Tata Group

Tata Group

Type

Private

Industry

Conglomerate

Founded

1868

Founder(s)

Jamsetji Tata

Headquarters Mumbai, Maharashtra, India

Area served

Worldwide

Key people

Cyrus Pallonji Mistry

(Chairman)[1]

Products

Airline, Automotive, Steel,Information Technology,Electricity

Generation,Chemicals, Beverages,Telecom, Hospitality, Retail,Consumer
Goods, Engineering,Construction, Financial Services

Revenue

US$ 100 billion (2011-12)[2]

Profit

US$ 6.23 billion (2011-12)[2]

Total assets

US$ 77.7 billion (2011-12)[2]

Owner(s)

Tata Sons (Promoter)

Employees

455,947 (2011-12)[2]

Subsidiaries

List of subsidiaries

Website

www.tata.com

Tata Group is an Indian multinational 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 each of them operates 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 $89.88 billion as of March
2012. Tata receives more than 58% of its revenue from outside India.[6]
Tata Group remains a family-owned business, as the descendants of the founder (from theTata family) owns
majority stake in the company. The current chairman of the Tata group is Cyrus Pallonji Mistry, who took over
from Ratan Tata in 2012.[7] 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 capital 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.[8] The 2009, annual survey by the Reputation Institute
ranked Tata Group as the 11th most reputable company in the world.[9] The survey included 600 global
companies. The Tata Group has helped establish and finance numerous quality research, educational and
cultural institutes in India.[10][11] The group was awarded the Carnegie Medal of Philanthropy in 2007 in
recognition of its long history of philanthropic activities.[12]
Contents
[hide]

1 List of Tata Group Chairmen

2 Subsidiaries

3 Acquisitions

4 Philanthropy

5 Controversies and criticisms

5.1 Munnar, Kerala

5.2 Kalinganagar, Orissa

5.3 Dow Chemical, Bhopal Gas Disaster

5.4 Supplies to Burmas military regime

5.5 Land acquisition in Singur

5.6 Dhamra Port

5.7 Soda extraction plant in Tanzania

6 Recognition

7 See also

8 References

9 External links

[edit]List

of Tata Group Chairmen

Jamsetji Tata (18871904)

Sir Dorab Tata (19041932)

Nowroji Saklatwala (19321938)

J. R. D. Tata (19381991)

Ratan Tata (19912012)

Cyrus Mistry (2012 Present)

[edit]Subsidiaries
Main article: List of entities associated with Tata Group

Bombay House, the head office of Tata Group

Tata Bus

Tata Nano

Packages of Tata Tea

HimalayanTata Mineral Water

Tata bus in Sri Lanka

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

Tata Salt

I-shakti

Casa Dcor

Tata Swach

Tata Global Beverages

Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea products.

Eight O'Clock Coffee

Tata Ceramics

Infiniti Retail (Crom)

Tetley

Tata Coffee

Tata Industries

Titan Industries

Trent (Westside)

Tata Sky

TajAir

Tata International Ltd.

Tanishq

Tata Refractories

Westland

Energy

Tata Power is one of the largest private sector power companies.

Tata BP Solar, a joint venture betweenTata Power and BP Solar

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

TAL Manufacturing Solutions

Tata AutoComp Systems Limited(TACO)

Hispano Carrocera

Tata Motors, manufacturer of commercial vehicles (largest in India) and passenger cars

Jaguar Land Rover (Manager of Tata's British brands Jaguar cars and Land Rover

Tata Daewoo Commercial Vehicle

Tata Projects

Tata Consulting Engineers Limited

Tata Cummins

Telco Construction Equipment

TRF

Voltas, consumer electronics company

Voltas Global Engineering Centre

Tata Advanced Materials

Tata Advanced Systems

Tata Motors European Technical Centre

Tata Petrodyne

Tata Precision Industries

Telcon Construction Equipment

Information Systems and Communications

Computational Research Laboratories

INCAT

Nelco

Nelito Systems

Tata Business Support Services

Tata Consultancy Services Ltd. (TCS) is Asia's largest software company.

Tata Elxsi

Neotel

Tata Interactive Systems

Tata Technologies Limited

Tata Teleservices

Virgin Mobile India

Tata Communications

CMC Limited

VSNL International Canada

Tatanet, Managed connectivity and VSAT service provider

Tata Teleservices

Tata Teleservices (Maharashtra)

Services

Tata Sons

TKM Global ( Logistics and Supply Chain ) www.tkmglobal.net

The Indian Hotels Company

Ginger Hotels

Roots Corporation

Landmark Bookstores

Tata Housing Development Company Ltd. (THDC)

Tata Limited

TATA AIG General Insurance

TATA AIG Life Insurance

Tata AG

Tata Asset Management

Tata Financial Services

Tata Capital

Tata International AG

Tata Investment Corporation

Tata Advanced Systems Limited

Drive India Enterprise Solutions

Mjunction services

Tata Quality Management Services

Tata Realty and Infrastructure Limited

Tata Interactive Systems

Tata Africa Holdings

Tata AutoComp Systems

Tata Industrial Services

Tata NYK

Tata Services

Tata Strategic Management Group

Taj Hotels

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

TM International Logistics

Core Sciences

Tata Institute of Fundamental Research

Tata Institute of Social Sciences

[edit]Acquisitions

February 2000 Tetley Tea Company, $407 million[13]

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, $167 million

December 2005 Brunner Mond Chemicals, $120 million

June 2006 Eight O'Clock Coffee, $220 million

November 2006 Ritz Carlton Boston, $170 million

January 2007 Corus Group, $12 billion[14]

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

[edit]Philanthropy

The Tata Group has helped establish and finance numerous quality research, educational and cultural
institutes in India.[10][11] The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition
of the group's long history of philanthropic activities.[12]Some of the institutes established by the Tata Group are:

Tata Institute of Fundamental Research

Tata Institute of Social Sciences

Indian Institute of Science

National Centre for Performing Arts

Tata Management Training Centre

Tata Memorial Hospital

Tata Football Academy

Tata Cricket Academy

Tata Trusts, a group of philanthropic organisations run by the head of the business conglomerate Tata
Sons[15]

The JRD Tata Ecotechnology Centre

The Energy and Resources Institute (earlier known as Tata Energy and Research Institute) a non
governmental research institute.

The Tata Group has donated a Rs. 220 crore ($50 million) to the prestigious Harvard Business School (HBS)
to build an academic and a residential building on the institutes campus in Boston, Massachusetts. The new
building will be called the Tata Hall and used for the institutes executive education programmes. [16] The amount
is the largest from an international donor in the business school's 102-year-old existence.
The recent The Brand Trust Report,[17] 2011 has ranked TATA as the second most trusted brands of India.
In a 2011 investor poll conducted by equity research firm Equitymaster, TATA Group was voted as the most
trustworthy among the Indian corporate houses.[18] 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.

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 swachwhich 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 CEOs concept of community philanthropy to be included in the workplace.
They instituted an eight-hour workday, before 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 employees 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]

[edit]Controversies

and criticisms

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

[edit]Munnar,

Kerala

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) atMunnar. 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.

[edit]Kalinganagar,

Orissa

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. [25]

[edit]Dow

Chemical, Bhopal Gas Disaster

In November 2006, survivors of the Bhopal gas disaster were outraged by Ratan Tatas offer to bail out Union
Carbide and facilitate investments by Carbides new owner Dow Chemical. Tata had proposed leading a
charitable effort to clean up the toxic wastes abandoned by Carbide in Bhopal. At a time when the Government
of India has held Dow Chemical liable for the clean-up and requested Rs. 100 crores from the American MNC,
survivors groups felt that Tatas offer was aimed at frustrating legal efforts to hold the company liable, and
motivated by a desire to facilitate Dows investments in India.[26]

[edit]Supplies

to Burmas military regime

Tata Motors reported deals to supply hardware and automobiles to Burmas oppressive and anti-democratic
military junta has come in for criticism from human rights and democracy activists. In December 2006, Gen.

Thura Shwe Mann, Myanmars chief of general staff visited the Tata Motors plant in Pune. [27] In 2009, TATA
Motors announced that it would press ahead with plans to manufacture trucks in Myanmar.[28][29]

[edit]Land

acquisition in Singur

The Singur controversy[30] in West Bengal led to further questions over Tatas 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.[31]

[edit]Dhamra

Port

On the environmental front, the Port of Dhamara controversy has received significant coverage, both within
India and in Tatas emerging global markets.[32][33]
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 worlds largest mass nesting sites for the Olive Ridley
Turtle and Bhitarkanika is a designated Ramsar site and Indias 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.[34] 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.[35][36]
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.[37][38]

[edit]Soda

extraction plant in Tanzania

Tata group, along with a Tanzanian company, joined forces to build a soda ash extraction plant in
Tanzania.[39] The Tanzanian government is all for the project.[39] 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.[40]
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.[40] It could also jeopardise the Lesser Flamingo birds there,

which are already endangered. Lake Natron is where two thirds of Lesser Flamingos reproduce.[41] 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.[39] Twenty-two African nations are against the
creation of the project and have signed a petition to stop its construction.[39]

[edit]Recognition
The international brand consultancy Brand Finance has ranked the over $100-billion conglomerate, Tata
Group, as 39th most valuable brand in the world.[42] 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.