Tata Group

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Tata Group
Type Private
Industry Conglomerate
Founded 1868
Founders Jamsetji Tata
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Shayk Wani
(Chairman)[1]
Products Airline, Automotive, steel, IT, Electricity generation, Chemicals, Beverages, Telecom, Hospitality, Retail, Consumer goods, Engineering, Construction, Financial services
Revenue Increase US$ 103.27 billion (2014)[2]
Profit Increase US$ 5.31 billion (2014)[2]
Total assets Increase US$ 116.32 billion (2014)[2]
Owners Tata Sons
Employees 581,473 (2014)[2]
Subsidiaries List of subsidiaries
Website www.tata.com

Tata Group is an Indian Multinational corporation conglomerate company headquartered in Mumbai, Maharashtra, India.[3] It encompasses seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over 100 operating companies with each of them operating independently. Out of them 32 are publicly listed.[4] The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels.[5] The combined market capitalisation of all the 32 listed Tata companies was INR 8.4 Trillion ($ 141.27 billion) as of July 2014.[6] Tata receives more than 58% of its revenue from outside India.[7]

Tata Group remains a family-owned business, as the descendants of the founder (from the Tata family) own a majority stake in the company. The current chairman of the Tata group is Cyrus Pallonji Mistry, who took over from Ratan Tata in 2012.[8] Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group. About 66% of the Equity (finance)of Tata Sons is held by philanthropic trusts endowed by members of the Tata family.

The Tata Group and its companies & enterprises is perceived to be India's best-known global brand within and outside the country as per an ASSOCHAM survey.[9] The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world.[10] The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India.[11][12] The group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activities.[13]

Head of group[edit]

Subsidiaries[edit]

Bombay House, the head office of Tata Group
Tata Bus
Packages of Tata Tea
Himalayan–Tata Mineral Water
Tata bus in Sri Lanka

This section lists the Tata companies and details their business:

Chemicals

Consumer products

Energy

Engineering

Information systems and communications

Services

Steel

Core sciences

Acquisitions[edit]

  • February 2000 – Tetley Tea Company, $407 million[14]
  • 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[15]
  • 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[7]
  • 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
  • June 2008 – China Enterprise Communications, China
  • June 2008 – Neotel, South Africa
  • October 2008 – Miljo Grenland / Innovasjon, Norway

Philanthropy[edit]

The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India.[11][12] The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of the group's long history of philanthropic activities.[13] Some of the institutes established by the Tata Group are:

The Tata Group has donated a INR 2.20 billion ($50 million) to the prestigious Harvard Business School (HBS) to build an academic and a residential building on the institute's campus in Boston, Massachusetts. The new building will be called the Tata Hall and used for the institute's executive education programmes.[18] The amount is the largest from an international donor in the business school's 102-year-old existence.

Ratan Tata, the former chairman of Tata Group.

One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home water-purification device. It was called Tata swach which means "clean" in Hindi and would cost less than 1000 rupees (US$21). The idea of Tata swach was thought of from the 2004 tsunami in the Indian Ocean, which left thousands of people without clean drinking water. This device has filters that last about a year long for a family of five. It is a low-cost product available for people who have no access to safe drinking water in their homes.[19] The advantage of this device is that it does not require the use of electricity.[20]

TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. "The children of the people who have been through our literacy program are all in school", says Pankaj Baliga, global head of corporate social responsibility for TCS.[19]

In 1912, Tata Group expanded their CEO's concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before nearly any other company in the world. In 1917, they recommended a medical-services policy for Tata employees. The company would be among the first worldwide to organise modern pension systems, workers' compensation, maternity benefits, and profit-sharing plans.[19]

Trusts created by Tata Group control 65.8% of company shares,[21] so it can be said that about 66% of the profits of Tata Group go to charity.[22] The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science, Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them.[19]

After the Mumbai attacks, Salaries of then heavily attacked Taj Hotel employees were paid despite the hotel being closed for reconstruction. About 1600 employees were provided food, water, sanitation and first aid through employee outreach centres. Ratan Tata personally visited families of all the employees that were affected. The employee's relatives were flown to Mumbai from outside areas and were all accommodated for 3 weeks. Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks. A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help. Tata also granted the education of 46 children of the victims of the terrorist attacks.[23][24]

In 2013, the Tata group, through the Tata Relief Committee and the Himmotthan Society, an associate organisation of the Sir Ratan Tata Trust, has been working in close collaboration with the Uttarakhand government to provide relief to the impacted local communities in three districts of the state. The relief activities, which include provision of food and household material, have so far covered over 65 villages and 3,000 families. In the first phase of relief, the group expects to reach over 100 villages. The Tata group also plans to implement long-term measures for the economic, ecological and resource sustainability of the affected communities and areas. The plan, currently under development, will be based on a baseline survey of impacted villages which is being carried out by teams from the Centre for Disaster Management at the Tata Institute of Social Sciences (TISS), Mumbai, in collaboration with local organisations and communities.[25][26]

Controversies and criticisms[edit]

The Tata group has also attracted several controversies and criticisms, including the following below.

Munnar, Kerala[edit]

The Kerala Government had filed an affidavit in the high court saying that Tata Tea had 'grabbed' forest land of 3,000 acres (12 km2) at Munnar. The Tatas, on the other hand, say they possess 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 is a shortage of 278.23 hectares in that. The then Chief Minister of Kerala V.S. Achuthanandan, who vowed to evict all government land in Munnar, formed a special squad for the Munnar land takeover mission and started acquiring back of the encroached government properties. However, later he had to abort the mission as there were many influential land grabbers and faced opposition from his own party.

Kalinganagar, Orissa[edit]

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.[27]

Supplies to Burma's military regime[edit]

Tata Motors reported deals to supply hardware and automobiles to Burma's oppressive and anti-democratic military junta has come in for criticism from human rights and democracy activists. In December 2006, Gen. Thura Shwe Mann, Myanmar's chief of general staff visited the Tata Motors plant in Pune.[28] In 2009, TATA Motors announced that it would press ahead with plans to manufacture trucks in Myanmar.[29][30]

Land acquisition in Singur[edit]

The Singur controversy[31] 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 Communist Party of India (Marxist) state government, Tata eventually pulled the project out of West Bengal, citing safety concerns. The Singur controversy was one of the few occasions when Ratan Tata was forced to publicly address criticisms and concerns on any environmental or social issue. Ratan Tata subsequently embraced Narendra Modi, the Chief Minister of Gujarat, who quickly made land available for the Nano project.[32]

Dhamra Port[edit]

On the environmental front, the Port of Dhamara controversy has received significant coverage, both within India and in Tata's emerging global markets.[33][34]

The Dhamra port, a venture between Tata Steel and Larsen & Toubro, has come in for criticism for its proximity to the Gahirmatha Sanctuary and Bhitarkanika National Park, from Indian and international organisations, including Greenpeace. Gahirmatha Beach is one of the world's largest mass nesting sites for the Olive Ridley Turtle and Bhitarkanika is a designated Ramsar site and India's second largest mangrove forest. TATA officials have denied that the port poses an ecological threat, and stated that mitigation measures are being employed with the advice of the IUCN.[35] On the other hand, conservation organisations, including Greenpeace, have pointed out that no proper Environment Impact Analysis has been done for the project, which has undergone changes in size and specifications since it was first proposed and that the port could interfere with mass nesting at the Gahirmtha beaches and the ecology of the Bitharkanika mangrove forest.[36][37]

Protests by Greenpeace to Dhamra Port construction is also alleged to be less on factual data and more on hype and DPCL's (Dhamra Port Company Limited) response to Greenpeace questions harbours on these facts.[38][39]

Soda extraction plant in Tanzania[edit]

Tata group, along with a Tanzanian company, joined forces to build a soda ash extraction plant in Tanzania.[40] The Tanzanian government is all for the project.[40] 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 neighbouring dwellers.[41]

Tata was planning to change the site of the plant so it would be built 32 km from the lake, but the opposition still thinks it would negatively disturb the environment.[41] It could also jeopardise the Lesser Flamingo birds there, which are already endangered. Lake Natron is where two-thirds of Lesser Flamingos reproduce.[42] 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.[40] Twenty-two African nations are against the creation of the project and have signed a petition to stop its construction.[40]

Recognition[edit]

The international brand consultancy Brand Finance has ranked the over $100-billion conglomerate, Tata Group, as 39th most valuable brand in the world.[43] The most recent Global 500 report by Brand Finance shows that despite the controversies, Tata Group's brand value has soared to $15.08 billion for the current year compared to $11.2 billion last year in 2010.[44]

In 2009 the Tata Group was ranked 11 in the world's top 100 reputable companies by Forbes Magazine[45]

In 2011 and 2012, Tata was ranked as India's second most trusted brand by The Brand Trust Report,.[46][47] In 2013, The Brand Trust Report,[48] ranked Tata as India's fifth most trusted brand. In 2014 Tata was ranked third Most Trusted Brand by the same report.[2][49]

In a 2011 investor poll conducted by equity research firm Equitymaster, TATA Group was voted as the most trustworthy among the Indian corporate houses.[50] Over 61% of the respondents "showed their confidence in the Tata Group". The Tata Group retained its "Most Trustworthy" status in the 2012 edition of the poll.

In 2000, its Dewas division was awarded the Rajiv Gandhi National Quality Award.[51]

See also[edit]

References[edit]

  1. ^ "Chairman of Tata Sons by the board of directors after Ratan N Tata". Tata Group. Retrieved 21 June 2009. 
  2. ^ a b c d "Tata Group Financial Statements". Tata Group. 
  3. ^ "About us." Tata Group. Retrieved on 20 January 2011. "Contact Bombay House 24, Homi Mody Street Fort, Mumbai 400 001 India."
  4. ^ "A tradition of trust". Community Initiatives. Tata.com. Archived from the original on 23 May 2006. Retrieved 30 October 2006. 
  5. ^ "Tata Companies". Tata Group. Retrieved 21 June 2009. 
  6. ^ http://articles.economictimes.indiatimes.com/2014-07-29/news/52187029_1_100-operating-companies-tata-companies-group-companies
  7. ^ a b Timmons, Heather (4 January 2008). "Tata Pulls Ford Units into Its Orbit". The New York Times. Retrieved 21 June 2009. 
  8. ^ "Tata Family Tree" (PDF). tatacentralarchives.com. Archived from the original on 25 March 2007. Retrieved 2 June 2007. 
  9. ^ "Tata Group seen as India's best-known global brand: Assocham survey". PTI. 24 December 2012. Retrieved 24 December 2012. 
  10. ^ Kneale, Klaus (6 May 2009). "World's Most Reputable Companies: The Rankings". Forbes. Retrieved 21 June 2009. 
  11. ^ a b "The rainbow effect". 4 May 2008. 
  12. ^ a b "India's Tata Group: Empowering marginalized communities". 4 May 2008. 
  13. ^ a b "U.S. and Indian philanthropists recognized for conviction, courage and sustained efforts". 4 May 2008. 
  14. ^ Rs 16,000 crore!
  15. ^ Tata Steel gives India a pound of UK
  16. ^ "Ratan Tata gifts $50m to Cornell varsity". The Economic Times (India). 21 October 2008. Retrieved 21 June 2009. 
  17. ^ http://tata.com/ourcommitment/articlesinside/mDZESzKS!$$$$!54=/TLYVr3YPkMU=
  18. ^ "Tatas gift Rs220 crore to Harvard Business School – Mumbai – DNA". Dnaindia.com. 16 October 2010. Retrieved 2 February 2011. 
  19. ^ a b c d "Too good to Fail". February 2010. 
  20. ^ "Tata Swach". 14 December 2009. 
  21. ^ "Tata Group Heritage". 
  22. ^ "Tata, Corporate Social Responsibility and Milton Friedman". 24 October 2005. 
  23. ^ "Ratan Tata did for the Mumbai Terrorist Attack Victims". 14 May 2010. 
  24. ^ "Salute to Ratan Tata". 8 April 2010. 
  25. ^ http://tata.com/htm/uttarakhand_relief.htm
  26. ^ http://www.srtt.org/institutional_grants/rural_livelihoods_communities/uttarakhand_flood_relief.htm
  27. ^ by Nityanand Jayaraman (24 May 2006). "CorpWatch : Stolen for Steel: Tata Takes Tribal Lands in India". Corpwatch.org. Retrieved 16 July 2010. 
  28. ^ ["Myanmar Ties." 8 December 2006. The Telegraph, Calcutta, India].
  29. ^ "India's Independent Weekly News Magazine". Tehelka. Retrieved 16 July 2010. 
  30. ^ "Ansari visits Myanmar tomorrow, 3 MoUs to be signed". Zeenews.com. 4 February 2009. Retrieved 16 July 2010. 
  31. ^ [1]
  32. ^ "Singur's loss". Hinduonnet.com. 7 November 2008. Retrieved 2 February 2011. 
  33. ^ 'India – Tata in troubled waters', Ethical Corporation, November 2007, London, UK
  34. ^ "India – Tata in troubled waters – Ethical Corporation". Ethicalcorp.com. Retrieved 16 July 2010. 
  35. ^ http://www.tatasteel.com/dhamra-port-project-and-olive-ridley-turtles.doc
  36. ^ "Documents And Reports | Save the turtles". Greenpeace.in. 12 June 2009. Retrieved 16 July 2010. 
  37. ^ "Sea dredging affecting Olive Ridley turtles, says green body". Thaindian.com. 5 April 2008. Retrieved 16 July 2010. 
  38. ^ http://www.eco-dhamra.com/environment/pdf/Greenpeace20Reply_July'07.pdf
  39. ^ http://www.eco-dhamra.com/environment/pdf/Greenpeace20Reply_8thMar08.pdf
  40. ^ a b c d "Dar annoys neighbours over $400m soda ash project". The East African (Nation Media Group). 5 November 2007. Retrieved 21 June 2009. 
  41. ^ a b Magubira, Patty (16 May 2008). "Tanzania: UK Activists Pile Pressure Against Soda Ash Project". The Citizen (Dar es Salaam: AllAfrica.com). Retrieved 21 June 2009. 
  42. ^ Pathak, Maulik (31 October 2007). "Tata Chemicals' African safari hits green hurdle". The Economic Times (India). Retrieved 21 June 2009. 
  43. ^ "Best Global Brands | Brand Profiles & Valuations of the World’s Top Brands". Brandirectory.com. Retrieved 8 July 2013. 
  44. ^ "9 Indian brands amongst world's 500 best - Rediff.com Business". Rediff.com. Retrieved 8 July 2013. 
  45. ^ Kneale, Klaus (6 May 2009). "World's Most Reputable Companies: The Rankings". Forbes. Retrieved 15 September 2010. 
  46. ^ Tata among most trusted brands in India |publisher=http://www.exchange4media.com/ |date= |accessdate=2012-01-18
  47. ^ "A Matter of Trust". Financialexpress.com. Retrieved 8 July 2013. 
  48. ^ "Nokia, Samsung, Sony India's top trusted brands: The Brand Trust Report". economictimes.indiatimes.com. Retrieved 29 January 2013. 
  49. ^ "Trust Research Advisory". Trust Research Advisory. Trust Research Advisory. October 2014. Retrieved October 2014. 
  50. ^ Equitymaster poll 2011 results: Tatas most trustworthy
  51. ^ SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS". http://www.bis.org.in. New Delhi: Bureau of Indian Standards. Retrieved 2014-05-15. 

External links[edit]