Strategic Management AssignmentAnalysis of Tata Group

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Amandeep Singh Mamta Singh Mayank Bajaj Mohit Jain Sanjeet Kumar Suman Tarun Sethi Introduction (09810008) (09810037) (09810038) (09810041) (09810058) (09810067)

Analysis of Tata Groups

The Tata Group is a multinational conglomerate company headquartered in Mumbai, India. It is the largest private corporate group in India and has been recognized as one of the most respected companies in India for 140 years for its adherence to strong values and business ethics. It is currently in its fifth generation of family stewardship.

Origin and Brief History:

The story of the Tata Group of business unfolds with the birth of its founder Jamsetji Tata in the small town of Navasari in Gujarat in 1839. Jamsetji graduated in 1858 and joined his father trading firm in Mumbai. In 1868 he started a trading company on his own with a capital of Rs.21, 000/- His first step was to acquire a bankrupt oil mill and convert it into a cotton mill which he renamed Alexander Mill. With this he set up a cotton mill in Nagpur in 1874. Queen Victoria had just been declared the Empress and in keeping with the times Jamsetji named it Empress Mill. He was far ahead of his times in his innovative ways of manufacturing textiles and satisfying the workers by new labor practices. He also believed that economic self-sufficiency should go hand in hand with political independence. The former should be the base of the latter. He wanted to set up an iron and steel company, world class learning institution and a hydroelectric plant. Unfortunately during his lifetime none bore fruit but he had planted the seed, which later took roots and spread its branches under the care of his successors. The only achievement that he lived to see was The Taj Mahal Hotel. It was completed in December 1903 for a princely amount of Rs.4, 21, 00,000/-. In this too he was inspired by nationalist thinking. Taj Mahal Hotel was a befitting reply to the discrimination against Indian in the best European Hotels. So,Tatas early years were inspired by the spirit of nationalism. It pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, its pioneering spirit has been showcased by companies such as TCS, Indias first software company, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano. Tata companies have always believed in returning wealth to the society they serve. Two-thirds of the equity of Tata Sons, the Tata promoter company, is held by philanthropic trusts that have created national institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to non-government organisations working in the areas of education, healthcare and livelihoods. Going forward, Tata is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 was ranked the worlds fourth fastest. Anchored in India and wedded to traditional values and strong ethics, Tata companies are building multinational businesses that will

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achieve growth through excellence and innovation, while balancing the interests of shareholders, employees and civil society. The blue colored log of Tata speaks for fluidity as well as fountain of knowledge. It can also be seen as a tree under which all are welcome to take refuge.

Past titans: Jamsetji Tata, Sir Dorab Tata, Sir Ratan Tata, J.R.D. Tata, Naval Tata Chief Executive: Ratan Naval Tata, 71 Promoter companies: Tata Sons and Tata Industries Shareholding: Majority of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. Decision makers: The Group Corporate Centre comprises Ratan Naval Tata, N.A. Soonawala, J.J. Irani, R.K. Krishna Kumar, R. Gopalakrishnan, Ishaat Hussain, Kishor Chaukar, Arunkumar Gandhi and Alan Rosling Number of companies: 114, of which 28 are publicly listed. Business Sectors: Seven business segments covering information systems and communications, engineering, materials, services, energy, consumer products and chemicals. Group turnover: $70.8 billion (around Rs325, 334 crore) in 2008-09, with 64.8 per cent of this coming from business outside India. Market capitalisation: $80.94 billion (around Rs 378,063 crores) Shareholder base of listed companies: Around 3.5 million investors Countries of operation: It has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. Employees: 363,039 Some global companies acquired: Tetley of Britain in 2004, Daewoo Commercial Vehicles of South Korea in 2004, Eight Oclock Coffee of US in 2006, Anglo-Dutch Corus in 2007, Jaguar and Land Rover in 2008 Some popular brands: Tetley (beverages), Tanishq (jewellery), Titan (watches), Voltas (cooling appliances), Rallis (agro-chemicals), Westside (garments), Tata Indicom (telecom), Taj Air (in-flight catering), Nelco (electronics) Some brand ambassadors: Tennis ace Sania Mirza, cricketers Saurav Ganguly, Yuvraj Singh and Irfan Pathan, Formula One racer Narain Karthikeyan, and actors Aamir Khan and Naseeruddin Shah Some major companies: Indian Hotels, Tata Consultancy Services, Tata Tea, Tata Coffee, Tata Motors, Titan, Rallis India, Voltas, Tata Chemicals, Tata Steel, CMC, Tata Communications, Tata Elxsi, Tata Power, Tata Investment, Tata Metaliks, Tayo Rolls, Tinplate, Trent, Tata Teleservices and Nelco.

Value and Purpose

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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.

Business Strategies:
Business excellence has been embedded in Tata through methodologies that enable companies to heed the call of quality. TQMS (Tata Quality Management Services) processes and

TQMS helps Tata companies gain insights on their strengths and their opportunities for improvement. This is managed through an annual process of 'applications and assessments'. Each company writes an application wherein it describes, in the context of the TBEM matrix, what it does and how it does it. This submission is then gauged by trained assessors, who study the application, visit the company and interact with its people. The assessors map out the strengths and improvement

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opportunities existing in the company before providing their feedback to its leadership team. TQMS trains and certifies assessors, who are selected from across the group, and it designs and administers an assessment apparatus that helps them evaluate different Tata companies. The point person in each company is the 'corporate quality head', nominated by the CEO as the business excellence process owner. Typically, each company has a network of business excellence people from a variety of functions and locations. The commitment a company makes when it signs the BEBP contract compels it to attain explicit business excellence scores over specific time periods. A result-driven scoring mechanism enables the company to track its progress over time, and ensure that it keeps improving. There is also an annually administered, group-wide recognition system for companies that exceed a certain score, thereby reflecting excellence, industry leadership and consistent improvement. Implicit in the TQMS approach is the belief that its wide-ranging methodology will enable Tata companies to become exemplars on business as well as ethical parameters in their respective spheres. TBEM (Tata Business Excellence Model)

The TBEM methodology has been moulded to deliver strategic direction and drive business improvement. It contains elements that enable companies following its directives to capture the best of global business processes and practices. The model has retained its relevance thanks to the dynamism built into its core. This translates into an ability to evolve and stay in step with ever-changing business performance parameters. The TBEM matrix is used for the organisational self-assessment of Tata companies, recognition and awards, and for providing feedback to applicants. In addition, TBEM plays three important supportive roles in strengthening the competitiveness of Tata companies:

It helps improve business excellence practices, capabilities and results. It facilitates communication and sharing of best practices among Tata companies. It serves as a working tool for understanding and managing performance, for providing planning guidance, and for identifying learning opportunities.

The TBEM methodology comprises a set of questions that applicant Tata companies have to answer. Its main objectives are to enhance value to Department of Management Studies, Indian Institute of Technology Roorkee Page 5

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customers and contribute to marketplace success; maximise enterprise-wide effectiveness and capabilities; and deliver organisational and personal learning. The methodology is built on the following set of interrelated core values and concepts: visionary leadership; customer-driven excellence; organisational and personal learning; valuing of employees and partners; agility; future focus; managing for innovation; management by fact; social responsibility; results and value creation; and systems perspective. The core values and concepts of TBEM are embodied in seven categories: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; and business results. The TBEM system focuses on certain key areas of business performance: customer-focused results; product and service results; financial and market results; human resource results; organisational effectiveness results; governance and social responsibility results. JRD Quality Value Award Jehangir Ratanji Dadabhoy Tata, or JRD, as he was popularly known in business circles, guided the destiny of Indias largest business house for well over half a century. Over the years that he was at the helm of affairs of the group, JRD Tata helped establish many new enterprises. He was always conscious about the importance of quality, and ensured that this quality consciousness prevailed in all the organisations that belonged to the Tata group. He was proud that the companies within the group were known, domestically and internationally, for the quality of their products and services. As a tribute to his quest for perfection in every sphere of activity, the JRD Tata Quality Value Award was instituted in his memory. The JRD QV Award is modelled on the lines of the Malcolm Baldrige National Quality Award, integrating beneficial attributes from other national quality awards. The award recognises a company within the Tata group, which excels in quality management and has achieved the highest levels of quality. This is an annual award presented to the winning company on the 29th day of July, the birth anniversary of Mr JRD Tata. The objectives of the award are:

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This award is given to group companies in order to create awareness on the importance of the value of quality and the need for total customer satisfaction in all areas of operations within the Tata group companies. To achieve and sustain continuous excellence and consequently leadership in the marketplace through perfection and the achievement of quality which will be recognised as being the best and ahead of competition.

Evaluation process Tata companies participate in a bi-annual process of external assessments. The idea is to subject them to an assessment, based on the excellence parameters embedded in the Tata Business Excellence Model (TBEM). Each company writes an application in which it describes what job it does and how it does the job in the context of the criteria set by TBEM. This application is then "assessed" by trained TBEM assessors who study the document, visit the company and interact with its people, draw out the strengths and the improvement opportunities, and then provide feedback to the leadership team. An in-built scoring mechanism enables the company to track its progress over time, and ensure that it keeps improving. Criteria for recognition: * JRD QV Award: 600+ for the first time * Leadership in Excellence: 700+ for the first time * Sustained Excellence: 3 successive improvements beyond 600 * Active Promotion: 500 to 600 for the first time * Serious Adoption: 450 to 500 for the first time * High Delta: High improvement in one year min 75 for 500* High Delta 500+: High improvement in one year min 50 * High Delta 600+: High improvement in one year min 25

Tata Group is one of India's largest and most respected business groups. Today, Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. Tata group history can be divided in three phases: Establishment Phase (1868 - 1931) 1868 - Jamsetji Nusserwanji Tata laid the foundations of Tata Group when he started a private trading firm. Department of Management Studies, Indian Institute of Technology Roorkee Page 7

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1874 - Set up the Central India Spinning Weaving and Manufacturing Company Limited and thus marked the Group's entry into textiles. 1902 - The Indian Hotels Company was incorporated to set up the Taj Mahal Palace and Tower. 1907 - The Tata Iron and Steel Company (now known as Tata Steel) was established to set up India's first iron and steel plant in Jamshedpur. 1917 - Tata Oil Mills Company was established to make soaps, detergents and cooking oils. Second Phase (1932 - 1989) 1932 - Tatas entered aviation sector with the establishment of Tata Airlines 1939 - Tata Chemicals producer of soda ash in India, was established. 1945 - Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) was established to manufacture locomotive and engineering products. 1954 - India's major marketing, engineering and manufacturing organisation, Voltas, was established. 1962 - Tata Finlay (now Tata Tea), one of the largest tea producers, was established. 1968 - Tata Consultancy Services (TCS), India's first software services company, was established. 1970 - Tata McGraw-Hill Publishing Company was created to publish educational and technical books. 1984 - Titan Industries, a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), was set up to manufacture watches. Expansion Phase (after 1990) 1996, Tata Teleservices (TTSL) was established to lead the Group's foray into the telecom sector. 1998, Tata Indica, India's first indigenously designed and manufactured car, was launched by Tata Motors. Department of Management Studies, Indian Institute of Technology Roorkee Page 8

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2000, Tata Tea acquired the Tetley Group, UK. 2001, Tata entered into insurance business in joint venture with Tata AIG.

2002, TCS revenue increasd over 100 cr. dollar. 2004, Tata Motors acquired Dewoo motors in South Korea. Listed in New york Stock Exchange 2007, Tata Steel acquired Corus the fifth largest steel company in the world and TCS established TCS China with Chinese government. 2008 Tata Motors launched Tata Nano small care. 2009 Tata Teleservices launched Tata Docomo with Japanees firm

Vision and Mission: Vision:

Our PEOPLE, by fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion. Our OFFER, by becoming the supplier of choice, delivering premium products and services and creating value with our customers. Our INNOVATIVE APPROACH, by developing leading edge solution in technology, process and products. Our CONDUCT, by providing a safe working place respecting the environment, caring for our communities and demonstrating high ethical standards.

Mission:
Mission in Tata is to improve the quality of life in India through leadership in targeted sectors of national economic significance to which the Group can bring a unique set of capabilities.

Policies: Human Resource Policy

Tata Steel recognises that its people are the primary source of its competitiveness. It is committed to equal employment opportunities for attracting the best available talent and ensuring a cosmopolitan workforce. It will pursue management practices designed to enrich the quality of life of its employees, develop their potential and maximise their productivity. It will aim at ensuring transparency, fairness and equity in all its dealing with its employees.Tata

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Steel will strive continuously to foster a climate of openness, mutual trust and teamwork Tata is committed to create an exciting work pace based on self-directed teams, improvement and innovative work in environment. a) Create work conductive to superior performance , which enable employees to realize their full potential through continuous learning and training b) Identify and develop potential leaders for future growth. c) High potential employee working in congenial work environment. Tata Steel recognises that its people are the primary source of its competitiveness. It is committed to equal employment opportunities for attracting the best available talent and ensuring a cosmopolitan workforce. It will pursue management practices designed to enrich the quality of life of its employees, develop their potential and maximise their productivity. It will aim at ensuring transparency, fairness and equity in all its dealing with its employees. Tata Steel will strive continuously to foster a climate of openness, mutual trust and teamwork

Financial Policy:
A Tata company shall prepare and maintain its accounts fairly and accurately and in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs. Internal accounting and audit procedures shall reflect, fairly and accurately, all of the companys business transactions and disposition of assets, and shall have internal controls to provide assurance to the companys board and shareholders that the transactions are accurate and legitimate. All required information shall be accessible to company auditors and other authorised parties and government agencies. There shall be no willful omissions of any company transactions from the books and records, no advance-income recognition and no hidden bank account and funds. Any willful, material misrepresentation of and / or misinformation on the financial accounts and reports shall be regarded as a violation of the Code, apart from inviting appropriate civil or criminal action under the relevant laws. No employee shall make, authorise, abet or collude in an improper payment, unlawful commission or bribing.

Market Policy:
A Tata company shall fully support the development and operation of competitive open markets and shall promote the liberalisation of trade and investment in each country and market in which it operates. Specifically, no Tata company or employee

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shall engage in restrictive trade practices, abuse of market dominance or similar unfair trade activities. A Tata company or employee shall market the companys products and services on their own merits and shall not make unfair and misleading statements about competitors products and services. Any collection of competitive information shall be made only in the normal course of business and shall be obtained only through legally permitted sources and means.

Progress over the years:

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 and Tower, 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. 1911 The Indian Institute of Science is established in Bangalore to serve as a centre for advanced learning. 1912 Tata Steel introduces eight-hour working days, well before such a system was implemented by law in much of the West. 1917 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 Levers (now Unilever) in 1984. 1932 Tata Airlines, a division of Tata Sons, is established, opening up the aviation sector in India. Air India was nationalised in 1953. 1939 Tata Chemicals, now the largest producer of soda ash in the country, is established. 1945

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Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) is established to manufacture locomotive and engineering 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 Levers (now Unilever) in 1997. 1954 India's major marketing, engineering and manufacturing organisation, Voltas, is established. 1962 Tata Finlay (now Tata Tea), 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. 1968 Tata Consultancy Services (TCS), India's first software services company, is established as a division of Tata Sons. 24 1971 Tata Precision Industries, the first Tata company in Singapore, is founded to design and manufacture precision engineering products. 1984 The first 500 MW thermal power unit at the Trombay station of the Tata Electric Companies is commissioned. 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. 1996 Tata Teleservices (TTSL) is established to spearhead the Group's foray into the telecom sector. 1998 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. 1999 The new Tata Group corporate mark and logo are launched. 2000 Tata Tea acquires the Tetley Group, UK. This is the first major acquisition of an international brand by an Indian business group. 2001 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 nationalised in 1956). 2002 Tata Sons acquires a controlling stake in VSNL (renamed Tata Communications in 2008), India's leading international telecommunications service provider. Tata

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Consultancy Services (TCS) becomes the first Indian software company to cross one billion dollars in revenues. Titan launches Edge, the slimmest watch in the world. 2004 Tata Motors is listed on the world's largest bourse, the New York Stock Exchange, the second Group company to do so after VSNL. Tata Motors acquires the heavy vehicles unit of Daewoo Motors, South Korea. TCS goes public in July 2004 in the largest private sector initial public offering (IPO) in the Indian market, raising nearly $1.2 billlion. 2005 Tata Steel acquires Singapore-based steel company NatSteel by subscribing to 100 per cent equity of its subsidiary, NatSteel Asia. VSNL (now Tata Communications) acquired Tyco Global Network, making it one of the world's largest providers of submarine cable bandwidth. Tata Sons completes 60 years of Tata operations in the US. The Taj acquires a hotel run by Starwood, Sydney (renamed Blue) and takes over management of The Pierre, NY. 2006 Tata Sky satellite television service launched across the country. Foundation stone for the Tata Medical Centre unveiled in Kolkata. 2007 Tata Steel acquires the Ango-Dutch company Corus, making it the world's fifth largest steel producer. TCS inaugurates TCS China a joint venture with the Chinese government and other partners. Computational Research Laboratories, a division of Tata Sons, develops Eka, one of the fastest supercomputers in the world and the fastest in Asia. The Taj acquires Campton Place Hotel in San Francisco. Tata Steel celebrates its centenary on August 26, 2007. 2008 Tata Motors unveils Tata Nano, the Peoples Car, at the 9th Auto Expo in Delhi on January 10, 2008. Tata Motors acquires the Jaguar and Land Rover brands from the Ford Motor Company. Tata Chemicals acquires General Chemical Industrial Products Inc.

Tatas SWOT Analysis

The essential need of a corporate is to analyse the Porters SWOT analysis to develop the effective and efficient strategies. Tata's vision Improving the quality of life is also influenced by the strategies developed to due overcome the weakness and grabs the opportunities. The main strengths of the Tata Group are resources and capabilities (People and Raw Material), vast experience (Steel and Automobile) and the business model. The opportunities are the new markets, exports and acquisitions. The group requires overcoming the weakness; such as distribution, value chain innovation and macro environment, in order to serve the global markets with high quality and low price. Within the home country the threats are developing due to the Indias recent mergers of global markets and in global markets threats are already exist. However, as per the theory; to do so and compete in the marketplace the group required a

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strong strategic intent and there is a need to configure the operations, resources and capabilities to attain the essential goals.

Strategic Position and Business Model

Business excellence has been embedded in the Tata Group through a holistic methodology that enables the group to paying attention on quality. The Tata Business Excellence Model (TBEM) is adopted by the group in the early 1990s from the renowned Malcolm Baldrige to achieve chiselled degrees of business excellence. TBEM is a model determining the quality movement in the group. The Model works under the protection of Tata Quality Management Services (TQMS), an in-house organisation mandated to help different Tata companies achieve their business objectives through specific processes. The TBEM methodology has been influenced to deliver strategic focus and aim business melioration. TBEM holds elements that enable the group to capture the best of global business processes and practices. It translates into an ability to evolve and stay in step with ever-changing business performance parameters, (Osterwalder, Pigneur and Tucci, 2005). Furthermore; the Tatas business model takes care the value proportion of what is proposed to the market; and makes sure that the target customer segments are also addressed by the value proposition. For example; the Tatas recent announcement, of launching the cheapest cars for the Indian market for the target market of two wheeler owners such as motorcycle and scooter. The group developed the effective distribution channels to reach customers to offer the value proposition and to establish the relationship with the customers. The group uses the core capacities needed to make the business model possible, and effectively

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configure the activities to implement the business model. An excellent business model should be able to generate the effective competitive advantage and the value chain of a company, in order to fit with the companys strategies.

Corporate Governance: Tata Code of Conduct This comprehensive document serves as the ethical road map for Tata employees and companies, and provides the guidelines by which the Group conducts its businesses.
Clause 1: National Interest The Tata Group is committed to benefit the economic development of the countries in which it operates. No Tata company shall undertake any project or activity to the detriment of the wider interests of the communities in which it operates. Clause 2: Financial Reporting and Records A Tata company shall prepare and maintain its accounts fairly and accurately and in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs. Clause 3: Competition A Tata company shall fully support the development and operation of competitive open markets and shall promote the liberalisation of trade and investment in each country and market in which it operates. Specifically, no Tata company or employee

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shall engage in restrictive trade practices, abuse of market dominance or similar unfair trade activities. Clause 4: Equal Opportunities employers A Tata company shall provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability. Clause 5: Gifts and Donations A Tata company and its employees shall neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits that are intended, or perceived, to obtain uncompetitive favours for the conduct of its business. The company shall cooperate with governmental authorities in efforts to eliminate all forms of bribery, fraud and corruption. Clause 6: Government Agencies A Tata company and its employees shall not, unless mandated under applicable laws, offer or give any company funds or property as donation to any government agency or its representative, directly or through intermediaries, in order to obtain any favourable performance of official duties. A Tata company shall comply with government procurement regulations and shall be transparent in all its dealings with government agencies. Clause 7: Politcal non-alignment A Tata company shall be committed to and support the constitution and governance systems of the country in which it operates. A Tata company shall not support any specific political party or candidate for political office. Clause 8: Health, safety and environment A Tata company shall strive to provide a safe, healthy, clean and ergonomic working environment for its people. It shall prevent the wasteful use of natural resources and be committed to improving the environment, particularly with regard to the emission of greenhouse gases, and shall endeavour to offset the effect of climate change in all spheres of its activities. Clause 9: Quality of products and services A Tata company shall be committed to supply goods and services of world class quality standards, backed by after-sales services consistent with the requirements of its customers, while striving for their total satisfaction. The quality standards of the companys goods and services shall meet applicable national and international standards. Clause 10: Corporate Citizenship A Tata company shall be committed to good corporate citizenship, not only in the compliance of all relevant laws and regulations but also by actively assisting in the improvement of quality of life of the people in the communities in which it operates. The company shall encourage volunteering by its employees and collaboration with community groups. Clause 11: Cooperation of Tata Companies A Tata company shall cooperate with other Tata companies including applicable joint ventures, by sharing knowledge and physical, human and management resources, and by making efforts to resolve disputes amicably, as long as this does not adversely affect its business interests and shareholder value. In the

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procurement of products and services, a Tata company shall give preference to other Tata companies, as long as they can provide these on competitive terms relative to third parties. Clause 12: Public representation of the company and group The Tata Group honours the information requirements of the public and its stakeholders. In all its public appearances, with respect to disclosing company and business information to public constituencies such as the media, the financial community, employees, shareholders, agents, franchisees, dealers, distributors and importers, a Tata company or the Tata Group shall be represented only by specifically authorised directors and employees. It shall be the sole responsibility of these authorised representatives to disclose information about the company or the Group. Clause 13: Third party representation Parties which have business dealings with the Tata Group but are not members of the Group, such as consultants, agents, sales representatives, distributors, channel partners, contractors and suppliers, shall not be authorised to represent a Tata company without the written permission of the Tata company, and / or if their business conduct and ethics are known to be inconsistent with the Code. Clause 14: Use of the Tata Brand The use of the Tata name and trademark shall be governed by manuals, codes and agreements to be issued by Tata Sons. The use of the Tata brand is defined in and regulated by the Tata Brand Equity and Business Promotion Agreement. No third party or joint venture shall use the Tata brand to further its interests without specific authorisation. Clause 15: Group Policies A Tata company shall recommend to its board of directors the adoption of policies and guidelines periodically formulated by Tata Sons. Clause 16: Shareholders A Tata company shall be committed to enhancing shareholder value and complying with all regulations and laws that govern shareholder rights. The board of directors of a Tata company shall duly and fairly inform its shareholders about all relevant aspects of the companys business, and disclose such information in accordance with relevant regulations and agreements. Clause 17: Ethical Conduct Every employee of a Tata company, including full-time directors and the chief executive, shall exhibit culturally appropriate deportment in the countries they operate in, and deal on behalf of the company with professionalism, honesty and integrity, while conforming to high moral and ethical standards. Such conduct shall be fair and transparent and be perceived to be so by third parties. Clause 18: Regulatory Compliance Employees of a Tata company, in their business conduct, shall comply with all applicable laws and regulations, in letter and spirit, in all the territories in which they operate. If the ethical and professional standards of applicable laws and regulations are below that of the Code, then the standards of the Code shall prevail. Clause 19: Concurrent Employment Consistent with applicable laws, an employee of a Tata company shall not, without the requisite, officially written approval of the company, accept employment or a

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position of responsibility (such as a consultant or a director) with any other company, nor provide freelance services to anyone, with or without remuneration. In the case of a full-time director or the chief executive, such approval must be obtained from the board of directors of the company. Clause 20: Conflict of Interest An employee or director of a Tata company shall always act in the interest of the company, and ensure that any business or personal association which he / she may have does not involve a conflict of interest with the operations of the company and his / her role therein. Clause 21: Securities transactions and confidential information An employee of a Tata company and his / her immediate family shall not derive any benefit or counsel, or assist others to derive any benefit, from access to and possession of information about the company or Group or its clients or suppliers that is not in the public domain and, thus, constitutes unpublished, price-sensitive insider information. Clause 22: protecting company assets The assets of a Tata company shall not be misused; they shall be employed primarily and judiciously for the purpose of conducting the business for which they are duly authorized. Clause 23: Citizenship The involvement of a Tata employee in civic or public affairs shall be with express approval from the chief executive of his / her company, subject to this involvement having no adverse impact on the business affairs of the company or the Tata Group. Clause 24: Integrity of data furnished Every employee of a Tata company shall ensure, at all times, the integrity of data or information furnished by him/her to the company. He/she shall be entirely responsible in ensuring that the confidentiality of all data is retained and in no circumstance transferred to any outside person/party in the course of normal operations without express guidelines from or, the approval of the management. Clause 25: Reporting concerns Every employee of a Tata company shall promptly report to the management, and / or third-party ethics helpline, when she / he becomes aware of any actual or possible violation of the Code or an event of misconduct, act of misdemeanor or act not in the companys interest. Such reporting shall be made available to suppliers and partners, too.

Approach towards Environment, Pollution and Ecology

The Tata ethos places a special emphasis on environmental and ecological issues. The Group's efforts to preserve and regenerate the environment find expression in the slew of projects and programmes it has undertaken in and around its facilities and operations. A focus area for the Group, in this context, is the climate change crisis. The Tatas have what is known as a 'Group environment network' to guide its companies and organizations on environmental issues. The objectives of this network are three-fold:

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To develop a common approach on the environment so that Group companies can champion the cause of sustainable growth and enhance the image of the Tata brand. To integrate environmental parameters in the Tata Business Excellence Model and the Tata Code of Conduct. To enhance awareness and to train Group environmentalists through workshops, and share their experiences through case studies and exchanges.

Cooperate Social Responsibility and its implementation

Tata Power is committed to setting high standards in its pursuit of social responsibility and remaining sensitive to the issues of resource conservation, environment protection and enrichment and development of local communities in its areas of operations. The company has a simple philosophy that guides its activities in these matters, Giving back is a means towards going ahead". Widespread programmes on biodiversity conservation, afforestation, pisciculture, family planning, health services, primary and secondary education and many more have made inroads into the tiny hamlets and tribal regions of our hydro catchment areas and it is our endeavour to light up these dark and narrow streets to new dawns.

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Jamsetji Tata Jamsetji Tata was more than merely an entrepreneur who helped India take her place in the league of industrialised nations. He was a patriot and a humanist whose ideals and vision shaped an exceptional business conglomerate. The industrialist in Jamsetji was a pioneer and a visionary, possessed of a spirit of entrepreneurial adventure and acumen never seen before or since in a native of colonial India. The nationalist in him believed unwaveringly that the fruits of his business success would enrich a country he deeply cared about. The distinctive structure the Tata group came to adopt after Jamsetjis passing, with a huge part of its assets being held by trusts devoted to ploughing money into social-development initiatives, can be traced directly to the empathy embedded in the Founders philosophy of business. Jamsetji Tata was born to Nusserwanji and Jeevanbai Tata on 3 March 1839 in Navsari, a small town in South Gujrat. Nusserwanji Tata was the first businessman in a family of Parsi Zoroastrian priests. He moved to Bombay and started trading. Jamsetji joined him in Bombay at the age of 14 and enrolled at the Elphinstone College. He was married to Hirabai Daboo while he was still a student. He graduated from college in 1858 and joined his fathers trading firm. It was a turbulent time to step into business as the Indian Rebellion of 1857 had just been defeated by the British government. The company started by Jamsetji Tata came to be known as the Tata Group and is today among the largest and most respected companies in India. When he started the Empress Mills in Nagpur, he dint just think of novel ways to manufacture textiles, he also put in place very good labour practices. This was long before any labour laws came into existence. Though India remained under British rule while he was alive, he interacted with activists such as Dadabhai Naoroji and Pherozeshah Mehta. He was strongly influenced by their thinking. However, he always maintained that political freedom must be accompanied by economic self sufficiency. Not only did he managed to create thousands of jobs, he paved the way for many future enterprises. The establishment of Indian Institute of Science was initiated by him.

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Sir Dorab Tata gave concrete shape to the vision of his father Jamsetji Tata, the founder of the Tata Group. He established the Tata Group as an industrial giant while also supporting sport and a variety of charitable causes

Naval Hormusji Tata: The People's Person

Born in August 1904, Naval H. Tata joined the Tata Group in 1930, and by 1933 he was the secretary of the Group's Aviation division. In 1939 he was made the Managing Director of the Group's textile companies and in 1941 was made the Director of Tata Sons. Mr. Naval Tata was actively engaged with the Tata Charities and served as the Chairman of the Sir Ratan Tata Trust from 1965 to the time of his passing. He was the founder President of the Indian Cancer Society and held the position from 1951 through 1989. His most valuable contribution outside of business was in the domain of labor relations. He believed in responsible negotiations between employers, workers and governments in the search for equitable solutions to labor issues. For over four decades he provided a voice of reason, consideration and conciliation to national and international organizations working to minimize employer-employee friction. He was an employer who always regarded himself as a trustee of the rights and interests of workers. Mr. Naval Tata became part of Geneva-based International Labor Organisation governing body in 1951 and continued in the post till 1989. He was also a member of the International Organisation of Employers for 38 years and was the president of the Employers' Federation of India from 1959 to 1985. Naval Tata symbolized all that is best of the Tata spirit of giving back to society and the communities in which its enterprises grow. He was also an avid sports lover and Indian field hockey was another beneficiary of his capabilities. He was the administrative head of the game in India when the country won gold in three successive Olympics. Mr. Naval Tata's caring and endearing nature, his abiding concern for the poor, his love of a good laugh and his instinct to trust even those not worthy of it, made him one of a kind. He married Simone in 1955. Mr. Naval Tata passed away in 1989.

Sir Ratan Tata, the younger son of Jamsetji Tata, was a connoisseur of art and a notable philanthropist. His legacy of support to the poor and oppressed lives on in the activities of the Sir Department of Management Studies, Ratan Tata Trust.

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Jehangir Ratanji Dadabhoy Tata ( July 29, 1904- November 29, 1993) was a pioneer aviator and important businessman of India. He was awarded Bharat Ratna during his lifetime.
J.R.D. Tata was born in Paris, France, the second child of Ratanji Dadabhoy Tata and his French wife Suzanne Brire. His father was a first cousin of Jamsetji Tata, a pioneer industrialist in India. Jeh or JRD as he was commonly known came to be regarded as the most famous industrial pioneer in modern India. As his mother was French, he spent much of his childhood in France and as a result, French was his first language. Tata also attended French Foreign Lehion. He attended the Cathedral and John Connon School, Bombay (now Mumbai). J.R.D. Tata was inspired early by aviation pioneer Louis Blriot, and took to flying. In 1929 Tata got the first pilot license issued in India. He later came to be known as the father of Indian civil aviation. He founded India's first commercial airline, 'Tata Airlines', in 1932, which in 1946 became Air India, now India's national airline. J.R.D. Tata studied engineering at the University of Cambridge. He did not continue beyond matriculation as mentioned in his biography, by Mr R M Lala. At the age of 34, he became Chairman of Tata Sons, the holding Company of the Tata Group. For decades, J R D directed the huge Tata Group of companies, with major interests in Steel, Engineering, Power,Chemicals and Hospitality. He was famous for succeeding in business while maintaining high ethical standards - refusing to bribe politicians or use the black market. Under J R D's Chairmanship, the number of companies in the Tata Group, grew from 15 to over 100. Monetarily, the assets of Tata group grew from Rs 62 crores to over Rs 10000 crores. He was awarded the Legion d'honneur, by the French Government in 1954. He also received the prestigious Guggenheim Medal for aviation in 1988. He was awarded the Bharat Ratna, India's highest civilian award in 1992 for his service to industry and nation building. He died in Geneva, Switzerland in 1993 at the age of 89. He is buried at Pre Lachaise Cemetery in Paris.

Ratan Naval Tata

Ratan Tata was born into the wealthy and famous Tata family of Mumbai. He was born to Soonoo and Naval Hormusji Tata, a Gujarati-speaking Parsi family. Ratan is the great grandson of Tata group founder Jamsetji Tata. Ratan's childhood was troubled, his parents separating in the mid-1940s, when he was about seven and his younger brother Jimmy was five. His mother moved out and both Ratan and his brother were raised by their grandmother Lady Navajbai. He was schooled at the Campion School, Mumbai and graduated from Cornell University in 1962 with a degree in Architecture and Structural Engineering. Ratan joined the Tata Group in December 1962, after turning down a job with IBM on the advice of JRD Tata. He was first sent to Jamshedpur to work at Tata Steel. He worked on the floor along with other blue-collar employees, shoveling limestone and

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handling the blast furnaces. Ratan Tata, a shy man, rarely features in the society glossies, has lived for years in a book-crammed, dog-filled bachelor flat in Mumbai's Colaba district. In 1971, Ratan was appointed the Director-in-Charge of The National Radio & Electronics Company Limited (Nelco), a company that was in dire financial difficulty. Ratan suggested that the company invest in developing high-technology products, rather than in consumer electronics. J.R.D. was reluctant due to the historical financial performance of Nelco which had never even paid regular dividends. Further, Nelco had 2% market share in the consumer electronics market and a loss margin of 40% of sales when Ratan took over. Nonetheless, J. R. D. followed Ratan's suggestions. From 1972 to 1975, Nelco eventually grew to have a market share of 20%, and recovered its losses. In 1975 however, India's Prime Minister Indira Gandhi declared a state of emergency, which led to an economic recession. This was followed by union problems in 1977, so even after demand improved, production did not keep up. Finally, the Tatas confronted the unions and, following a strike, a lockout was imposed for seven months. Ratan continued to believe in the fundamental soundness of Nelco, but the venture did not survive In 1977, Ratan was entrusted with Empress Mills, a textile mill controlled by the Tatas. When he took charge of the company, it was one of the few sick units in the Tata group. Ratan managed to turn it around and even declared a dividend. However, competition from less labour-intensive enterprises had made a number of companies unviable, including those like the Empress which had large labour contingents and had spent too little on modernisation. On Ratan's insistence, some investment was made, but it did not suffice. As the market for coarse and medium cotton cloth (which was all that the Empress produced) turned adverse, the Empress began to accumulate heavier losses. Bombay House, the Tata headquarters, was unwilling to divert funds from other group companies into an undertaking which would need to be nursed for a long time. So, some Tata directors, chiefly Nani Palkhivala, took the line that the Tatas should liquidate the mill, which was finally closed down in 1986. Ratan was severely disappointed with the decision, and in a later interview with the Hindustan Times would claim that the Empress had needed just Rs 50 lakhs to turn it around. In 1981, Ratan was named Chairman of Tata Industries, the Group's other holding company, where he became responsible for transforming it into the Group's strategy think-tank and a promoter of new ventures in high-technology businesses. In 1991, he took over as group chairman from J.R.D. Tata, pushing out the old guard and ushering in younger managers. Since then, he has been instrumental in reshaping the fortunes of the Tata Group, which today has the largest market capitalization of any business house on the Indian Stock Market. Under Ratan's guidance, Tata Consultancy Services went public and Tata Motors was listed on the New York Stock Exchange. In 1998, Tata Motors introduced his brainchild, the Tata Indica.

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On January 31, 2007, under the chairmanship of Ratan Tata, Tata Sons successfully acquired Corus Group, an Anglo-Dutch steel and aluminum producer. With the acquisition, Ratan Tata became a celebrated personality in Indian corporate business culture. The merger created the fifth largest steel producing entity in the world.

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