Introduction:
In Today's episode we are going to look into one of the greatest business houses of India that is Tata group. The Tata's the family name mostly we do not need any introduction in the
civilized world today.
1. One of the India's Largest Multi National Conglomerate headquartered in Mumbai, Established in 1868 with Products & services in 150 Countries with operations in 100 Countries
across 6 Continents.
2. Founded by the great Visionary Jamshedji Tata the man termed as the Father of Indian Industry.
3. With more than 100 operating companies, in which 36 are Publicly listed serves 10 verticals ranging from salt, tea to airlines with 935000 employees by the end of 2021
with 128 billions in revenue with combined market capitalization of 311B USD which is equals to almost 23.4Tr in INR.
4. In 2018 alone Contributed 4% of the total countries GDP with 2.28% Total taxation in the country which is highest by any corporate group in the country
5. What make them one of the greatest business houses in India?, well respected and most valued Brand in India and the World! With this let's get into their story
History:
Before understanding the journey of Tata's we have to understand little bit about Jemshejitata he is
1. The founder and the first Chairmen of Tata group, Jemsedji tata shortly after his graduation From Elphinstone college in Mumbai in 1858 joined with his fathers general mercentise firm,
while he was working with his father he developed a special interest in developing trade with China.
2. At the time of American Civil War in 19th century there is a huge Boom in the Indian Cotton industry so jemsetji seen this as an opportunity and In 1870 with Rs.21,000 capital, he founded
a trading company and Further he bought a bankrupt oil mill near mumbai and converted it into a cotton mill, under the name Alexandra Mill which he sold it for a profit after two years
4. In 1874, he bought 10acras Land from then Nagpur King and set up another cotton mill at Nagpur and named It as Empress Mill and started giving jobs to locals with all the eminities,
Nagpur is one of the well connected area and cheap labor cost at that time when compared to Mumbai, He understood the importance of transaportation and the concept of workmenship
with this.
5. He Dreamed of achieving four goals in his life time, One is to set up an iron and Steel company, Second is to set up a Unique Hotel
and a world class Learning institute and a hydro electric plant During his lifetime, With This dream In 1903, the Taj Mahal Hotel at Colaba waterfront was opened making it
the first hotel with electricity in India at that times.
6. After Jamsedji's death, his older son Dorabji Tata became the chairman in 1904 and established the Tata Iron and Steel company (TISCO), later renamed it as Tata Steel in 1907.
7. Marking the group's global ambitions, Tata Limited opened its first overseas office in London. Following the founder's goals in the Western India first hydro plant
was brought to life which gave birth to Tata Power. Yet another dream Indian Institute of Science was established with the first batch admitted in 1911
at Bengaluru later took over by the government of India.
8. 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
9. 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 the most of the recognitions.
10. In the year 1952, JRD founded an airline, known as Tata Air Services (later renamed Tata Airlines) but 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 the chairman untill 1977.
11. In the year 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.
12. In the yesr 1991, Ratan Tata became the chairman of Tata Group.This was 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, including Tetley in (2000), Corus Group in (2007), and Jaguar and Land Rover in (2008).
13. In the year 2012 Cyrus Mistry appointed as chirmen he is the first chirmen of the group from out side the Tata family but he was removed from the position in 2016 due to some
legal issues later Natarajan Chandrashekran the current chirmen of the group appointed in 2017 as the group chirmen.
14. He was instrumental in restructuring the business verticals and increasing promoter stake ownership in companies. Under his leadership, the group made acquisitions through insolvency
law and investments in the new and trending areas like E-commerce and expanded airline business by winning bid for Air India and completely buying Air Asia India.
15. The group's current future strategy is to focus on healthcare, electronics, and in the digital world
Tata group is one of the biggest contrubuter of the Philonthrophic Activities in India and other countries of the world:
1. Tata Group has helped to establish and finance numerous research, educational and cultural institutes in India
2. Tata Trusts, a group of philanthropic organizations run by the head of the business conglomerate Tata Sons
3. 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.
4. 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.
5. 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.
6. In 2017, Tata Consultancy Services (TCS) which is their Engineering services division 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.
7. In 2020, Tata Group has donated INR 15 billion to PM Cares Fund to fight against COVID-19 pandemic in India
8. 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
If we see some of their Highlets:
1. Jamsetji Tata The Founder of the Tata group began with a textile mill in central India in the 1870s. His vision inspired the steel and power industries in India, and
set the foundation for technical education, and helped the country to grow into the ranks of the industrialised nations that is what we are today
2. They are the First to impliment 8hrs work days in 1912, Provident fund in 1920, Free Medical aid in 1915 and Workmens accident compensations
3. They established the Taj Mahal Hotel in 1903, which is the first world class hotel in India.
4. Sir Dorabji Tata established the Tata Iron and Steel company (TISCO), now known as Tata Steel in 1907
5. Indian Institute of Science was established with the first batch admitted in 1911 whch later took over by the Indian Government
6. Group's major growth comes when J. R. D. Tata was made chairman of the Group in 1938. Under his chairmanship, the assets of the Group grew from US$101 million to over US$5 billion
7. In 1952, JRD founded an airline, known as Tata Air Services took over by Indian government in the year 1953
8. In the year 1945, Tata Motors was founded
9. In the year 1968, Tata Consultancy Services was founded
10. In the year 1991 Sir Ratan Tata as the chirmen of the group they have opened up to the forign competation with the major aquisitions
11. In the year 2012 they had the First non Tata CHirmen for the group
If we see some of the Lessons we can learn from this Mesmarising turn of events:
1. If we closely observe the events of Jemsedji Tata we can learn how crucial the vlues of Vision, Determination and the work ethics to be succeed in the business world
When the whole country is in the darkness of british raj here is the man who dreamed of putting the whole nation on the world map with his vision of Industrialisation in major verticals
which can help the country to grow faster.
2. We can learn how improtant is to care for our employees which motivates them to give their best out of them, In the era were there is no jobs here is a man who provided all the emenities
like Profident fund, Accident benefits, Comfortable work place e.t.c which motivated his employees and eventually leads to the success of the establishments.
3. We can see the Importance of adoptability and getting started at the right time by seeing TCS, Tata Motors and their Airline and other businesses.
Ending:
With it's great history of 150+ years in the business world, we can learn lot of lessons from them but we will end this episode with this, We would love to understand how each and everyone
of you feel about the TATA group. Please use the Coment section to show your views and learnings from this great business house.
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