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 was born December 28, 1937, in Mumbai (Bombay), BombayPresidency
of India is the present Chairman of Tata Sons and therefore, TataGroup, India's largest
company founded by Jamsedji Tata and consolidated and expanded by later generations of
his family. Hewas born to Soonoo and Naval Hormusji Tata. Ratan is the great grandson of
Tata group founder Jamsetji Tata. Ratan's childhood was troubled, his parents separating in
the mid-1940s, when he was about seven and his younger brother Jimmy was five. His
mother moved out and both Ratan and his brother were raised by their grandmother Lady
Navajbai. He is also the chairman of major Tata companies such as Tata Steel, Tata Motors,
Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels
Company and Tata Teleservices. 

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Α Ratan Tata is the chairman of the Tata Group, Indiaǯs largest corporation.
Α He is the latest in a long line of Tatas to head the family owned company.
Α Born into an old Parsi family of Bombay on 28th December, 1937.
Α He received a Bachelorǯs degree in Architecture from Americaǯs Cornell University in
1962.
Α He returned to India and joined the Tata Group.
Α Tata is single and leads a modest lifestyle in his bachelor apartment.
ð

Α The US educated bachelor lives alone with his two German shepherds in an
apartment in Mumbai.
Α He is known to be a supporter of the traditional Parsi way of life.
Α He has a passion for home cooked food and is known to indulge reply in art
collection.
Α A trained pilot who still takes to the skies on his own aircraft has picked a number of
awards.
Α He is known to slip into the front seat alongside his driver to and from work.

At the helm of Tata Group since the retirement of JRD Tata in 1991, Mr. Ratan Naval Tata,
the son of Naval H. Tata, has made the Tata Group a global player. The January 10, 2005
issue of Forbes Asia, named Ratan Tata as Asia's Businessman of the Year. Under Mr. Ratan
Tata's guidance, the Tata Group has grown rapidly and made forays into new industries
and areas of business. Mr. Ratan N. Tata is the Chairman of Tata Sons Limited, the holding
company of the Tata Group, and the Chairman of major Tata operating companies. In
addition, Mr. Tata serves on the central board of the Reserve Bank of India and is on the
Prime Minister's Council on Trade and Industry.

The Recognition Honoured with Padma Bhushan he is a member on Prime Ministers

Council on Trade and Industry. Ratan Tata was also honoured by Cornell University as the
26th Robert S. Hatfield Fellow in Economic Education, considered to be the highest honour
by the Cornell University. He is also a member of the board of trustees of the RAND
Corporation. He is board member on the Republic of South Africa's International
Investment Council and is a Asia-Pacific advisory committee member for the New York
Stock Exchange.
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Ratan Tata completed a BS degree in architecture with structural engineering from Cornell
University in 1962, and the Advanced Management Program from Harvard Business School
in 1975. He joined the Tata Group in December 1962, after turning down a job with IBM on
the advice of JRD Tata. He was first sent to Jamshedpur to work at Tata Steel. He worked on
the floor along with other blue-collar employees, shoveling limestone and handling the
blast furnaces. Ratan Tata, a shy man, rarely features in the society glossies, has lived for
years in a book-crammed, dog-filled bachelor flat in Mumbai's Colaba district.

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Ratan Tata has his own capital in Tata Sons., the holding company of the group. His share is
around 1%, valuing his personal holding at approximately US$ 1 Billion. About 66% of the
equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata
family. The biggest two of these trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata
Trust, which were created by the families of the sons of Jamshedji Tata. Ratan Tata is on the
board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board of trustees of
the Sir Dorabji Tata Trust, giving him significant influence on the board of Tata Sons,
despite his minority personal shareholding.

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In 1971, Ratan was appointed the Director-in-Charge of The National Radio & Electronics
Company Limited (Nelco), a company that was in dire financial difficulty. Ratan suggested
that the company invest in developing high-technology products, rather than in consumer
electronics. J.R.D. was reluctant due to the historical financial performance of Nelco which
had never even paid regular dividends. Further, Nelco had 2% market share in the
consumer electronics market and a loss margin of 40% of sales when Ratan took over.
Nonetheless, J. R. D. followed Ratan's suggestions.

From 1972 to 1975, Nelco eventually grew to have a market share of 20%, and recovered
its losses. In 1975 however, India's Prime Minister Indira Gandhi declared a state of
emergency, which led to an economic recession. This was followed by union problems in
1977, so even after demand improved, production did not keep up. Finally, the Tatas
confronted the unions and, following a strike, a lockout was imposed for seven months.
Ratan continued to believe in the fundamental soundness of Nelco, but the venture did not
survive

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better way to do things than the ways to do things than the way they
are done today, is a company that will survive in the global market
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In 1981, Ratan was named director of Tata Industries, the Group's other holding company,
where he became responsible for transforming it into the Group's strategy think-tank and a
promoter of new ventures in high-technology businesses.In 1991, he took over as group
chairman from J.R.D. Tata, pushing out the old guard and ushering in younger managers.
Since then, he has been instrumental in reshaping the fortunes of the Tata Group, which
today has the largest market capitalization of any business house on the Indian Stock
Market.Under Ratan's guidance, Tata Consultancy Services went public and Tata Motors
was listed on the New York Stock Exchange. In 1998, Tata Motors introduced his
brainchild, the Tata Indica.

On January 31, 2007, under the chairmanship of Ratan Tata, Tata Sons successfully
acquired Corus Group, an Anglo-Dutch steel and aluminium producer. With the acquisition,
Ratan Tata became a celebrated personality in Indian corporate business culture. The
merger created the fifth largest steel producing entity in the world.

On March 26, 2008, Tata Motors, under Ratan Tata, bought Jaguar & Land Rover from Ford
Motor Company. The two iconic British brands, Jaguar and Land Rover, were acquired for
£1.15 billion ($2.3 billion).


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MrRatan Tata share in the whole group is 1%, or a little less, valuing his personal holding at
approximately US $1 Billion, if encashed. 66% of the equity capital of Tata Sons is held by
philanthropic trusts endowed by members of the original Jameshedji family and the largest
share is with ShapoorjiPallonjiMistry (18.5%). The biggest two of the owning trusts are the
Sir Dorabji Tata Trust and the Sir Ratan Tata Trust (different Ratan Tata), which were
created by the families of the sons of Jamshedji Tata. Ratan Tata is on the board of trustees
of the Sir Ratan Tata Trust, and is the chairman of the board of trustees of the Sir Dorabji
Tata Trust. Ratan Tata is also best known as the face behind changing India's automotive
industry into global climate change era.


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The TATA Group is widely believed to make the largest contribution to charity of any
corporation in India. However, during his tenure as Chairman of the Tata Group, Ratan Tata
has come in for criticism from human rights and environmental activists for the TATA
Groupǯs record in this sector and the apparent reluctance to address these issues at the
Group level.

[
‘ ‘ ‘‘[In November 2006, survivors of the Bhopal

gas disaster were outraged by Ratan Tataǯs offer to bail out Union Carbide and facilitate
investments by Carbideǯs 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, survivorǯs groups felt that Tataǯs offer was aimed at
frustrating legal efforts to hold the company liable, and motivated by a desire to facilitate
Dowǯs investments in India.

‘The Singur controversy in West Bengal led to further questions

over TATAǯs social record, with protests by local villagers and some political parties over
forcible eviction and inadequate compensation to those being displaced for the TATA Nano
plant. As the protests gathered steam, and despite having the support of the ruling
CPIgovernment, TATA eventually pulled the project out of the state 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 Tataǯs subsequent embrace of and praise for NarendraModi, Chief Minister of
Gujarat, also earned him brickbats on account of Modiǯs openly communal stance and his
performance as Chief Minister during the 2002 pogrom that saw hundreds of Muslims
killed in riots within the state





  




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 ‘India's Industrial Architect

Ratan Naval Tata, the Chairman of the Tata Group, one of the largest group of industries ;
something he inherits from his earlier generation. Brought up by his grandmother due to
separation of his parents, Ratan Tata did his schooling from Cathedral and John Cannon
School in Mumbai. Later on he got his Architectural and Engineering Degree from Cornell
University. From here he joined his familybusiness. After turning down a job offer from
IBM, he joined the Jamshedpur Tata Steel plant working with the Blue Collar employees
handling blast furnances.


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In 1971, Ratan Tata joined Nelco and turned it into a profit churning company. Later on
when he joined the sick unit of Tatas Empress Mill, he turned it into a dividend declaring
company.In 1981 he was declared the Chairman of the Tata Group of Industries.Today the
Company has been listed in New York Stock Exchange.



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The young lad who left the IBM job and brewed the corridors of his own company, is today
the Chairman of Tata Group of Companies and has his company listed in New York
Exchange. His latest expedition is the Tata Elegantethe latest Tata four wheeler he
presented at the Geneva Car Expo.

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The Tata name evokes many connotations. For Indians, it is

pride in Tataǯs illustrious history spanning three centuries,
starting from its nationalistic roots to the creation of a
progressive, 91 company conglomerate, that stands for
integrity, excellence and a commitment to serve society.

For developed nations, Tata

represents world-class
information technology services
and manufacturing excellence.
For the steel industry, Tata Steel
represents state-of-the-art
Tata Indica production with one of the
worldǯs lowest-cost-of-
production. In the automotive
industry, Tata Motors
ranks among the top six
Tata Steel
manufacturers of medium and
heavy commerical vehicles in
the world and is India's largest
commercial vehicle
manufacturer.

Taj Hotel in Mumbai, adjacent to the Gateway of India

The Tata Group is today one of Indiaǯs largest conglomerates with revenues of
over US $14.25 billion in 2003-04. The Group companies employ over 22,000
people worldwide and exports products and services to 140 countries with
operations in over forty.
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The Tata Companies share a set of five core values

derived from the Groupǯs early beliefs Ȃ and these are
still drive all business decisions: Integrity,
Understanding, Excellence, Unity and Responsibility.

Company History:
Tata Iron & Steel Company Ltd. (TISCO) is the iron and steel production company
associated withthe Tata group of some 80 different industrial and other business
enterprises in India, founded bymembers of the Tata family.
TISCO operates as India's largest integrated steel works in the private sector with a market
share of nearly 13 percent and is the second largest steel company in the entire industry.
Its products and services include hot and cold rolled coils and sheets, tubes,
constructionbars, forging quality steel, rods, structural, strips and bearings, steel plant and
material handlingequipment, ferro alloys and other minerals, software for process controls,
and cargo handlingservices. Through its subsidiaries, TISCO also offers tinplate, wires, rolls,
refractories, and projectmanagement services
Industry Outlook.
The fortunes of the domestic steel industry are linked to economic growth and the level
ofgovernment spending on infrastructure. Steel-makers experienced a tough year in
FY2002, withprices falling to historically low levels amid a worldwide demand downturn.
Global steel prices,however, have staged a recovery in 2002 led by improving demand,
especially in China, and someamount of production cuts globally. Accordingly, domestic
prices have also firmed up. While therecent trend towards protectionism is an unwelcome
development overall, it has also helped boostprices.


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The growth of Jamshedpur and the involvement of the firm in every aspect of its industrial
andmunicipal life was the subject of several studies. Jamsetji Tata was both a nationalist
and a philanthropist. He showed a paternalistic concern for the well-being of his
employees, which set thetone for future company policy. The British proponents, pioneers
of social reform Sydney andBeatrice Webb, were invited out to India from England to
advise the Tatas on the best form ofsocial, medical, and cooperative services for the newly
established Jamshedpur and as aconsequence schools, recreational facilities, creches, and
other amenities were established on site atan early stage. An eight-hour working day had
been introduced in 1912, an officially recognized.

Tata Workers' Union established with Gandhi's associate, C.F. Andrews, as its first
president, andprofit-sharing schemes were brought in 1934. Against this, it was argued
that the Workers' Unionoperated in fact as a management tool to impose its will on a
workforce so heterogeneous by naturethat rival unions made little headway. Despite the
reputation of the Tata family for concern overworkers' rights, there was much unrest
among the workforce during the 1920s over wages andconditions and it has been claimed
that this, as much as anything, contributed to advances. Thecommitment of the Indian
Trades Union Congress after independence to the same goals as centralgovernment--
economic self-sufficiency and prosperity--allowed the Tatas a relatively free hand
indicating their own industrial relations policy. Whatever the arguments, TISCO could
claim in 1989that it had not lost a day's work through industrial action in 50 years, and its
management illustrated its commitment to the welfare of its employees by commissioning
an audit of its "socialperformance" by a team of eminent public figures.


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Α Modernized the Tata Group from an engineering-to-services conglomerate into new
areas such as telecom, passenger cars, retail, biotech
Α Turned Tata Steel into the world's lowest-cost steel producer
Α Introduced India's first Indigenous car, the Indica and, now, the Tata-Nano, which
has nearly doubled the value of Tata Motors
Α Led the Tata Group into the global marketplace with acquisitions of Tetley Tea for
$475m, steelmaker Corus for $11.3bn, Jaguar and Landrover for $2.3bn



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Tata Nano car, 2008

Ratan Tata's dream was to manufacture a car costing Rs 100,000.The ‘ is an
inexpensive, rear-engined, four-passenger city car built by theIndian company Tata
Motors and is aimed primarily at the Indian domestic market.Nano, the tiny car with the
even tinier price-tag. A triumph of homegrown engineering, the $2,200 (̀1,490, £1,186)
Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity.
Tata Motors began selling its "one-lakh car" in March, 2009. The cheapest car in the world
today, though the price continues to risedue to increasing material costs, it is an exemplary
example of Gandhian engineering, a concept involving deep frugality and a willingness to
challenge conventional wisdom.

He realized his dream by launching the car in New Delhi Auto Expo on January 10, 2008.
Three models of the Tata Nano were announced, and Ratan Tata delivered on his
commitment to developing a car costing only 1 lakh rupees, adding that "a promise is a
promise," referring to his earlierpromise to deliver this car at the said cost.
c˜

Recently when his plant for Nano production was obstructed by Mamta Banerjee, his
decision of going out of West Bengal was warmly welcomed. Banerjee had the supportof
the people of Singur, where the Nano plant was being constructed, and many social
movements. They criticized Ratan Tata for forcing people out of their land in collusion with
the Left Front government in the state, headed by BudhadebBhattacharjee.


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On October 3 : Tata Motors chairman Ratan Tata said that he was moving the "Nano"
project out of Singur because of the agitation by the Trinamool Congress, led by Mamta
Banerjee, and not because of any failure on the part of the West Bengal Government.

He also said the format of the agitation had made them wonder from where the funds had
come and what really lay behind the agitation.On whether administrative measures could
have been taken to facilitate work at Singur, he said "the government was damned if it did
and damned if it didn't" in the situation at Singur, solely resting responsibility on Banerjee
for failing to understand the implications of the project.

Tata firmly said it should be left to the company to decide how many acres it needed to set
up a plant.He said in Pantnagar too, Tataǯs had about 1000 acres, 600 for the company and
the rest for ancillary units.

While referring to Banerjee's demand for return of 300 acres from the acquired land and
suggestion for moving the ancillary units across the road, Tata said, "Others cannot decide
how much place we need to manufacture cars and where we could place our ancillary
units."

A visibly tired Ratan Tata said a 100 "Nano" projects will come and go but Bengal had to
decide what it wanted, and added, "Thought has to be given to whether the young people
want jobs; the state needed infrastructure and investment."

Tata said one has to be conscious of the rural population but consider whether the future
generation of the state will have opportunities unless there is investment.He said the state
needed to figure out whether it wanted to choose the path of agitation, strike, and assault
or wanted to move forward.

Tata who had a meeting with West Bengal Chief Minister Buddhadeb Bhattacharya earlier
today, said he had decided to invest in West Bengal, impressed with the industrial policy of
the current government.
cl

He said he had great respect for those policies and leadership of the Chief Minister, but
since an understanding could not be arrived at with the opposition TMC on the issue, the
Tatas had decided to move out.Tata further said that the decision was taken because the
company had a deadline to meet and had made promises to the public on the "Nano" roll
out, which needed to be fulfilled, and added that he had a commitment to his shareholders
over this.

"The venue for the plant is not finalized but there have been feelers from four or five State
Governments," said the Tata Motors Chairman, adding, "Wherever we move, we will look
back on the lesson learnt and ensure a congenial atmosphere before work starts."

The ever polite Tata also said the Tataǯs would definitely consider investment in West
Bengal in future but it was unfortunate that the company had such an experience this time.

Tata said the Chief Minister was extremely distressed and was very persuasive towards the
project not moving out.However, he said the responsibility of the employees rested on him
and he could not take a risk with their lives.On the losses to the company, Tata said,
"Whatever the cost, there was no other option but to do this."

Tata also said that the people, who have received training for jobs for the factory here,
among those who willingly gave up land, would hopefully become members of the Tata
Motors family in future, but not in Singur.West Bengal Industry Minister NirupamSen said
the Chief Minister and the government offered all support to the Tatas to continue the
project in Singur but Tata said he did not want to continue work with police protection and
he wanted a peaceful environment.

"It was unfortunate for the state that despite repeated requests and explanations given to
the opposition about the project and the best rehabilitation package in the country given to
land losers bythe government, they did not agree to the project. The opposition acted
irresponsibly on the issue," said Sen. y AjithaMenon


#()
On the occasion of India's 58th Republic Day on 26 January 2000, Ratan Tata was honoured
with the Padma Bhushan, the third highest decoration that may be awarded to a civilian. On
26 January 2008 he was awarded the Padma Vibhushan, the second highest civilian
decoration. He was one of the recipients of the NASSCOM Global Leadership Awards-2008
given away at a ceremony on February 14 2008 in Mumbai. Ratan Tata accepted the
Carnegie Medal of Philanthropy in 2007 on behalf of the Tata family. Ratan Tata serves in
c·

senior capacities in various organisations in India and he is a member of the Prime

Minister's Council on Trade and Industry. In March 2006 Tata was honoured by Cornell
University as the 26th Robert S. Hatfield Fellow in Economic Education, considered the
highest honor the university awards to distinguished individuals from the corporate sector.

Ratan Tata's foreign affiliations include membership of the international advisory boards of
the Mitsubishi Corporation , the American International Group , JP Morgan Chase and Booz
Allen Hamilton. He is also a member of the board of trustees of the RAND Corporation ,
University of Southern California and of his alma mater , Cornell University. He also serves
as a board member on the Republic of South Africa's International Investment Council and
is an Asia-Pacific advisory committee member for the New York Stock Exchange. Tata is on
the board of governors of the East-West Center, the advisory board of RAND's Center for
Asia Pacific Policy and serves on the programme board of the Bill & Melinda Gates
Foundation's India AIDS initiative. In February 2004, Ratan Tata was conferred the title of
honorary economic advisor to Hangzhou city in the Zhejiang province of China.

He recently received an honorary doctorate from the London School of Economics and
Indian Institute of Technology Kharagpur.He was listed among the 25 most powerful
people in business named by Fortune magazine in November 2007. In May 2008 Mr Tata
made it to the Time magazine's 2008 list of the World's 100 most influential people. Tata
was hailed for unveiling his tiny Rs. one lakh car 'Nano'.

On 29 August 2008, the Government of Singapore conferred honorary citizenship on Ratan

Tata, in recognition of his abiding business relationship with the island nation and his
contribution to the growth of high-tech sectors in Singapore. Ratan Tata is the first Indian
to receive this honour.

After the 26 November 2008 Mumbai attacks, Forbes opined Ratan Tata be brought into
politics, calling him India's most respected business leader. In 2009 he was appointed an
honorary Knight Commander of the British Empire.



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Ratan Tata initiated the restructuring of TATA shortly after he took over because he felt the
vast diversity of TATA Group was diluting the market responses. He elucidated the needs of
remaining focused rather than diffused, and he insisted on more aggressive attitude
towards the growth and market share. The aspiration which triggered off restructuring has
been described as (a) Returns must be greater than cost of capital; (b) Each company must
be the industry leader occupying one of the top three positions; and (c) The business
identified must have potential for high growth and should be globally competitive (From
the Internal Company Journal) . Once the goal has been set, strategies were put together for
exits and entries. A new scientific and rational approach has been introduced in the
company. This perfectly describes how an able entrepreneurs exercise their vision to
motivate employees, inspire them to meet the challenges and to Dzfacilitate their attempts to
achieve more than they thought possible as they strive to help the firm reach its visiondz
(Kuratko et al., 2001, p. 62). Ratan Tata chosen to shake off the businesses of soaps and
toiletries, cosmetics, consumer electronics, pharmaceuticals, computer and telecom
hardware, branded white goods, paints, oil exploration services, cement, textiles ... likewise
enthusiastic on his spreading out into lucrative businesses like passenger cars, auto
components, retailing, telecom, power and insurance(Lala,2004).

*()
When Ratan Tata took over the chairmanship of Tata Steel he realized that the group need
a stronger brand identity and he decided to endorse Tata Brand as an umbrella brand for
the entire group which eventually subscribed to the Tata Brand equity scheme. This
decision reflects a strong corporate innovation and entrepreneurship as it is also
accountable for motivating innovation within the organization after assessing potential
new opportunities, resource acquisition, implementation ,exploitation and
commercialization of the new products or services (GuthandGinsberg, 1990) Each five
company that subscribed to the scheme would derive the benefits of the centrally
promoted Tata brand. RT recommended that the subscribing Tata companies expected to
contribute, and the contribution would depend upon each companyǯs association with the
brand(Lala,2004). Tata Sons considered to use the contributed amount to build a national
and later international group brand image by accentuating the core values and ethics,
mostly through advertising. The cost estimated by Tata Sons for significant domestic brand
promotion was Rs 300 million per annum, much more than the commission collected. A
resolution has been passed the board of directors of various Tata companies in 1995 in
accordance with this arrangement. However the scheme engenders debate in the media but
The Tata Brand transpired into a seal of trust.
c 

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Cost cutting measures: Besides company is taking following steps to cut costs: 
2 Aim for Better cash management and liquidity management across all units.

2 Liquidating existing inventory and writing down losses (Tata Steel Thailand).

2 Increasing cash flow by reducing net working capital and postponing capital
expenditure(for Nat Steel Asia)

2 Maximize sales for most profitable units(Tata Steel India) Tata Steel UK: The company
makes steel products for sale around the world, and should benefit from the European
stimulus plans as it is the leading supplier of steel for the continent's auto, construction,
and household-products industries-direct beneficiaries of the stimulus plans.

2 Cash savings of up to 600 million pounds (to be realized by H2ǯ09)

2 Reducing production, saving employment cost (reducing employees by 3500 from

42000 currently.

Tata Steel India Tata Steel (India) exports only 12% of their Steel output, company has said
that it will focus more on exports to take benefit of rupee depreciation. According to
company Statement Company it plans to triple its exports to 330 mntonnes to take
advantage of currencydepreciation.

Industry Performance According to recent report on steel sector 'Indian Steel Industry
2009: squeezed, but strong' by Ernst and Young India has the potential to grow at double
digit rates and should target a production of 125 mntonnes in the medium term. Report
mentions, China example from 1998-2003, when world steel production grew by 1.6%,
china doubled its steel production growing by 18%.

According to the report, the near-term outlook for the industry is challenging as the growth
in key end-user industries such as construction, automobiles and manufacturing has taken
a backseat. The downturn has also led to a decline in the prices for raw materials such as
iron ore and coking coal, albeit at a lower rate than the dip in steel prices. Further, prices
are expected to decline in 2009 as consumption levels are projected to continue
plummeting.

To avoid large-scale dumping and protect domestic players, the government, has taken
following steps:

1. Removal of export duty

2. Restored DEPB (Duty exemption pass book) to promote exports.

3. Imposed 5% import duty on steel to check cheap imports from china

4. Cut in excise duty from 14% to 10%

ï

International steel prices rose sharply by 50-60% in the first half of 2008 but prices in the
domestic market was reigned in by the government in an attempt to check inflationary
pressures and ensure adequate supply. As a result, domestic steel prices went up by
around 25% only in the corresponding period. Therefore, as we witness steep correction in
international steel prices by 25% (from $1200 to $900), we do not expect similar declines
in domestic prices that have fallen by 16% to $750 but rather stabilize in the coming
quarters.

("("
Ratan Tata quietly but firmly began to assert the group's authority on the individual
companies. He strengthened the unified brand image of the group. A major restructuring
effort was undertaken, excess baggage was dropped and businesses were rationalized and
consolidated. The effort ended with a leaner portfolio of 93 companies, focused on seven
identified industry sectors Ȃ engineering, materials, energy, chemicals, services, consumer
products, and information systems and communication.

Tata has been instrumental in promoting the Tata brand and the 'Made in India' tag not
only in India but across the globe in sectors as diverse as steel, automobiles, chemicals and
hospitality. His mandate for group companies was clear: shape up, or ship out; be among
the top three players in your business or get out of it.

Under Tata's stewardship, the group is in a leadership position in information technology

(TCS, CMC), steel (Tata Steel), chemicals (Tata Chemicals), tea (Tata Tea) and hospitality
(Indian Hotels), and the Tata name is reaching new geographies through an aggressive
'internationalization' effort. The group now has a presence in 40 countries and exports to
140. What has ensured the success of Tata's plans is his unwavering focus on the customer.
Quality, he insists, must be the hallmark of all Tata products and services, no matter which
segment of society or which country they are meant for. Good governance, fair business
practices and social responsibility should be the guide for all Tata companies, in all
locations and at all times.

Recent years have seen the group make rapid strides in itsM&A and JV strategy across the
globe. Since 2004 the Tata group has acquired over 30 companies, totaling about $2 billion.
The group has also built strategic partnerships with global companies, in order to improve
its competitive position. As he drives the group's expansion plans in other geographies,
Ratan Tata is encouraging Tata companies in India to shift their focus from the urban to the
rural and create products and services that address the needs of the bottom of the pyramid.

The Taj group's recently launched Ginger chain of economy hotels, Tata Motor's proposed
Rs 1-lakh small car, Titan's Sonata brand of watches, and Tata BP Solar's initiatives in
harnessing solar energy to light up villages, are efforts at creating affordable but quality
products and services for small-town and rural customers. Referred to in the media as a
recluse, Ratan Tata is not to be found at the regular high- society events patronized by
many of his peers. He prefers instead to indulge his passion for flying by piloting a plane or
helicopter to his weekend getaway at Mandwa, and spending time with his two Labradors.
ïc

Tata Iron and Steel Company (TISCO)

It was established in 1907 by J N Tata1 at Jamshedpur inBihar, India. TISCO offered a wide
range of products and services including Hot rolled/Cold rolled (HR/CR) coils2 and sheets,
tubes, construction bars, forging quality steel, rods,structuralǯs, strips and bearings. It also
manufactured material handling equipment, Ferro alloys andother minerals, software for
process controls, and offered cargo-handling services.
In the early 1980s, TISCO initiated a modernization program of its steel plant
By mid-1990s, TISCO had become India's most cost-effective steel plant. It also became
Asia's firstand India's largest, integrated steel producer (ISP) in the private sector. By 2000,
eight divisions ofTata Steel were ISO-140014 certified, including Noamend Iron Operations,
West Bokaro, Collieries, Ferro Alloy Plant, Joda, Sukinda Chromite Mines, Joda East Iron
Mines, Tubes Division,and Growth Shop & Steel Works.
By early 2000, TISCO had completed four phases of the modernization programme with an
Investment of about Rs 60 billion5. The company had invested Rs 4 billion on consultancy
feesduring 1990 to 2000. The fifth phase of the program had commenced in April 2000
‘



^ 
)
New Delhi: Tata Group Chairman Ratan Tata on Thursday hit out at RajyaSabha MP Rajeev
Chandrasekhar, rebutting allegations that the Tatas benefitted most from the governmentǯs dual
technology policy. 
Former Telecom entreprenur and independent MP Rajeev Chandrasekharǯs open letter alleging that
the Tata groups were the main beneficiary in the 2G spectrum allocation evoked the sharpest
response from Ratan Tata. 
Replying to an open letter by the RajyaSabha MP, Ratan Tata said the motivation behind the
allegations appears to be Chandrasekharǯs affiliation to the BJP and an attempt to embarrass the
Prime Minister.Ratan Tata also maintained that his company was never favoured by A Raja or earlier
Telecom ministers.Saying that Chandrasekhar and others are motivated by self interest, Tata accused
them of lobbying aggressively through Cellular Operators Association of India (COAI).

DzThe powerful GSM operators are holding spectrum beyond their entitlement free of cost and to the
detriment of the other operators. As Tatas did not enjoy Ǯcaptive connectionsǯ in the environment, the
Tata Group had no option but to seek an external agency focused at projecting its point of view and
countering the misinformation and vested interest viewpoints,dz says Tata in the letter.Tata said
Chandrasekhar had lobbied actively against a technology neutral policy and had approached Tata in
July 2002 to sign a letter in this regard. Tata says Chandrashekar had worked in self interest to
protect investment.

DzMr Chandrasekhar parked himself at TajMahal Hotel to prevent WLL Limited Mobility. Mr
Chandrasekhar also constantly solicited support of CII. Your affiliation to a particular political party
is well known and it appears their political aspirations and their endeavour to embarrass the Prime
Minister and the ruling party may well have been the motivation behind your letter. We should all
ïï

note that many of the flip flops in the telecom policy occurred during the BJP regime,dz he said.

Reacting to Tataǯs statement, Chandrashekhar claims that the letter does not address the main issues
raised by him.DzYour response is typical, ducks main issues. Response attempts to shoot the
messenger. I am disappointed, but no longer surprised. Your letter is intensly personal, attributes
feeble motives. The response is most unbecoming of the House of Tatas. I think this is a lapse in good
judgment. I find your self-appointed defence of Prime Minister very irrelevant. I refuse to fall to your
level of personal attacks. On facts, your letter is exceptionally weak,dz Chandrashekhar said.

As the corporate battle of open letters and rebuttals gets more personal and acrimonious the
government refused to be dragged into it.DzItǯs a war between indivdiuals and the government is not
part of it so I donǯt want to say anything,dz said KapilSibal.

&#+!#"'#,-.‘
Tata Motors increased its market share in domestic commercial vehicle sales to 65.3 per cent in
February from 60 per cent a year ago, according to data released by Society of Indian Automobile
Manufacturers on Monday. Commercial vehicle sales continue to grow after the Supreme Court
banned overloading of trucks and on rise in freight rates. Commercial vehicle sales for February
stood at 35,049 vehicles, up 19.2 per cent on a yearly basis and 3 per cent on a sequential basis.

Sales in the segment have increased ever since the Supreme Court in a ruling in November banned
overloading of trucks, leading to demand for more trucks. The demand for commercial vehicles has
also increased due to healthy freight availability, reflected in rising freight rates. The average freight
rate for February was Rs 2,333, up 17.6 per cent from a year ago. Tata Motors was the best
performer among all players, selling 22,885 units, up 29.6 per cent on year.

As a result, it increased its share in the total domestic commercial vehicle market to 65.3 per cent
from 60 per cent a year earlier. Ashok Leyland and Mahindra & Mahindra saw their market shares
fall to 15.7 per cent and 8.8 per cent respectively, from 15.9 per cent and 11.6 per cent a year ago.
Domestic passenger car sales during February stood at 63,215 units, up 1.8 per cent.

&   ^  


(China) 6 119
Gerdau (Brazil) 7 118
Nucor (US) 8 116
Car-Tech 9 112
Nippon Steel (Japan) 10 111
Severstal (Russia) 10 111
Dofasco (US) 11 109
ïð

In the early 1990s, TISCO appointed McKinsey and Booz-Allen & Hamilton to study its
operations and suggest ways to cut costs. Irani explained the rationale, "Cost-cutting
measures are more important in the present situation where one can no longer control
steel prices which are dictated by international markets." The consultants suggested TISCO
to focus on various components affecting the cost of steel, which included cost of raw
materials, cost of conversion, fuel rate in the blast furnace and mining of coal. TISCO was
advised to use the most modern technologies to cut costsfurther.

In the second half of 1998, in association with McKinsey, TISCO implemented TOP program
at its blast furnace8. TOP was widely regarded, as a program, which would have a
maximum positive impact to the bottomline, with minimum investment, required in
minimum time. Itaimed at achieving large improvements in throughput, quality and cost in
the short term. In the long run, TOP was expected to enable the TISCO to achieve high rates
of performance improvement.

By March 1999, the G blast furnace achieved a savings of Rs 87 million against the targeted
savings ofRs 40 million. TISCO set up a potential savings target for its G blast furnace at
about Rs 300million per annum, accounting for more than 10% of its profits in the fiscal
1999. By late 1999, TOP was in Phase V of the Wave. In 1999-2001, TISCO took measures to
reduce costs further by adopting innovative strategies and other cost-cutting exercises. For
example, TISCO stopped using manganese, an expensive metal used to increase the
strength and flexibility of steel. The company made efforts to reduce its product delivery
time from 3-4 weeks in 1998 to 2 weeks in 2000. The company aimed to further reduce the
time to one week.

TISCO also took steps to reduce its manpower costs. Between 1996 and 2000, TISCO
reduced its workforce from 78,000 to 40,000 employees. Analysts opined that cutting its
workforce by 38,000employees was not an easy job and the company was able to do it with
a lot of communication with employees

‘
‘
*&‘
‘!‘
Going forward, any significant cash outflow on account of the outstanding SDF loans could
impactTisco's ratings. The key to the ratings would be the company's ability to improve or
maintain itǯs gearing at current levels despite the various investments that it may make.
Any investment in noncore areas or any large debt-funded acquisition could result in a
revision in the rating, as and when precipitated.
ïh



^ 
)
New Delhi: Tata Group Chairman Ratan Tata on Thursday hit out at RajyaSabha MP Rajeev
Chandrasekhar, rebutting allegations that the Tatas benefitted most from the governmentǯs dual
technology policy.

Former Telecom entreprenur and independent MP Rajeev Chandrashekharǯs open letter alleging
that the Tata groups were the main beneficiary in the 2G spectrum allocation evoked the sharpest
response from Ratan Tata.

Repying to an open letter by the RajyaSabha MP, Ratan Tata said the motivation behind the
allegations appears to be Chandrasekharǯs affiliation to the BJP and an attempt to embarrass the
Prime Minister. Ratan Tata also maintained that his company was never favoured by A Raja or
earlier Telecom ministers.

Saying that Chandrasekhar and others are motivated by self interest, Tata accused them of lobbying
aggressively through Cellular Operators Association of India (COAI). DzThe powerful GSM operators
are holding spectrum beyond their entitlement free of cost and to the detriment of the other
operators. As Tatas did not enjoy Ǯcaptive connectionsǯ in the environment, the Tata Group had no
option but to seek an external agency focused at projecting its point of view and countering the
misinformation and vested interest viewpoints,dz says Tata in the letter.

Tata said Chandrasekhar had lobbied actively against a technology neutral policy and had
approached Tata in July 2002 to sign a letter in this regard. Tata says Chandrashekar had worked in
self interest to protect investment.

DzMr Chandrasekhar parked himself at TajMahal Hotel to prevent WLL Limited Mobility.
Mr Chandrasekhar also constantly solicited support of CII. Your affiliation to a particular political
party is well known and it appears their political aspirations and their endeavour to embarrass the
Prime Minister and the ruling party may well have been the motivation behind your letter. We
should all note that many of the flip flops in the telecom policy occurred during the BJP regime,dz he
said.

Reacting to Tataǯs statement, Chandrasekhar claims that the letter does not address the main issues
raised by him. DzYour response is typical, ducks main issues. Response attempts to shoot the
messenger. I am disappointed, but no longer surprised. Your letter is intensely personal, attributes
feeble motives. The response is most unbecoming of the House of Tatas. I think this is a lapse in good
judgment. I find your self-appointed defence of Prime Minister very irrelevant. I refuse to fall to your
level of personal attacks. On facts, your letter is exceptionally weak,dz Chandrasekhar said.

As the corporate battle of open letters and rebuttals gets more personal and acrimonious the
government refused to be dragged into it. DzItǯs a war between individuals and the government is not
part of it so I donǯt want to say anything,dz said KapilSibal.
ï˜

  ^ )
Ratan Tata is well known and highly praised for his extraordinary vision, risk-taking ability
and high ethical standards. Many of the Global leaders highly praised Ratan Tata as one of
the most successful and adorable entrepreneur and innovator... A range of definitions tried
to explain innovation, which resulted to a greater ambiguity (Garcia and Calantone, 2002).
A variety of theory and models have been created in the literature suggesting that
innovation is made up of diverse phases: creation of ideas, research design and
development, prototype production, manufacturing, marketing and sales (Dooley and
OǯSullivan, 2001; Knox, 2002; Pool ton and Ismail, 2000; Roth well, 1994) which is clearly
reflected in Ratan Tataǯs decision making and implementation. USC President Steven B.
Sample said, DzRatan Tata is highly esteemed, certainly in India, but in the rest of the world
as well for his extraordinary talents as a business leader and his dedication to
humanitarianism,dz said. MukeshAmbani, Chairman and Managing Director of Reliance
Industries praised: DzHe [Ratan Tata] comes across as an individual with clarity and
conviction, a business leader with vision. Ratan Tata has steered the Tata ship in turbulent
times. ...above all, I have an immense admiration for Ratan Tata, the man, for his
unassuming and warm nature, an outstanding business leader imbued with social concerns
and committed to uphold ethics and values." Henry Schacht, former chairman of Cummins
Engine, USA, complimented "[Ratan] Tata understood what needed to be done and how it
needed to be done."

A philanthropist all his life, he created a trust fund for the advancement of learning and for
the relief of human suffering and other works of public utility. Ratan Tata is a visionary
entrepreneur and leader who have excelled in every component of innovation to pass
benefits to mankind, in addition to business and industry.
ïl

Ê
 


My sincere thanks to MRS SHAILESHRI PRASAD, whoprovided us Internal Guide, and we

thank mam for her valuable guidance and continuous encouragement throughout this
dissertation and course of study.

I would also like to thank university for banking & insurance course which provided us
great opportunity for knowing this subject.

I am very much greatful to all my staffs members who have given full support and all
facility to do the project in a very good manner.

THANK YOU!!!!