
and Indian Hotels. Tata receives more than 58% of its revenue from outside India.
Many Tata companies have achieved global leadership in their businesses. For instance,
Tata Communications is the worlds largest wholesale voice carrier and Tata Motors is
among the top five commercial vehicle manufacturers in the world. Tata Steel is among
the top 10 best steelmakers and TCS is amongst the top 10 global IT services companies.
Tata Global Beverages is the second-largest player in tea in the world and Tata
Chemicals is the worlds second-largest manufacturer of soda ash. Employing a diverse
workforce in their operations, Tata companies have made significant local investments in
different geographies.
In connection with the increasing international footprint of Tata companies, the Tata
brand is also gaining international recognition. Brand Finance, a UK-based consultancy

firm, valued the Tata brand at $21.1 billion and ranked it 34th among the top 500 most
valuable global brands in their Brand Finance Global 500 2014 report.
With its pioneering and entrepreneurial spirit, the Tata group has given birth to several
industries of national importance in India: steel, hydro-power, hospitality and airlines.
The same spirit, coupled with innovativeness, has been displayed by entities such as TCS,
Indias first software company, and Tata Motors, which made Indias first indigenously
developed car, the Tata Indica and the smart city car, the Tata Nano. Search of excellence
has similarly been displayed in recent innovations like the Silent Track technology
developed by Tata Steel Europe and the next-generation Terrain Response, including
infrared laser scanning to predict terrain, and Wade Aid to predict water depth, by Jaguar
Land Rover.
The Tatas trusts owns majority shareholders of Tata Sons, have endowed institutions for
science and technology, medical research, social studies and the performing arts. The
trusts also provide aid and assistance to non-government organizations working in the
areas of education, health care and livelihoods. Tata companies themselves undertake a
wide range of social welfare activities, especially at the locations of their operations, as
also deploy sustainable business practices.
Going forward, Tata companies are building multinational businesses that seek to
differentiate themselves through customer-centricity, innovation, entrepreneurship,
trustworthiness and values-driven business operations, while balancing the interests of
diverse stakeholders including shareholders, employees and civil society. Though Tata
has spread across different sectors and different countries, it has spread in India itself the
newest venture is Tata-Singapore airlines which will operate with brand name vistara.
If we talk about the acquisitions the group has made then there are a lot companies that
Tata group has acquired in the past, to name few big acquisitions there is -:
Tetley Tea Company - $ 407 mn
Corus group - $ 12 bn
Ritz Carlton (Boston) - $ 170 mn
Jaguar cars and land rover - $ 2.3 bn
Tata group has also attracted several controversies and criticism. Some of them are land
acquisition in singur, dhamra port, soda extraction plant in Tanzania.

Topic of my project is character ethics of the organization. As the person has moral
values and beliefs, that values and beliefs are transferred in the organization. Every
organization has different character of its own which is reflected in their working style,
corporate social responsibility, their conduct toward different stakeholders which are
shareholders, customers, employees etc.
In this case I will try to explain the character ethics of Tata organization and the people
behind this organizations success.

VALUES and PURPOSE

Purpose
At the Tata group we are committed to improving the quality of life of the communities
we serve. We do this by striving for leadership and global competitiveness in the business
sectors in which we operate.
Our practice of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. We are committed to protecting this
heritage of leadership with trust through the manner in which we conduct our business.

Core
values
Tata has always been values-driven. These values continue to direct the growth and
business of Tata companies. The five core Tata values underpinning the way we do
business are:

Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards in our
day-to-day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the group and with our
customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what comes
from the people goes back to the people many times over.

HISTORY and MILESTONES

Tata groups history can be divided into three phases which are:

1868-1931 foundation phase

1932-1989 consolidation phase

1990 onwards expansion phase

Foundation Phase-(1868-1931) the foundation of what would grow to become the Tata
Group was laid in 1868 by Jamsetji Nusserwanji Tata. Empress Mills, a textiles venture
set up in Nagpur in central India in 1877 was the first of the big industrial projects
undertaken by the Tata Group. Jamsetji Tata was by this time, though, already gripped by
what would the three great ideas of his life: setting up an iron and steel company,
generating hydroelectric power and creating an institution that would tutor Indians in the
sciences. In 1892, Jamsetji Tata established the JN Tata Endowment to encourage Indian
scholars to take up higher studies. It was the first of a multitude of philanthropic
initiatives by the Tata Group. Over generations, members of the Tata family have
transmitted much of their personal wealth to the many trusts they have created. These
trusts today control 65.8 per cent of the shares of Tata Sons, the holding company of the
group.
The most dazzling of the Tata enterprises that came into being during Jamsetji
Tatas lifetime was the Taj Mahal Hotel in Bombay, which opened for business in 1903.
Legend has it that Jamsetji Tata set his mind on building it after being denied entry into
one of the city's fancy hotels for being an Indian. Today, the Taj Group of Hotels is a
byword for luxury and quality, with standout properties across the world. In 1904
chairmanship of the group was given to Sir Dorabji Tata, eldest son of Jamsetji Tata. Sir
Dorabji Tata accomplished the daunting task of turning his fathers extraordinary ideas
into reality. Sir Dorab was the force behind the setting up, in 1907, of the Tata Iron and
Steel Company. Seven years later, India's first iron and steel plant, in Jamshedpur in the
eastern part of the country, started production. In 1915, the Tata Group broke new ground
once again, this time by generating hydroelectric power from a site near Bombay. In
1911, seven years after his death, Jamsetji Tatas long-cherished dream of establishing an
institution where Indians could cultivate their scientific research was realized. The Indian
Institute of Science, set up in Bangalore, would nurture some of the brightest minds in
India. Tata companies presently employ over 581,470 people worldwide. Taking good
care of this large family is a priority for the Group, and it has a tradition to stay true to

while doing so. Tata Steel introduced eight-hour working days in 1912, well before it
became statutory in much of the West, and the first Tata provident fund scheme was
started in 1920 (governmental regulation on this came into force in 1952). The Tata
townships, and the facilities they have, are another example of the manner in which the
Group extends itself to care for its employees.

Consolidation Phase- (1932-1989) by the time of Sir Dorab Tatas death in 1932, the Tata
Group had consolidated in businesses while also getting in new areas, notably insurance
and the production of soaps, detergents and cooking oil. Sir Dorab was succeeded as
chairman of the Group by Sir Nowroji Saklatwala. In 1938, following Sir Nowrojis
demise, 34-year-old JRD Tata (left) was appointed as the new chairman. He would lead
the Tata Group for the next 53 years with wisdom, foresight in businesses while also
getting in new areas, notably insurance and the production of soaps, detergents and
cooking oil. Sir Dorab was succeeded as chairman of the Group by Sir Nowroji
Saklatwala. In 1938, following Sir Nowrojis demise, 34-year-old JRD Tata (left) was
appointed as the new chairman. He would lead the Tata Group for the next 53 years
with wisdom, foresight and a rare grace that touched everyone he met. During the more
than five decades that JRD Tata was at the helm, the Tata Group expanded regularly into
new spheres of business. The more prominent of these ventures were 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). The post-independence era in India, right up to the early 1990s, was a
time of tight government controls on business, but despite this the Tata Group managed
to grow considerably.

Expansion Phase- (1990 onwards) the legacy continues which was started in the year
1868.The beginning of the 1990s witnessed plenty of change in Indian business.
Economic reforms opened up many sectors, signalling increased competition and the
arrival of foreign companies. JRD Tatas death, in 1993, symbolized the end of an era.
The Tata group is now more cohesive and united than it has ever been. This is no
accident; rather, it is the outcome of a set of policies that have been emphasized and
reinforced by former chairman Ratan Tata and the Group Corporate Centre, the top
decision-making body in the Group. The pursuit of business excellence has become the
norm and there is a focus on innovation. What have not changed are the groups emphasis
on ethical business practices and its commitment to the communities in which it operates.
The Tata Group has, over the past decade-and-a-half, changed more than ever
before in its long and illustrious history. Rejuvenating existing businesses, entering new
ones, manufacturing breakthrough products and expanding into foreign markets are
among the initiatives the Group has undertaken with vigour during this period. In 1996,
Tata Teleservices was set up to tap into Indias burgeoning telecom market; in 1998, the
Indica, Indias first indigenously made car, was successfully launched; in 2002, the

Group acquired VSNL, Indias top international telecom service provider; in 2004, Tata
Consultancy Services went public in the largest private sector initial public offering in the
Indian stock market; and, in 2008, the trailblazing Tata Nano was unveiled. The new
millennium has seen Tata companies looking beyond Indian shores for growth
opportunities and a global footprint. Acquisitions of foreign enterprises have been one
way of doing this. The first big acquisition was by Tata Tea of Tetley back in 2000. In
2004, Tata Motors acquired the heavy vehicles unit of Daewoo Motors, South Korea; in
2005, Tata Steel acquired the Singapore-based NatSteel and Tata Chemicals secured a
controlling stake in Brunner Mond Group, UK. The largest acquisition happened in 2007,
when Tata Steel acquired Corus, the Anglo-Dutch giant, in a landmark deal, and in 2008
Tata Motors added the Jaguar and Land Rover brands to its stable. The future promises
plenty for the Tata group as it sets the agenda for the next phase of its evolution. The
words of former group chairman Ratan Tata sum it up best: One hundred years from
now, I expect the Tatas to be much bigger, of course, than it is now. More importantly, I
hope the group comes to be regarded as being the best in India best in the manner in
which we operate, best in the products we deliver and best in our value system and ethics.

MILESTONES
1868

Jamsetji Nusserwanji Tata starts a private trading firm, laying the foundation of the Tata group.

1874

The Central India Spinning, Weaving and Manufacturing Company is set up, marking the group's
entry into textiles and its first large-scale industrial venture.

1902

The Indian Hotels Company is incorporated to set up the Taj Mahal Palace, India's first luxury
hotel, which opened in 1903.

1907

The Tata Iron and Steel Company (now Tata Steel) is established to set up India's first iron and
steel plant in Jamshedpur. The plant started production in 1912.
Sets up its first office overseas, Tata Limited in London.

1910

The first of the three Tata Electric Companies, The Tata Hydro-Electric Power Supply
Company is set up. The second, Andhra Valley Power Supply Company was established in
1917 and Tata Power in 1919. The first two companies were merged with Tata Power in 2000
to form a single entity.

The Indian Institute of Science is established in Bangalore to serve as a centre for advanced
learning.

Tata Steel introduces eight-hour working days, well before such a system was implemented
by law in much of the West.

The Tatas enter the consumer goods industry, with the Tata Oil Mills Company being
established to make soaps, detergents and cooking oils. The company was sold to Hindustan
Lever (now Unilever) in 1984.

1911

1912

1917

1932

Tata Airlines, a division of the group was

established, opening up the aviation sector in
India. Air India was nationalized in 1953.

Tata Chemicals, now the largest producer of

soda ash in the country, is established.

Tata Engineering and Locomotive Company

(now known as Tata Motors) is established to
manufacture locomotive and engineering

1939

1945

Products.
Tata Industries is created for the promotion
and development of hi-tech industries

1952

Jawaharlal Nehru, India's first Prime Minister, requests the group to manufacture
cosmetics in India, leading to the setting up of Lakme. The company was sold to
Hindustan Lever (now Unilever) in 1997.

India's major marketing, engineering and manufacturing organization, Voltas, is

established.

Tata Finlay (renamed to Tata Tea and then to Tata Global Beverages), one of the largest
tea producers, is established.
Tata Exports is established. Today the company, renamed Tata International, is one of the
leading export houses in India.

1954

1962

1968

Tata Consultancy Services (TCS), India's first software services company, is established as a
division of Tata Sons.

Tata Precision Industries, the first Tata company in Singapore, is founded to design and
manufacture precision engineering products.

The first 500 MW thermal power unit at the Trombay station of the Tata Electric Companies
is commissioned.

1971

1984

1995

Tata Quality Management Services institutes the JRD QV Award, modelled on the
Malcolm Baldrige National Quality Value Award of the United States, laying the
foundation of the Tata Business Excellence Model.

Tata Teleservices (TTSL) is established to spearhead the group's foray into the telecom
sector.

Tata Indica India's first indigenously designed and manufactured car is launched by
Tata Motors, spearheading the group's entry into the passenger car segment.

The new Tata group corporate mark and logo are launched

Tata Tea (now known as Tata Global Beverages) acquires the Tetley group, UK. This is
the first major acquisition of an international brand by an Indian business group.

Tata AIG a joint venture between the Tata group and American International Group Inc
(AIG) marks the Tata re-entry into insurance. (The group's insurance company, New
India Assurance, set up in 1919, was nationalized in 1956).

1996

1998

1999

2000

2001

2002

Tata group acquires VSNL (now known as Tata Communications).

2003

Tata Consultancy Services (TCS) becomes the first Indian software company to cross one
billion dollars in revenues.
Taj Mahal Palace Hotel , Mumbai , completed 100 years

2004

Tata Motors is listed on the worlds largest stock exchange, the New York stock exchange.
Tata Motors acquires heavy vehicles unit of Daewoo motors, South Korea.
TCS goes public in July 2004 in the largest IPO in the Indian market, raising nearly $1.2
billion.

2005

Tata Steel acquires Singapore based steel company NatSteel.

VSNL acquired Tyco Global Network, making it one of the worlds largest providers of
submarine cable bandwidth.
Taj Group takes over management of The Pierre, New York.
Taj Group acquires a hotel run by Starwood, Sydney (now named blue).
Tata motors created a new mini truck segment in India with the launch of Tata Ace.
Trent acquires strategic interest in Landmark chain of bookstore.

2006

Tata Sky satellite television service launched across the country.

Taj Group acquires the Ritz Carlton, Boston (now known as Taj Boston).
Infiniti Retail launches Croma, Indias first national chain of multi brand outlets for consumer
electronics and durable products.

Tata Steel acquires the Anglo-Dutch company Corus (now Tata Steel Europe), making it the
fifth-largest steel producer.
TCS inaugurates TCS China- a joint venture with Chinese government.
Tata Capital established as a new Tata Company in the financial sector.
Taj Group acquires Campton Place Hotel in San Francisco.

2007

2008

Tata Motors unveils Tata Nano, at the 9th Auto Expo in Delhi on January 10, 2008.
Tata Motors acquires the Jaguar and Land Rover brands from Ford Motor Company.

2009

Tata Housing makes waves with its launch of low cost housing in Mumbai.
Tata motors announces commercial launch of the Tata Nano; delivers first Tata Nano in the
country in Mumbai.
TRF acquires Dutch Lanka Trailer Manufacturers, Sri Lanka, a world-class trailer
manufacturing company.
Jaguar Land Rover introduces its premium range of vehicles in India

2010

TRF acquires UK-based Hewitt Robins International.

New plant for Tata Nano at Sanand inaugurated.
Tata Tea announces joint venture with Pepsico for health drinks.
Tata Tea group rebrands itself as Tata Global Beverages, headquartered in London.
Tata chemicals acquires 100% stake in leading vacuum salt producer British Salt, UK.
Tata Chemicals launches i-Shakti dals, Indias first national brand of pulses.

2011

Tata brand enters into top 50 club of global brands.

Tata Nano begins international journey in Sri Lanka and Nepal.
Tata Steel completes 100 years of its first blast furnace.

Indias first iodine plus iron fortified salt launched by Tata Chemicals.
Tetley Tea celebrates 175th anniversary.
Tata Steel expands aerospace activities in China.
Cyrus P Mistry takes over as chairman, Tata Sons from Ratan N Tata.

2012

2013

Tata motors Jamshedpur plant rolls out its two millionth truck.

Tata power synchronizes fifth 800mw unit and makes its first UMPP of 4,000, at Mundra, fully
operational.
Tata Sons announces formation of the Group Executive Council.
TCS acquires IT services firm Alti to help drive long-term growth in France.
Titan Industries is now Titan Company.
Tata Sons and Singapore Airlines to establish new airline in India.
Jaguar Land Rover celebrates 10,00,000 vehicles built at Halewood operations.
Tata Toyo and Air International enter into a joint venture.
Titan Company celebrates retail milestone with 1,000 stores.

Success Path Story

Success story of Tata is based on Humanity, Philanthropy and Ethics. Success of Tata can
be traced back in the year 1868 when jamsetji Tata started the company with a view to
not just earning money but also provide service to the society in which it operates. All the
future generations of jamsetji Tata imbibe this vision of his service to society, thats the
reason philanthropic trusts control over 66% of the Tata holding company Tata Sons,
while the Tata family is a very small shareholder. Jamsetji was fired by a fierce sense of
nationalism, a passion to advance the economic status of India. Economists say that all
entrepreneurs must have some amount of greed and optimism. If that be so, Jamsetji must
have had his fair share. The difference, of course, lay in what he did with the fruits of his
entrepreneurship: he displayed a rare compassion for the less privileged and he helped
build institutions for his people and his country. It is a very rare sight that how a man
who has set such high ethical standards which were followed by the future
generations.JRD Tata, Ratan Tata and now Cyrus Mistry all of them have the character
ethics according to the standards defined by Jamsetji. Fruits of these high ethical and
moral practices have made the Tata Group as one of the most trusted and valuable brand
not just in India, but in the World.
There are many instances and occasions where Tata have shown its
ethics and values which makes them different from rest of the others. The most recent
case is of Tata nano , when media ask what would be the price of this new car? From then
chairman Ratan Tata. He said it is a peoples car its price would not be high, it would be
set around 1 lakh rupees. But at the time of Production Company incurred loss, but Ratan
Tata said despite Loss Company will sell first one lakh cars priced at rupees one lakh. He
explained the reason he saidpromise is a promise. This shows the values of the group.
What Ratan Tata did for the Mumbai victims.
Ratan Tata is the chairman of Indian Hotels who own the Taj Mahal Hotel Mumbai,
which was the target of the terrorists on 26/11/08. Hotel President a 5 star property also
belongs to Indian Hotels.

The Tata Gesture1. All category of employees including those who had completed even 1 day as casuals
were treated on duty during the time the hotel was closed.
2. Relief and assistance to all those who were injured and killed.
3. The relief and assistance was extended to all those who died at the railway station,
surroundings including the Pav- Bhaji vendor and the pan shop owners.

4. During the time the hotel was closed, the salaries were sent by money order.
5. A psychiatric cell was established in collaboration with Tata Institute of Social
Sciences to counsel those who needed such help.
6. The thoughts and anxieties going on peoples mind was constantly tracked and where
needed psychological help provided.
7. Employee outreach centers were opened where all help, food, water, sanitation, first
aid and counseling was provided. 1600 employees were covered by this facility.
8. Every employee was assigned to one mentor and it was that persons responsibility to
act as a single window clearance for any help that the person required. Ratan Tata
personally visited the families of all the 80 employees who in some manner either
through injury or getting killed were affected.
9. The dependents of the employees were flown from outside Mumbai to Mumbai and
taken care off in terms of ensuring mental assurance and peace. They were all
accommodated in Hotel President for 3 weeks.
10. Ratan Tata himself asked the families and dependents as to what they wanted him
to do.
11. In a record time of 20 days, a new trust was created by the Tatas for the purpose of
relief of employees.
12. What is unique is that even the other people, the railway employees, the police staff,
the pedestrians who had nothing to do with Tatas were covered by compensation. Each
one of them was provided subsistence allowance of Rs. 10K per month for all these
people for 6 months.
13. A 4 year old granddaughter of a vendor got 4 bullets in her and only one was
removed in the Government hospital. She was taken to Bombay hospital and several lacs
were spent by the Tatas on her to fully recover her.
14. New hand carts were provided to several vendors who lost their carts.
15. Tata will take responsibility of life education of 46 children of the victims of the
terror.
16. This was the most trying period in the life of the organization. Senior managers
including Ratan Tata were visiting funeral to funeral over the 3 days that were most
horrible.
17. The settlement for every deceased member ranged from Rs. 36 to 85 lacs [One lakh
rupees tranlates to approx 2200 US $ ] in addition to the following benefits:

a. Full last salary for life for the family and dependents;
b. Complete responsibility of education of children and dependents anywhere in the
world.
c. Full Medical facility for the whole family and dependents for rest of their life.
d. All loans and advances were waived off irrespective of the amount.
e. Counselor for life for each person.

Epilogue1. How was such passion created among the employees? How and why did they behave
the way they did?
2. The organization is clear that it is not something that someone can take credit for. It is
not some training and development that created such behavior. If someone suggests that
everyone laughs.
3. It has to do with the DNA of the organization, with the way Tata culture exists and
above all with the situation that prevailed that time. The organization has always been
telling that customers and guests are #1 priority.
4. The hotel business was started by Jamshedji Tata when he was insulted in one of the
British hotels and not allowed to stay there.
5. He created several institutions which later became icons of progress, culture and
modernity. IISc is one such institute. He was told by the rulers that time that he can
acquire land for IISc to the extent he could fence the same. He could afford fencing only
400 acres.
6. When the HR function hesitatingly made a very rich proposal to Ratan he said do
you think we are doing enough?
7. The whole approach was that the organization would spend several hundred crore in
re-building the property why not spend equally on the employees who gave their life?

ALL these instances reflect on the high ethical character and their moral values which in
turn help them in building their goodwill. This salt-to-software group has spent rupees
1,000 crore on corporate social responsibility, highest CSR spend by an Indian
conglomerate.

Financial highlights (Table 1)

INR
Year

2013-14
(Rs crore)

2012-13
(Rs crore)

% change

Total revenue
Sales
Total assets
International revenues
Net forex earnings

624,757
617,212
703,734
419,860
32,129

527,047
520,469
583,554
330,530
16,604

18.5
18.6
20.6
27.0
93.5

Financial year is April-March

Exchange rate: USD=Rs61.56 for 2013-14 and USD=Rs54.45 for 2012-13
Revenue figures for group companies are consolidated and net of excise duty
(wherever applicable)
Group's capital market performance- (Table 2)
Shares of the Tata group companies have been among the star performers on the Indian
stock market over the last three years. Trends in the group's total market capitalization
along with aggregate market capitalization of Bombay Stock Exchange are provided
below.
2012
2013
2014
As on Nov 20,
(Rs
crore) (Rs
crore) (Rs
crore) 2014
(End March)
(End March)
(End March)
(Rs cr)
441,576
518,716
684,859
834,841
Tata group
($89.88bn)
($95.56bn)
($114.35bn)
($134.8bn)
6,113,821
6,416,268
7,521,057
9,862,440
BSE
($1,189.46bn)
($1,182bn)
($1,256bn)
($1,592bn)
With the listing of TCS on August 25, 2004, the total market capitalisation of the
group's 32 listed companies crossed the Rs100,000 crore mark and the group acquired
the distinction of having the highest market capitalisation among all business houses
in the country, both in the public and private sectors.
Tata group accounts for 8.5 percent of the total market capitalisation of BSE.
Tata group companies have contributed significantly to the spread of equity cult in
the country. They enjoy the trust of over 3.9 million investors.
Figures within the bracket are in US $ billion.
Sector-wise human resources profile (Table 3)
Sectors

2013-14

% share

Materials
Engineering
Energy
Consumer products
Chemicals

80,818
87,346
9,385
21,630
6,345

13.9
15.0
1.6
3.7
1.1

Information technology and communications

Services
Total

334,569
41,380
581,473

57.5
7.1
100

Contribution to the exchequer 2013-14 (Table 4)

INR
Tata
companies
(Rs crore)

Corporate tax
Excise#
Customs
Sales tax
Others
Total

10,313
9,327
2,846
7,447
6,379
36,312

group Government
finances
(Rs crore)

393,677
273,036
175,056
480,942
175,191
1,497,902

%
of Tatas

share

2.6
3.4
1.6
1.5
3.6
2.4

# Including state excise duty

All these statistics shows the contribution of the Tata sons in the Countrys development.
This all is achieved after the 146 years of incorporation of the group and the same and
unique way of doing business which was started from day one the company that is
business with service to society, business with humanity, business with ethics.
According to me only one factor comes to my mind in the success of Tata that is their
character ethics and moral values which were passed from generations to generations.
Tata and high ethical standards go hand in hand.

Roadblocks and Feasible Solutions

Along with success there are many roadblocks and controversies which occurred during
the long and successful journey. First of all I will talk about the controversies and
criticism which were occurred.
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.
Land acquisition in Singur
The Singur controversy in West Bengal led to further questions over Tata's social record,
with protests by locals and political parties(though the involvement of Mamata Banerjee's
party is widely criticized as an act for political gains) 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 CPI(MARXIST), 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.

Soda extraction plant in Tanzania

Tata group, along with a Tanzanian company, joined forces to build a soda ash extraction
plant in Tanzania. The Tanzanian government is all for the project. 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. 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.

These are some controversies that Tata group encountered in its journey of humanity,
philanthropy and ethics.

Globalization and Dynamic environment-In a world where change is the only constant,
strategy becomes a compass guiding business to the shores of success. Companies must
have clear objectives and well-defined plans for achieving them. There is a need of
dynamic long-term planning, as well as the smartness and agility to change tactics
whenever the situation demands. Tactics help to manoeuvre and overcome the
unexpected roadblocks.
Workforce Diversity- Tata is a very large organization with operations in more than 100
countries therefore diversity in culture and cross cultural conflict bound to happen. there
is a need to manage this diversity by respecting every culture and take along every
member of the organization with equal respect and dignity.
Managing a huge organization- Tata is a very big organization which is spread over seven
different business sector and has more than 95 companies in the group. To manage such a
huge business is a very difficult task. Solution to this problem is decentralization.
Companies should be run themselves not depending on the centre.
There are several other roadblocks that the group is facing. The group is lagging behind
in the infrastructure sector and facing a tough competition from the infrastructure giants
like GMR, DLF etc.
The group had also join hands with Bangladesh government to supply gas and electricity
in the country. Group was planning to invest $3 billion in the country but the government
and the Tata negotiators disagreed on almost each and every issue related to the supply
and price of gas and electricity.
After facing opposition in West Bengal, Tata Motors plan to acquire land in the
Pantnagar industrial area in Uttarakhand has also hit a roadblock. The auto major is
currently producing its dream car, Nano, and other commercial vehicles at the Pantnagar
manufacturing unit. The Uttarakhand government recently gave the green signal to allot
55 acres from the Pantnagar Agriculture University for the housing project. But,
university authorities have not allotted the land to the company, despite several reminders
by the government.

Future Projections

Ratan Tata had set a goal for the group in the year 2011which is to achieve a turnover of
$500 billion in the year 2022. It will require a rigorous effort to achieve this goal of the
former chairman. It is difficult for the current chairman and all the employees, but it is
not impossible. Tata has shown us on several occasions that dedicated efforts will help to
achieve the impossible looking goals.
The group has immense opportunity to grow and diversify further. Company has
launched its airlines in the country named Vistara. It is established by the joint venture
of Singapore airlines and Tata sons. The two companies will initially invest a combined
US$100 million to start the carrier, with Tata sons owning 51 per cent and rest 49 per
cent will be owned by Singapore Airlines.
Another area is of infrastructure where Cyrus Mistry is eyeing on the road project. Group
is getting ready to bid for road projects that are being vacated by the companies like GVK
and GMR. the group is targeting an order book of Rs 70,000 crore from the infrastructure
sector over next five years. at a time when funding challenges and policy roadblocks are
making infrastructure companies back away from road projects, Tata Groups
infrastructure arm Tata Realty and Infrastructure ltd wants to sail against the wind.

Tata Business Excellence Model had been set up to discuss and debate over the
challenges and opportunities of the business and provide the solutions which would help
the company to grow and diversify. The group is 146 years old and has to go a long way
ahead. The group is transforming itself to meet the needs of the present and future
generation.
The countrys largest conglomerate by revenue, has outlined plans to invest $35bn over
the next three years for expansion in areas such as retail and defence while breaking
down silos in its sprawling business empire. The $35bn investment figure represents
capital expenditure across all Tata group companies over the next three years.

Conclusions of the Study

Finally I would like to conclude my project. All the information I have collected and
analyzed throughout the study I came to know that Tatas are of high ethical character
and moral values which are reflected in the way the organization works. How often we
use the phrase Tata-Birla-Ambani easily, As if the words were interchangeable. One of
them has nothing in common with other two. JRD sent 81% of Tata Sons income to
charity. We thanked him by nationalizing his beloved Air India, firing him as chairman
and running it into the ground. Parsis have civilization other Indians dont. Indians have
culture but not civilization. Aditya Birla Memorial Hospital (Compassionate Quality
Healthcare), a check-up for headaches costs Rs2,850. At the Kokilaben Dhirubhai
Ambani Hospital (Every Life Matters), the wellness check-up costs Rs 5,000.At the
Tata Memorial Hospital, which treats cancer, healthcare is free. Tata Sons 398,563
shares, 65.8% is held by charitable trusts (Ratan Tata owns 0.84%). All this is just a small
contribution of Tatas to the society which is very invaluable.
Indians should buy their books from Landmark, their phones from Tata Indicom, their
television sets and washing machines from Croma; and they should stay at the Taj. They
should drink Tetley tea and Himalayan mineral water. They should watch TV on TataSky
and get themselves insured with Tata AIG. Why? Because almost 66% of the profit
earned goes to the charitable trusts created by Tatas for rendering services to the society.
Culture is how we entertain ourselves; civilization is how we entertain others. Culture is
our attitude to beauty and ugliness, to power, to religion, and to family. Civilization is our
attitude to mankind.

Profession Outcome

SWOT Analysis-

StrengthThere are many strength of the company of the size of Tata. First big strength is its big
size which encompasses more than 95 companies in the group.
Second is its goodwill which it has earned over many years of dedicated service to
humankind.
It is voted as most trusted and valuable brand in the country.

Weakness Along with strength there are weaknesses also. Though there is hardly any weakness as
such in the most respected brand. There are some issues to handle. First is after having a
large merger&acquisition company is having shortage of funds which is affecting its
operations.
Company is in the phase of transition with the coming of the new chairman. It will take
time to adapt with this change.

Opportunities
Company has huge amount of opportunity with the defence sector opening up a bit. Also
the infrastructure sector and retail sector has opportunities to grow.
Threats
Tata is a big organization but is small in comparison with other international MNCs
therefore it will have to face tough competition at international level.

References:
www.tatasons.com
Aakar Patels blog
Wikipedia