STORY OF TATA GROUP

The Tata Group  is an Indian multinational conglomerate headquartered in Mumbai Established in 1868, it is India's largest conglomerate, with products and services in over 150 countries, and operations in 100 countries across six continents. Acknowledged as the founder of the Tata Group, Jamsetji Tata is sometimes referred to as the "father of Indian industry".

TATA GROUP 

Tata Group's headquarters, the Bombay House

Type

Private

Industry

Conglomerate

Founded

1868; 155 years ago

Founder

Jamsetji Tata

Headquarters

Bombay House, Mumbai, Maharashtra, India

Area served

Worldwide

Key people

Ratan Tata

(Chairman Emeritus)[1]

Natarajan Chandrasekaran

(Chairman & Managing Director)

Products

:Automotive

:Airlines

:Chemicals

:Consultancy

:Defence

:FMCG

:Electronics

:Electric utility

:Electric power

:Finance

:Jewellers

:Home appliances

:Hospitality

:Hotels

:Information technology

:Retail

:E-commerce

:Real estate

:Salt

:Steel

:Cement

:Tea

:Telecom

                 REVENEW

Increase US$128 billion[3] (FY 2022)

Number of employees

935,000[3] (FY 2022)

Each Tata company operates independently under the guidance and supervision of its own board of directors and shareholders. Philanthropic trusts control over 66% of the Tata holding company Tata son, while the Tata Family is a very small shareholder.

The group's annual revenue for fiscal year 2021–22 was reported to be US$128 billion. There are 29 publicly-listed Tata Group companies with a combined market capitalisation of $311 billion as of March 2022.The company has operations across Asia, Africa, America and Middle East. Significant Tata group afflicate

include Tata Consultancy Services, Tata Consumer Products, Tata Motors, Tata Power, Tata Steel, Voltas, Titan Company, Tanishq, Tata Chemicals, Tata Communications, Trent, Tata Elxsi, Indian Hotels Company, Air India, TajAir, Tata Cliq, Tata Advanced Systems, Tata Capital, Cromā, BigBasket and Tata Starbucks

History

1839–1904

Indian Institute of Science in Bangalore foundation was laid by Jamshedji Tata

Jamshedji Nusserwanji Tata was born in 1839. Tata graduated from Elphinstone College in Bombay in 1858. Shortly afterwards, he joined his father’s trading firm that dealt in general merchandise. There, the junior Tata took a special interest in developing trade with China.

The Taj Mahal Palace Hotel in Mumbai is owned by Tata Group

When the American Civil War caused a boom in the Bombay cotton market, Tata and his father joined the Asiatic Banking Corporation. When the tide ebbed, Tata's credit was left desolate. Fortunately, the firm’s credit was re-established during the next three years. A share in the lucrative contract for the commissariat of Napier’s expedition to Abyssinia in 1868 restored the family fortune.” In 1870 with Rs.21,000 capital, he founded a trading company. Further, he bought a bankrupt oil mill at Chinchpokli and converted it into a cotton mill, under the name Alexandra Mill which he sold for a profit after two years. In 1874, he set up another cotton mill at Nagpur named Empress Mill. He dreamed of achieving four goals, setting up an iron and steel company, a unique hotel, a world-class learning institution, and a hydroelectric plant. During his lifetime, in 1903, the Taj Mahal Hotel at Colaba waterfront was opened making it the first hotel with electricity in India.1904–1938

After Jamsedji's death, his older son Dorabji Tata became the chairman in 1904. Sir Dorabji established the Tata Iron and Steel company (TISCO), now known as Tata Steel in 1907. Marking the group's global ambitions, Tata Limited opened its first overseas office in London. Following the founder's goals, Western India's first hydro plant was brought to life, giving birth to Tata Power. Yet another dream, Indian Institute of Science was established with the first batch admitted in 1911.

1938–1991

J. R. D. Tata became chairman of Tata Group from 1938 - 1991

J. R. D. Tata was made chairman of the Tata Group in 1938. Under his chairmanship, the assets of the Tata Group grew from US$101 million to over US$5 billion. Starting with 14 enterprises, upon his departure half a century later in 1988, Tata Sons had grown to a conglomerate of 95 enterprises. These enterprises consisted of ventures that the company had either started or in which they held controlling interest. New sectors such as chemicals, technology, cosmetics, marketing, engineering, manufacturing, tea, and software services earned them recognition.

In 1932, JRD founded an airline, known as Tata Air Services (later renamed Tata Airlines). In 1953, the Government of India passed the Air Corporations Act and purchased a majority stake in the carrier from Tata Sons, though JRD Tata would continue as chairman till 1977.

In 1945, Tata Motors was founded, first focused on locomotives. In 1954, it entered the commercial vehicle market after forming a joint venture with Daimler-Benz. In 1968, Tata Consultancy Services was founded.

1991–present

In 1991, Ratan Tata became chairman of Tata Group.[14] This was also the year of economic liberalization in India, opening up the market to foreign competitors.During this time, Tata Group began to acquire a number of companies. Tata Group bought Tetley In February 2000. After that it acquired Corus Group in 2007. In the year 2008 it acquired Jaguar and Land Rover. The company's subsidiary Tata Motors launched the Tata Nano which they presented as "the world’s cheapest car" in 2008.

In 2017, Natarajan Chandrasekaran was appointed chairman. He was instrumental in restructuring business verticals and increasing promoter stake ownership in companies. Under his leadership, the group made acquisitions through insolvency law and investments in E-commerce, expanded its airline business by winning a bid for Air India and completely bought Air Asia India. He has mentioned the future strategy is to focus on healthcare, electronics, and digital.

Tata Owned Air India got approval to acquire AirAsia India, nearly two months after putting forth the proposal. The Competition Commission of India (CCI) approved the acquisition of the entire shareholding in Air Asia India by Tata-owned Air India

The chairman of Tata Son is usually the chairman of the Tata Group. As of 2020, there have been seven chairmen of Tata Group. (1868–1904)

• Jamsed ji tata (
• Sir Dorabji Tata (1904–1932)
•  Nowroji Saklatwala (1932–1938) J. R. D. Tata (1938–1991)
•  Ratan Tata (1991–2012) 
• Cyrus Mistry (2012–2016) 
• Ratan Tata (2016–2017) 
• Natarajan Chandrasekaran (2017–present

Affiliated companies

Acquisitions

February 2000 – Tetley Tea Company, $407 million

March 2004 – Daewoo Commercial Vehicle Company, $102 million

August 2004 – NatSteel's Steel business, $292 million

November 2004 – Tyco Global Network, $130 million

July 2005 – Teleglobe International Holdings, $239 million

October 2005 – Good Earth Corporation

December 2005 – Millennium Steel, Thailand, $165 million

December 2005 – Brunner Mond Chemicals, $10 million

June 2006 – Eight O'Clock Coffee, $220 million

November 2006 – Ritz Carlton Boston, $170 million

January 2007 – Corus Group, $12 billion

March 2007 – PT Kaltim Prima Coal (KPC) (Bumi Resources), $1.1 billion

April 2007 – Campton Place Hotel, San Francisco, $60 million

January 2008 – Imacid Chemical Company, Morocco

February 2008 – General Chemical Industrial Products, $1 billion

March 2008 – Jaguar Cars and Land Rover, $2.3 billion

March 2008 – Serviplem SA, Spain

April 2008 – Comoplesa Lebrero SA, Spain

May 2008 – Piaggio Aero Industries S.p.A., Italy - Sold Off in 2015

June 2008 – China Enterprise Communications, China

October 2008 – Miljo Grenland / Innovasjon, Norway

April 2010 – Hewitt Robins International, United Kingdom

July 2013 – Alti SA, France

December 2014 – Energy Products Limited, India

June 2016 – Welspun Renewables Energy, India

May 2018 – Bhushan Steel Limited, India

February 2021 - BigBasket (68%) by Tata Digital

June 2021 - 1mg (55%) by Tata Digital

October 2021 – Air India, Air India Express and 50% stake in Air India SATS for ₹18,000 crore (US$2.3 billion).

January 2022 - Nilachala Ispat Nigam Ltd, $1.5 billion

Philanthropy

Tata Group has helped establish and finance numerous research, educational and cultural institutes in India,and received the Carnegie Medal of Philanthropy. Some of the institutes established by the Tata Group are:

Tata Institute of Fundamental Research

The Energy and Resources Institute (formerly known as Tata Energy and Research Institute), a non-governmental research institute

The JRD Tata Ecotechnology Centre

National Centre for Performing Arts

Tata Center for Technology & Design at Massachusetts Institute of Technology

Tata Centre for Technology & Design at IIT Bombay

Tata Cricket Academy

Tata IPL

Tata Football Academy

Tata Institute of Social Sciences

Tata Management Training Centre

Tata Medical Center, inaugurated on 16 May 2011 by Ratan Tata

Tata Memorial Hospital

Tata Cancer Hospital

Tata Trusts, a group of philanthropic organizations run by the head of the business conglomerate Tata Sons

In 2008, Tata Group donated US$50 million to Cornell University for "agricultural and nutrition programs in India and for the education of Indian students at Cornell."

In 2010, Tata Group donated INR 2.20 billion (US$50 million) to Harvard Business School to build an academic and a residential building for executive education programmes on the institute's campus in Boston, Massachusetts. The building, now known as Tata Hall, is the largest endowment received by Harvard Business School from an international donor.

In 2017, Tata Trusts gifted US$70 million to University of California, San Diego and also partnered with it in setting up Tata Institute for Genetics and Society(TIGS) to address some of the world's most pressing issues, ranging from public health to agriculture. In recognition of the donation, the building which houses TIGS has been named Tata Hall. It is also the largest international donation made to University of California, San Diego.

In 2017, Tata Consultancy Services (TCS) donated an unprecedented US$35 million grant to Carnegie Mellon University, the largest ever industry donation to the university, to collaborate on promoting next-generation technologies that will drive the Fourth Industrial Revolution, including cognitive systems and autonomous vehicles.

In 2017, the Tata Football Academy won the bid to form the Jamshedpur FC, a football club based on Jamshedpur of Jharkhand in the 4th edition of the Indian Super League.

In 2020, Tata Group has donated INR 15 billion to PM Cares Fund to fight against COVID-19 pandemic in India.

Tata Trusts

Most of the philanthropic activities of the group are carried out by various trusts incorporated by the members of the Tata family.

Sir Dorabji Tata Trust and Allied Trusts

Sir Dorabji Tata Trust

Lady Tata Memorial Trust

JRD Tata Trust

Jamsetji Tata Trust

Tata Social Welfare Trust

JN Tata Endowment

Tata Education Trust

RD Tata Trust

The JRD and Thelma J Tata Trust

Sir Ratan Tata Trust & Allied Trusts[41]

Sir Ratan Tata Trust

Tata Education and Development Trust

Navajbai Ratan Tata Trust

Bai Hirabai J. N. Tata Navsari Charitable Institution

Sarvajanik Seva Trust

Criticism and controversies

Munnar, Kerala

The Kerala Government filed an affidavit in the high court alleging that Tata Tea had "grabbed" forest land of 3,000 acres (12 km2) at Munnar. The Tatas provided that they possessed 58,741.82 acres (237.7197 km2) of land, which they are allowed to retain under the Kannan Devan Hill (Resumption of Lands) Act, 1971, and there was a shortage of 278.23 hectares (2.7823 km2) in that. The Chief Minister of Kerala V.S. Achuthanandan, who vowed to evict all on government land in Munnar, formed a special squad for the Munnar land takeover mission and started acquiring back properties. However, the mission was aborted due to both influential land-holders and opposition from Achuthanandan's own party.

Kalinganagar, Orissa

On 2 January 2006, Kalinganagar, Tribal Orissa villagers protested the construction of a new steel plant for Tata Steel on land historically owned by them. Some of the villagers had been evicted without adequate relocation. Police retribution was brutal: 37 protesters were injured and 13 killed, including 3 women and a 13-year-old boy. One policeman was hacked to death by a mob, after police had opened fire on protestors with tear gas and rubber bullets. Family members of the deceased villagers later claimed that the bodies had been mutilated during post-mortem examination.[43]

Supplies to Burma's military regime

In December 2006, Myanmar's chief of general staff, General Thura Shwe Mann, visited the Tata Motors plant in Pune. In 2009, Tata Motors announced that it would manufacture trucks in Myanmar. Tata Motors reported that these contracts to supply hardware and automobiles to Burma's military were subsequently criticised by human rights activists

Tanzanian company to build a soda ash extraction plant in Tanzania.Environmental activists oppose the plant because it would be near Lake Natron, and it has a very high chance of affecting the lake's ecosystem and its neighbouring dwellers, jeopardising endangered lesser flamingo birds. Lake Natron is where two-thirds of lesser flamingos reproduce.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 makeup of the lake. 22 African nations signed a petition to stop its construction.

Epic Systems trade-secret case judgement

In April 2016, a U.S. Federal Grand Jury awarded Epic Systems a US$940 million judgement against Tata Consultancy Services and Tata America International Corp. Filed 31 October 2014; the suit charged that "6,477 unauthorized downloads could be used to enhance Tata's competing product, Med Mantra." In 2017, U.S. District Court Judge William Conley reduced the Award to $420 million; the company states that the judgement is also being appealed, as "not supported by evidence presented during the trial and a strong appeal can be made to superior court to fully set aside the jury verdict.”

2018 NCLT verdict

In July 2018, the National Company Law Tribunal (NCLT), which "adjudicates issues relating to Indian companies,"[61] issued a verdict in the company's favor on charges of mismanagement leveled in 2016 by ousted chairman, Cyrus Mistry.