Tata Group

Tata Group

Tata Group
Private
Industry Conglomerate
Founded 1868
Founder Jamshedji Tata
Headquarters Mumbai, Maharashtra, India
Area served
Worldwide
Key people
Cyrus Pallonji Mistry
(Chairman)
Products Airline, Automotive, steel, IT, Electricity generation, Chemicals, Beverages, Telecom, Hospitality, Retail, Consumer goods, Engineering, Construction, Financial services
Revenue US$ 108.78 billion (2015)[1]
Profit US$ 6.7 billion (2015)[1]
Total assets US$ 117.9 billion (2015)[1]
Owner Tata Sons
Number of employees
600,000 (2015)[1]
Subsidiaries List of subsidiaries
Website .com.tatawww

The Tata Group is an Indian multinational conglomerate headquartered in Mumbai, India. It was founded in 1868 and gained international recognition after purchasing several global companies. It is one of India's largest conglomerates. In 2014-15, the revenue of Tata companies, taken together, was $108.78 billion.[2] These companies collectively employ 611,794 people.[2] Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors and shareholders. There are 30 publicly-listed Tata enterprises with a combined market capitalisation of about $113.09 billion (as on 16 September 2015).[3] Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels Company. In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition. Tata companies bring to their customers worldwide a whole host of reputed brands which touch their lives every day. Brand Finance, a UK-based consultancy firm, has valued Tata’s multi-brand portfolio at over $23 billion in 2015. The Tata trusts, majority shareholders of Tata Sons, have endowed institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to non-government organisations working in the areas of education, health care and livelihoods. Tata companies themselves undertake a wide range of social welfare activities, especially at the locations of their operations, as also deploy sustainable business practices.

Contents

  • Head of group 1
  • Subsidiaries 2
  • Acquisitions 3
  • Philanthropy 4
  • Controversies and criticisms 5
    • Munnar, Kerala 5.1
    • Kalinganagar, Orissa 5.2
    • Supplies to Burma's military regime 5.3
    • Land acquisition in Singur 5.4
    • Dhamra Port 5.5
    • Soda extraction plant in Tanzania 5.6
  • Recognition 6
  • See also 7
  • References 8
  • External links 9

Head of group

Subsidiaries

Bombay House, the head office of Tata Group
Packages of Tata Tea

This section lists the Tata companies and details their business:

Chemicals

  • Tata Chemicals
  • Rallis India
  • Tata Pigments Limited
  • General Chemical Industrial Products
  • Brunner Mond
  • Advinus Therapeutics
  • Magadi Soda Company

Consumer products

Energy

  • Tata Power is one of the largest private sector power companies.
  • Tata Power Solar, started as a joint venture between Tata Power and BP Solar, now a wholly owned company.
  • Hooghly Met Coke and Power Company
  • Jamshedpur Utilities and Services Company
  • Tata Power Delhi Distribution Ltd (Formerly Known as North Delhi Power Ltd)
  • Powerlinks Transmission
  • Tata Power Trading
  • Tata Projects

Engineering

Information systems and communications

Services

Steel

  • Tata Steel
  • Tata Steel Europe
  • Tata Steel KZN
  • Tata Steel Processing and Distribution
  • JAMIPOL
  • NatSteel Holdings
  • Tata BlueScope Steel
  • Tata Metaliks
  • Tata Sponge Iron
  • Tayo Rolls
  • The Tinplate Company of India
  • Tata Bearings
  • TM International Logistics

Core sciences

Acquisitions

  • February 2000 – Tetley Tea Company, $407 million[4]
  • 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[5]
  • 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[6]
  • 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

The Tata Group has helped establish and finance numerous research, educational and cultural institutes in India.[7][8] The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of the group's long history of philanthropic activities.[9] Some of the institutes established by the Tata Group are:

The Tata Group has donated a 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.[12] 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 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.[13] The advantage of this device is that it does not require the use of electricity.[14]

TCS also designed and donated an innovative software package that supposedly 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.[13]

In 1912, Tata Group expanded their CEO's concept of community philanthropy to be included in the workplace. They instituted an


  • Official website

External links

  1. ^ a b c d "Tata Group Financial Statements". Tata Group. 
  2. ^ a b http://www.tata.com/htm/Group_Investor_GroupFinancials.htm
  3. ^ http://www.tata.com/htm/Group_Investor_GroupFinancials.htm#group
  4. ^ "Tatas' shopping spree: 27 in 6 years!". Rediff. 24 August 2006. Retrieved 15 August 2015. 
  5. ^ "Tata Steel gives India a pound of UK". timesofindia-economictimes. Retrieved 15 August 2015. 
  6. ^ Timmons, Heather (4 January 2008). "Tata Pulls Ford Units into Its Orbit". The New York Times. Retrieved 21 June 2009. 
  7. ^ "The rainbow effect". 4 May 2008. 
  8. ^ "India's Tata Group: Empowering marginalized communities". 4 May 2008. 
  9. ^ "U.S. and Indian philanthropists recognized for conviction, courage and sustained efforts". 4 May 2008. 
  10. ^ "Ratan Tata gifts $50m to Cornell varsity". The Economic Times (India). 21 October 2008. Retrieved 21 June 2009. 
  11. ^ "Tata Medical Center". Retrieved 15 August 2015. 
  12. ^ "Tatas gift Rs220 crore to Harvard Business School – Mumbai – DNA". Dnaindia.com. 16 October 2010. Retrieved 2 February 2011. 
  13. ^ a b c d "Too good to Fail". February 2010. 
  14. ^ "Tata Swach". 14 December 2009. 
  15. ^ "Tata Group Heritage". 
  16. ^ "Tata, Corporate Social Responsibility and Milton Friedman". 24 October 2005. 
  17. ^ "Ratan Tata did for the Mumbai Terrorist Attack Victims". 14 May 2010. 
  18. ^ "Salute to Ratan Tata". 8 April 2010. 
  19. ^ "Our commitment - Tata trusts - Uttarakhand relief". Retrieved 15 August 2015. 
  20. ^ http://www.srtt.org/institutional_grants/rural_livelihoods_communities/uttarakhand_flood_relief.htm
  21. ^ Nityanand Jayaraman (24 May 2006). "CorpWatch : Stolen for Steel: Tata Takes Tribal Lands in India". Corpwatch.org. Retrieved 16 July 2010. 
  22. ^ ["Myanmar Ties." 8 December 2006. The Telegraph, Calcutta, India].
  23. ^ "India's Independent Weekly News Magazine". Tehelka. Retrieved 16 July 2010. 
  24. ^ "Ansari visits Myanmar tomorrow, 3 MoUs to be signed". Zeenews.com. 4 February 2009. Retrieved 16 July 2010. 
  25. ^ "Singur farmers: Why they oppose Tata plant". Retrieved 15 August 2015. 
  26. ^ "Singur's loss". Hinduonnet.com. 7 November 2008. Retrieved 2 February 2011. 
  27. ^ 'India – Tata in troubled waters', Ethical Corporation, November 2007, London, UK
  28. ^ "India – Tata in troubled waters – Ethical Corporation". Ethicalcorp.com. Retrieved 16 July 2010. 
  29. ^ "Page Not Found". Retrieved 15 August 2015. 
  30. ^ "Documents And Reports | Save the turtles". Greenpeace.in. 12 June 2009. Retrieved 16 July 2010. 
  31. ^ "Sea dredging affecting Olive Ridley turtles, says green body". Thaindian.com. 5 April 2008. Retrieved 16 July 2010. 
  32. ^ a b c "Dar annoys neighbours over $400m soda ash project".  
  33. ^ Magubira, Patty (16 May 2008). "Tanzania: UK Activists Pile Pressure Against Soda Ash Project". The Citizen (Dar es Salaam:  
  34. ^ Pathak, Maulik (31 October 2007). "Tata Chemicals' African safari hits green hurdle". The Economic Times (India). Retrieved 21 June 2009. 
  35. ^ "Best Global Brands | Brand Profiles & Valuations of the World’s Top Brands". Brandirectory.com. Retrieved 8 July 2013. 
  36. ^ "9 Indian brands amongst world's 500 best - Rediff.com Business". Rediff.com. Retrieved 8 July 2013. 
  37. ^ Kneale, Klaus (6 May 2009). "World's Most Reputable Companies: The Rankings". Forbes. Retrieved 15 September 2010. 
  38. ^ "Indian Advertising, Indian Advertising Services, Indian Marketing Services, Indian Newspaper, Indian Television, Latest News and Media News, Advertising - exchange4media.com". Retrieved 15 August 2015. 
  39. ^ "A Matter of Trust". Financialexpress.com. Retrieved 8 July 2013. 
  40. ^ "Nokia, Samsung, Sony India's top trusted brands: The Brand Trust Report". economictimes.indiatimes.com. Retrieved 29 January 2013. 
  41. ^ "Trust Research Advisory". Trust Research Advisory. Trust Research Advisory. October 2014. Retrieved October 2014. 
  42. ^ "Equitymaster Poll: India's Most Trusted Group. Top Indian Companies Voted by Equitymaster Readers.". Equitymaster. Retrieved 15 August 2015. 
  43. ^ http://www.equitymaster.com/help/press-releases/Tata-voted-the-Most-Trustworthy-Corporate-Group.html (Press Release)
  44. ^ SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS" (PDF). http://www.bis.org.in.  

References

See also

In 2000, its Dewas division was awarded the Rajiv Gandhi National Quality Award.[44]

In a 2011 investor poll conducted by equity research firm Equitymaster, TATA Group was voted as the most trustworthy among the Indian corporate houses.[42] 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.[43]

In 2011 and 2012, Tata was ranked as India's second most trusted brand by The Brand Trust Report,.[38][39] In 2013, The Brand Trust Report,[40] ranked Tata as India's fifth most trusted brand. In 2014 Tata was ranked third Most Trusted Brand by the same report.[41]

In 2009 the Tata Group was ranked 11 in the world's top 100 reputable companies by Forbes Magazine[37]

The international brand consultancy Brand Finance has ranked the over $100-billion conglomerate, Tata Group, as 39th most valuable brand in the world.[35] 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.[36]

Recognition

It could also jeopardise the Lesser Flamingo birds there, which are already endangered. Lake Natron is where two-thirds of Lesser Flamingos reproduce.[34] 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.[32] Twenty-two African nations are against the creation of the project and have signed a petition to stop its construction.[32]

Tata group, along with a Tanzanian company, joined forces to build a soda ash extraction plant in Tanzania.[32] On the other hand, environmental activists are opposing 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.[33]

Soda extraction plant in Tanzania

[31][30] The Dhamra port, a venture between Tata Steel and

On the environmental front, the Port of Dhamara controversy has received significant coverage, both within India and in Tata's emerging global markets.[27][28]

Dhamra Port

The Singur controversy[25] 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 then Chief Minister of Gujarat, who quickly made land available for the Nano project.[26]

Land acquisition in Singur

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.[22] In 2009, TATA Motors announced that it would press ahead with plans to manufacture trucks in Myanmar.[23][24]

Supplies to Burma's military regime

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.[21]

Kalinganagar, Orissa

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.

Munnar, Kerala

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

Controversies and criticisms

[20][19] In 2013, the Tata group, through the Tata Relief Committee and the Himmotthan Society, an associate organisation of the

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.[17][18]

Trusts created by Tata Group control 65.8% of company shares,[15] so it can be said that about 66% of the profits of Tata Group go to charity.[16] 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.[13]

[13]