Organisation Structure of Tata Steel Group - Careergyaan.org
Organisation Structure of Tata Steel Group - Careergyaan.org
Organisation Structure of Tata Steel Group - Careergyaan.org
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1<br />
INDIAN BUSINESS HOUSE REPORT<br />
ON<br />
THE TATA GROUP<br />
INDIAN INSTITUTE OF EDUCATION AND BUSINESS MANAGEMENT<br />
(IIEBM), PUNE<br />
MEba(2008-2010)
2<br />
ACKNOWLEDGEMENT<br />
We wish to express our sincere gratitude to director jai singh marwah who gave us an opportunity to learn something new on<br />
the basis <strong>of</strong> political aspect.<br />
It is due to him we came to know deeply about the tata group.we also thank pr<strong>of</strong>. arjun madan who guided us on preparing this<br />
project.<br />
GROUP NAME<br />
SPRINTERS
3<br />
GROUP LEADER<br />
TANVI R. SAWAL<br />
GROUP MEMBERS REG NO. SECTION<br />
TANVI R. SAWAL 336 VINDHYAS<br />
VIVEK KAPOOR 207 VINDHYAS<br />
SHASHANK PANDEY 119 VINDHYAS<br />
VINOD KUMAR YADAV 266 VINDHYAS<br />
CHANDRANSHU SRIVASTAV 23 VINDHYAS<br />
SOURAV SACHDEV 02 VINDHYAS<br />
ISHAN YADAV 144 SHIVALIK<br />
Contents OF INDIAN BUSINESS HOUSESs<br />
Section – I Page No.<br />
1. Origin and founder. 06<br />
2. Brief History, Vision and Mission. 09<br />
3. Core business when started / established. 16<br />
4. Business philosophy and policies. 20<br />
5. Progress over the years. 23<br />
Section - II<br />
1. Organization and Management <strong>Structure</strong>. 28<br />
2. Revised Vision, Mission and Outlook. 45<br />
3. HR, Marketing, Finance & Safety Policies. 48<br />
4. Corporate Governance. 54<br />
5. Approach towards the Environment, Pollution and Ecology. 98<br />
6. CSR and its implementation. 103<br />
7. Name and Performance <strong>of</strong> the Companies controlled by 109<br />
the Business House<br />
(companies controlled by the Business House / Industry verticals<br />
they have entered into, their Product Lines, Market Share, their
Major competitors, Export Earnings, Market Capitalization,<br />
Technology absorption and major innovations).<br />
8. Impact <strong>of</strong> LPG on the Current and Future Business Prospectus. 158<br />
9. Important Milestones and Turning Points. 168<br />
10. Progress over the years. 171<br />
Section - III<br />
1. Future Prospectus and Outlook. 182<br />
2. Succession planning. 185<br />
Section – IV<br />
4<br />
1. Brief on the Stalwarts and their role in shaping the Business 193<br />
house.<br />
2. Conclusion. 203<br />
Bibliography 205<br />
BREAK-UP OF WORK LOAD<br />
• Section – I<br />
Points 1 – 3 (Chandranshu Srivastav)<br />
Points 4 - 5 (Vinod Kumar Yadav)<br />
• Section – II<br />
Points 1 – 3 (Tanvi R. Sawal)<br />
Points 4 – 7 (Vivek Kapoor)<br />
Points 8 – 10 (Shashank Pandey)<br />
• Section – III
5<br />
Points 1 & 2 (Saurav Sachdev)<br />
• Section – IV<br />
Points 1 & 2 (Ishan Yadav)<br />
Origin and founder<br />
The story <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> <strong>of</strong> business unfolds with the birth <strong>of</strong> its founder<br />
Jamshedji <strong>Tata</strong> in the small town <strong>of</strong> Navasari in Gujarat in 1839. He breathed his<br />
last in 1904 in Germany. His parents were Nuseerwanji and Jeevanbai <strong>Tata</strong>.<br />
Nusserwanji was the first businessman in a family <strong>of</strong> Parsi Zorastrian priests.<br />
Destiny called him to Bombay where he started trading. Jamshedji joined him at<br />
the tender age <strong>of</strong> fourteen. He took admission in Elphinstone College and while<br />
still a student he married Hirabai Daboo. Jamshedji graduated in 1858 and joined<br />
his father trading firm.<br />
Those were turbulent times. The British had just managed to ruthlessly crush the<br />
1857 Revolt. Since the age <strong>of</strong> twenty-nine Jamshedji continued to work in his
father’s firm. In 1868 he started a trading company on his own with a capital <strong>of</strong><br />
Rs.21, 000/- His first step was to acquire a bankrupt oil mill and convert it into a<br />
cotton mill which he renamed Alexander Mill. Two years later he sold it with a<br />
good margin <strong>of</strong> pr<strong>of</strong>it. With this he set up a cotton mill in Nagpur in 1874. Queen<br />
Victoria had just been declared the Empress and in keeping with the times<br />
Jamshedji named it Empress Mill.Jamshedji was a unique personality. He did not<br />
just think <strong>of</strong> innovative ways <strong>of</strong> manufacturing textiles but he devised new labor<br />
practices that would satisfy the workers. In this way he was far ahead <strong>of</strong> his times.<br />
It was not just his own personal success but also <strong>of</strong> those who worked for him and<br />
his group. Jamshedji was in close contact with revolutionary thinkers and<br />
nationalists like Dadabhai Naoroji and Pherozeshah Mehta and strongly influenced<br />
by them. He came to the conclusion that economic self-sufficiency should go hand<br />
in hand with political independence. The former should be the base <strong>of</strong> the latter.<br />
Jamshedji had three key ideas in mind. He wanted to set up an iron and steel<br />
company, world class learning institution and a hydroelectric plant.<br />
Unfortunately during his lifetime none bore fruit but he had planted the seed,<br />
which later took roots and spread its branches under the care <strong>of</strong> his successors. The<br />
only achievement that he lived to see was The Taj Mahal Hotel. It was completed<br />
in December 1903 for a princely amount <strong>of</strong> Rs.4, 21, 00,000/-In this too he was<br />
inspired by nationalist thinking. In those days the locals, that is Indians, were not<br />
allowed into the best European Hotels. Taj Mahal Hotel was a befitting reply to<br />
this discrimination.<br />
<strong>Tata</strong> <strong>Group</strong> is a private conglomerate with headquarters at Mumbai. The present<br />
Chairman is Ratan <strong>Tata</strong> who took over from J.R.D. <strong>Tata</strong> in 1991. A member <strong>of</strong> the<br />
<strong>Tata</strong> family is always the Chairman <strong>of</strong> the group. Its operations covers many fields<br />
related to industry and allied activities concerned with know-how and its<br />
application engineering, information technology, communications, materials,<br />
automotive, chemicals energy, telecommunications, s<strong>of</strong>tware, hotels, steel and<br />
consumer goods.The statistics and figures <strong>of</strong> <strong>Tata</strong> <strong>Group</strong> speak for themselves. Its<br />
revenue touches $967,229 million or $21.9 billion in 2005/06. This is equal to<br />
2.8% <strong>of</strong> India’s GDP. There are about 246.000 employees in the <strong>Tata</strong> group as per<br />
records <strong>of</strong> 2004. Market capitalization figure is $57.6 billion. There are ninety-six<br />
companies operating in seven business sectors. Only twenty-eight <strong>of</strong> the ninetysix<br />
in <strong>Tata</strong> <strong>Group</strong> are publicly listed. <strong>Tata</strong> operates in more than forty countries<br />
across six continents. It exports products and services to one hundred and forty<br />
6
nations. The Charitable Trust <strong>of</strong> <strong>Tata</strong> holds 65.8% <strong>of</strong> the ownership <strong>of</strong> <strong>Tata</strong> group<br />
TISCO now called <strong>Tata</strong> steel set up in 1907 India’s first iron and steel plant in<br />
Jamshedpur, which is <strong>of</strong>ten called <strong>Tata</strong>nagar. Production actually started in 1912.<br />
It produces steel at the lowest cost in the world. This is mainly because it is<br />
assisted by group member concern that deals with the supply <strong>of</strong> raw material like<br />
coal and iron. In 1910 was set up <strong>Tata</strong> Hydro-Electric Power Supply Company. In<br />
1917 the <strong>Tata</strong> group made its debut in the field <strong>of</strong> consumer goods industry with<br />
the setting up <strong>of</strong> <strong>Tata</strong> Oil Mill dealing in soaps, detergents and cooking oil. 1932<br />
saw the establishment <strong>of</strong> <strong>Tata</strong> airlines. <strong>Tata</strong> Chemicals made its appearance in<br />
1939. Telco now known as <strong>Tata</strong> Motors started to manufacture locomotive and<br />
engineering products from 1945.<br />
January 2007 is a watershed in the history <strong>of</strong> <strong>Tata</strong> <strong>Group</strong>. <strong>Tata</strong> steel made a<br />
successful bid for UK based Corus <strong>Group</strong>, which was one <strong>of</strong> the world’s leading<br />
steel and aluminum producers. After an unprecedented nine rounds <strong>of</strong> bidding <strong>Tata</strong><br />
finally clinched the deal. <strong>Tata</strong> <strong>of</strong>fered to buy 100% stake in Corus at 608p per<br />
share (all cash) totaling to a value <strong>of</strong> $12.04 billion. It has turned out to be the<br />
biggest acquisition by any Indian company.<br />
<strong>Tata</strong> Power is one <strong>of</strong> the largest private sector companies in India and supplies<br />
power to Mumbai and parts <strong>of</strong> New Delhi. Then there are <strong>Tata</strong> Chemicals and <strong>Tata</strong><br />
Pigments. In the service sector there are <strong>Tata</strong> companies dealing with hotels,<br />
general insurance and life insurance. <strong>Tata</strong> <strong>of</strong>fers management, economic and<br />
financial consultancy services. <strong>Tata</strong> is one <strong>of</strong> the best names in the world <strong>of</strong><br />
investments and shares. In the area <strong>of</strong> education <strong>Tata</strong>’s publishing house <strong>of</strong> <strong>Tata</strong><br />
McGraw Hill is a renowned name. Many renowned public sector companies and<br />
research <strong>org</strong>anizations like Indian Institute <strong>of</strong> Science, <strong>Tata</strong> Institute <strong>of</strong><br />
Fundamental Research, <strong>Tata</strong> Institute <strong>of</strong> Social Sciences, <strong>Tata</strong> Energy Research<br />
Institute and Air India (<strong>Tata</strong> Airlines) owe their origins to the name <strong>of</strong> <strong>Tata</strong>. Other<br />
educational institutes are <strong>Tata</strong> Institute <strong>of</strong> Science now Indian Institute <strong>of</strong> Science,<br />
Bangalore, <strong>Tata</strong> Institute Of Fundamental Research “ deemed University, <strong>Tata</strong><br />
Management Training center, Pune, <strong>Tata</strong> Institute Of Social Science “ deemed<br />
University and National Centre for the Performing Arts.<br />
The name <strong>of</strong> <strong>Tata</strong> is linked to consumer durables like tea, watches (Titan) <strong>Tata</strong><br />
Trent (Westside) to <strong>Tata</strong> Sky and even gold and diamonds like Tanishq brand <strong>of</strong><br />
jewellery.In information systems and communications the <strong>Tata</strong> name comes with<br />
7
Computational & Research Laboratories, INCAT, Nelco, Nelito Systems, TCS and<br />
<strong>Tata</strong> Elxsi. There are s<strong>of</strong>tware companies <strong>Tata</strong> Interactive Systems, <strong>Tata</strong> Infotech,<br />
<strong>Tata</strong> Technologies Ltd, <strong>Tata</strong> Teleservices, <strong>Tata</strong>net etc. <strong>Tata</strong> acquired VSNL, the<br />
Indian telecom giant from Bermuda based Canadian company named Teleglobe in<br />
2005.<br />
The aim <strong>of</strong> <strong>Tata</strong> <strong>Group</strong> is to improve the quality <strong>of</strong> life in the society by virtue <strong>of</strong><br />
integrity, understanding, excellence, unity and responsibility. The entire family<br />
known as the <strong>Tata</strong> <strong>Group</strong> shares these values. <strong>Tata</strong>’s contribution to India’s<br />
education, science and technology has been widely documented and respected.<br />
The blue colored log <strong>of</strong> <strong>Tata</strong> speaks for fluidity as well as fountain <strong>of</strong> knowledge.<br />
It can also be seen as a tree under which all are welcome to take refuge.<br />
Brief History, Vision and Mission<br />
BRIEF HISTORY<br />
1868<br />
1874<br />
8<br />
Jamsetji Nusserwaji <strong>Tata</strong> starts a private trading firm laying the<br />
foundation <strong>of</strong> the <strong>Tata</strong> group.<br />
The Central India Spinning, Weaving and Manufacturing Company is set<br />
up,marking the <strong>Group</strong>’sentry into textiles.<br />
1902<br />
The Indian Hotels Company is incorporated to set up the taj Mahal<br />
Palace ad Tower India’s first luxury hotel which opened 1903.
1907<br />
1910<br />
9<br />
The <strong>Tata</strong> Iron and <strong>Steel</strong> Company is established to set up India’s fi<br />
rst iron and steel plant in Jamshedpur, which started production in<br />
1912.<br />
The first <strong>of</strong> the three <strong>Tata</strong> Electric Companies,the <strong>Tata</strong> Hydro-Electric<br />
Power Supply Company,is set up to generate electricity.<br />
1911<br />
The Indian Institute <strong>of</strong> Science is established in Bangalore to serve as a centre for<br />
advanced learning.<br />
1912<br />
1917<br />
<strong>Tata</strong> <strong>Steel</strong> introduces eight-hour working days, well before<br />
such a system was implemented by law even in most<br />
western countries.<br />
The <strong>Tata</strong>s enter the consumer goods segment as the <strong>Tata</strong> Oil Mills Company is<br />
established to make soaps, detergents and cooking oils.<br />
1932
<strong>Tata</strong> Airlines,a division <strong>of</strong> <strong>Tata</strong> Sons,is established, opening up the aviation sector<br />
in India.<br />
1939<br />
1945<br />
10<br />
<strong>Tata</strong> Chemicals is established.<br />
<strong>Tata</strong> Engineering and Locomotive Company (renamed <strong>Tata</strong> Motors in 2003) is<br />
established to manufacture locomotive and engineering products. The<br />
company began manufacturing commercial vehicles in 1954 in a<br />
JV with Daimler Benz.<br />
1952<br />
Pandit Jawaharlal Nehru,India’s fi rst Prime Minister,requests the <strong>Group</strong> to<br />
manufacture cosmetics inIndia; and Lakme is established.<br />
1968<br />
1984<br />
<strong>Tata</strong> Consultancy Services (TCS),India’s fi rst s<strong>of</strong>tware<br />
services company,is established as a division <strong>of</strong> <strong>Tata</strong> Sons<br />
Titan Industries —a joint venture between the <strong>Tata</strong> <strong>Group</strong> and the<br />
Tamil Nadu Industrial Development Corporation<br />
(TIDCO) — is set up to manufacture watches.
1995<br />
1996<br />
1998<br />
2000<br />
11<br />
<strong>Tata</strong> Quality Management Services institutes the JRD QV<br />
Award, modelled on the Malcolm Baldrige National Quality<br />
Value Award <strong>of</strong> the United States, laying the foundation <strong>of</strong> the<br />
<strong>Tata</strong> Business Excellence Model.<br />
<strong>Tata</strong> Teleservices Limited (TTSL) is established to<br />
spearhead the <strong>Group</strong>’s foray into the telecom sector.<br />
<strong>Tata</strong> Indica — India’s first indigenously designed, developed<br />
and manufactured car —is launched by <strong>Tata</strong> Motors,<br />
spearheading the <strong>Group</strong>’s entry into passenger cars.<br />
<strong>Tata</strong> Tea acquires the Tetley <strong>Group</strong>, UK,in the fi rst major<br />
acquisition <strong>of</strong> an international brand by an Indian group.
2001<br />
<strong>Tata</strong>-AIG — a joint venture between the <strong>Tata</strong> <strong>Group</strong> and American International<br />
<strong>Group</strong> Inc (AIG) —marks the <strong>Group</strong>’s re-entry into insurance.<br />
The <strong>Group</strong>’s insurance company, New India Assurance, was nationalised<br />
in 1956<br />
2002<br />
The <strong>Tata</strong> <strong>Group</strong> acquires a controlling stake in Videsh Sanchar<br />
Nigam Limited — India’s leading international<br />
Telecommunications service provider.<br />
•<strong>Tata</strong> Consultancy Services becomes the fi rst Indian<br />
s<strong>of</strong>tware company to cross one billion dollars in revenues.<br />
• Titan launches Edge,the slimmest watch in the world<br />
2004<br />
<strong>Tata</strong> Motors acquires the heavy vehicles unit <strong>of</strong> Daewoo<br />
Motors,South Korea.<br />
•<strong>Tata</strong> <strong>Steel</strong> makes its first major overseas investment in Nat<strong>Steel</strong><br />
Asia, headquartered in Singapore.<br />
•<strong>Tata</strong> Consulting Services goes public in India's private sector's largest initial<br />
public <strong>of</strong>fer.<br />
2005<br />
2007<br />
12<br />
Indian Hotels adds New York's iconic hotel, The Pierre, to<br />
its portfolio as also its Ginger "Smart Basics"hotels in India.<br />
•VSNL acquires Tyco Global Network,making it one <strong>of</strong> the<br />
world's largest provider <strong>of</strong> submarine cable bandwidth.
In a major step in its unfolding strategy <strong>of</strong> growth and globalisation, <strong>Tata</strong> <strong>Steel</strong><br />
acquires Corus, the UK-based steel<br />
company, for $ 12.1 bn,the biggest overseas acquisition<br />
by an Indian company.<strong>Tata</strong> <strong>Steel</strong> is now the world’s 6th largest steel producer with<br />
capacity <strong>of</strong> 26 million tonnes per annum and operations in 24 countries.<br />
Vision and mission<br />
The <strong>Tata</strong> <strong>Group</strong> is one <strong>of</strong> India' largest business conglomerates established by<br />
Jamshedji <strong>Tata</strong> (Jamshedji) in the second half <strong>of</strong> the 19th century. Jamshedji's<br />
vision for the <strong>Group</strong> was in line with nationalist goals and ideals then, and<br />
envisaged to make India self-reliant. After Jamshedji, Jehangir Ratanji Dadabhoy<br />
<strong>Tata</strong> (JRD) became the Chairman <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> and played a significant role<br />
in continuing the vision <strong>of</strong> the group. <strong>Tata</strong>'s assets climbed from INR 620 million<br />
in 1939 to INR 100 billion in 1990. <strong>Tata</strong> Motors had increased its sales to INR 1<br />
million in the year 1991 and it had rolled out 3 million vehicles in the same year.<br />
In 1991, Ratan Naval <strong>Tata</strong> (Ratan <strong>Tata</strong>/Ratan) took over the Chairmanship from<br />
JRD <strong>Tata</strong>. Although he was initially criticized for his poor performance, over the<br />
years, Ratan <strong>Tata</strong> disproved his critics. He restructured <strong>Tata</strong> <strong>Group</strong>'s business<br />
operations and made the <strong>Group</strong> compete globally. Under Ratan <strong>Tata</strong>'s<br />
chairmanship, <strong>Tata</strong> Consultancy Services went public and <strong>Tata</strong> Motors was listed<br />
in the New York Stock Exchange. Starting from the late 1990s, Ratan revamped<br />
the operations <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> and made it one <strong>of</strong> the lowest-cost steel producers in<br />
the world. However, as the <strong>Tata</strong>s lacks an heir who can succeed Ratan, the group is<br />
at cross-roads to decide who will be the next chairman. After Ratan <strong>Tata</strong>'s<br />
retirement who would succeed him and carry the vision <strong>of</strong> the <strong>Group</strong> is a dilemma.<br />
13<br />
Our PEOPLE, by fostering team work, nurturing talent, enhancing leadership capability<br />
and acting with pace, pride and passion.<br />
Our OFFER, by becoming the supplier <strong>of</strong> choice, delivering premium products and services<br />
and creating value with our customers.<br />
Our INNOVATIVE APPROACH, by developing leading edge solution in technology,<br />
process and products.
Our CONDUCT, by providing a safe working place respecting the environment, caring for<br />
our communities and demonstrating high ethical standards.<br />
MISSION<br />
Our Mission in <strong>Tata</strong> is to improve the quality <strong>of</strong> life in India through leadership in<br />
targeted sectors <strong>of</strong> national economic significance to which the <strong>Group</strong> can bring a<br />
unique set <strong>of</strong> capabilities.<br />
Core business when started / established :<br />
14
Development <strong>of</strong> <strong>Tata</strong> Iron & <strong>Steel</strong> Company: Late 1800s-1980s<br />
From the mid-1880s, <strong>Tata</strong> commissioned a series <strong>of</strong> surveys in India's coalproducing<br />
areas, such as Bihar and Orissa in the northeast <strong>of</strong> the subcontinent, to<br />
locate iron ore within easy reach <strong>of</strong> coal deposits and water, both essential<br />
elements in steel production. He visited the United States to seek the advice <strong>of</strong> the<br />
world's foremost metallurgical consultant, Julian Kennedy, and went to<br />
Birmingham, Alabama, to study the coking process in action. In England in 1900,<br />
he discussed his plans with the secretary <strong>of</strong> state for India, Lord Ge<strong>org</strong>e Hamilton.<br />
In India, the way had been opened for private enterprise with the introduction <strong>of</strong> a<br />
more liberalized mineral concession policy in 1899. With Julian Kennedy's help,<br />
American specialists were brought in and began surveying in 1903. After a series<br />
<strong>of</strong> disappointments, rich iron ore deposits were identified in the dense jungle in<br />
Bihar at the confluence <strong>of</strong> two rivers near Sakchi three years after Jamsetji <strong>Tata</strong>'s<br />
death in 1904. Also involved in the surveying was <strong>Tata</strong>'s nephew, Shapurji<br />
Saklatvala, whose health suffered so much that he was sent to London to<br />
recuperate. There, he joined his uncle's London <strong>of</strong>fice, which had been established<br />
some years earlier to represent the interests <strong>of</strong> the family cotton business. His<br />
energies were soon channeled away from business matters and into politics, and he<br />
became Communist member <strong>of</strong> Parliament for Battersea North in 1922.<br />
Four years after <strong>Tata</strong>'s death, his sons Dorabji and Ratanji began development <strong>of</strong><br />
the Bihar site. A factory and township were carved from the jungle and named<br />
Jamshedpur. A conscious decision was made to retain control within India <strong>of</strong> the<br />
new enterprise, the <strong>Tata</strong> Iron and <strong>Steel</strong> Company, by seeking out Indian investors.<br />
In the face <strong>of</strong> warnings that India could not afford a flotation <strong>of</strong> this size, the <strong>Tata</strong><br />
brothers set out to raise Rs 23.2 million in shares. Within eight weeks some 8,000<br />
Indian investors came forward and the whole share issue was taken up. The <strong>Tata</strong>s<br />
retained 11 percent <strong>of</strong> the stock for themselves. There were enormous initial<br />
problems in clearing the Sakchi site and, once production began, in ensuring<br />
that the coal was <strong>of</strong> a uniform quality. By 1916, however, production was meeting<br />
expectations and during World War I the company exported 1,500 miles <strong>of</strong> steel<br />
rails to Mesopotamia. Rapid expansion to support the Allied war effort was<br />
15
followed by Depression during the 1920s with escalating prices, transport and<br />
labor difficulties, and a major earthquake in Japan, by now TISCO's biggest<br />
customer. The company had to suspend its dividend for 12 out <strong>of</strong> 13 years in this<br />
period and was on the brink <strong>of</strong> closing in 1924 when Sir Dorabji <strong>Tata</strong> had to<br />
pledge his personal fortune to secure the necessary bank loans to keep the business<br />
afloat. TISCO emerged from the 1930s, however, as the biggest steel plant in the<br />
British Empire. World War II brought a resurgence in demand for <strong>Tata</strong> products<br />
and the company specialized in the manufacture <strong>of</strong> armored cars, known as<br />
<strong>Tata</strong>nagars, which were used extensively by the British Army in the North African<br />
desert.<br />
Following six years <strong>of</strong> almost continuous production to serve the war effort, it<br />
became imperative in the late 1940s to begin replacement <strong>of</strong> the plant. In<br />
association with Kaiser Engineering <strong>of</strong> the United States capacity was expanded<br />
and a Modernization and Expansion Program (MEP) was launched in 1951,<br />
upgraded four years later to the Two Million Ton Project (TMP) to give TISCO the<br />
capacity to produce two million tons <strong>of</strong> crude steel. This was achieved in 1958 but<br />
further expansion was put on hold during the 1960s while the country passed<br />
through a period <strong>of</strong> devaluation and recession. By 1970, however, TISCO<br />
employed 40,000 people at Jamshedpur, with a further 20,000 in the neighboring<br />
coal mines.<br />
Government attempts to nationalize TISCO in 1971 and 1979 were defeated, in<br />
part, it was believed, to retain an efficient private sector yardstick against which<br />
the performance <strong>of</strong> public sector companies could be judged. An ever-increasing<br />
range <strong>of</strong> government legislation to bring private sector businesses into line with<br />
national economic planning on the Soviet model, however, hampered <strong>Tata</strong>'s<br />
freedom to develop in the postwar period. In 1978, the government restricted<br />
TISCO's dividend to 12 percent to force it, as India's only private sector steel<br />
producer, to plough money into modernization. Expansion was restricted by a<br />
government committed to helping nationalized industry. Further difficulties were<br />
created in the late 1970s by chronic shortages <strong>of</strong> coal, power, and rail transport. An<br />
estimated Rs 45 crores <strong>of</strong> salable steel was lost during 1979-80 because <strong>of</strong> these<br />
shortages. TISCO soldiered on, however, and in the following decade began to<br />
benefit from a relaxation <strong>of</strong> government control as a more pragmatic attitude to the<br />
16
importance <strong>of</strong> private sector industry emerged. In 1989, the <strong>Tata</strong> group increased<br />
its stake in the steel firm to ward <strong>of</strong>f any attempts by outside shareholders to gain<br />
control <strong>of</strong> the company. By 1990, TISCO remained India's largest nonpublic<br />
company, announcing a 30 percent increase in pr<strong>of</strong>its against a backdrop <strong>of</strong> general<br />
depression in the Indian economy as a whole.<br />
Promoter companies<br />
<strong>Tata</strong> Sons,<strong>Tata</strong> Industries,<strong>Group</strong> holding structure<br />
<strong>Tata</strong> Sons and <strong>Tata</strong> Industries are the two promoter companies <strong>of</strong> the <strong>Tata</strong><br />
<strong>Group</strong>.A more detailed pr<strong>of</strong>ile <strong>of</strong> these companies can be accesses through the<br />
‘related info’ links on the right.<br />
<strong>Tata</strong> Sons<br />
This premier promoter company <strong>of</strong> the <strong>Tata</strong>s was established as a trading<br />
enterprise by group founder Jamsetji <strong>Tata</strong> in 1868.It is the promoter <strong>of</strong> all key<br />
companies <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> and holds the bulk<br />
<strong>of</strong> sharehoding in these companies. The chairman <strong>of</strong> <strong>Tata</strong> Sons has traditionally<br />
been the chairman <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>.<br />
<strong>Tata</strong> Sons is the owner <strong>of</strong> the <strong>Tata</strong> name and the <strong>Tata</strong> trademark, which are<br />
registered in India and several other countries.About 66 per cent <strong>of</strong> the equity<br />
capital <strong>of</strong> <strong>Tata</strong> Sons is held by philanthropic trusts endowed by members <strong>of</strong> the<br />
<strong>Tata</strong> family.<br />
<strong>Tata</strong> Industries<br />
<strong>Tata</strong> Industries was set up <strong>Tata</strong> Sons in 1945 as a managing agency for business it<br />
promoted. Following the abolition <strong>of</strong> the managing agency system, <strong>Tata</strong> Industries’<br />
mandate was recast,in the early 1980s,to promote the <strong>Group</strong>’s entry into new and<br />
high-tech areas.<br />
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<strong>Tata</strong> Industries has over the last two decades, initiated and promoted the <strong>Group</strong>’s<br />
ventures into several sectors, including control systems, information technology<br />
,financial services ,auto components, advanced materials and telecom hardware.<br />
<strong>Group</strong> Holding <strong>Structure</strong><br />
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Business philosophy and policies<br />
Philosophy<br />
The current growth <strong>of</strong> our economy and the confidence with which we face the<br />
world provide a compelling context in which Corporates need to engage with the<br />
disadvantaged sections <strong>of</strong> our society. The central theme <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong><br />
purpose statement, "Our Purpose in <strong>Tata</strong> is to improve the quality <strong>of</strong> life in the<br />
communities we serve" is a powerful guiding statement. In the coming years, it<br />
will increasingly be necessary for Corporates to encourage and generate internal<br />
passion for volunteering and Community service. This will have a positive impact<br />
not only on our competitive advantage but also on the corporate reputation.<br />
Policies<br />
HUMAN RESOURCE POLICY<br />
<strong>Tata</strong> <strong>Steel</strong> recognises that its people are the primary source <strong>of</strong> its competitiveness.<br />
It is committed to equal employment opportunities for attracting the best available<br />
talent and ensuring a cosmopolitan workforce.<br />
It will pursue management practices designed to enrich the quality <strong>of</strong> life <strong>of</strong> its<br />
employees, develop their potential and maximise their productivity.<br />
It will aim at ensuring transparency, fairness and equity in all its dealing with its<br />
employees.<strong>Tata</strong> <strong>Steel</strong> will strive continuously to foster a climate <strong>of</strong> openness,<br />
mutual trust and teamwork<br />
<strong>Tata</strong> is committed to create an exciting work pace based on self-directed teams<br />
,improvement and innovative work in environment.<br />
19<br />
a) Create work conductive to superior performance , which enable employees<br />
to realize their full potential through continuous learning and training
20<br />
b) Identify and develop potential leaders for future growth.<br />
c) High potential employee working in congenial work environment.<br />
<strong>Tata</strong> <strong>Steel</strong> recognises that its people are the primary source <strong>of</strong> its competitiveness.<br />
It is committed to equal employment opportunities for attracting the best available<br />
talent and ensuring a cosmopolitan workforce.<br />
It will pursue management practices designed to enrich the quality <strong>of</strong> life <strong>of</strong> its<br />
employees, develop their potential and maximise their productivity.<br />
It will aim at ensuring transparency, fairness and equity in all its dealing with its<br />
employees.<br />
<strong>Tata</strong> <strong>Steel</strong> will strive continuously to foster a climate <strong>of</strong> openness, mutual trust and<br />
teamwork<br />
Finance Policies<br />
A <strong>Tata</strong> company shall prepare and maintain its accounts fairly and accurately and<br />
in accordance with the accounting and financial reporting standards which<br />
represent the generally accepted guidelines, principles, standards, laws and<br />
regulations <strong>of</strong> the country in which the company conducts its business affairs.<br />
Internal accounting and audit procedures shall reflect, fairly and accurately, all <strong>of</strong><br />
the company’s business transactions and disposition <strong>of</strong> assets, and shall have<br />
internal controls to provide assurance to the company’s board and shareholders<br />
that the transactions are accurate and legitimate. All required information shall be<br />
accessible to company auditors and other authorised parties and government<br />
agencies. There shall be no willful omissions <strong>of</strong> any company transactions from the<br />
books and records, no advance-income recognition and no hidden bank account<br />
and funds.<br />
Any willful, material misrepresentation <strong>of</strong> and / or misinformation on the financial<br />
accounts and reports shall be regarded as a violation <strong>of</strong> the Code, apart from<br />
inviting appropriate civil or criminal action under the relevant laws. No employee<br />
shall make, authorise, abet or collude in an improper payment, unlawful<br />
commission or bribing.
Market Policies<br />
A <strong>Tata</strong> company shall fully support the development and operation <strong>of</strong> competitive<br />
open markets and shall promote the liberalisation <strong>of</strong> trade and investment in each<br />
country and market in which it operates. Specifically, no <strong>Tata</strong> company or<br />
employee shall engage in restrictive trade practices, abuse <strong>of</strong> market dominance or<br />
similar unfair trade activities.<br />
A <strong>Tata</strong> company or employee shall market the company’s products and services on<br />
their own merits and shall not make unfair and misleading statements about<br />
competitors’ products and services. Any collection <strong>of</strong> competitive information<br />
shall be made only in the normal course <strong>of</strong> business and shall be obtained only<br />
through legally permitted sources and means.<br />
Progress over the years<br />
1868<br />
Jamsetji Nusserwanji <strong>Tata</strong> starts a private trading firm, laying the foundation <strong>of</strong><br />
the <strong>Tata</strong> <strong>Group</strong>.<br />
1874<br />
21
22<br />
The Central India Spinning, Weaving and Manufacturing Company is set up,<br />
marking the <strong>Group</strong>'s entry into textiles and its first large-scale industrial venture.<br />
1902<br />
The Indian Hotels Company is incorporated to set up the Taj Mahal Palace and<br />
Tower, India's first luxury hotel, which opened in 1903.<br />
1907<br />
The <strong>Tata</strong> Iron and <strong>Steel</strong> Company (now <strong>Tata</strong> <strong>Steel</strong>) is established to set up India's<br />
first iron and steel plant in Jamshedpur. The plant started production in 1912.<br />
Sets up its first <strong>of</strong>fice overseas, <strong>Tata</strong> Limited in London.<br />
1910<br />
The first <strong>of</strong> the three <strong>Tata</strong> Electric Companies, The <strong>Tata</strong> Hydro-Electric Power<br />
Supply Company is set up. The second, Andhra Valley Power Supply Company<br />
was established in 1917 and <strong>Tata</strong> Power in 1919. The first two companies were<br />
merged with <strong>Tata</strong> Power in 2000 to form a single entity.<br />
1911<br />
The Indian Institute <strong>of</strong> Science is established in Bangalore to serve<br />
as a centre for advanced learning.<br />
1912<br />
<strong>Tata</strong> <strong>Steel</strong> introduces eight-hour working days, well before such a system was<br />
implemented by law in much <strong>of</strong> the West.<br />
1917<br />
The <strong>Tata</strong>s enter the consumer goods industry, with the <strong>Tata</strong> Oil Mills Company<br />
being established to make soaps, detergents and cooking oils. The company was<br />
sold to Hindustan Levers (now Unilever) in 1984.
1932<br />
<strong>Tata</strong> Airlines, a division <strong>of</strong> <strong>Tata</strong> Sons, is established, opening up the aviation<br />
sector in India. Air India was nationalised in 1953.<br />
1939<br />
<strong>Tata</strong> Chemicals, now the largest producer <strong>of</strong> soda ash in the country, is<br />
established.<br />
1945<br />
<strong>Tata</strong> Engineering and Locomotive Company (renamed <strong>Tata</strong> Motors in 2003) is<br />
established to manufacture locomotive and engineering products.<br />
<strong>Tata</strong> Industries is created for the promotion and development <strong>of</strong> hi-tech<br />
industries.<br />
1952<br />
Jawaharlal Nehru, India's first Prime Minister, requests the <strong>Group</strong> to manufacture<br />
cosmetics in India, leading to the setting up <strong>of</strong> Lakme. The company was sold to<br />
Hindustan Levers (now Unilever) in 1997.<br />
1954<br />
India's major marketing, engineering and manufacturing <strong>org</strong>anisation, Voltas, is<br />
established.<br />
1962<br />
<strong>Tata</strong> Finlay (now <strong>Tata</strong> Tea), one <strong>of</strong> the largest tea producers, is established.<br />
<strong>Tata</strong> Exports is established. Today the company, renamed <strong>Tata</strong> International, is<br />
one <strong>of</strong> the leading export houses in India.<br />
1968<br />
<strong>Tata</strong> Consultancy Services (TCS), India's first s<strong>of</strong>tware services company, is<br />
established as a division <strong>of</strong> <strong>Tata</strong> Sons.<br />
23
1971<br />
<strong>Tata</strong> Precision Industries, the first <strong>Tata</strong> company in Singapore, is founded to<br />
design and manufacture precision engineering products.<br />
1984<br />
The first 500 MW thermal power unit at the Trombay station <strong>of</strong> the <strong>Tata</strong> Electric<br />
Companies is commissioned.<br />
1995<br />
<strong>Tata</strong> Quality Management Services institutes the JRD QV Award, modelled on<br />
the Malcolm Baldrige National Quality Value Award <strong>of</strong> the United States, laying<br />
the foundation <strong>of</strong> the <strong>Tata</strong> Business Excellence Model.<br />
1996<br />
<strong>Tata</strong> Teleservices (TTSL) is established to spearhead the <strong>Group</strong>'s foray into the<br />
telecom sector.<br />
1998<br />
<strong>Tata</strong> Indica — India's first indigenously designed and manufactured car — is<br />
launched by <strong>Tata</strong> Motors, spearheading the <strong>Group</strong>'s entry into the passenger car<br />
segment.<br />
1999<br />
The new <strong>Tata</strong> <strong>Group</strong> corporate mark and logo are launched.<br />
2000<br />
<strong>Tata</strong> Tea acquires the Tetley <strong>Group</strong>, UK. This is the first major acquisition <strong>of</strong> an<br />
international brand by an Indian business group.<br />
24
2001<br />
<strong>Tata</strong> AIG — a joint venture between the <strong>Tata</strong> <strong>Group</strong> and American International<br />
<strong>Group</strong> Inc (AIG) — marks the <strong>Tata</strong> re-entry into insurance. (The <strong>Group</strong>'s<br />
insurance company, New India Assurance, set up in 1919, was nationalised in<br />
1956).<br />
2002<br />
<strong>Tata</strong> Sons acquires a controlling stake in VSNL (renamed <strong>Tata</strong> Communications<br />
in 2008), India's leading international telecommunications service provider.<br />
<strong>Tata</strong> Consultancy Services (TCS) becomes the first Indian s<strong>of</strong>tware company to<br />
cross one billion dollars in revenues.<br />
Titan launches Edge, the slimmest watch in the world.<br />
2004<br />
<strong>Tata</strong> Motors is listed on the world's largest bourse, the New York Stock<br />
Exchange, the second <strong>Group</strong> company to do so after VSNL.<br />
<strong>Tata</strong> Motors acquires the heavy vehicles unit <strong>of</strong> Daewoo Motors, South Korea.<br />
TCS goes public in July 2004 in the largest private sector initial public <strong>of</strong>fering<br />
(IPO) in the Indian market, raising nearly $1.2 billlion.<br />
2005<br />
<strong>Tata</strong> <strong>Steel</strong> acquires Singapore-based steel company Nat<strong>Steel</strong> by subscribing to<br />
100 per cent equity <strong>of</strong> its subsidiary, Nat<strong>Steel</strong> Asia.<br />
VSNL (now <strong>Tata</strong> Communications) acquired Tyco Global Network, making it<br />
one <strong>of</strong> the world's largest providers <strong>of</strong> submarine cable bandwidth.<br />
<strong>Tata</strong> Sons completes 60 years <strong>of</strong> <strong>Tata</strong> operations in the US.<br />
The Taj acquires a hotel run by Starwood, Sydney (renamed Blue) and takes over<br />
management <strong>of</strong> The Pierre, NY.<br />
25
2006<br />
<strong>Tata</strong> Sky satellite television service launched across the country.<br />
Foundation stone for the <strong>Tata</strong> Medical Centre unveiled in Kolkata.<br />
2007<br />
<strong>Tata</strong> <strong>Steel</strong> acquires the Ango-Dutch company Corus, making it the world's fifthlargest<br />
steel producer.<br />
TCS inaugurates TCS China — a joint venture with the Chinese government and<br />
other partners.<br />
Computational Research Laboratories, a division <strong>of</strong> <strong>Tata</strong> Sons, develops Eka,<br />
one <strong>of</strong> the fastest supercomputers in the world and the fastest in Asia.<br />
The Taj acquires Campton Place Hotel in San Francisco.<br />
<strong>Tata</strong> <strong>Steel</strong> celebrates its centenary on August 26, 2007.<br />
2008<br />
<strong>Tata</strong> Motors unveils <strong>Tata</strong> Nano, the People’s Car, at the 9th Auto Expo in Delhi<br />
on January 10, 2008.<br />
<strong>Tata</strong> Motors acquires the Jaguar and Land Rover brands from the Ford Motor<br />
Company.<br />
<strong>Tata</strong> Chemicals acquires General Chemical Industrial Products Inc.<br />
<strong>org</strong>anization & management <strong>Structure</strong><br />
ORGANISATION STRUCTURE<br />
26
27<br />
November 28, 2007<br />
<strong>Tata</strong> <strong>Steel</strong> - <strong>Organisation</strong> <strong>Structure</strong> <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong><br />
''The CFO is the conscience-keeper <strong>of</strong> the <strong>org</strong>anisation'', said <strong>Tata</strong> <strong>Steel</strong> group CFO Kaushik<br />
Chatterjee as he spoke at the 2nd CFO Strategies India 2008 on Monday, 15 September in<br />
Mumbai, as he delivered insights on the remarkable rise <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> and its much-publicised<br />
acquisition <strong>of</strong> Corus last year. Sourya Biswas reports from the venue.<br />
When companies announce their annual reports or bask in the glow <strong>of</strong> successful<br />
deals, it is <strong>of</strong>ten the CEOs who take centre stage. However, a lot <strong>of</strong> the<br />
groundwork for a successful venture is done by another important functionary in<br />
the corporate machinery, the chief financial <strong>of</strong>ficer who goes by the humbler<br />
acronym <strong>of</strong> CFO.<br />
With rapid economic growth and increased globalisation over<br />
the last decade, the importance <strong>of</strong> the finance pr<strong>of</strong>essional has<br />
grown manifold. And for the top finance pr<strong>of</strong>essional in an<br />
<strong>org</strong>anisation, the CFO, the changing dynamics <strong>of</strong> international<br />
business have caused him to adopt and adapt at a frenetic pace.<br />
All these and many other details were discussed at the closed-
door two-day CFO Strategies India 2008 summit, <strong>org</strong>anised by Dubai-based<br />
Naseba, at the Hotel Le Meridien in Mumbai on 15 and 16 September 2008. On the<br />
first day, Kaushik Chatterjee, group CFO, <strong>Tata</strong> <strong>Steel</strong>, treated the delegates to an<br />
enlightening session.<br />
In his 30-minute presentation ''M&A - growth strategy for value creation'',<br />
Chatterjee spoke in detail on the growth <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> in general and <strong>Tata</strong><br />
<strong>Steel</strong> in particular, all on the strength <strong>of</strong> mergers and acquisitions. Of particular<br />
interest were his views on the Corus acquisition <strong>of</strong> 2007 that had occupied the<br />
pages <strong>of</strong> pink sheets worldwide.<br />
Chatterjee candidly admitted that the earlier growth <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> had been<br />
largely <strong>org</strong>anic as previous political regimes had not been very conducive to<br />
growth by acquisition, either domestic or international. He called the 10 years from<br />
1992 onwards as the ''decade <strong>of</strong> transformation''.<br />
Elaborating on the Arthur D Little recommendations for the group in the early 90s,<br />
Chatterjee said that the consultancy had been quite vocal on the group's needs to be<br />
internationally competitive, something quite alien to the house <strong>of</strong> <strong>Tata</strong> then.<br />
However, the steep growth curve that had started in 2000 with <strong>Tata</strong> Tea's<br />
acquisition <strong>of</strong> Tetley grew even steeper and faster with one acquisition after<br />
another by different group companies, topping <strong>of</strong>f with the $12.11-billion takeover<br />
<strong>of</strong> Corus last year.<br />
The meteoric growth <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> Chatterjee now spoke on the growth strategy for<br />
<strong>Tata</strong> <strong>Steel</strong> in particular and how it grew to become the sixth-largest steel producer<br />
in the world. Of course, he didn't f<strong>org</strong>et to mention that his company continues to<br />
be the ''lowest-cost steel producer in the world'' as well.<br />
As <strong>of</strong> 2003, <strong>Tata</strong> <strong>Steel</strong> was essentially a one-site company, centred in the pristine<br />
28
locales <strong>of</strong> Jamshedpur - aptly named after the great man who envisioned the place,<br />
Shri Jamshedji Nusserwanji <strong>Tata</strong>. Although an ideal township where nature is in<br />
perfect harmony with steel manufacturing, it was, admittedly, a small operation<br />
with only 4 million tonnes annual capacity. Also, even though <strong>Tata</strong> <strong>Steel</strong> had a<br />
leadership position in finished goods like automobiles and white goods, in many<br />
other aspects it lagged behind its competitors. More importantly, as regards a<br />
foreign presence, there was none<br />
Chatterjee spoke <strong>of</strong> how the senior management got together at this point <strong>of</strong> time<br />
to envision an aspirational target for the company, as well as brainstorm on how to<br />
achieve it. From these high-level discussions emerged a target - 15 million tonnes<br />
annual capacity by 2015, subsequently revised to 50 million tonnes - a ten-foldplus<br />
increase in just ten-plus years.<br />
Of course, the company's jewel in the crown Jamshedpur was to be very much a<br />
part <strong>of</strong> the action. Target capacity was set at 10 million tonnes by 2010, with<br />
gradual increments over the years: 4 to 5 million tonnes in 2005 (already<br />
achieved), 5 to 6.8 million tonnes in 2008 (on schedule) and 6.8 to 10 million<br />
tonnes in 2010 (expected).<br />
Reason behind these ambitious numbers<br />
Chatterjee explained that such an ambitious target was born out <strong>of</strong> the<br />
management's confidence in a vibrant world economy, with special emphasis on<br />
engines <strong>of</strong> growth like India, China, Russia, South-East Asia and Brazil. Indeed,<br />
many <strong>of</strong> the company's recent investments bear ample testimony to its belief in the<br />
strength <strong>of</strong> emerging economies.<br />
Chatterjee made an interesting observation - whenever a country's per-capita GDP<br />
had exceeded $3,000, a metal boom had been witnessed. This was because,<br />
according to Chatterjee, there is a strong co-relation between GDP and<br />
consumption <strong>of</strong> metals. With India's GDP almost at that threshold, there was no<br />
better time for <strong>Tata</strong> <strong>Steel</strong> to spread its wings and fly.<br />
In an aside, Chatterjee spoke <strong>of</strong> the increasing importance <strong>of</strong> branded steel in the<br />
company's scheme <strong>of</strong> operations - it now accounts for $1.5 billion in annual sales.<br />
29
Chatterjee's assertion that steel items can be branded like FMCG items because<br />
they last longer certainly has merit.<br />
Coming back to <strong>Tata</strong> <strong>Steel</strong>'s growth plans, the management had identified that<br />
acquisition would definitely play an important part in the company's future plans.<br />
This was especially true <strong>of</strong> developed markets where the costs <strong>of</strong> establishing<br />
Greenfield projects were prohibitive<br />
TCS unveils new, agile <strong>org</strong>anisation structure<br />
12 Mar 2008 , Mumbai : <strong>Tata</strong> Consultancy services , the leading IT services, business<br />
solutions and outsourcing <strong>org</strong>anization has announced plans to <strong>org</strong>anize its global<br />
operations into integrated, customer-centric units to enhance customer focus, drive<br />
operational agility and address new growth opportunities in the market.<br />
The new global operating model will provide customers with a single view <strong>of</strong> TCS<br />
encompassing project delivery and relationship management and enable a sharper focus on<br />
the customer.<br />
This structure will also provide more opportunities for leadership growth at all levels in<br />
the <strong>org</strong>anization and encourage the next generation <strong>of</strong> leaders by empowering group heads<br />
to run their unit with growth and pr<strong>of</strong>it responsibilities.<br />
“As we scale up over 100,000 employees, TCS needs a structure that allows us to build a<br />
nimble <strong>org</strong>anization to capture new growth opportunities,” said S. Ramadorai, CEO and<br />
MD. “This will create a framework that is scalable for growth across markets and provide<br />
focus on strategic initiatives like asset leveraged solutions, platform-based BPO as well<br />
other new initiatives,” added Mr. Ramadorai.<br />
“The modular structure will simplify our interface with customers and drive agility in all<br />
areas <strong>of</strong> operations. The structure will also allow us to adapt to specific customer and<br />
market requirements while ensuring a uniform global service delivery,” said N.<br />
30
Chandrasekaran, Chief Operating Officer and Executive Director.<br />
In the new operating model, all necessary delivery, domain and technology expertise and<br />
resources will be embedded in these units to promote greater collaboration with the<br />
customer. All operating units will be supported by a common group <strong>of</strong> <strong>org</strong>anizational<br />
infrastructure units, such as the Technology Excellence, Process Excellence, Resource<br />
Management, and Shared Services groups.<br />
The new structure will also support greater focus for strategic initiatives that will help<br />
drive non-linear revenue growth. In addition to TCS Financial Solutions, and the Small &<br />
Medium Business Solutions, the company has constituted a new unit for Platform BPO<br />
Solutions. These three Strategic Growth Businesses will operate as independent units that<br />
will leverage TCS sales, delivery and customer relationships as required.<br />
<strong>Organisation</strong> <strong>Structure</strong> <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong><br />
<strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> has set itself an ambition to become one <strong>of</strong> the leading players in<br />
the global steel industry. <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> comprise <strong>of</strong> two entities, namely, <strong>Tata</strong><br />
<strong>Steel</strong> (including <strong>Tata</strong> <strong>Steel</strong> Thailand and Nat<strong>Steel</strong> Asia) and Corus <strong>Group</strong> Ltd. In<br />
order to realise this ambition, a new <strong>org</strong>anisation is announced today, which is<br />
effective from 1st January 2008.<br />
31
32<br />
• The Chairman <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong>, Mr Ratan <strong>Tata</strong> will continue to chair the<br />
Strategy and Integration Committee. Mr.Jim Leng, Mr.B Muthuraman,<br />
Mr.Philippe Varin, Dr. Tridibesh Mukherjee, Mr.Rauke Henstra, Mr.Hemant<br />
Nerurkar, Mr.Koushik Chatterjee and Mr.Jean-Sébastien Jacques are<br />
members <strong>of</strong> this Committee.<br />
• A <strong>Group</strong> Centre is created for functions that are to be performed with a<br />
common approach across the <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong>. These functions are<br />
Technology & Integration, Finance, Strategy, Corporate Relations &<br />
Communications and Global Minerals. The executives responsible for these<br />
functions will report to the MD <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> and the CEO <strong>of</strong> Corus:<br />
- Dr Tridibesh Mukherjee is appointed as <strong>Group</strong> Director, Technology &<br />
Integration<br />
- Mr Koushik Chatterjee is appointed as <strong>Group</strong> Chief Financial Officer<br />
- Mr Jean-Sébastien Jacques is appointed as <strong>Group</strong> Director, Strategy<br />
- Mr Manzer Hussain is appointed as <strong>Group</strong> Director, Communications<br />
- Mr Arun D Baijal is appointed as <strong>Group</strong> Director Global Minerals<br />
• Both <strong>Tata</strong> <strong>Steel</strong> and Corus entities will have Executive Committees chaired<br />
by the MD, Mr B Muthuraman and the CEO, Mr Philippe Varin<br />
respectively.<br />
• A Joint Executive Committee for <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> will meet quarterly to<br />
review overall performance against the <strong>Group</strong> ambition. This committee will<br />
be co-chaired by the MD <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> and the CEO <strong>of</strong> Corus.<br />
MANAGEMENT STRUCTURE
There are two decision-making bodies that define and direct the business<br />
endeavours <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>. These are called the <strong>Group</strong> Executive Office and<br />
the <strong>Group</strong> Corporate Centre.<br />
<strong>Group</strong> Executive Office :<br />
The <strong>Group</strong> Executive Office (GEO) defines and reviews the business activities <strong>of</strong><br />
the <strong>Tata</strong> <strong>Group</strong> and is involved in implementing programmes in corporate<br />
governance, human resources, the environment, etc. The chief objective <strong>of</strong> the<br />
GEO is to make the <strong>Tata</strong> <strong>Group</strong> more synergistic; it does this by strengthening the<br />
relationship between the <strong>Group</strong> and its companies.<br />
The GEO creates a shared understanding <strong>of</strong> a <strong>Tata</strong> company's current activities, its<br />
strengths and its weaknesses. It then addresses the most strategic issues facing the<br />
company. Apart from this, the GEO has reviewed the <strong>Group</strong>'s business portfolio<br />
and clustered companies into seven business sectors. The GEO assesses what<br />
unique value a company adds to a particular business sector and, conversely, what<br />
unique value the <strong>Group</strong> can bring to that company.<br />
Besides Chairman Ratan N <strong>Tata</strong>, the GEO comprises R Gopalakrishnan, Ishaat<br />
Hussain, Kishor Chaukar,Arunkumar Gandhi and Alan Rosling.<br />
<strong>Group</strong> Corporate Centre<br />
The <strong>Group</strong> Corporate Centre (GCC) is a forum at which broad policy issues<br />
relating to the growth <strong>of</strong> <strong>Tata</strong> companies are reviewed and the entry into new areas<br />
are discussed. The GCC also plays a key role in protecting and promoting the <strong>Tata</strong><br />
brand in India and across the globe.The GCC also provides advisory services to<br />
<strong>Tata</strong> companies in the areas <strong>of</strong> Human Resources, Finance,Legal, and other<br />
functional areas as and when required.Apart from this, the GCC from time to time,<br />
33
eviews <strong>Tata</strong> companies’ business portfolios across business sectors. The GCC<br />
comprises Chairman Ratan N <strong>Tata</strong>, NA Soonawala, JJ Irani, RK Krishna Kumar, R<br />
Gopalakrishnan,Ishaat Hussain, Kishor Chaukar, Arunkumar Gandhi and Alan<br />
Rosling.<br />
34<br />
BOARD OF DIRECTORS<br />
(As on 14th April, 2008)<br />
Mr R N <strong>Tata</strong> (Chairman)<br />
Mr James Leng (Non - Executive Deputy Chairman)<br />
Mr Nusli N<br />
Wadia<br />
(Company Director)
35<br />
Mr S M Palia (Company Director)<br />
Mr Suresh<br />
Krishna<br />
Mr Ishaat<br />
Hussain<br />
Dr Jamshed J<br />
Irani<br />
Mr Subodh<br />
Bhargava<br />
Mr Jacques<br />
Schraven<br />
Dr Anthony<br />
Hayward<br />
Mr Philippe<br />
Varin<br />
Mr B<br />
Muthuraman<br />
(Financial Institutions' Nominee)<br />
(Board Member)<br />
(Board Member)<br />
(Board Member)<br />
(Non - Executive Independent<br />
Director)<br />
(Non - Executive Independent<br />
Director)<br />
(Non - Executive Non independent<br />
Director)<br />
(Managing Director)<br />
Dr T Mukherjee (Non Executive Director)<br />
Mr Andrew<br />
Robb<br />
Mr B<br />
Muthuraman<br />
Mr H M<br />
Nerurkar<br />
(Non Executive Independent<br />
Director)<br />
MANAGEMENT<br />
(As on 14th April, 2008)<br />
Managing Director<br />
Chief Operating Officer<br />
Mr A D Baijal Vice President & <strong>Tata</strong> <strong>Steel</strong><br />
<strong>Group</strong> Director, Global Mineral<br />
Resources
36<br />
Mr R P Singh Vice President, Engineering<br />
Services & Projects<br />
Mr Koushik<br />
Chatterjee<br />
Vice President, Finance & <strong>Tata</strong><br />
<strong>Steel</strong> <strong>Group</strong> CFO<br />
Mr Anand Sen Vice President, Flat Products &<br />
TQM<br />
Mr Abanindra<br />
M. Misra<br />
Mr Varun K<br />
Jha<br />
Mr Om<br />
Narayan<br />
Mr<br />
Radhakrishnan<br />
Nair<br />
Mr Partha<br />
Sengupta<br />
Vice President, Raw Materials<br />
& CSI<br />
Vice President, Chattisgarh<br />
Project<br />
Vice President, Shared<br />
Services<br />
Chief Human Resource Officer<br />
Vice President, Corporate<br />
Services<br />
Mr H Jha Vice President, Safety & Long<br />
Products<br />
Mr N K Misra Vice President & <strong>Tata</strong> <strong>Steel</strong><br />
<strong>Group</strong> Head, M&A<br />
Mr B K Singh Vice President, Orissa Project<br />
Mr J C Bham Company Secretary<br />
Mr H C Kharkar Vice President, MD Office,<br />
Mumbai<br />
MANAGEMENT STRUCTURE<br />
Board <strong>of</strong> Directors:
37<br />
Mr.H.M.Nerurkar<br />
Chairman<br />
Mr. A. C. Wadhawan<br />
Independent Director<br />
Mr. Ashok Kumar<br />
Non-Independent Director<br />
Mr. A. K. Basu<br />
Independent Director<br />
Senior Management Team<br />
Mr. Harsh K Jha<br />
Managing Director<br />
Mr. P. K. Jha<br />
Non-Independent Director<br />
Mr. Manish Gupta<br />
Independent Director<br />
Mr. V. S. N. Murty<br />
Non-Independent Director<br />
Senior Management Team:<br />
Mr. Ajoy Roy<br />
Independent Director<br />
Mr. M. V. Rao<br />
Independent Director<br />
Mr. Dipak Banerjee<br />
Independent Director
38<br />
Mr. Subhasis Dey<br />
CFO and Company Secretary<br />
Mr. Sudhin C. Mitter<br />
General Manager, Marketing & Sales<br />
Mr. Rajesh Mishra<br />
C.E.O. <strong>Tata</strong> Metaliks Kubota Pipes Ltd.<br />
Mr. Debasish Misra<br />
General Manager, Redi SBU<br />
Dr. Ashok Mohanty<br />
Chief <strong>of</strong> Human Resources (Corporate)<br />
Mr.P.Daniel Kumar<br />
Chief Manufacturing System, Kharagpur<br />
<strong>Tata</strong> <strong>Steel</strong>, formerly known as TISCO (<strong>Tata</strong> Iron and <strong>Steel</strong> Company Limited), is<br />
the world's 5th largest and India's largest steel company with an annual crude steel<br />
capacity <strong>of</strong> 28 million tonnes. It is a Fortune Global 500 company with a rank <strong>of</strong><br />
315. It is based in Mumbai, India. It is part <strong>of</strong> <strong>Tata</strong> <strong>Group</strong> <strong>of</strong> companies. <strong>Tata</strong> <strong>Steel</strong><br />
is also India's second-largest and second-most pr<strong>of</strong>itable company in private sector
with consolidated revenues <strong>of</strong> Rs 1,32,110 crore and net pr<strong>of</strong>it <strong>of</strong> over Rs 12,350<br />
crore during the year ended March 31, 2008.<br />
Its main plant is located in Jamshedpur, Jharkhand, though with its recent<br />
acquisitions, the company has become a multinational with operations in various<br />
countries. The Jamshedpur plant contains the DCS supplied by Honeywell.The<br />
registered <strong>of</strong>fice <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> is in Mumbai. In the year 2000, the company was<br />
recognised as the world's lowest-cost producer <strong>of</strong> steel. The company was also<br />
recognized as the world's best steel producer by World <strong>Steel</strong> Dynamics in 2005.<br />
The company is listed on BSE and NSE; and employs about 82,700 people (as <strong>of</strong><br />
2007).<br />
Management<br />
<strong>Tata</strong> <strong>Steel</strong> is a limited company registered in India under the Companies Act, 1956.<br />
BOARD OF DIRECTORS (As on 14th April, 2008)<br />
Mr R N <strong>Tata</strong> (Chairman) Mr James Leng (Non - Executive Deputy Chairman) Mr<br />
Nusli N Wadia (Company Director) Mr S M Palia (Company Director) Mr Suresh<br />
Krishna (Financial Institutions' Nominee) Mr Ishaat Hussain (Board Member) Dr<br />
Jamshed J Irani (Board Member) Mr Subodh Bhargava (Board Member) Mr<br />
Jacques Schraven (Non - Executive Independent Director) Dr Anthony Hayward<br />
(Non - Executive Independent Director) Mr Philippe Varin (Non - Executive Non<br />
independent Director) Mr B Muthuraman (Managing Director) Dr T Mukherjee<br />
(Non Executive Director) Mr Andrew Robb (Non Executive Independent Director)<br />
MANAGEMENT (As on 14th April, 2008)<br />
Mr B Muthuraman (Managing Director) Mr H M Nerurkar (Chief Operating<br />
Officer) Mr A D Baijal (Vice President & <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> Director, Global<br />
39
Mineral Resources) Mr R P Singh (Vice President, Engineering Services &<br />
Projects) Mr Koushik Chatterjee (Vice President, Finance & <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong><br />
CFO) Mr Anand Sen (Vice President, Flat Products & TQM) Mr Abanindra M.<br />
Misra (Vice President, Raw Materials & CSI) Mr Varun K Jha (Vice President,<br />
Chattisgarh Project) Mr Om Narayan (Vice President, Shared Services) Mr<br />
Radhakrishnan Nair (Chief Human Resource Officer) Mr Partha Sengupta (Vice<br />
President, Corporate Services) Mr H Jha (Vice President, Safety & Long Products)<br />
Mr N K Misra (Vice President & <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> Head, M&A) Mr B K Singh<br />
(Vice President, Orissa Project) Mr J C Bham (Company Secretary) Mr H C<br />
Kharkar (Vice President, MD Office, Mumbai)<br />
TATA STRATEGIC MANAGEMENT STRUCTURE<br />
Set up in 1991, the <strong>Tata</strong> Strategic Management <strong>Group</strong> (<strong>Tata</strong> Strategic) ranks<br />
among the top three management consulting fi rms in South Asia.<br />
Mumbai-based but with a presence in SAARC and West Asian countries, <strong>Tata</strong><br />
Strategic has completed over 500 engagements with more than<br />
100 clients across countries and industry sectors. Its clientele includes medium to<br />
large private sector companies in India, multi-national corporations<br />
including select Fortune 500 companies, public sector enterprises, the Government<br />
<strong>of</strong> India and a cross-section <strong>of</strong> companies within the <strong>Tata</strong> <strong>Group</strong>.<br />
40
Today over 60% <strong>of</strong> its business comes from non-<strong>Tata</strong> clients and 25% from<br />
international clients. <strong>Tata</strong> Strategic has a team <strong>of</strong> more than 70 consultants,<br />
recruited from top business schools in India and abroad or laterally from industry.<br />
The team is aided by a panel <strong>of</strong> experts, each with over 20 years <strong>of</strong> industry<br />
domain expertise.<br />
<strong>Tata</strong> Strategic works with clients across the following industry sectors:<br />
• Automotive and engineering<br />
• Chemicals and energy<br />
• Consumer products and retail<br />
• Telecom, media and technology<br />
• Infrastructure and<br />
• Government<br />
<strong>Tata</strong> Strategic addresses ‘top-<strong>of</strong>-mind’ needs <strong>of</strong> the client top management through<br />
a range <strong>of</strong> contemporary <strong>of</strong>ferings spanning the areas <strong>of</strong> strategy formulation,<br />
<strong>org</strong>anisation effectiveness, competitiveness enhancement and business analytics.<br />
International Experience<br />
<strong>Tata</strong> Strategic has on-site assignments from clients in Sri Lanka, Bangladesh and<br />
multiple countries in West Asia (Saudi Arabia, Yemen and Dubai). Clients from<br />
Germany, UK and the United States also work with <strong>Tata</strong> Strategic frequently. <strong>Tata</strong><br />
Strategic also formulates India entry plans for global companies and provides<br />
implementation support to them.<br />
<strong>Tata</strong> <strong>Steel</strong> Ltd has informed about the following:<br />
- <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> has announced a new <strong>org</strong>anization structure effective from<br />
41
January 01, 2008 as follows:<br />
<strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> comprises <strong>of</strong> two entities, namely, <strong>Tata</strong> <strong>Steel</strong> (including <strong>Tata</strong><br />
<strong>Steel</strong> Thailand and Nat<strong>Steel</strong> Asia) and Corus <strong>Group</strong> Ltd. In order to realise this<br />
ambition, a new <strong>org</strong>anisation is announced on November 28, 2007, which is<br />
effective from January 01, 2008.<br />
* The Chairman <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong>, Mr. Ratan <strong>Tata</strong> will continue to chair the Strategy<br />
and Integration Committee. Mr. Jim Leng, Mr. B Muthuraman, Mr. Philippe Varin,<br />
Dr. Tridibesh Mukherjee, Mr. Rauke Henstra, Mr. Hemant Nerurkar, Mr. Koushik<br />
Chatterjee and Mr. Jean-Sebastien Jacques are members <strong>of</strong> this Committee.<br />
* A <strong>Group</strong> Centre is created for functions that are to be performed with a common<br />
approach across the <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong>. These functions are Technology &<br />
Integration, Finance, Strategy, Corporate Relations & Communications and Global<br />
Minerals.<br />
The executives responsible for these functions will report to the MD <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong><br />
and the CEO <strong>of</strong> Corus:<br />
- Dr. Tridibesh Mukherjee is appointed as <strong>Group</strong> Director, Technology &<br />
Integration<br />
- Mr. Koushik Chatterjee is appointed as <strong>Group</strong> Chief Financial Officer<br />
- Mr. Jean-Sebastien Jacques is appointed as <strong>Group</strong> Director, Strategy<br />
- Mr. Manzer Hussain is appointed as <strong>Group</strong> Director, Communications<br />
- Mr. Arun D Baijal is appointed as <strong>Group</strong> Director Global Minerals<br />
* Both <strong>Tata</strong> <strong>Steel</strong> and Corus entities will have Executive Committees chaired by<br />
the MD, r. B Muthuraman and the CEO, Mr. Philippe Varin respectively.<br />
* A Joint Executive Committee for <strong>Tata</strong> <strong>Steel</strong> <strong>Group</strong> will meet quarterly to review<br />
42
overall performance against the <strong>Group</strong> ambition. This committee will be cochaired<br />
by the MD <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> and the CEO <strong>of</strong> Corus.<br />
Revised Vision, Mission and Outlook<br />
REVISED VISION<br />
43
Ratan <strong>Tata</strong> Quotes<br />
One hundred years from now, I expect the <strong>Tata</strong>s to be much bigger than it is now.<br />
More importantly, I hope the <strong>Group</strong> comes to be regarded as being the best in<br />
India.. best in the manner in which we operate, best in the products we deliver, and<br />
best in our value systems and ethics. Having said that, I hope that a hundred years<br />
from now we will spread our wings far beyond India.<br />
Vision, implementation, risk taking, and meeting the needs <strong>of</strong> a changing economy<br />
are all apparent in <strong>Tata</strong>'s pet project: the creation <strong>of</strong> Indica. "I believed in the<br />
product. In fact I was very much involved in conceiving its initial fundamentals<br />
and design parameters. Yes, it's like seeing a child being born, almost limb-bylimb.<br />
Today we have in excess <strong>of</strong> 50,000 Indicas on the road and I feel a sense <strong>of</strong> great<br />
exhilaration every time I come up next to one. I have an urge to roll my window<br />
down, tap on the Indica's window and ask the owner: How do you like it?" A look<br />
at the <strong>Tata</strong>’s strategic plan for Indica.<br />
At the threshold <strong>of</strong> stepping down from group executive chairmanship, today<br />
Ratan <strong>Tata</strong> can see the results <strong>of</strong> his grand vision for the group all around him. The<br />
<strong>Tata</strong> <strong>Group</strong> has turned around loss making companies (<strong>Tata</strong> Motors), sold non core<br />
businesses (ACC, Tomco, Lakme, Goodlass Nerolac, Merind), enhanced existing<br />
businesses (<strong>Tata</strong> <strong>Steel</strong>, <strong>Tata</strong> Chemicals, <strong>Tata</strong> Consultancy Services), entered new<br />
industries (telecom), pioneered India's first home grown car (Indica), and is now<br />
firmly set on its growth curve.<br />
"My main contribution, if you like, is to move us into the high tech areas <strong>of</strong><br />
business, partly in IT, partly in telecommunications, partly in process control,"<br />
<strong>Tata</strong> once told CNBC's Sue Herera. Today, the group has combined revenues <strong>of</strong><br />
$11.2bn or Rs535bn or 2.4% <strong>of</strong> India's gross domestic product (GDP). The guiding<br />
principle behind <strong>Tata</strong>'s vision is to change with the times. In his own words,<br />
"Weshould become a younger <strong>org</strong>anization, an <strong>org</strong>anization <strong>of</strong> our time, more<br />
risktaking, less risk averse."<br />
44
Mission<br />
The <strong>Group</strong> Purpose<br />
Our purpose in <strong>Tata</strong> is to improve the quality <strong>of</strong> life in India through leadership in<br />
targeted sectors <strong>of</strong> national economic significance to which the <strong>Group</strong> can bring a<br />
unique set <strong>of</strong> capabilities.<br />
Our past success in delivering such purpose provides the basis for our belief in the<br />
future and our role in it. Our <strong>Group</strong> size and scale will provide management and<br />
financial resources to pr<strong>of</strong>itably cater to the emerging opportunities and to develop<br />
globally competitive skills to succeed in this endeavour.<br />
Our long-term success requires us to considerably focus our portfolio, our<br />
management efforts and our investment priorities so that <strong>Group</strong> synergy is brought<br />
to bear at the point <strong>of</strong> delivering value to the customer. The enormous <strong>Group</strong><br />
resources : in people and finance needs to be re-architectured so that the whole is<br />
larger than the sum <strong>of</strong> its individual parts.<br />
Our heritage invokes trust among consumers, employees, shareholders and the<br />
community. This is a precious heritage, unique in India, and will not only be<br />
preserved, but also enriched by formalising the high standards <strong>of</strong> behaviour<br />
45
expected from our employees and the companies in the years to come.<br />
The <strong>Tata</strong> name is a unique asset representing Leadership with Trust. Leveraging<br />
this asset to unify our companies is the route to long-term success and delivery <strong>of</strong><br />
returns to the shareholder in excess <strong>of</strong> the cost <strong>of</strong> capital.<br />
At the <strong>Tata</strong> <strong>Group</strong> our purpose is to improve the quality <strong>of</strong> life <strong>of</strong> the communities<br />
we serve. We do this through leadership in sectors <strong>of</strong> national economic signifi<br />
cance, to which the group brings a unique set <strong>of</strong> capabilities.<br />
This requires us to grow aggressively in focused areas <strong>of</strong> business.Our heritage <strong>of</strong><br />
returning to society what we earn evokes trust amongconsumers, employees,<br />
shareholders and the community. This heritage will be continuously enriched by<br />
formalising the high standards <strong>of</strong> behaviour expected from employees and<br />
companies.The <strong>Tata</strong> name is a unique asset representing leadership with trust<br />
Leveraging this asset to enhance group synergy and becoming globally competitive<br />
is the route to sustained growth and long-term success.<br />
HR, Marketing, Finance & Safety Policies<br />
HUMAN RESOURCE POLICY<br />
<strong>Tata</strong> <strong>Steel</strong> recognises that its people are the primary source <strong>of</strong> its competitiveness.<br />
It is committed to equal employment opportunities for attracting the best available<br />
talent and ensuring a cosmopolitan workforce.<br />
It will pursue management practices designed to enrich the quality <strong>of</strong> life <strong>of</strong> its<br />
employees, develop their potential and maximise their productivity.<br />
It will aim at ensuring transparency, fairness and equity in all its dealing with its<br />
employees.<br />
<strong>Tata</strong> <strong>Steel</strong> will strive continuously to foster a climate <strong>of</strong> openness, mutual trust and<br />
teamwork<br />
<strong>Tata</strong> is committed to create an exciting work pace based on self-directed teams<br />
,improvement and innovative work in environment.<br />
46
47<br />
d) Create work conductive to superior performance , which enable employees<br />
to realize their full potential through continuous learning and training<br />
e) Identify and develop potential leaders for future growth.<br />
f) High potential employee working in congenial work environment.<br />
<strong>Tata</strong> <strong>Steel</strong> recognises that its people are the primary source <strong>of</strong> its competitiveness.<br />
It is committed to equal employment opportunities for attracting the best available<br />
talent and ensuring a cosmopolitan workforce.<br />
It will pursue management practices designed to enrich the quality <strong>of</strong> life <strong>of</strong> its<br />
employees, develop their potential and maximise their productivity.<br />
It will aim at ensuring transparency, fairness and equity in all its dealing with its<br />
employees.<br />
<strong>Tata</strong> <strong>Steel</strong> will strive continuously to foster a climate <strong>of</strong> openness, mutual trust and<br />
teamwork<br />
Safety Policy<br />
1. A <strong>Tata</strong> company shall strive to provide a safe, healthy, clean and ergonomic<br />
working environment for its people. It shall prevent the wasteful use <strong>of</strong><br />
natural resources and be committed to improving the environment,<br />
particularly with regard to the emission <strong>of</strong> greenhouse gases, and shall<br />
endeavour to <strong>of</strong>fset the effect <strong>of</strong> climate change in all spheres <strong>of</strong> its<br />
activities.<br />
2. A <strong>Tata</strong> company, in the process <strong>of</strong> production and sale <strong>of</strong> its products and<br />
services, shall strive for economic, social and environmental sustainability.<br />
o Comply with all applicable legislation, regulations and other<br />
requirements.
48<br />
o Enhance employee's knowledge, skill and consequent involvement in<br />
Environment, Safety, Health and Quality Management Programmes.<br />
o Make systematic and progressive reduction <strong>of</strong> losses in operational<br />
areas by deploying Total Productive Maintenance.<br />
o Eliminate, reduce or control hazards/ risks arising out <strong>of</strong> our<br />
operations and products.<br />
o Preserve and develop environment by reduction in pollution in all its<br />
forms and nurture the eco-system within and outside the <strong>org</strong>anisation.<br />
o Harmonise its economic progress with social and community<br />
considerations.<br />
o The Company will institutionalise Evaluation and Improvement<br />
system in business practices to make rapid progress. This policy will<br />
be made available to all the interested parties on demand.<br />
Finance Policies<br />
A <strong>Tata</strong> company shall prepare and maintain its accounts fairly and accurately and<br />
in accordance with the accounting and financial reporting standards which<br />
represent the generally accepted guidelines, principles, standards, laws and<br />
regulations <strong>of</strong> the country in which the company conducts its business affairs.<br />
Internal accounting and audit procedures shall reflect, fairly and accurately, all <strong>of</strong><br />
the
company’s business transactions and disposition <strong>of</strong> assets, and shall have internal<br />
controls to provide assurance to the company’s board and shareholders that the<br />
transactions are accurate and legitimate. All required information shall be<br />
accessible to company auditors and other authorised parties and government<br />
agencies. There shall be no willful omissions <strong>of</strong> any company transactions from the<br />
books and records, no advance-income recognition and no hidden bank account<br />
and funds.<br />
Any willful, material misrepresentation <strong>of</strong> and / or misinformation on the financial<br />
accounts and reports shall be regarded as a violation <strong>of</strong> the Code, apart from<br />
inviting appropriate civil or criminal action under the relevant laws. No employee<br />
shall make, authorise, abet or collude in an improper payment, unlawful<br />
commission or bribing.<br />
Market Policies<br />
A <strong>Tata</strong> company shall fully support the development and operation <strong>of</strong> competitive<br />
open markets and shall promote the liberalisation <strong>of</strong> trade and investment in each<br />
country and market in which it operates. Specifically, no <strong>Tata</strong> company or<br />
employee shall engage in restrictive trade practices, abuse <strong>of</strong> market dominance or<br />
similar unfair trade activities.<br />
A <strong>Tata</strong> company or employee shall market the company’s products and services on<br />
their own merits and shall not make unfair and misleading statements about<br />
competitors’ products and services. Any collection <strong>of</strong> competitive information<br />
shall be made only in the normal course <strong>of</strong> business and shall be obtained only<br />
through legally permitted sources and means.<br />
Outlook<br />
49
<strong>Group</strong> chairman Ratan <strong>Tata</strong> speaker on a wide range <strong>of</strong> issue concerning the <strong>Tata</strong><br />
<strong>Group</strong> and its pace in a world changing dramatically than ever before what will be<br />
the nature ad scope <strong>of</strong> <strong>Tata</strong> <strong>Group</strong> engagement in the coming years with a world<br />
changing more rapidly than ever before. Here are numerous questions and who<br />
better to address and opportunities before the group as it continuous reinforcing<br />
and reinventing itself in India and in the world.<br />
Over the next five to seven years the group has to start looking seriously and<br />
strategically at creating brand awareness for ourselves in new business<br />
commercially and strategically in this region’s the group also says that in<br />
commodities the brand is not as important as it is in product.<br />
The group chairman Ratan <strong>Tata</strong> says that we are not promoting our one brand but<br />
we are getting serious <strong>of</strong> properties that have their one brand it can also happen<br />
with a company like Titan if you are willing to spend huge amount <strong>of</strong> money<br />
propagating the brand it will work.<br />
S&P keeps negative outlook for <strong>Tata</strong> Motors<br />
Mumbai, July 9 Standard & Poor’s Ratings Services said today it kept its ‘BB’<br />
corporate credit rating on <strong>Tata</strong> Motors on CreditWatch with negative implications,<br />
pending finalisation <strong>of</strong> the long-term financing plans for funding the company’s<br />
purchase <strong>of</strong> Jaguar and Land Rover from Ford. At the same time, Standard &<br />
Poor’s ratings on all <strong>Tata</strong> Motors’ rated debt remain on CreditWatch with negative<br />
implications.<br />
The rating on <strong>Tata</strong> Motors was lowered on April 4, 2008, to ‘BB’, from ‘BB+’,<br />
after the announcement <strong>of</strong> the agreement with Ford Motor Co for the purchase <strong>of</strong><br />
Jaguar and Land Rover.<br />
<strong>Tata</strong> Motors has paid about $2.3 billion in cash for Jaguar and Land Rover<br />
(comprising brands, plants, and intellectual property rights).<br />
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Ford has contributed $600 million to the Jaguar-Land Rover (JLR) pension plans.<br />
“To fund the initial transaction, <strong>Tata</strong> Motors raised short-term bridge facilities <strong>of</strong><br />
$3 billion, which it plans to repay through a mix <strong>of</strong> fresh equity infusion,<br />
liquidation <strong>of</strong> investments, and long-term debt,” said Standard & Poor’s credit<br />
analyst Mr Anshukant Taneja.<br />
The company has obtained a board approval to raise up to $1.05 billion through a<br />
rights issue <strong>of</strong> equity shares, up to $750 million <strong>of</strong> optionally convertible<br />
preference shares, and $500 million-$600 million through a separate issuance <strong>of</strong><br />
securities in overseas markets.<br />
51
Corporate Governance<br />
<strong>Tata</strong> Code <strong>of</strong> Conduct<br />
This comprehensive document serves as the ethical road map for<br />
<strong>Tata</strong> employees and companies, and provides the guidelines by which<br />
the <strong>Group</strong> conducts its businesses.<br />
Clause:1<br />
National interest<br />
The <strong>Tata</strong> <strong>Group</strong> is committed to benefit the economic development <strong>of</strong> the countries<br />
in which it operates. No <strong>Tata</strong> company shall undertake any project or activity to the<br />
detriment <strong>of</strong> the wider interests <strong>of</strong> the communities in which it operates.<br />
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A <strong>Tata</strong> company’s management practices and business conduct shall benefit the<br />
country, localities and communities in which it operates, to the extent possible and<br />
affordable, and shall be in accordance with the laws <strong>of</strong> the land.<br />
A <strong>Tata</strong> company, in the course <strong>of</strong> its business activities, shall respect the culture,<br />
customs and traditions <strong>of</strong> each country and region in which it operates. It shall<br />
conform to trade procedures, including licensing, documentation and other<br />
necessary formalities, as applicable.<br />
Clause:2<br />
Financial reporting and records<br />
A <strong>Tata</strong> company shall prepare and maintain its accounts fairly and accurately and<br />
in accordance with the accounting and financial reporting standards which<br />
represent the generally accepted guidelines, principles, standards, laws and<br />
regulations <strong>of</strong> the country in which the company conducts its business affairs.<br />
Internal accounting and audit procedures shall reflect, fairly and accurately, all <strong>of</strong><br />
the company’s business transactions and disposition <strong>of</strong> assets, and shall have<br />
internal controls to provide assurance to the company’s board and shareholders that<br />
the transactions are accurate and legitimate. All required information shall be<br />
accessible to company auditors and other authorised parties and government<br />
agencies. There shall be no willful omissions <strong>of</strong> any company transactions from the<br />
books and records, no advance-income recognition and no hidden bank account<br />
and funds.<br />
Any willful, material misrepresentation <strong>of</strong> and / or misinformation on the financial<br />
accounts and reports shall be regarded as a violation <strong>of</strong> the Code, apart from<br />
inviting appropriate civil or criminal action under the relevant laws. No employee<br />
shall make, authorise, abet or collude in an improper payment, unlawful<br />
commission or bribing.<br />
Clause:3<br />
Competition<br />
A <strong>Tata</strong> company shall fully support the development and operation <strong>of</strong> competitive<br />
53
open markets and shall promote the liberalisation <strong>of</strong> trade and investment in each<br />
country and market in which it operates. Specifically, no <strong>Tata</strong> company or<br />
employee shall engage in restrictive trade practices, abuse <strong>of</strong> market dominance or<br />
similar unfair trade activities.<br />
A <strong>Tata</strong> company or employee shall market the company’s products and services on<br />
their own merits and shall not make unfair and misleading statements about<br />
competitors’ products and services. Any collection <strong>of</strong> competitive information<br />
shall be made only in the normal course <strong>of</strong> business and shall be obtained only<br />
through legally permitted sources and means<br />
Clause:4<br />
Equal opportunities employer<br />
A <strong>Tata</strong> company shall provide equal opportunities to all its employees and all<br />
qualified applicants for employment without regard to their race, caste, religion,<br />
colour, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic<br />
origin or disability.<br />
Human resource policies shall promote diversity and equality in the workplace, as<br />
well as compliance with all local labour laws, while encouraging the adoption <strong>of</strong><br />
international best practices.<br />
Employees <strong>of</strong> a <strong>Tata</strong> company shall be treated with dignity and in accordance with<br />
the <strong>Tata</strong> policy <strong>of</strong> maintaining a work environment free <strong>of</strong> all forms <strong>of</strong> harassment,<br />
whether physical, verbal or psychological. Employee policies and practices shall<br />
be administered in a manner consistent with applicable laws and other provisions<br />
<strong>of</strong> this Code, respect for the right to privacy and the right to be heard, and that in<br />
all matters equal opportunity is provided to those eligible and decisions are based<br />
on merit.<br />
Clause:5<br />
Gifts and donations<br />
A <strong>Tata</strong> company and its employees shall neither receive nor <strong>of</strong>fer or make, directly<br />
or indirectly, any illegal payments, remuneration, gifts, donations or comparable<br />
benefits that are intended, or perceived, to obtain uncompetitive favours for the<br />
54
conduct <strong>of</strong> its business. The company shall cooperate with governmental<br />
authorities in efforts to eliminate all forms <strong>of</strong> bribery, fraud and corruption.<br />
However, a <strong>Tata</strong> company and its employees may, with full disclosure, accept and<br />
<strong>of</strong>fer nominal gifts, provided such gifts are customarily given and are <strong>of</strong> a<br />
commemorative nature. Each company shall have a policy to clarify its rules and<br />
regulations on gifts and entertainment, to be used for the guidance <strong>of</strong> its<br />
employees.<br />
Clause:6<br />
Government agencies<br />
A <strong>Tata</strong> company and its employees shall not, unless mandated under applicable<br />
laws, <strong>of</strong>fer or give any company funds or property as donation to any government<br />
agency or its representative, directly or through intermediaries, in order to obtain<br />
any favourable performance <strong>of</strong> <strong>of</strong>ficial duties. A <strong>Tata</strong> company shall comply with<br />
government procurement regulations and shall be transparent in all its dealings<br />
with government agencies.<br />
Clause:7<br />
Political non-alignment<br />
A <strong>Tata</strong> company shall be committed to and support the constitution and<br />
governance systems <strong>of</strong> the country in which it operates.<br />
A <strong>Tata</strong> company shall not support any specific political party or candidate for<br />
political <strong>of</strong>fice. The company’s conduct shall preclude any activity that could be<br />
interpreted as mutual dependence / favour with any political body or person, and<br />
shall not <strong>of</strong>fer or give any company funds or property as donations to any political<br />
party, candidate or campaign.<br />
55
Clause:8<br />
Health, safety and environment<br />
A <strong>Tata</strong> company shall strive to provide a safe, healthy, clean and ergonomic<br />
working environment for its people. It shall prevent the wasteful use <strong>of</strong> natural<br />
resources and be committed to improving the environment, particularly with regard<br />
to the emission <strong>of</strong> greenhouse gases, and shall endeavour to <strong>of</strong>fset the effect <strong>of</strong><br />
climate change in all spheres <strong>of</strong> its activities.<br />
A <strong>Tata</strong> company, in the process <strong>of</strong> production and sale <strong>of</strong> its products and services,<br />
shall strive for economic, social and environmental sustainability.<br />
Clause:9<br />
Quality <strong>of</strong> products and services<br />
A <strong>Tata</strong> company shall be committed to supply goods and services <strong>of</strong> world class<br />
quality standards, backed by after-sales services consistent with the requirements<br />
<strong>of</strong> its customers, while striving for their total satisfaction. The quality standards <strong>of</strong><br />
the company’s goods and services shall meet applicable national and international<br />
standards.<br />
A <strong>Tata</strong> company shall display adequate health and safety labels, caveats and other<br />
necessary information on its product packaging.<br />
Clause:10<br />
Corporate citizenship<br />
A <strong>Tata</strong> company shall be committed to good corporate citizenship, not only in the<br />
compliance <strong>of</strong> all relevant laws and regulations but also by actively assisting in the<br />
improvement <strong>of</strong> quality <strong>of</strong> life <strong>of</strong> the people in the communities in which it<br />
operates. The company shall encourage volunteering by its employees and<br />
collaboration with community groups.<br />
<strong>Tata</strong> companies are also encouraged to develop systematic processes and conduct<br />
management reviews, as stated in the <strong>Tata</strong> ‘corporate sustainability protocol’, from<br />
time to time so as to set strategic direction for social development activity.<br />
56
The company shall not treat these activities as optional, but should strive to<br />
incorporate them as an integral part <strong>of</strong> its business plan.<br />
Clause:11<br />
Cooperation <strong>of</strong> <strong>Tata</strong> companies<br />
A <strong>Tata</strong> company shall cooperate with other <strong>Tata</strong> companies including applicable<br />
joint ventures, by sharing knowledge and physical, human and management<br />
resources, and by making efforts to resolve disputes amicably, as long as this does<br />
not adversely affect its business interests and shareholder value.<br />
In the procurement <strong>of</strong> products and services, a <strong>Tata</strong> company shall give preference<br />
to other <strong>Tata</strong> companies, as long as they can provide these on competitive terms<br />
relative to third parties.<br />
Clause:12<br />
Public representation <strong>of</strong> the company and the <strong>Group</strong><br />
The <strong>Tata</strong> <strong>Group</strong> honours the information requirements <strong>of</strong> the public and its<br />
stakeholders. In all its public appearances, with respect to disclosing company and<br />
business information to public constituencies such as the media, the financial<br />
community, employees, shareholders, agents, franchisees, dealers, distributors and<br />
importers, a <strong>Tata</strong> company or the <strong>Tata</strong> <strong>Group</strong> shall be represented only by<br />
specifically authorised directors and employees. It shall be the sole responsibility<br />
<strong>of</strong> these authorised representatives to disclose information about the company or<br />
the <strong>Group</strong>.<br />
Clause:13<br />
Third party representation<br />
Parties which have business dealings with the <strong>Tata</strong> <strong>Group</strong> but are not members <strong>of</strong><br />
the <strong>Group</strong>, such as consultants, agents, sales representatives, distributors, channel<br />
partners, contractors and suppliers, shall not be authorised to represent a <strong>Tata</strong><br />
company without the written permission <strong>of</strong> the <strong>Tata</strong> company, and / or if their<br />
business conduct and ethics are known to be inconsistent with the Code.<br />
Third parties and their employees are expected to abide by the Code in their<br />
interaction with, and on behalf <strong>of</strong>, a <strong>Tata</strong> company. <strong>Tata</strong> companies are encouraged<br />
57
to sign a non-disclosure agreement with third parties to support confidentiality <strong>of</strong><br />
information.<br />
Clause:14<br />
Use <strong>of</strong> the <strong>Tata</strong> brand<br />
The use <strong>of</strong> the <strong>Tata</strong> name and trademark shall be governed by manuals, codes and<br />
agreements to be issued by <strong>Tata</strong> Sons. The use <strong>of</strong> the <strong>Tata</strong> brand is defined in and<br />
regulated by the <strong>Tata</strong> Brand Equity and Business Promotion Agreement. No third<br />
party or joint venture shall use the <strong>Tata</strong> brand to further its interests without<br />
specific authorisation.<br />
Clause:15<br />
<strong>Group</strong> policies<br />
A <strong>Tata</strong> company shall recommend to its board <strong>of</strong> directors the adoption <strong>of</strong> policies<br />
and guidelines periodically formulated by <strong>Tata</strong> Sons.<br />
Clause:16<br />
Shareholders<br />
A <strong>Tata</strong> company shall be committed to enhancing shareholder value and<br />
complying with all regulations and laws that govern shareholder rights. The board<br />
<strong>of</strong> directors <strong>of</strong> a <strong>Tata</strong> company shall duly and fairly inform its shareholders about<br />
all relevant aspects <strong>of</strong> the company’s business, and disclose such information in<br />
accordance with relevant regulations and agreements.<br />
Clause:17<br />
Ethical conduct<br />
Every employee <strong>of</strong> a <strong>Tata</strong> company, including full-time directors and the chief<br />
executive, shall exhibit culturally appropriate deportment in the countries they<br />
operate in, and deal on behalf <strong>of</strong> the company with pr<strong>of</strong>essionalism, honesty and<br />
integrity, while conforming to high moral and ethical standards. Such conduct shall<br />
be fair and transparent and be perceived to be so by third parties.<br />
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Every employee <strong>of</strong> a <strong>Tata</strong> company shall preserve the human rights <strong>of</strong> every<br />
individual and the community, and shall strive to honour commitments.<br />
Every employee shall be responsible for the implementation <strong>of</strong> and compliance<br />
with the Code in his / her environment. Failure to adhere to the Code could attract<br />
severe consequences, including termination <strong>of</strong> employment.<br />
Clause:18<br />
Regulatory compliance<br />
Employees <strong>of</strong> a <strong>Tata</strong> company, in their business conduct, shall comply with all<br />
applicable laws and regulations, in letter and spirit, in all the territories in which<br />
they operate. If the ethical and pr<strong>of</strong>essional standards <strong>of</strong> applicable laws and<br />
regulations are below that <strong>of</strong> the Code, then the standards <strong>of</strong> the Code shall prevail.<br />
Clause:19<br />
Concurrent employment<br />
Consistent with applicable laws, an employee <strong>of</strong> a <strong>Tata</strong> company shall not, without<br />
the requisite, <strong>of</strong>ficially written approval <strong>of</strong> the company, accept employment or a<br />
position <strong>of</strong> responsibility (such as a consultant or a director) with any other<br />
company, nor provide freelance services to anyone, with or without remuneration.<br />
In the case <strong>of</strong> a full-time director or the chief executive, such approval must be<br />
obtained from the board <strong>of</strong> directors <strong>of</strong> the company.<br />
Clause:20<br />
Conflict <strong>of</strong> interest<br />
An employee or director <strong>of</strong> a <strong>Tata</strong> company shall always act in the interest <strong>of</strong> the<br />
company, and ensure that any business or personal association which he / she may<br />
have does not involve a conflict <strong>of</strong> interest with the operations <strong>of</strong> the company and<br />
his / her role therein.<br />
59
Independent directors <strong>of</strong> a <strong>Tata</strong> company shall comply with applicable laws and<br />
regulations <strong>of</strong> all the relevant regulatory and other authorities. As good governance<br />
practice they shall safeguard the confidentiality <strong>of</strong> all information received by them<br />
by virtue <strong>of</strong> their position, but they need not be bound by all other conflicts that are<br />
applicable to employees or executive directors, as indicated below.<br />
An employee, including the executive director (other than independent director) <strong>of</strong><br />
a <strong>Tata</strong> company, shall not accept a position <strong>of</strong> responsibility in any other non-<strong>Tata</strong><br />
company or not-for-pr<strong>of</strong>it <strong>org</strong>anisation without specific sanction.<br />
The above shall not apply to (whether for remuneration or otherwise):<br />
a) Nominations to the boards <strong>of</strong> <strong>Tata</strong> companies, joint ventures or associate<br />
companies.<br />
b) Memberships / positions <strong>of</strong> responsibility in educational / pr<strong>of</strong>essional bodies,<br />
wherein such association will benefit the employee / <strong>Tata</strong> company.<br />
c) Nominations / memberships in government committees / bodies or<br />
<strong>org</strong>anisations.<br />
d) Exceptional circumstances, as determined by the competent authority.<br />
Competent authority, in the case <strong>of</strong> all employees, shall be the chief executive,<br />
who in turn shall report such exceptional cases to the board <strong>of</strong> directors on a<br />
quarterly basis. In case <strong>of</strong> the chief executive and executive directors, the <strong>Group</strong><br />
Corporate Centre shall be the competent authority.<br />
An employee or a director <strong>of</strong> a <strong>Tata</strong> company shall not engage in any business,<br />
relationship or activity which might conflict with the interest <strong>of</strong> his / her company<br />
or the <strong>Tata</strong> <strong>Group</strong>. A conflict <strong>of</strong> interest, actual or potential, may arise where,<br />
directly or indirectly…<br />
a) An employee <strong>of</strong> a <strong>Tata</strong> company engages in a business, relationship or activity<br />
with anyone who is party to a transaction with his / her company.<br />
60
) An employee is in a position to derive an improper benefit, personally or to any<br />
<strong>of</strong> his / her relatives, by making or influencing decisions relating to any<br />
transaction.<br />
c) An independent judgement <strong>of</strong> the company’s or <strong>Group</strong>’s best interest cannot be<br />
exercised.<br />
The main areas <strong>of</strong> such actual or potential conflicts <strong>of</strong> interest shall include the<br />
following:<br />
a) An employee or a full-time director <strong>of</strong> a <strong>Tata</strong> company conducting business on<br />
behalf <strong>of</strong> his / her company or being in a position to influence a decision with<br />
regard to his / her company’s business with a supplier or customer where his / her<br />
relative is a principal <strong>of</strong>ficer or representative, resulting in a benefit to him / her or<br />
his / her relative.<br />
b) Award <strong>of</strong> benefits such as increase in salary or other remuneration, posting,<br />
promotion or recruitment <strong>of</strong> a relative <strong>of</strong> an employee <strong>of</strong> a <strong>Tata</strong> company, where<br />
such an individual is in a position to influence decisions with regard to such<br />
benefits.<br />
c) The interest <strong>of</strong> the company or the <strong>Group</strong> can be compromised or defeated.<br />
Notwithstanding such or any other instance <strong>of</strong> conflict <strong>of</strong> interest that exist due to<br />
historical reasons, adequate and full disclosure by interested employees shall be<br />
made to the company’s management. It is also incumbent upon every employee to<br />
make a full disclosure <strong>of</strong> any interest which the employee or the employee’s<br />
immediate family, including parents, spouse and children, may have in a family<br />
business or a company or firm that is a competitor, supplier, customer or<br />
distributor <strong>of</strong> or has other business dealings with his / her company.<br />
Upon a decision being taken in the matter, the employee concerned shall be<br />
required to take necessary action, as advised, to resolve / avoid the conflict.<br />
If an employee fails to make the required disclosure and the management <strong>of</strong> its<br />
own accord becomes aware <strong>of</strong> an instance <strong>of</strong> conflict <strong>of</strong> interest that ought to have<br />
been disclosed by the employee, the management shall take a serious view <strong>of</strong> the<br />
matter and consider suitable disciplinary action against the employee.<br />
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Clause:21<br />
Securities transactions and confidential information<br />
An employee <strong>of</strong> a <strong>Tata</strong> company and his / her immediate family shall not derive<br />
any benefit or counsel, or assist others to derive any benefit, from access to and<br />
possession <strong>of</strong> information about the company or <strong>Group</strong> or its clients or suppliers<br />
that is not in the public domain and, thus, constitutes unpublished, price-sensitive<br />
insider information.<br />
An employee <strong>of</strong> a <strong>Tata</strong> company shall not use or proliferate information that is not<br />
available to the investing public, and which therefore constitutes insider<br />
information, for making or giving advice on investment decisions about the<br />
securities <strong>of</strong> the respective <strong>Tata</strong> company, <strong>Group</strong>, client or supplier on which such<br />
insider information has been obtained.<br />
Such insider information might include (without limitation) the following:<br />
62<br />
• Acquisition and divestiture <strong>of</strong> businesses or business units.<br />
• Financial information such as pr<strong>of</strong>its, earnings and dividends.<br />
• Announcement <strong>of</strong> new product introductions or developments.<br />
• Asset revaluations.<br />
• Investment decisions / plans.<br />
• Restructuring plans.<br />
• Major supply and delivery agreements.<br />
• Raising <strong>of</strong> finances.<br />
An employee <strong>of</strong> a <strong>Tata</strong> company shall also respect and observe the confidentiality<br />
<strong>of</strong> information pertaining to other companies, their patents, intellectual property<br />
rights, trademarks and inventions; and strictly observe a practice <strong>of</strong> non-disclosure.<br />
Clause:22<br />
Protecting company assets<br />
The assets <strong>of</strong> a <strong>Tata</strong> company shall not be misused; they shall be employed<br />
primarily and judiciously for the purpose <strong>of</strong> conducting the business for which they
are duly authorised. These include tangible assets such as equipment and<br />
machinery, systems, facilities, materials and resources, as well as intangible assets<br />
such as information technology and systems, proprietary information, intellectual<br />
property, and relationships with customers and suppliers.<br />
Clause:23<br />
Citizenship<br />
The involvement <strong>of</strong> a <strong>Tata</strong> employee in civic or public affairs shall be with express<br />
approval from the chief executive <strong>of</strong> his / her company, subject to this involvement<br />
having no adverse impact on the business affairs <strong>of</strong> the company or the <strong>Tata</strong><br />
<strong>Group</strong>.<br />
Clause:24<br />
Integrity <strong>of</strong> data furnished<br />
Every employee <strong>of</strong> a <strong>Tata</strong> company shall ensure, at all times, the integrity <strong>of</strong> data<br />
or information furnished by him/her to the company. He/she shall be entirely<br />
responsible in ensuring that the confidentiality <strong>of</strong> all data is retained and in no<br />
circumstance transferred to any outside person/party in the course <strong>of</strong> normal<br />
operations without express guidelines from or, the approval <strong>of</strong> the management.<br />
Clause:25<br />
Reporting concerns<br />
Every employee <strong>of</strong> a <strong>Tata</strong> company shall promptly report to the management, and /<br />
or third-party ethics helpline, when she / he becomes aware <strong>of</strong> any actual or<br />
possible violation <strong>of</strong> the Code or an event <strong>of</strong> misconduct, act <strong>of</strong> misdemeanour or<br />
act not in the company’s interest. Such reporting shall be made available to<br />
suppliers and partners, too.<br />
Any <strong>Tata</strong> employee can choose to make a protected disclosure under the<br />
whistleblower policy <strong>of</strong> the company, providing for reporting to the chairperson <strong>of</strong><br />
the audit committee or the board <strong>of</strong> directors or specified authority. Such a<br />
protected disclosure shall be forwarded, when there is reasonable evidence to<br />
conclude that a violation is possible or has taken place, with a covering letter,<br />
which shall bear the identity <strong>of</strong> the whistleblower.<br />
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The company shall ensure protection to the whistleblower and any attempts to<br />
intimidate him / her would be treated as a violation <strong>of</strong> the Code.<br />
Articles on governance<br />
The covenant and the code<br />
Long before corporate governance became a buzzword in industry<br />
circles, <strong>Tata</strong> <strong>Steel</strong> was following the letter and spirit <strong>of</strong> the rules that<br />
define ethical business behaviour<br />
Companies learned long back that having the complete cooperation and<br />
participation <strong>of</strong> their employees meant improved efficiencies and, consequently,<br />
superior products. Now they have begun understanding that a strong commitment<br />
from investors and other stakeholders can lead to similar pay<strong>of</strong>fs for the<br />
<strong>org</strong>anisation. Both are elements <strong>of</strong> a corporate governance template which<br />
demands that broad-based systems <strong>of</strong> accountability be built into the spinal<br />
structures <strong>of</strong> companies. Government regulations can be a guide, at best, in this<br />
process. More important is a culture <strong>of</strong> self-policing.<br />
<strong>Tata</strong> <strong>Steel</strong> has imbibed this culture better than most. Much before the business<br />
world woke up to the importance <strong>of</strong> evolving a 'method' for corporate governance,<br />
<strong>Tata</strong> <strong>Steel</strong> had already been practising its substance. It is no surprise, therefore, that<br />
the ministry <strong>of</strong> finance, Government <strong>of</strong> India, awarded the company the national<br />
award for excellence in corporate governance in 2000. Two years later <strong>Tata</strong> <strong>Steel</strong><br />
bagged the golden peacock award for excellence in corporate governance and<br />
corporate social responsibility from the Institute <strong>of</strong> Directors, an apex association<br />
<strong>of</strong> company directors.<br />
Deputy managing director AN Singh defines the <strong>Tata</strong> <strong>Steel</strong> approach thus:<br />
"Corporate governance is the ethical and responsible behaviour <strong>of</strong> a corporation<br />
towards its owners, its shareholders, but it has a fallout effect on other constituents<br />
too." <strong>Tata</strong> <strong>Steel</strong> has engaged all its stakeholders — a broad category that includes<br />
employees, regulators, the communities in and around the areas where it operates,<br />
and shareholders — at every stage <strong>of</strong> its evolution. The shareholders, though they<br />
are the farthest away and the most fragmented, remain at the heart <strong>of</strong> the company.<br />
64
"We have to ensure a transparent and fair administration so that the money the<br />
shareholders put in is safe and productive," says Mr Singh. To ensure this <strong>Tata</strong><br />
<strong>Steel</strong> has a three-pronged governance structure that provides for checks and<br />
balances throughout its operation.<br />
The first layer <strong>of</strong> this structure is the law <strong>of</strong> the land. Statutes on the number <strong>of</strong><br />
non-executive and independent directors, board procedure, and terms <strong>of</strong> <strong>of</strong>fice are<br />
followed with rigour. <strong>Tata</strong> <strong>Steel</strong>'s balance sheet is certified as fair and true by its<br />
chief executive <strong>of</strong>ficer and its chief finance <strong>of</strong>ficer, and the company also submits<br />
a report on various corporate governance parameters. It has mandated committees<br />
for audit, remuneration for directors and investor grievances. <strong>Tata</strong> <strong>Steel</strong>'s investor<br />
grievance committee, which looks into complaints about transfer <strong>of</strong> shares, receipt<br />
<strong>of</strong> balance sheet and dividends, meets twice or thrice a year and checks if all issues<br />
have been resolved satisfactorily.<br />
The second tier <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong>'s corporate governance edifice is based on the <strong>Tata</strong><br />
code <strong>of</strong> conduct, a comprehensive set <strong>of</strong> tenets that all <strong>Tata</strong> employees have to<br />
adhere to. The code goes way beyond government-mandated regulations. For<br />
example, the <strong>of</strong>fices <strong>of</strong> non-executive chairman and managing director are<br />
separated in <strong>Tata</strong> companies, even though the law does not require this. The <strong>Tata</strong><br />
code explicitly prohibits insider trading and sets out disclosure practices that help<br />
shareholders take informed decisions. This ensures that the interests <strong>of</strong><br />
shareholders are put above all else and that people inside the company conduct<br />
their personal securities transactions in an ethical manner.<br />
<strong>Tata</strong> <strong>Steel</strong> has an ethics and compliance committee, as stipulated by the code, and<br />
this comprises, among other things, labour welfare measures like the eight-hour<br />
working day, leave with pay, provident fund, gratuity and pr<strong>of</strong>it sharing.<br />
The rules implicit in <strong>Tata</strong> <strong>Steel</strong>'s proactive workday ethos have been around for<br />
many years. The company never meddles in the share market. It invites a social<br />
audit every 10 years, in which an independent authority checks if it has functioned<br />
responsibly and ethically with all its stakeholders. <strong>Tata</strong> <strong>Steel</strong> recently adopted the<br />
Social Accountability (SA) 8000 standard, which promotes responsible behaviour<br />
towards labour supplied by its contractors. It has also set up apex committees for<br />
65
management, business excellence, safety, research and development, information<br />
technology, etc.<br />
To ensure that a culture <strong>of</strong> self-motivated ethics percolates to the rank and file,<br />
<strong>Tata</strong> <strong>Steel</strong> lays plenty <strong>of</strong> emphasis on communication, the third layer <strong>of</strong> its<br />
corporate governance structure. The <strong>of</strong>fice <strong>of</strong> the ethics counsellor executes this<br />
vision. Says ethics counsellor Rekha Seal, "We manage with trust. We start with<br />
the given that everyone is honest, but if we find that someone has flouted rules we<br />
take decisive and immediate action. This is important because trust is the<br />
foundation <strong>of</strong> our name and our brand."<br />
TRUST<br />
A tradition <strong>of</strong> trust<br />
The <strong>Tata</strong> trusts are the unsung heroes <strong>of</strong> an extraordinary saga <strong>of</strong> philanthropy<br />
that has enriched India and its citizens in myriad ways<br />
You may wonder why the <strong>Tata</strong>s — among the country's biggest and most<br />
illustrious industrial families for well over a century — never show up on any <strong>of</strong><br />
those ritual listings <strong>of</strong> India's richest people. The reason is as simple as it is<br />
remarkable. Over generations, the <strong>Tata</strong>s have sustained a tradition <strong>of</strong> bequeathing<br />
much <strong>of</strong> their personal wealth to the many trusts they have created for the greater<br />
good <strong>of</strong> India and its people<br />
That is how the <strong>Tata</strong> trusts have come to control 65.8 per cent <strong>of</strong> the shares <strong>of</strong> <strong>Tata</strong><br />
Sons, the holding company <strong>of</strong> the group. The wealth that accrues from this asset<br />
supports an assortment <strong>of</strong> causes, institutions and individuals in a wide variety <strong>of</strong><br />
areas. The trusteeship principle governing the way the group functions casts the<br />
<strong>Tata</strong>s in a rather unique light: capitalistic by definition but socialistic by character.<br />
66
Support for higher studies<br />
This was the sentiment that led Jamsetji <strong>Tata</strong> to establish the JN <strong>Tata</strong> Endowment<br />
Scheme for higher education in 1892. The scheme helped bright Indian students <strong>of</strong><br />
moderate means become administrators, scientists, doctors, lawyers and engineers,<br />
funding their education through loans and grants. The maiden grant was to Dr<br />
Freney Cama, who became one <strong>of</strong> the first women gynaecologists in India and who<br />
would come to have a maternity hospital in Mumbai named after her.<br />
Of the 37 beneficiaries in the first batch, as many as 15 joined the Indian Civil<br />
Service, the colonial version <strong>of</strong> the Indian Administrative Service, realising<br />
Jamsetji <strong>Tata</strong>'s objective that Indians should learn how to govern themselves. By<br />
1924, over a third <strong>of</strong> Indian ICS <strong>of</strong>ficers were <strong>Tata</strong> scholars. Illustrious JN <strong>Tata</strong><br />
Endowment scholars include former president KR Narayanan, renowned scientists<br />
Raja Ramanna, Jayant Narlikar and Raghunath Mashelkar, and Gyanpeeth awardwinning<br />
writer and actor Girish Karnad. The Endowment has thus far supported<br />
more than 3,500 scholars.<br />
Their father’s sons Jamsetji <strong>Tata</strong>'s idea <strong>of</strong> philanthropy was to be given true<br />
expression by his sons, Sir Dorab <strong>Tata</strong> and Sir Ratan <strong>Tata</strong>, both <strong>of</strong> whom donated<br />
the major chunk <strong>of</strong> their personal wealth for the public good. Sir Dorab was the<br />
quintessential entrepreneur, working tirelessly to make his father's visionary ideas<br />
a reality — roaming the jungles <strong>of</strong> what is now Jharkhand in eastern India in a<br />
bullock cart to set up <strong>Tata</strong> <strong>Steel</strong> and pioneering the generation <strong>of</strong> hydroelectric<br />
power in the wilds <strong>of</strong> the Western Ghats — while Sir Ratan was a connoisseur <strong>of</strong><br />
the arts and a passionate votary <strong>of</strong> social development.<br />
A funding agency<br />
How do the trusts operate? Says Shernaz Vasunia, programme <strong>of</strong>ficer <strong>of</strong> the Sir<br />
Dorabji <strong>Tata</strong> Trust: "Over 75 per cent <strong>of</strong> our trust's funds come from dividends on<br />
the shares it owns in <strong>Tata</strong> Sons, the <strong>Group</strong>'s holding company. The remaining<br />
comes from their own statutory investments." Adds Sarosh N. Batliwala, who<br />
heads the Sir Dorabji <strong>Tata</strong> Trust: "Our trusts don't handle corporate social<br />
67
esponsibility; they are more <strong>of</strong> a funding agency, like the Ford Foundation."<br />
The Sir Dorabji <strong>Tata</strong> supports different kinds <strong>of</strong> NGOs — some do social work,<br />
some research, while others are community based — usually for a period <strong>of</strong> three<br />
to five years. It also works with international agencies such as the United Nations,<br />
mostly in times <strong>of</strong> natural disasters. From time to time the Sir Dorabji <strong>Tata</strong> Trust<br />
also initiates the process for establishing institutes <strong>of</strong> national importance.<br />
JN <strong>Tata</strong> Endowment<br />
The JN <strong>Tata</strong> Endowment was set up in 1892 by the founder <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>,<br />
Jamsetji <strong>Tata</strong>, to encourage young people to take up higher studies at some <strong>of</strong> the<br />
best universities in the world. It is the first <strong>Tata</strong> benefaction in the field <strong>of</strong><br />
education, and possibly the first <strong>of</strong> its kind in Asia.<br />
The endowment awards only loan scholarships. However, the selected scholars<br />
may also qualify for a gift award. The amount to be awarded to each scholar by<br />
way <strong>of</strong> loan and gift scholarship is determined on the basis <strong>of</strong> norms laid down for<br />
the purpose, and does not cover the full cost <strong>of</strong> studies. Scholarships are granted<br />
for higher studies in all disciplines and subjects<br />
Eligibility criteria<br />
68<br />
• Applicants should be Indian nationals and graduates <strong>of</strong> a recognised Indian<br />
university with a consistently good academic record.<br />
• Students in the final year <strong>of</strong> a degree course and those awaiting results can<br />
also apply.
69<br />
• Other mid-career pr<strong>of</strong>essionals planning to go abroad for further research,<br />
specialisation or training are eligible to apply.<br />
• At the time <strong>of</strong> submitting the completed applications, candidates need not<br />
have the admission / <strong>of</strong>fer letters from the universities to which they have<br />
applied for the relevant academic year.<br />
Selection process<br />
After the initial screening <strong>of</strong> applications, candidates are shortlisted for an<br />
interview in person by subject experts. The final selection is on the basis <strong>of</strong><br />
interviews that are held in Mumbai, generally between March and June every year.<br />
Sir Ratan <strong>Tata</strong> Trust<br />
The Sir Ratan <strong>Tata</strong> Trust is one <strong>of</strong> India's oldest grant-bestowing foundations. It<br />
was established in 1918 following the death <strong>of</strong> Sir Ratan <strong>Tata</strong>, the younger son <strong>of</strong><br />
<strong>Group</strong> founder Jamsetji <strong>Tata</strong>, and it operates in accordance with his will. Sir Ratan<br />
wanted to establish a trust that would help further "the advancement <strong>of</strong> education,<br />
learning and industry in all its branches.<br />
Institutional grants<br />
• Programme grants: These cover rural livelihoods and communities,<br />
education, health, art and culture, and civil society and governance.<br />
• Endowment grants: The trust supports institutions that work within the<br />
thematic areas that it focuses on.<br />
• Small grants: This caters to the needs <strong>of</strong> small, welfare-oriented<br />
<strong>org</strong>anisations, and those needing support to implement innovative ideas.<br />
Sir Dorabji <strong>Tata</strong> and allied trusts<br />
The Sir Dorabji <strong>Tata</strong> Trust was established in 1932 by Sir Dorab <strong>Tata</strong>, the elder<br />
son <strong>of</strong> <strong>Group</strong> founder Jamsetji <strong>Tata</strong>, and is one <strong>of</strong> the oldest philanthropic<br />
<strong>org</strong>anisations in India. The Trust's vision <strong>of</strong> constructive philanthropy has been
sensitive to the fast-growing needs <strong>of</strong> a developing nation, and the projects and<br />
programmes it supports bear contemporary relevance<br />
Endowment grants<br />
The Trust has promoted, and continued to support, several institutions <strong>of</strong> learning,<br />
research and culture in India. These include the <strong>Tata</strong> Institute <strong>of</strong> Social Sciences,<br />
Mumbai, the <strong>Tata</strong> Memorial Centre for Cancer Research and Treatment, Mumbai,<br />
the <strong>Tata</strong> Institute <strong>of</strong> Fundamental Research, Mumbai, the <strong>Tata</strong> Agricultural and<br />
Rural Training Centre for the Blind, Phansa, and the National Centre for the<br />
Performing Arts, Mumbai.<br />
NGO grants<br />
The Trust makes grants to NGOs in five social development sectors:<br />
70<br />
• Management <strong>of</strong> natural resources: The Trust supports projects related to<br />
water and water resources, land degradation and better methods <strong>of</strong><br />
cultivating and harvesting crops.<br />
• Livelihoods: The Trust has backed several projects in this sector, covering<br />
un<strong>org</strong>anised labourers, capacity building <strong>of</strong> grassroots groups, and business<br />
development <strong>of</strong> a variety <strong>of</strong> people-based <strong>org</strong>anisations.<br />
• Education: The Trust has supported initiatives in the field <strong>of</strong> education,<br />
focusing on children, adolescents and adults (within and outside the formal<br />
education system).<br />
• Health: The Trust has made contributions in creating and upgrading medical<br />
infrastructure and healthcare facilities across India, while focusing on<br />
training community health workers. The Trust also supports research studies<br />
in alternative systems <strong>of</strong> medicine such as ayurveda.<br />
• Social development initiatives: These cover many areas, including<br />
community development, human rights, family welfare, civil society, art and<br />
culture, and relief work.<br />
Individual grants<br />
The Trust gives merit and need-based educational and medical grants to<br />
individuals.
71<br />
• Medical: Financial help is extended to individuals for the treatment <strong>of</strong><br />
diseases and to solve other health problems.<br />
• Education: The Trust <strong>of</strong>fers scholarships for higher education and travel<br />
grants for studying abroad and for attending conferences, as well as for<br />
sports activities.<br />
The Allied Trusts<br />
The Allied Trusts are, primarily, smaller trusts; while some have a specific<br />
mandate, the rest are broad-based in their approach to grant-making. The Sir<br />
Dorabji <strong>Tata</strong> Trust administers the Allied Trusts.<br />
JN <strong>Tata</strong> Endowment: The first <strong>of</strong> the <strong>Tata</strong> trusts, it was established by <strong>Group</strong><br />
founder Jamsetji <strong>Tata</strong>, in 1892 to provide scholarship loans to individuals for the<br />
pursuit <strong>of</strong> higher studies abroad. Over 120 students are selected every year from<br />
across India as JN <strong>Tata</strong> scholars.<br />
INSTITUTE<br />
IISc has produced Nobel laureates, trained many <strong>of</strong> India's greatest scientists and<br />
helped nurture some <strong>of</strong> the country's finest scientific institutions. Housed in a 375-
acre campus in Bangalore, this trailblazing institution has 40 departments and<br />
centres pursuing R&D and teaching in all departments <strong>of</strong> science, engineering and<br />
technology.<br />
JRD <strong>Tata</strong> Ecotechnology Centre: The flag bearer <strong>of</strong> the ecotechnology movement<br />
in India, JRDTEC is part <strong>of</strong> the MS Swaminathan Research Foundation, Chennai.<br />
Established in 1996, it is devoted to seeding and encouraging sustainable<br />
development, one that protects the environment while also benefiting the people<br />
who depend on it.<br />
<strong>Tata</strong> Institute <strong>of</strong> Fundamental Research: The need to improve India's scientific<br />
temper and strengthen the nation's science infrastructure were the objectives that<br />
drove scientist Homi J Bhabha and JRD <strong>Tata</strong>, the late chairman <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>,<br />
to pursue their vision <strong>of</strong> establishing TIFR in Bombay back in 1945.<br />
<strong>Tata</strong> Institute <strong>of</strong> Social Sciences: Set up in 1936, TISS is a pioneer in the field <strong>of</strong><br />
social-work education in the Asia-Pacific region. The Institute, which <strong>of</strong>fers<br />
postgraduate and doctoral programmes, has made significant contributions in the<br />
domains <strong>of</strong> social policy and planning, intervention strategies and human resource<br />
development.<br />
<strong>Tata</strong> Memorial Centre: TMC is India's best-known cancer hospital and research<br />
centre. This global centre <strong>of</strong> excellence, where 70 per cent <strong>of</strong> patients get free<br />
primary care, was established in Bombay in 1941, a time when there were only a<br />
handful <strong>of</strong> such institutions in the world. It has added significantly to its capacity<br />
and capabilities since then.<br />
<strong>Tata</strong> Medical Centre: To be commisioned in 2009, <strong>Tata</strong> Medical Centre in Kolkata,<br />
in eastern India, is being equipped with the most contemporary and state-<strong>of</strong>-the-art<br />
medical equipment and will be one <strong>of</strong> the leading cancer care and research<br />
institutions in the country<br />
72
JRD <strong>Tata</strong> Ecotechnology Centre<br />
MS Swaminathan Research Foundation<br />
The flag bearer <strong>of</strong> the ecotechnology movement in India is the JRD <strong>Tata</strong><br />
Ecotechnology Centre, which is part <strong>of</strong> the MS Swaminathan Research<br />
Foundation, Chennai. Established in 1996, the Centre was born <strong>of</strong> renowned<br />
agricultural scientist Mr Swaminathan's conviction that an optimum blending <strong>of</strong><br />
traditional wisdom and scientific endeavour that nurtures and protects the<br />
environment is the bedrock <strong>of</strong> truly sustainable development.<br />
Dr Swaminathan, winner <strong>of</strong> the 'world food prize' back in 1987,set aside the money<br />
he received from the award for the Centre. A greater monetary contribution came<br />
from the Sir Dorabji <strong>Tata</strong> and Allied Trusts, which initially bestowed Rs1.85 crore<br />
to the Centre. Formally inaugurated in July 1998, the institution has received more<br />
than Rs4.5 crore from the <strong>Tata</strong> trusts thus far. This is the kind <strong>of</strong> backing that has<br />
enabled it to play a role in transforming the lives <strong>of</strong> the rural poor in Tamil Nadu<br />
and elsewhere.<br />
The JRD Centre's holistic vision for rural development stretches way beyond<br />
farming. That means literacy programmes that use computers and touch-screen<br />
technology, interaction and advocacy with the government, educating the poor<br />
about the schemes the state administration has for them, and helping establish<br />
village knowledge centres, where the poor can source information on agriculture,<br />
health, animal husbandry, horticulture, government programmes and subsidies, etc.<br />
This all-encompassing approach is part <strong>of</strong> the sustainable development course that<br />
the Centre's parent body, the Swaminathan Foundation, has charted. "The village<br />
communities we work with are our partners in research, not just users <strong>of</strong> our<br />
knowledge. We learn from them and they from us," says K Balasubramanian, the<br />
73
director <strong>of</strong> the JRD Centre. "Time and labour are the only assets the poor have. Our<br />
endeavour is to provide them with skills that can be linked to these assets."<br />
There's no fixed bouquet <strong>of</strong> projects and no set sequence <strong>of</strong> initiatives that the JRD<br />
Centre carries to every new place it gets involved with. So it could be micro-credit<br />
<strong>org</strong>anisations in one village, self-help groups in another and literacy projects or<br />
sustainable farming in a third. But there are three essentials to the JRD Centre's<br />
approach: creating grassroots institutions that can respond to any problem; building<br />
capabilities, so that people can understand where solutions are available; and<br />
helping start micro-credit associations and micro enterprises that deliver livelihood<br />
opportunities.<br />
There are six phases in the JRD Centre's matrix <strong>of</strong> sustainable development:<br />
mobilisation, <strong>org</strong>anisation, technology transfer, systems management, capacity<br />
building and withdrawal. The last <strong>of</strong> these is critical. The Centre's objective is to<br />
make itself redundant, so to speak, over a period <strong>of</strong> time to the people who benefit<br />
from its expertise. This is a consistent theme with the Centre, and it's a huge bonus<br />
for the <strong>org</strong>anisation and, more importantly, the villages it works with.<br />
"The famine <strong>of</strong> work causes the famine <strong>of</strong> food," says Mr Swaminathan, the<br />
patriarch whose vision shaped the centre. "Today's world is in need <strong>of</strong> a message<br />
<strong>of</strong> hope. What we need is an ecology <strong>of</strong> hope: not a 'doom ecology', but a 'do<br />
ecology'. This is where the new movement for eco-enterprises and ecotechnology<br />
has become a very powerful instrument."<br />
<strong>Tata</strong> Institute <strong>of</strong> Social Sciences<br />
An American missionary, Clifford Manshardt, pioneered several urban community<br />
programmes in the chawls <strong>of</strong> Bombay near Nagpada in the 1920s. His initiatives<br />
where supported by Sir Dorabji <strong>Tata</strong>. It was during this time that the idea <strong>of</strong> an<br />
74
institute for social work took root. In 1936, the Dorabji <strong>Tata</strong> Graduate School <strong>of</strong><br />
Social Work was established for pr<strong>of</strong>essional training in social work, in the<br />
premises <strong>of</strong> the Nagpada Neighbourhood House. Dr Manshardt was its first<br />
director. Though it was a diploma course, in the first year itself there were 400<br />
applicants for 20 seats on <strong>of</strong>fer. In 1944, it was renamed the <strong>Tata</strong> Institute <strong>of</strong> Social<br />
Sciences (TISS).<br />
Between 1936 and 1948, the School successfully worked to influence national laws<br />
and policies. "We pioneered programmes which were later enacted into laws by the<br />
Indian government, says TISS's present director, RR Singh, about the history <strong>of</strong> the<br />
Institute. "Our labour welfare and industrial management course was formulated<br />
because we believed labour problems needed attention. In 1948, the Labour Act<br />
was introduced. The concept <strong>of</strong> labour welfare in India directly evolved from the<br />
work <strong>of</strong> the Dorabji <strong>Tata</strong> Graduate School. It helped that these concepts were<br />
already part <strong>of</strong> the <strong>Tata</strong> culture."<br />
The present campus <strong>of</strong> the Institute, at Deonar in Mumbai, was opened on October<br />
6, 1954, by the then prime minister, Jawaharlal Nehru. The year 1964 is an<br />
important landmark in the history <strong>of</strong> the Institute — it was recognised as a deemed<br />
university by the University Grants Commission (UGC). Since then the Institute<br />
has expanded continuously, both in educational programmes and infrastructure. It<br />
has responded to the changing needs <strong>of</strong> the social and educational system in the<br />
country and has gone far beyond its initial concern <strong>of</strong> social work education. What<br />
started as a small institution <strong>of</strong>fering post-graduate diplomas in social work has<br />
grown into a university with diversified activities.<br />
Today TISS is one <strong>of</strong> India's premier educational institutions. It trains<br />
pr<strong>of</strong>essionals in human resources and social work, carries out research on social<br />
problems and social sciences, as well as publishes and disseminates this<br />
75
information for the benefit <strong>of</strong> society. It is also one <strong>of</strong> the few institutions in the<br />
country which undertakes field projects to demonstrate the workings <strong>of</strong> <strong>org</strong>anised<br />
and systematic welfare measures. "We have never believed in pure classroom<br />
instruction," says Dr Singh. "Apart from teaching and training, the faculty<br />
participates in field-action projects. Over time we have formed units for research<br />
into child welfare and the sociology <strong>of</strong> education and urbanisation, among other<br />
subjects. The social justice budget and report was prepared with our help. This is a<br />
first for the state <strong>of</strong> Maharashtra and a great challenge for us."<br />
The problems faced by Dr Manshardt in Nagpada exist even today. Maintaining<br />
relevance, explains Dr Singh, is a continuous process, and is played out in the<br />
mindset and thinking. To keep up with the changing social fabric, the departments<br />
are constantly adding new thrust areas like sustainable rural development and<br />
education. The Institute has published over 500 research reports and has initiated<br />
32 field action projects, with the Sir Dorabji <strong>Tata</strong> Trust supporting a few. "Our link<br />
with the Trust continues even today," says Dr Singh.<br />
Though it is a deemed university, the representative <strong>of</strong> the Trust is still the<br />
chairman <strong>of</strong> the governing board. JRD <strong>Tata</strong> himself headed the board for a number<br />
<strong>of</strong> years. Like Jamsetji <strong>Tata</strong>, he too believed that wealth must be ploughed back for<br />
regeneration <strong>of</strong> society. The <strong>Tata</strong>s have financially supported the institute with<br />
critical grants for the building and the rural campus. Located 500 km from Mumbai<br />
(near Solapur in Maharashtra), the rural campus is in a chronically drought prone<br />
area. A parched hillock has been successfully greened, and various other projects<br />
are taking shape here.<br />
On the cards are centres for developmental studies, disaster management, domestic<br />
violence and human rights. At the moment, small projects are under way in these<br />
76
areas. The Institute is also facilitating the setting up <strong>of</strong> similar units in other parts<br />
<strong>of</strong> the country. It is holding workshops and running programmes to share<br />
knowledge with other universities.<br />
TISS is contributing towards teaching, training, research, and extending technical<br />
support to voluntary <strong>org</strong>anisations, as well as capacity building in educational<br />
institutions, including primary education. "The inspiration <strong>of</strong> Jamsetji, the<br />
stewardship <strong>of</strong> JRD as chairman <strong>of</strong> the governing board, and the philanthropy <strong>of</strong><br />
Dorabji constitute a confluence which has nurtured, supported and strengthened<br />
us," says Mr Singh.<br />
Fact file<br />
The <strong>Tata</strong> Institute <strong>of</strong> Social Sciences is a pioneer in the field <strong>of</strong> social-work<br />
education in the Asia-Pacific region. It has made a significant contribution in the<br />
area <strong>of</strong> social policy, planning, intervention strategies and human resource<br />
development.<br />
The Institute <strong>of</strong>fers postgraduate and doctoral programmes in social sciences,<br />
personnel management, industrial relations and health, hospital management, and<br />
social work It has nine teaching departments, eight research units, two resource<br />
units and resource cells.<br />
An American missionary, Clifford Manshardt, pioneered several urban community<br />
programmes in the chawls <strong>of</strong> Bombay near Nagpada in the 1920s. His initiatives<br />
where supported by Sir Dorabji <strong>Tata</strong>. It was during this time that the idea <strong>of</strong> an<br />
77
institute for social work took root. In 1936, the Dorabji <strong>Tata</strong> Graduate School <strong>of</strong><br />
Social Work was established for pr<strong>of</strong>essional training in social work, in the<br />
premises <strong>of</strong> the Nagpada Neighbourhood House. Dr Manshardt was its first<br />
director. Though it was a diploma course, in the first year itself there were 400<br />
applicants for 20 seats on <strong>of</strong>fer. In 1944, it was renamed the <strong>Tata</strong> Institute <strong>of</strong> Social<br />
Sciences (TISS).<br />
Between 1936 and 1948, the School successfully worked to influence national laws<br />
and policies. "We pioneered programmes which were later enacted into laws by the<br />
Indian government, says TISS's present director, RR Singh, about the history <strong>of</strong> the<br />
Institute. "Our labour welfare and industrial management course was formulated<br />
because we believed labour problems needed attention. In 1948, the Labour Act<br />
was introduced. The concept <strong>of</strong> labour welfare in India directly evolved from the<br />
work <strong>of</strong> the Dorabji <strong>Tata</strong> Graduate School. It helped that these concepts were<br />
already part <strong>of</strong> the <strong>Tata</strong> culture."<br />
The present campus <strong>of</strong> the Institute, at Deonar in Mumbai, was opened on October<br />
6, 1954, by the then prime minister, Jawaharlal Nehru. The year 1964 is an<br />
important landmark in the history <strong>of</strong> the Institute — it was recognised as a deemed<br />
university by the University Grants Commission (UGC). Since then the Institute<br />
has expanded continuously, both in educational programmes and infrastructure. It<br />
has responded to the changing needs <strong>of</strong> the social and educational system in the<br />
country and has gone far beyond its initial concern <strong>of</strong> social work education. What<br />
started as a small institution <strong>of</strong>fering post-graduate diplomas in social work has<br />
grown into a university with diversified activities.<br />
Today TISS is one <strong>of</strong> India's premier educational institutions. It trains<br />
pr<strong>of</strong>essionals in human resources and social work, carries out research on social<br />
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problems and social sciences, as well as publishes and disseminates this<br />
information for the benefit <strong>of</strong> society. It is also one <strong>of</strong> the few institutions in the<br />
country which undertakes field projects to demonstrate the workings <strong>of</strong> <strong>org</strong>anised<br />
and systematic welfare measures. "We have never believed in pure classroom<br />
instruction," says Dr Singh. "Apart from teaching and training, the faculty<br />
participates in field-action projects. Over time we have formed units for research<br />
into child welfare and the sociology <strong>of</strong> education and urbanisation, among other<br />
subjects. The social justice budget and report was prepared with our help. This is a<br />
first for the state <strong>of</strong> Maharashtra and a great challenge for us."<br />
The problems faced by Dr Manshardt in Nagpada exist even today. Maintaining<br />
relevance, explains Dr Singh, is a continuous process, and is played out in the<br />
mindset and thinking. To keep up with the changing social fabric, the departments<br />
are constantly adding new thrust areas like sustainable rural development and<br />
education. The Institute has published over 500 research reports and has initiated<br />
32 field action projects, with the Sir Dorabji <strong>Tata</strong> Trust supporting a few. "Our link<br />
with the Trust continues even today," says Dr Singh.<br />
Though it is a deemed university, the representative <strong>of</strong> the Trust is still the<br />
chairman <strong>of</strong> the governing board. JRD <strong>Tata</strong> himself headed the board for a number<br />
<strong>of</strong> years. Like Jamsetji <strong>Tata</strong>, he too believed that wealth must be ploughed back for<br />
regeneration <strong>of</strong> society. The <strong>Tata</strong>s have financially supported the institute with<br />
critical grants for the building and the rural campus. Located 500 km from Mumbai<br />
(near Solapur in Maharashtra), the rural campus is in a chronically drought prone<br />
area. A parched hillock has been successfully greened, and various other projects<br />
are taking shape here.<br />
On the cards are centres for developmental studies, disaster management, domestic<br />
violence and human rights. At the moment, small projects are under way in these<br />
areas. The Institute is also facilitating the setting up <strong>of</strong> similar units in other parts<br />
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<strong>of</strong> the country. It is holding workshops and running programmes to share<br />
knowledge with other universities.<br />
TISS is contributing towards teaching, training, research, and extending technical<br />
support to voluntary <strong>org</strong>anisations, as well as capacity building in educational<br />
institutions, including primary education. "The inspiration <strong>of</strong> Jamsetji, the<br />
stewardship <strong>of</strong> JRD as chairman <strong>of</strong> the governing board, and the philanthropy <strong>of</strong><br />
Dorabji constitute a confluence which has nurtured, supported and strengthened<br />
us," says Mr Singh.<br />
Fact file<br />
The <strong>Tata</strong> Institute <strong>of</strong> Social Sciences is a pioneer in the field <strong>of</strong> social-work<br />
education in the Asia-Pacific region. It has made a significant contribution in the<br />
area <strong>of</strong> social policy, planning, intervention strategies and human resource<br />
development.<br />
The Institute <strong>of</strong>fers postgraduate and doctoral programmes in social sciences,<br />
personnel management, industrial relations and health, hospital management, and<br />
social work It has nine teaching departments, eight research units, two resource<br />
units and resource cells.<br />
<strong>Tata</strong> Memorial Hospital<br />
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About 10 to 12 million people the world over suffer from cancer. More than 50 per<br />
cent <strong>of</strong> them are from developing countries. In India 800,000 are diagnosed with<br />
this dreaded disease every day. At any given time there are 2.5 million cancer<br />
patients in the country.<br />
If you think this is bad news, there's worse to come. By 2020, the number <strong>of</strong><br />
patients globally will shoot up to 20 million, and 72 per cent <strong>of</strong> them will be from<br />
the third world.<br />
Is India geared for this future? “Not at all,” says Dr Ketayun Dinshaw, director,<br />
<strong>Tata</strong> Memorial Centre (TMC), adding, "we need a <strong>Tata</strong> Memorial Hospital in<br />
every state." She says it was extraordinary vision which made the <strong>Tata</strong>s set up a<br />
speciality cancer centre at a time when there were only a handful <strong>of</strong> them in the<br />
world. Today, TMC treats about one-third <strong>of</strong> the cancer patients in the country.<br />
After Lady Meherbai <strong>Tata</strong> died <strong>of</strong> leukaemia in 1932, her husband, Sir Dorabji<br />
<strong>Tata</strong>, wanted to bring to India a facility similar to the ones where his wife was<br />
treated abroad. After Dorabji's death, Nowroji Saklatwala, the next chairman <strong>of</strong> the<br />
<strong>Tata</strong> <strong>Group</strong>, pursued this dream. But it was the support <strong>of</strong> JRD <strong>Tata</strong> that finally<br />
saw the <strong>Tata</strong> Memorial Hospital, a seven-storey structure, opening in Parel,<br />
Bombay, on February 28, 1941.<br />
In 1957, the Ministry <strong>of</strong> Health temporarily took over the <strong>Tata</strong> Memorial Hospital.<br />
But JRD <strong>Tata</strong> and Homi Bhabha — the pioneer <strong>of</strong> India's nuclear energy<br />
programme — had the vision to foresee the role that radiation would play in cancer<br />
treatment, from imaging to staging and actual therapy. Administrative control <strong>of</strong><br />
the hospital was then transferred to the Department <strong>of</strong> Atomic Energy in 1962.<br />
After four years, the Cancer Research Institute — set up in 1952 — and TMC were<br />
merged.<br />
Starting as an 80-bed hospital covering an area <strong>of</strong> 15,000 sq metres, TMC now has<br />
more than 440 beds spread over almost 54,000 square metres. The annual budget,<br />
Rs500,000 in 1941, is now close to Rs280 million.<br />
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TMC is a comprehensive centre for the prevention and treatment <strong>of</strong> cancer, and for<br />
research. It is a landmark on the global health map and particularly important to<br />
this part <strong>of</strong> the world. Nearly 25,000 patients visit the clinics each year, not only<br />
from all over India but from neighbouring countries as well. About 70 per cent <strong>of</strong><br />
patients seeking primary care are treated free <strong>of</strong> charge. Over the years, TMC has<br />
also realised the importance <strong>of</strong> preventive activities and is reaching out to create<br />
awareness even in rural areas.<br />
The Centre lays a lot <strong>of</strong> emphasis on education in the field <strong>of</strong> cancer. Over 150<br />
students, medical pr<strong>of</strong>essionals, scientists and technicians undergo training at the<br />
hospital. The Department <strong>of</strong> Atomic Energy has established a new state-<strong>of</strong>-the-art<br />
research and development centre at Khargar in Navi Mumbai (called the Advanced<br />
Centre for Treatment, Research and Education in Cancer) to focus on research into<br />
cancers relevant to India and South Asia.<br />
"TMC as well as the Department <strong>of</strong> Atomic Energy — through its links with the<br />
<strong>Tata</strong> Institute <strong>of</strong> Fundamental Research and Dr Bhabha — inherit their work<br />
culture from the <strong>Tata</strong>s," says Dr Dinshaw. She recalls how committed JRD was to<br />
the institution. "In fact, it was because <strong>of</strong> his involvement and concern that the<br />
hospital was handed over from the Ministry <strong>of</strong> Health to the Department <strong>of</strong> Atomic<br />
Energy."<br />
<strong>Tata</strong> Institute <strong>of</strong> Fundamental Research<br />
82
Homi Bhabha Road<br />
Pre-independence India's scientific achievement were far ahead <strong>of</strong> its industrial<br />
successes. This was unusual for any country at that time, but there remained the<br />
need to improve India's scientific temper and strengthen the newly free nation's<br />
science infrastructure. These were the objectives that drove Homi J Bhabha and<br />
JRD <strong>Tata</strong> to pursue their vision <strong>of</strong> establishing the <strong>Tata</strong> Institute <strong>of</strong> Fundamental<br />
Research (TIFR) back in 1945.<br />
Mr Bhabha — in the letter he wrote to the Sir Dorabji <strong>Tata</strong> Trust requesting<br />
financial assistance to get the TIFR idea <strong>of</strong>f the ground — talked about "creating a<br />
school <strong>of</strong> physics comparable to the best anywhere in the world." JRD, on the other<br />
hand, stressed the "progress" aspect while arguing the case for the institution.<br />
These visionaries, working together at a critical time in the nation's history,<br />
considered science an integral component to modern India's identity.<br />
TIFR became the cradle <strong>of</strong> the country's atomic energy endeavour. The Institute<br />
wasn't just about science; it was also about discovering and delivering the benefits<br />
drawn from science to Indian society. Given that there was little scientific and<br />
industrial infrastructure at the time, TIFR came to play a crucial role.<br />
The building <strong>of</strong> TIFR was quite interesting. Everything was done in-house,<br />
including the carpentry and such. We were at the frontiers <strong>of</strong> science, which meant<br />
that we had to create our own infrastructure. The fundamental research we were<br />
involved in then was <strong>of</strong> the atypical kind. Our early years were marked by this<br />
wide vision we had <strong>of</strong> what research needed to be done. What usually happens<br />
when you have so a broad vision is that you compromise on either quality or<br />
excellence. But TIFR managed to keep the course it had charted by making<br />
excellence intrinsic to its existence. This, to me, is one <strong>of</strong> the Institute's most<br />
remarkable triumphs.<br />
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We have done a large amount <strong>of</strong> experimental research that has blossomed into<br />
trend-setting initiatives. For instance, India's first digital computer was crafted at<br />
TIFR, back in 1957. This was a significant success by any yardstick. Today, you<br />
hear <strong>of</strong> technology that's spun <strong>of</strong>f. In my reckoning, TIFR, more than any other<br />
Indian institution or industry, has spawned a variety <strong>of</strong> vital <strong>org</strong>anisations.<br />
In the years immediately following independence, India's goal was self-reliance.<br />
But, in terms <strong>of</strong> self-reliance there is a difference between science and technology.<br />
If you don't have a particular technology, you can try and develop it to, say, build a<br />
car indigenously. The Indica is a fine example <strong>of</strong> self-reliance. It does not look<br />
much different from other cars <strong>of</strong> its class, but its strength is that it is built<br />
indigenously. However, if the Indica had qualities its competitors didn't, then that<br />
would make it distinct. To make things indigenously and also make them distinct<br />
— that would be an extraordinary combination.<br />
In science you cannot stop once you have crossed the indigenous hurdle; you also<br />
have to get to a given point before everybody else. Frontier science is about being<br />
the discoverer. If someone has discovered something, you cannot go to your lab<br />
and rediscover it.<br />
Today, India has turned the corner. It is a more confident country and its<br />
infrastructure has improved tremendously. Catching up is no longer an<br />
achievement; we have to be up there with the best. Therefore, that part <strong>of</strong> TIFR's<br />
original charter — being at the frontiers <strong>of</strong> science — remains relevant, but being<br />
self-reliant and developing infrastructure is secondary. In that sense the continuity<br />
<strong>of</strong> the vision articulated by Mr Bhabha and JRD has been preserved.<br />
TIFR now functions differently, and so it must. If it does not it will be frozen in an<br />
earlier time, which means it would fail in its mission. Some <strong>of</strong> our activities have<br />
changed down the years and this process will continue as we chart a new course<br />
that will, in its details, be somewhat different from the past, but still stay faithful to<br />
the original idea.<br />
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We are now trying to set a standard by saying that we are not going to applaud if<br />
our people repeat something that somebody else has done. We will only applaud if<br />
you are the first one to discover something. Earlier, to be able to produce<br />
something was an accomplishment <strong>of</strong> a kind. That is no longer true. But we had to<br />
go through that period to get where we currently are. An excellent institution must<br />
be able to rediscover and reinvent itself frequently. And that is one <strong>of</strong> the strengths<br />
<strong>of</strong> TIFR.<br />
The Institute had many successes in the early years <strong>of</strong> its existence and that, in a<br />
way, was a problem. An institution is much more alert if it is in trouble. When an<br />
institution is doing well constantly, the high level <strong>of</strong> confidence generated can<br />
sometimes lead to complacency. For TIFR, a successful <strong>org</strong>anisation by any<br />
measure, the question now is how to take an outstanding institution and make it<br />
truly exceptional. It's a more complicated struggle, requiring a new point <strong>of</strong> view<br />
and a course <strong>of</strong> action that's consistent with the times we live in.<br />
We want to make sure we get the best people. This is a huge challenge because,<br />
financially speaking, we cannot provide the kind <strong>of</strong> salaries that some <strong>of</strong> our<br />
competitors around the world do. But we try to even the playing field as much as<br />
possible so that we can compete with the best. Apart from salaries, we provide a<br />
work environment that's as good as any other, and in some ways better.<br />
Without funding you cannot do research. We have a steady source <strong>of</strong> funds, but<br />
there is a flip side to this equation. Steadfast support can make you complacent, so<br />
we have to ensure that support is earned, and not secured just as an entitlement. We<br />
receive tremendous backing from the Department <strong>of</strong> Atomic Energy, which takes<br />
an enlightened view <strong>of</strong> the long-haul factor. We have a beautiful campus and<br />
excellent infrastructure, with the finest machines and the latest technology<br />
equipment. Our libraries are among the best anywhere and we have good housing<br />
facilities.<br />
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Youth is the future, always has been and always will be. Given that reality, we<br />
have to understand, hard as it is, that the basic sciences are not an attractive career<br />
for today's youngsters. And youth are our lifeblood. If bright young people don't do<br />
science, where will our next generation <strong>of</strong> scientists come from? This is where we<br />
now have to concentrate our energies.<br />
Earlier, we did not get involved in the education bit; we did not feel the need to.<br />
Our education system is not in good shape, particularly in the basic sciences, and<br />
— this is my personal opinion — leading institutions such as TIFR have been short<br />
sighted in not engaging with this system. It is a crisis that we have brought upon<br />
ourselves. University systems are in distress and we need to be involved there.<br />
We are making a beginning in this sphere by starting an integrated PhD<br />
programme. It's our grand plan, a cradle-to-grave programme for students from<br />
12th class upwards. We have a two-pronged strategy: first comes a 'nurture<br />
programme' for young students, followed by an advanced programme for<br />
graduates. Generally, our best and brightest students go to institutions such as the<br />
IITs, because they think that's the safer, more lucrative option as a career. But a<br />
large number <strong>of</strong> them may continue in basic science if we can compensate by<br />
having a first-class education programme.<br />
Under the TIFR umbrella, the Homi Bhabha Centre for Science Education is<br />
putting in place the nurture programme for engineering students. We also want to<br />
capture students who go abroad for their MSc or PhD and take them into our own<br />
programmes. We have now become a deemed university and can give them the<br />
degrees they seek. To get young people and give them a quality education — that's<br />
the top item on my agenda.<br />
TIFR has had a good run <strong>of</strong> more than 50 years, but the times are changing, the<br />
economy and society are changing. We have to adapt to this new era and we can do<br />
that by incubating our own original ideas. We may have grown a little too big, but<br />
in the frontier sciences largeness does not bring quality. We need to ensure that our<br />
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centres have significant autonomy to f<strong>org</strong>e their own destinies. The governing<br />
structure set up by the founders, with representatives from the Government <strong>of</strong><br />
India, the Sir Dorabji <strong>Tata</strong> Trust and the Government <strong>of</strong> Maharashtra, is ideal. No<br />
one group dominates, which means the Institute can retain its autonomy.<br />
Today everybody talks about being global, but TIFR has been global in its outlook<br />
since its birth. We have had some significant accomplishments. The GMRT<br />
telescope is one <strong>of</strong> its kind and the best in the world for what it does. Our scientists<br />
discovered a new class <strong>of</strong> superconductors. Many <strong>of</strong> our students have gone abroad<br />
to teach. We've had many distinguished visitors, among them Nobel laureates John<br />
Nash and Stephen Hawking. In a sense, we are the bridge between our community<br />
and the world.<br />
We have to recognise that our original charter requires us to act differently. We<br />
have to set the highest standards for accomplishments, not third-world standards<br />
but the best global standards. This institute is uniquely placed to do this — and I<br />
believe we can do it.<br />
Fact file<br />
• June 1, 1945: TIFR begins life at the Cosmic Ray Research Unit in<br />
Bangalore. Six months later the facilities moved to Bombay (Kenilworth on Peddar<br />
Road).<br />
• January 15, 1962: Prime Minister Jawaharlal Nehru inaugurates the<br />
Institute's new 15-acre campus at Navy Nagar in Bombay.<br />
• Initial research was carried out in the areas <strong>of</strong> cosmic rays, high-energy<br />
physics, theoretical physics and mathematics. Later, the Institute expanded its<br />
research umbrella to embrace nuclear physics, condensed matter physics, computer<br />
science, geophysics, molecular biology, radio astronomy and science education.<br />
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• TIFR's pioneering work led to it designing India's first digital computer<br />
(TIFRAC).<br />
• TIFR has three schools (School <strong>of</strong> Mathematics, School <strong>of</strong> Natural Sciences,<br />
School <strong>of</strong> Technology and Computer Sciences) and as many centres (the Homi<br />
Bhabha Centre for Science Education in Mumbai, the National Centre for Radio<br />
Astrophysics in Pune, the National Centre for Biological Sciences in Bangalore).<br />
• The Institute also runs four facilities: the Giant Meterwave Radio Telescope<br />
at Kodad near Pune; the High-Energy Cosmic Ray Laboratory at<br />
Udhagamandalam in Tamil Nadu; the High-Energy Cosmic and Gamma Ray<br />
Laboratories at Pachamarhi in Madhya Pradesh; and the National Balloon Facility<br />
in Hyderabad.<br />
<strong>Tata</strong> Medical Centre (TMC)<br />
The <strong>Tata</strong> Medical Centre (TMC) is a comprehensive cancer hospital and research<br />
establishment coming up in Kolkata, India. To be commissioned in 2009, the<br />
centre is a philanthropic initiative from the <strong>Tata</strong> <strong>Group</strong> for the people <strong>of</strong> West<br />
Bengal and north-eastern states <strong>of</strong> India. The teams will work with state-<strong>of</strong>-the-art<br />
equipment from the best <strong>of</strong> manufacturers worldwide.<br />
TMC’s mission is to promote prevention, cure, rehabilitation and palliation for<br />
cancer patients. It was envisioned to provide a world-class cancer care <strong>org</strong>anisation<br />
for the region, especially for the poor. The hospital has 150 beds reserved for the<br />
underprivileged and is being provided with the best <strong>of</strong> medical equipment and<br />
personnel.<br />
The hospital will have outpatient, inpatient, therapeutic, diagnostic, telemedicine<br />
and other services. It will be managed by the <strong>Tata</strong> Medical Centre Trust (TMCT),<br />
Kolkata, which has been formed specifically for this purpose. The need for such a<br />
centre is acute, given that India has about 2.5 – 3 million cases <strong>of</strong> cancer and the<br />
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<strong>Tata</strong> Memorial Hospital in Mumbai registers nearly a quarter <strong>of</strong> its cases from the<br />
east / north-east regions <strong>of</strong> India and Bangladesh. Designed by Cannon Design, a<br />
renowned architectural firm from North America, the hospital is located at<br />
Rajarhat, Kolkata on 13.36 acres <strong>of</strong> land procured from the West Bengal<br />
government and has easy accessibility from the city centre as well as the city<br />
airport.<br />
Diagnosis and treatment<br />
TMC will work with the best pr<strong>of</strong>essionals and equipment to ensure that its<br />
diagnostic and treatment services are comparable with the best in the world.<br />
It will set up disease management teams with experts from different streams like<br />
surgery, radiation oncology, medical oncology, pathology, radiology, psychiatry,<br />
medical social work, etc. This will ensure a multi disciplinary approach towards<br />
treatment protocols, medical strategies and guidelines that will reflect a holistic<br />
view <strong>of</strong> the problem and its manifestation.<br />
To ensure integrity and complete security <strong>of</strong> the diagnostic process, patient<br />
samples, drugs and consumables will be transported across the hospital through a<br />
pneumatic chute system. The hospital will maintain an efficient waste management<br />
system. The centre will be monitored by a comprehensive and customised Hospital<br />
Management System (HMS), currently under development by the <strong>Tata</strong><br />
Consultancy Services (TCS).<br />
Research and education<br />
TMC will collaborate with the best institutes in the world and nurture talent from<br />
local universities.<br />
It will have a slew <strong>of</strong> research initiatives, including basic science research, clinical<br />
research, intramural research and multi-centric trials. It will also provide education<br />
in the field <strong>of</strong> medicine and allied subjects, with a special focus on oncology.<br />
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The centre will have academic <strong>of</strong>fices, lecture and seminar rooms, a digital library,<br />
and access to electronic journals and a networking <strong>of</strong> libraries.<br />
Service delivery<br />
TMC's objective is to always provide the best possible services in every area <strong>of</strong><br />
intervention.<br />
Outpatient services<br />
The infrastructure at TMC’s outpatient department aims to maximise ambulatory<br />
care and minimise the need for hospitalisation. Among the outpatient services<br />
envisaged are consultations, diagnostic investigations, day-care surgery, biopsies<br />
and stent placements, minimal-access surgery, radiotherapy, chemotherapy and<br />
counselling.<br />
Diagnostic services<br />
These will include laboratory and imaging services. Samples collected will be<br />
transported from collection centres in the hospital to laboratories through a<br />
pneumatic chute system. The samples will be processed and the results made<br />
available on the hospital information system. Among the imaging services<br />
provided will be conventional radiography, fluoroscopy, mammography,<br />
ultrasonography and different scans. Images will be captured in digital format and<br />
with the help <strong>of</strong> an ‘enterprise picture archival and communication system’.<br />
Therapeutic services<br />
Among the therapeutic facilities to be made available at TMC will be surgical<br />
oncology, major and minor surgical procedures, minimal-access surgery, laser<br />
surgery and day surgery. The centre will have an operation theatre complex and a<br />
variety <strong>of</strong> associated facilities.<br />
Inpatient services<br />
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The inpatient services will be located in a separate building. The amenities<br />
provided will be consistent with the intensity <strong>of</strong> care and will comprise, among<br />
others, a central nursing station and patient rooms and wards. There will also be a<br />
high-dependency unit, a bone marrow transplant ward and isolation rooms.<br />
Rehabilitation services<br />
Among the rehabilitation services to be provided will be physiotherapy,<br />
occupational therapy, speech therapy, catheter care and a prosthesis clinic.<br />
Prevention and care<br />
TMC will provide preventive oncology services to the public by means <strong>of</strong><br />
dissemination <strong>of</strong> cancer-related information, screening services, executive health<br />
check-up programmes and tobacco cessation initiatives.<br />
In addition, the centre will work closely with a network <strong>of</strong> support <strong>org</strong>anisations<br />
and sister institutions to provide complete cancer treatment facilities. The benefits<br />
that will accrue as a result <strong>of</strong> this alliance are:<br />
Telemedicine facilities<br />
The TMC facility will conduct a telemedicine programme with the <strong>Tata</strong> Memorial<br />
Centre, Mumbai, and a network <strong>of</strong> other institutions. The main objective here is to<br />
exchange expertise in patient care and provide opportunities for experts to share<br />
their skills and knowledge. Other benefits would include online training<br />
programmes and distance education.<br />
Patient rest houses: The hospital is planning to provide low-cost comfortable<br />
accommodation, for attendants <strong>of</strong> out-station in-patients and low dependency<br />
outpatients while they undergo treatment. The motel/ lodge will initially<br />
accommodate 200 beds. The services include canteen, packed food delivery and<br />
self cooking stations, laundry, launderettes, shuttle services to the hospital,<br />
prayer/meditation room, children’s play room, etc.<br />
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Human Resource<br />
TMC is bringing together a team <strong>of</strong> dedicated, committed and well trained<br />
pr<strong>of</strong>essionals from all parts <strong>of</strong> the country and beyond to ensure that the centre is<br />
counted among the best in the world.<br />
Support services<br />
The centre will set up cancer support teams such as medical social work team and<br />
the psychiatrists and clinical psychologists group, in collaboration with NGOs and<br />
voluntary <strong>org</strong>anisations. Activities include:<br />
• Patient support<br />
• Financial Aid<br />
• Counselling<br />
• Patient navigation<br />
• Helpline<br />
The objective at TMC is to build an <strong>org</strong>anisation that excels in services, education<br />
and research in the field <strong>of</strong> cancer.<br />
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SPORT<br />
'Every sport is worthy <strong>of</strong> support'<br />
The <strong>Tata</strong> <strong>Group</strong>’s sporting legacy<br />
The <strong>Tata</strong> <strong>Group</strong> has been connected with sporting activities since 1920. The<br />
group’s interest in sports comes from our founder, Sir Jamsetji <strong>Tata</strong>. When<br />
Jamshedpur was planned (around 1900), he wrote to his sons to ensure that the city<br />
had wide streets, lots <strong>of</strong> trees, and grounds for cricket, hockey and football. He had<br />
the vision to realise that sports is an integral part <strong>of</strong> any city plan.<br />
Sir Dorab <strong>Tata</strong> was a great sportsman. He was a Cambridge blue at cricket and a<br />
founding member <strong>of</strong> the Willingdon Club in Mumbai. He sponsored the Indian<br />
contingent for the Antwerp Olympics in 1920 and, as president <strong>of</strong> the Indian<br />
Olympic Council, financed the Indian squad that went to the Paris Olympics in<br />
1924. Sports has always been an integral part <strong>of</strong> the <strong>Tata</strong> way <strong>of</strong> life. We believe in<br />
improving the quality <strong>of</strong> life, and sports is a vital part <strong>of</strong> life<br />
<strong>Tata</strong> Sports Club<br />
The <strong>Tata</strong> Sports Club was the channel through which sports people found their<br />
expression. They needed an <strong>org</strong>anisation through which they could represent their<br />
sports (you can’t represent just the <strong>Tata</strong>s), and the Club provided that avenue. The<br />
Club was a group effort involving employees from different companies, and it was<br />
supported by people who were either employees or on contract.<br />
The Club was Mumbai-centric because most <strong>Tata</strong> companies had their<br />
headquarters here, and JRD — its president for over 50 years — was based here.<br />
Jamshedpur had <strong>Tata</strong> <strong>Steel</strong>, but <strong>Tata</strong> <strong>Steel</strong> players would represent the Club. <strong>Tata</strong><br />
<strong>Steel</strong> was and is, in its own rights, a nursery for sports. Whether it be with<br />
Bachendri Pal climbing Mount Everest or Premchand Dogra being crowned Mr<br />
Universe, <strong>Tata</strong> <strong>Steel</strong> has always been a great supporter <strong>of</strong> sports.<br />
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Beyond cricket<br />
The <strong>Tata</strong> <strong>Group</strong> has considered every sport as worthy <strong>of</strong> support; so long as people<br />
excelled in a particular field, we supported their talent. Two world billiards<br />
champions, Geet Sethi and Michael Ferriera, were <strong>Tata</strong> employees. If someone is<br />
at that level, or has the potential to reach that level, I don't think the <strong>Tata</strong>s would be<br />
concerned about which sport he or she represents.<br />
Mumbai was once the cradle <strong>of</strong> Indian cricket. There was a time when 80 per cent<br />
<strong>of</strong> the Test players in the Mumbai team were from the <strong>Tata</strong>s. I believe it’s possible<br />
to bring that era back and break the mindset that sports people are not productive<br />
from the business point <strong>of</strong> view.<br />
Serving up an ace<br />
Fantastic players, passionate fans, a superb arena, unlimited fun and<br />
scintillating tennis — the <strong>Tata</strong> Open 2003 was a winner from start to finish<br />
The gladiatorial spirit in sport shines brightest in individual disciplines. There’s<br />
something about one-on-one combat that team games can never provide, and the<br />
sport that exemplifies this singularity best is probably tennis. You would believe it<br />
definitely is — if you witnessed the recently concluded <strong>Tata</strong> Open Championship<br />
2003, a feast <strong>of</strong> skill, strength, athleticism and uncompromising competition. And<br />
loads <strong>of</strong> fun.<br />
Once every 12 months, in a week that straddles two years, an international tennis<br />
caravan rolls into Chennai with top-ticket performers to deliver sporting<br />
entertainment <strong>of</strong> the highest quality. A world-class <strong>org</strong>anisational set-up, the<br />
country’s finest tennis arena, passionate and knowledgeable fans, and the generous<br />
support <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> have made the Open India’s premier sporting event.<br />
This year’s championship, which unfolded at the bull-pit cauldron that is the<br />
Nungambakkam Stadium on December 28, 2002, and climaxed on January 5,<br />
2003, had more than its share <strong>of</strong> potent elements: drama on the court, a multitude<br />
<strong>of</strong> events <strong>of</strong>f it, and a ‘Thaigar’ who thrilled fans and tamed opponents with style<br />
and panache.<br />
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The <strong>Tata</strong> roll call <strong>of</strong> champions<br />
Some <strong>of</strong> the prominent sportsmen and women associated with <strong>Tata</strong> <strong>Group</strong><br />
companies and the <strong>Tata</strong> Sports Club who have won a multitude <strong>of</strong> honours,<br />
both on the playing fields and beyond<br />
Sportsmen and women associated with <strong>Tata</strong> <strong>Group</strong> companies and the <strong>Tata</strong> Sports<br />
Club have won a multitude <strong>of</strong> honours, both on the playing fields and beyond.<br />
Among them are world champions, winners at the Olympics, the Asian and<br />
Commonwealth Games, and others. Here are the most prominent <strong>of</strong> them.<br />
Athletics<br />
Mohinder Singh Gill TC Yohannan PC Ponnappa<br />
KL Powell AP Ramaswamy MP Ravi Kumar<br />
Parveen Kumar Sucha Singh BV Satyanarayan<br />
Edward Sequeira Satish Pillai Baldev Singh<br />
Shivnath Singh Adrian Kennedy AF. Countinho<br />
VC. Borromeo MG Murlikuttan Anil Kumar<br />
Balwinder Singh Pavittar Singh MG. Shetty<br />
Bagicha Singh Ajmer Singh Jujhar Singh<br />
Mercy Kuttan Iqbal Singh Rajinder Singh<br />
Ajit Bhaduria Vijay Pal Saroj Lakra<br />
BRH Prasad<br />
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Archery<br />
Sanjeev Singh Purnima Mahato<br />
Limba Ram Lalrem Sanga<br />
Basketball<br />
Sunil Panda M Jaganathan<br />
Sunil Tandon R Srivastava<br />
T Vijayraghavan S Qureshi<br />
Harbhajan Singh UJ Anthony<br />
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Approach towards the Environment, Pollution and Ecology<br />
Environment<br />
The <strong>Tata</strong> ethos places a special emphasis on environmental and<br />
ecological issues. The <strong>Group</strong>'s efforts to preserve and regenerate the<br />
environment find expression in the slew <strong>of</strong> projects and programmes<br />
it has undertaken in and around its facilities and operations. A focus<br />
area for the <strong>Group</strong>, in this context, is the climate change crisis<br />
Nurturing nature<br />
The <strong>Tata</strong> <strong>Group</strong>'s kinship with the environmental cause has resulted<br />
in a slew <strong>of</strong> initiatives that place the good earth above bottom lines<br />
A big chunk <strong>of</strong> the responsibility for containing the plague driving our polluted and<br />
populous planet towards peril rests with industry and business. Balancing the<br />
imperatives <strong>of</strong> creating jobs and selling products and services with the absolute<br />
necessity <strong>of</strong> protecting and regenerating what remains <strong>of</strong> the natural environment is<br />
an onerous challenge. That it can be done is beyond doubt, but this is a task<br />
requiring a commitment to ideals more than bottom lines, to the good earth rather<br />
than pr<strong>of</strong>iteering. The long history <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> teems with examples <strong>of</strong> just<br />
such a commitment.<br />
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The <strong>Tata</strong> ethos places a special emphasis on environmental and ecological issues.<br />
"Environment is a focus area within our overall corporate social responsibility<br />
matrix," says Kishor Chaukar, chairman, <strong>Tata</strong> Council for Community Initiatives, a<br />
centrally administered nodal agency that coordinates, among other activities, the<br />
environmental efforts <strong>of</strong> group companies. A host <strong>of</strong> <strong>Tata</strong> companies also adhere to<br />
environmental procedures drawn up by the Global Reporting Initiative (GRI),<br />
which operates under the aegis <strong>of</strong> the United Nations.<br />
Important as it is, following directives and guidelines from within and without is<br />
just one facet <strong>of</strong> the <strong>Tata</strong> approach to environmental issues. The greater portion <strong>of</strong><br />
what the <strong>Group</strong> does in this sphere is by choice and conviction. From this flows its<br />
support for endeavours to conserve plant and animal species, improve land and<br />
water use, and protect forest tracts and green sanctuaries. The central tenet <strong>of</strong> this<br />
earthy philosophy is people and communities, <strong>of</strong>ten in rural regions and frequently<br />
facing inequitable struggles to secure livelihoods. Understanding that no<br />
environment policy can operate in isolation means an enhanced ability to link<br />
processes and people in a manner that benefits both nature and those dependent on<br />
it. The <strong>Group</strong>'s contribution to conservation falls into two categories: the efforts <strong>of</strong><br />
different <strong>Tata</strong> companies, big and small, to preserve and enrich the environment in<br />
and around their areas <strong>of</strong> operation, and the philanthropic thrust <strong>of</strong> the <strong>Tata</strong> trusts,<br />
which support a diverse cluster <strong>of</strong> non-governmental <strong>org</strong>anisations working in<br />
areas such as the management <strong>of</strong> natural resources, community development and<br />
livelihoods. This dual canopy accommodates and nurtures a variety <strong>of</strong> initiatives in<br />
a range that extends from watershed programmes and land regeneration to forestry<br />
projects and the protection <strong>of</strong> endangered species.<br />
The flora and fauna stories and articles in this subsection attempt to encapsulate the<br />
<strong>Tata</strong> <strong>Group</strong>'s allegiance to the environmental cause. "Ours is a deliberate effort to<br />
do more than what is required by statute," says Mr Chaukar. "Our real contribution,<br />
on the environment front and on the entire corporate responsibility issue, is being<br />
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socially responsible, and that means doing much more than staying on the right<br />
side <strong>of</strong> the law."<br />
Mr Chaukar articulates the <strong>Group</strong>'s environmental philosophy as an obligation to<br />
society. "Some people think that environmental matters are cause for concern. The<br />
<strong>Tata</strong>s, on the other hand, view them as an inherent duty that is part and parcel <strong>of</strong><br />
being in business. The general mindset, the discourse <strong>of</strong> our times, tends to see the<br />
environment as something we have inherited from our ancestors. The reality, as I<br />
see it, is that we have borrowed it from our children and the generations after them.<br />
"Looked at from that perspective, it becomes obvious that I as an individual, I as a<br />
corporate entity, I as a factory, have no God-given right to do what I please with<br />
what can never truly belong to me. Polluting the environment in one place to<br />
supply a product to consumers in some other, far-removed place — how can that<br />
ever be justified? There used to be a time when rivers were sources <strong>of</strong> clean<br />
drinking water; today any child will tell you that rivers are giant garbage cans,<br />
carriers <strong>of</strong> filth and waste. There is no way out <strong>of</strong> this messy situation other than<br />
affording the environment the highest priority, and that's what the <strong>Tata</strong>s are doing."<br />
Only those living in denial can argue that environment and ecology are subjects too<br />
esoteric for a society bred on consumerism and the pleasures <strong>of</strong> the present.<br />
Humankind is currently engaged in the surprisingly easy job <strong>of</strong> driving into<br />
extinction more plant and animal species than at any time since the dinosaurs<br />
disappeared 65 million years ago. Our forests are fading; our oceans are rising; the<br />
snowcaps on our mountain peaks are shrinking; our climate is mutating.<br />
Meanwhile, our water, our air and our bodies are becoming the unwitting<br />
recipients <strong>of</strong> all manners <strong>of</strong> toxic intruders. Business can — and do, as the <strong>Tata</strong>s<br />
have proved — make a huge difference in turning this beastly tide.<br />
Environment policies<br />
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The <strong>Tata</strong> <strong>Group</strong> has striven to be responsible and sensitive on ecological and<br />
environmental matters. It does this by protecting, conserving and restoring natural<br />
resources, <strong>of</strong>ten beyond what is mandated by government and other institutional<br />
policies.<br />
<strong>Tata</strong> companies are committed to complying in full measure with all regulations<br />
relating to the preservation <strong>of</strong> the environment around its operations. By constantly<br />
upgrading the technologies they use and by applying the best <strong>of</strong> sustainable<br />
processes and practices, they endeavour to give environmental issues the priority<br />
they deserve.<br />
The companies are dedicated to constantly improving their performance on the<br />
prevention <strong>of</strong> pollution, the proper use <strong>of</strong> natural resources and the minimisation <strong>of</strong><br />
any hazardous impact stemming from the production, development, use and<br />
disposal <strong>of</strong> any <strong>of</strong> their products and services.<br />
Towards this end, the <strong>Group</strong> continuously trains its employees and creates<br />
awareness among its business associates, customers, stakeholders and the<br />
community at large through a process <strong>of</strong> participatory dialogue and collaboration<br />
The <strong>Tata</strong>s have what is known as a '<strong>Group</strong> environment network' to guide its<br />
companies and <strong>org</strong>anisations on environmental issues. The objectives <strong>of</strong> this<br />
network are three-fold:<br />
100<br />
• To develop a common approach on the environment so that <strong>Group</strong><br />
companies can champion the cause <strong>of</strong> sustainable growth and enhance the<br />
image <strong>of</strong> the <strong>Tata</strong> brand.<br />
• To integrate environmental parameters in the <strong>Tata</strong> Business Excellence<br />
Model and the <strong>Tata</strong> Code <strong>of</strong> Conduct.<br />
• To enhance awareness and to train <strong>Group</strong> environmentalists through<br />
workshops, and share their experiences through case studies and exchanges.
The <strong>Tata</strong> approach to environmental management makes it mandatory for <strong>Group</strong><br />
companies to do the following:<br />
101<br />
• Have a vision and mission statement that explicitly states its policy on<br />
environmental management.<br />
• Define a corporate environment policy and communicate that to all<br />
employees.<br />
• Set up environmental management systems and programmes at the<br />
<strong>org</strong>anisational level and annually budget for environmental improvement.<br />
• Train its workforce on environmental issues and assign management<br />
representatives and facilitators to the task <strong>of</strong> monitoring environmental<br />
systems.<br />
• Regularly scrutinise resource consumption and the quality <strong>of</strong> air, water and<br />
land in and around the areas where it operates.<br />
• Set quantitative objectives and targets for continuous improvement<br />
(preferably beyond legal compliance).<br />
• Review environmental performance at different levels in the management<br />
hierarchy.<br />
• Establish a convention for conducting impact-assessment surveys and<br />
periodic audits.<br />
• Publish annual environmental performance in annual reports.<br />
• Encourage applications and attainment <strong>of</strong> eco-labels and accreditations such<br />
as ISO 14000/01.<br />
• This is to be followed by lifecycle assessments and eco-labelling for product<br />
stewardship throughout the supply chain.<br />
The environment policies <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> are reviewed continually. Changes or<br />
improvements are made as and when these are required (the way the <strong>Group</strong> is<br />
addressing the climate change issue is an example<br />
CSR and its implementation
Corporate Social Responsibility<br />
<strong>Tata</strong> Power is committed to setting high standards in its pursuit <strong>of</strong> social<br />
responsibility and remaining sensitive to the issues <strong>of</strong> resource conservation,<br />
environment protection and enrichment and development <strong>of</strong> local communities in<br />
its areas <strong>of</strong> operations. The company has a simple philosophy that guides its<br />
activities in these matters, “Giving back is a means towards going ahead".<br />
Our widespread programmes on biodiversity conservation, afforestation,<br />
pisciculture, family planning, health services, primary and secondary education<br />
and many more have made inroads into the tiny hamlets and tribal regions <strong>of</strong> our<br />
hydro catchment areas and it is our endeavour to light up these dark and narrow<br />
streets to new dawns.<br />
Awards<br />
• CII EXIM Bank Award 2005 – "Certificate for Strong Commitment to<br />
102<br />
Excel".
103<br />
• “Energy Efficient Unit Award” at the National Award for Excellence in<br />
Energy Management – 2005 for T&D divisions conducted by CII.<br />
• Jojobera has been declared as the winner <strong>of</strong> Golden Peacock Special<br />
Commendation Certificate for the year 2005 (11 June 2005).<br />
• <strong>Tata</strong> Power among the top 13 Best Managed Companies in India by<br />
Business Today – AT Kearney (11 March 2005).<br />
• The 2 nd Wartsila – Mantosh Sondhi Award for outstanding contribution to<br />
the Indian Power Sector in 2004.<br />
• Greentech Environment Excellence Award: Platinum to Jojobera Thermal<br />
Power Plant, Jharkhand in 2004.<br />
• Greentech Safety Award: Gold to Trombay Thermal Power Station, Mumbai<br />
in 2004.<br />
• The Power Plant Award, instituted by Electric Power International, to the<br />
Trombay Thermal Power Station in 1995.<br />
• Outstanding <strong>Structure</strong>s <strong>of</strong> the Year by the American Concrete Institute:<br />
Bronze Award to the Trombay Thermal Power Station for the year 1988 –<br />
1989.<br />
Community initiatives
The many companies <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> are involved in a wide variety<br />
<strong>of</strong> community development projects and programmes, principally in<br />
India but also, increasingly, in different parts <strong>of</strong> the world (these<br />
initiatives are distinct, and separated, from the social uplift efforts <strong>of</strong><br />
the <strong>Tata</strong> trusts). The community development endeavours <strong>of</strong> <strong>Tata</strong><br />
companies cover many areas, from health and education to<br />
livelihoods, women-children welfare and more<br />
Overview: The panoply <strong>of</strong> community development endeavours undertaken<br />
by <strong>Tata</strong> companies — embracing everything from health and education to art, sport<br />
and more — has touched, and changed, many lives.<br />
<strong>Tata</strong> Council for Community Initiatives: The <strong>Tata</strong> Council for Community<br />
Initiatives is the umbrella agency that guides and supports <strong>Tata</strong> <strong>Group</strong> companies<br />
with their community development initiatives. Reinforcing the implicit beliefs the<br />
<strong>Group</strong> brings to its mission <strong>of</strong> sustainable development with an explicit set <strong>of</strong><br />
structures, TCCI has a charter that embraces social development, environmental<br />
management, biodiversity restoration and employee volunteering.<br />
<strong>Tata</strong> index for sustainability: The <strong>Tata</strong> index for sustainable human<br />
development is a pioneering effort aimed at directing, measuring and improving<br />
the social uplift programmes that <strong>Group</strong> enterprises undertake. The index provides<br />
guidelines for <strong>Tata</strong> companies looking to fulfill their social responsibilities, and is<br />
built around the <strong>Tata</strong> Business Excellence Model.<br />
<strong>Tata</strong> company initiatives: Different <strong>Tata</strong> companies have in-house<br />
104
<strong>org</strong>anisations to implement and manage the community development projects that<br />
they undertake. The most prominent <strong>of</strong> these are the <strong>Tata</strong> Chemicals Society for<br />
Rural Development, the <strong>Tata</strong> <strong>Steel</strong> Rural Development Society, Rallilove ACTS<br />
(Assisting Communities Through Service) and Voltas for Women.<br />
The rainbow effect<br />
The panoply <strong>of</strong> community development endeavours undertaken by<br />
<strong>Tata</strong> companies — embracing everything from health and education<br />
to art, sport and more — has touched, and changed, many lives<br />
The time was the early 1990s and the occasion was gathering <strong>of</strong> industrialists<br />
called by India’s prime minister, PV Narasimha Rao. Representing the <strong>Tata</strong> <strong>Group</strong><br />
were Chairman Ratan <strong>Tata</strong> and JJ Irani, the managing director <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> at that<br />
point. “The prime minister proposed that we business people set aside 1 per cent <strong>of</strong><br />
our net pr<strong>of</strong>it for community development projects totally unconnected to the<br />
workers and industry any <strong>of</strong> us was involved with,” recalls Mr Irani. “Mr <strong>Tata</strong> and<br />
I looked t each other; we didn't make any comment. Later, we drew up a chart that<br />
quantified <strong>Tata</strong> <strong>Steel</strong>’s contribution on Mr Rao’s scale. We discovered that, over a<br />
10-year period, the company had been dedicating between 3 and 20 per cent <strong>of</strong> its<br />
pr<strong>of</strong>its to social development causes. In the years since, depending on pr<strong>of</strong>it<br />
margins, the figure has continued to vacillate within this band.”<br />
The <strong>Tata</strong> <strong>Steel</strong> example is not an anomaly for a <strong>Tata</strong> company. If there is one<br />
attribute common to every <strong>Tata</strong> enterprise, it has to be the time, effort and<br />
resources each <strong>of</strong> them devotes to the wide spectrum <strong>of</strong> initiatives that come under<br />
the canopy <strong>of</strong> community development. The money numbers are staggering: by a<br />
rough estimate the <strong>Tata</strong> <strong>Group</strong> as a whole, through its trusts and its companies,<br />
spends about 30 per cent <strong>of</strong> its pr<strong>of</strong>its after tax (PAT) on social-uplift programmes.<br />
The <strong>Tata</strong> <strong>Steel</strong> example is not an anomaly for a <strong>Tata</strong> company. If there is one<br />
attribute common to every <strong>Tata</strong> enterprise, it has to be the time, effort and<br />
resources each <strong>of</strong> them devotes to the wide spectrum <strong>of</strong> initiatives that come under<br />
105
the canopy <strong>of</strong> community development. The money numbers are staggering: by a<br />
rough estimate the <strong>Tata</strong> <strong>Group</strong> as a whole, through its trusts and its companies,<br />
spends about 30 per cent <strong>of</strong> its pr<strong>of</strong>its after tax (PAT) on social-uplift programmes.<br />
In India and abroad<br />
No matter how elaborate, systems and processes cannot really capture the<br />
magnitude and dispersion <strong>of</strong> all that the <strong>Tata</strong>s do in the field <strong>of</strong> community<br />
development. From health and education to livelihoods and women-children<br />
welfare, from tribal hamlets in Jharkhand and the rural outback <strong>of</strong> Gujarat to the<br />
high ranges <strong>of</strong> Kerala and disadvantaged villages in Andhra Pradesh — the<br />
community work being undertaken by <strong>Tata</strong> companies touches a multitude <strong>of</strong><br />
Indians across the land. Beyond purely social work, this support extends to<br />
individuals and institutions pursuing artistic, sporting and academic excellence.<br />
And now, as <strong>Tata</strong> enterprises spread their wings to reach global locations, the<br />
social uplift efforts <strong>of</strong> the <strong>Group</strong> are reaching communities in different parts <strong>of</strong> the<br />
world.<br />
Arts and sports<br />
A different dimension <strong>of</strong> this social development doctrine shines through in the<br />
<strong>Tata</strong> support and backing that enriches the country's cultural and sporting spheres.<br />
In the field <strong>of</strong> art, this support has played a critical part in preserving and<br />
promoting every component <strong>of</strong> India's cultural heritage. The <strong>Tata</strong> backing for<br />
sports — in the form <strong>of</strong> academies for a variety <strong>of</strong> sporting disciplines, sponsorship<br />
<strong>of</strong> talented individuals, and <strong>org</strong>anisations such as the <strong>Tata</strong> Sports Club — has<br />
helped numerous sportspeople realise their potential.<br />
The panoply <strong>of</strong> the <strong>Tata</strong> engagement in community development encompasses<br />
much more than can be encapsulated in a few pages. As management guru Peter<br />
Drucker says: "A healthy society requires three vital sectors: a public sector <strong>of</strong><br />
effective governments; a private sector <strong>of</strong> effective businesses; and a social sector<br />
<strong>of</strong> effective community <strong>org</strong>anisations." While there's not much it can do about the<br />
first sector, the <strong>Tata</strong> <strong>Group</strong> is contributing all it can to the other two.<br />
<strong>Tata</strong> index for sustainability<br />
106
The <strong>Tata</strong> index for sustainable human development is a pioneering effort aimed at<br />
directing, measuring and enhancing the community work that <strong>Tata</strong> <strong>Group</strong><br />
enterprises undertake. The index provides guidelines for <strong>Tata</strong> companies looking to<br />
fulfil their social responsibilities, and is built around the <strong>Tata</strong> Business Excellence<br />
Model, an open-ended framework that drives business excellence in <strong>Tata</strong><br />
companies.<br />
Speaking about the <strong>Tata</strong> index, Anant G Nadkarni, VP, <strong>Group</strong> corporate<br />
sustainabiity, says: "We have adopted a business model to drive social<br />
responsibility efforts within the group because that way you ensure a huge<br />
network. The index helps structure our efforts and quantify their effect on the<br />
communities and people they are aimed at."<br />
The index is actually a set <strong>of</strong> guidelines for <strong>Tata</strong> companies looking to fulfil their<br />
social responsibilities, and it is the third set <strong>of</strong> such guidelines fashioned by TCCI.<br />
Mr Nadkarni sees the index as a work in progress, not some edict set in stone.<br />
"What we have here is a framework; that's the spirit in which the Index was<br />
drafted."<br />
Name and Performance <strong>of</strong> the Companies controlled by the Business House<br />
107
Companies<br />
<strong>Tata</strong> <strong>Steel</strong> is the world's sixth largest steel manufacturer. It operates in more than<br />
20 countries and has a commercial presence in over 50.<br />
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The company was established in Jamshedpur, India, in 1907. In the past few years,<br />
<strong>Tata</strong> <strong>Steel</strong> has invested in Corus (UK), Millennium <strong>Steel</strong> (renamed <strong>Tata</strong> <strong>Steel</strong><br />
Thailand) and Nat<strong>Steel</strong> Asia (Singapore). With these, the company has created a<br />
manufacturing and marketing network in Europe, South East Asia and the Pacificrim<br />
countries. It has the capacity to produce over 26 million tonnes <strong>of</strong> crude steel<br />
every year.<br />
Areas <strong>of</strong> business<br />
The company produces crude steel and basic steel products, and makes steel for<br />
building and construction applications through <strong>Tata</strong> BlueScope <strong>Steel</strong>, its joint<br />
venture with Australia's BlueScope <strong>Steel</strong>.<br />
<strong>Tata</strong> <strong>Steel</strong> has also set up joint ventures for the development <strong>of</strong> limestone mines in<br />
Thailand, the procurement <strong>of</strong> low-ash coal from Australia and coking coal from<br />
Mozambique, and the setting up <strong>of</strong> a deep-sea port in Orissa in India. The company<br />
is exploring opportunities in the titanium dioxide business in Tamil Nadu, India,<br />
and will soon be producing high carbon ferrochrome from its plant in South Africa.<br />
Joint ventures, subsidiaries, associates<br />
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• Corus <strong>Group</strong>: Europe’s second largest steel maker with major operations in<br />
the UK and continental Europe, Corus produces long and strip products for<br />
the construction, automotive, packaging, engineering and other markets<br />
worldwide. Nat<strong>Steel</strong> Asia: A leading supplier <strong>of</strong> premium steel products for<br />
the construction industry, Nat<strong>Steel</strong> has operations in seven countries in Asia.<br />
<strong>Tata</strong> <strong>Steel</strong> Thailand: A major steel producer in Thailand, the company<br />
produces steel for the construction industry.<br />
• Tinplate Company <strong>of</strong> India: Industry leader in India in the manufacture <strong>of</strong><br />
tinning line products, including electrolytic tinplate, tin-free steel and coldrolled<br />
products. Tayo Rolls: India’s leading roll manufacturer and supplier,<br />
the company produces rolls for integrated steel plants, power plants, the<br />
paper, textile and food processing sectors, and the government mint.<br />
•
110<br />
• <strong>Tata</strong> Ryerson: Offers hot- and cold-rolled flat steel products in customised<br />
sizes and quantities.<br />
• <strong>Tata</strong> Refractories: Produces high-alumina, basic, dolomite, silica and<br />
monolithic refractories and <strong>of</strong>fers design, procurement and re-lining<br />
services.<br />
• <strong>Tata</strong> Sponge Iron: Produces sponge iron lumps and fines.<br />
• <strong>Tata</strong> Metaliks: Manufactures and sells foundry-grade pig iron.<br />
• <strong>Tata</strong> Pigments: Produces oxides <strong>of</strong> iron, dry cement paint, exterior<br />
emulsion paint and distemper. Its products are used in paints, emulsions,<br />
cement floors and plastics.<br />
• Jamshedpur Injection Powder: Manufactures carbide de-sulphurising<br />
compounds used for the production <strong>of</strong> low-sulphur, high-quality steel.<br />
• TM International Logistics: Provides material handling and port operation<br />
services at the Haldia and Paradip ports in India; also has freight-forwarding<br />
and chartering services.<br />
• mjunction services: A 50:50 joint venture involving <strong>Steel</strong> Authority <strong>of</strong><br />
India and <strong>Tata</strong> <strong>Steel</strong>, it is India's largest e-commerce company and the<br />
world's largest e-marketplace for steel.<br />
• TRF: In the business <strong>of</strong> design, manufacture, supply, installation and<br />
commissioning <strong>of</strong> engineered-to-order equipment and systems in the areas <strong>of</strong><br />
bulk material handling, processing, reclaiming and blen<br />
• Jamshedpur Utility and Service Company: Re-engineered out <strong>of</strong> <strong>Tata</strong><br />
<strong>Steel</strong>'s town services, JUSCO provides municipal and civic services for<br />
townships.<br />
• Indian <strong>Steel</strong> and Wire Products: Recently acquired by <strong>Tata</strong> <strong>Steel</strong>, ISWP<br />
has a wire unit and a steel roll manufacturing unit.<br />
• <strong>Tata</strong> BlueScope <strong>Steel</strong>: A joint venture with BlueScope <strong>Steel</strong>, Australia, the<br />
company <strong>of</strong>fers a comprehensive range <strong>of</strong> branded steel products for<br />
building and construction applications.<br />
• Dhamra Port Company: A joint venture between Larsen & Toubro and<br />
<strong>Tata</strong> <strong>Steel</strong> to build a deep-draft (18 metres) all-weather port in Orissa on the<br />
east coast <strong>of</strong> India.
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• Hooghly Met Coke & Power Company: A joint venture with the West<br />
Bengal Industrial Development Corporation, producing met coke and<br />
electric power.<br />
• Lanka Special <strong>Steel</strong>: A Sri Lankan unit that manufactures galvanised wires.<br />
• Sila Eastern Company: Established to develop limestone mines in Thailand,<br />
mainly for captive use.<br />
• <strong>Tata</strong> <strong>Steel</strong> KZN: Setting up a high carbon ferrochrome plant in South<br />
Africa with an annual production capacity <strong>of</strong> 135,000 tonnes.<br />
• <strong>Tata</strong> NYK: A 50:50 joint venture with Nippon Yusen Kabushiki Kaisha<br />
(NYK Line) to set up a shipping company to handle dry-bulk and break-bulk<br />
cargo.
<strong>Tata</strong> Power<br />
<strong>Tata</strong> Power is India’s largest power utility in the private sector today, with a<br />
presence in generation, transmission, distribution and trading. The company was<br />
established in 1911 as the <strong>Tata</strong> Hydro-Electric Power Supply Company to supply<br />
power to Mumbai.<br />
<strong>Tata</strong> Power has an installed power generation capacity <strong>of</strong> over 2,300mw in the<br />
areas <strong>of</strong> thermal, solar, hydro and wind energy generation. In addition, the<br />
company is implementing a 4,000mw mega power project in Mundra, Gujarat.<br />
Areas <strong>of</strong> business<br />
The company operates across the entire power value chain, from generation,<br />
transmission and distribution to trading and consultancy.<br />
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• Power generation: <strong>Tata</strong> Power’s thermal power stations are at Trombay in<br />
Mumbai, Jojobera in Jamshedpur and Belgaum in Karnataka (southern<br />
India). The hydro stations are at Bhira, Bhivpuri and Khopoli in Maharashtra<br />
(western India) and the wind farm is in Ahmednagar, Maharashtra. <strong>Tata</strong><br />
Power has a 110kw solar plant at Walwhan, Maharashtra and a 17mw wind<br />
power project at Supa, Maharashtra.<br />
• Transmission and distribution: The company supplies power to the cities<br />
<strong>of</strong> Mumbai and Delhi. It is a partner in the 1,200km Tala transmission<br />
project, India's first interstate transmission project and one <strong>of</strong> the largest<br />
power grids in the world.<br />
Trading: The <strong>Tata</strong> Power Trading Company has the licence to carry out<br />
transactions in power trading in India.<br />
• Power project related services: The company provides expertise in setting<br />
up independent and captive power plants, transmission and distribution<br />
projects, and operations and maintenance management in India and overseas.
Joint ventures, subsidiaries and associates<br />
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• North Delhi Power: A joint venture with the Government <strong>of</strong> Delhi to<br />
supply power to the north and northwest areas <strong>of</strong> Delhi .<br />
• Powerlinks Transmission: A joint venture with the Power Grid<br />
Corporation <strong>of</strong> India, for the 1,200km Tala transmission project.<br />
• <strong>Tata</strong> Power Trading Company: A wholly owned subsidiary and the first<br />
company to get a power trading licence from India’s Central Electricity<br />
Regulatory Commission .<br />
• Strategic Electronics Division: An internal division that designs and<br />
develops electronic products and systems for India’s defence sector .<br />
• Nelco: A subsidiary company with core competencies in the areas <strong>of</strong><br />
systems integration and project management for defence electronics, energy<br />
network management, power electronics, VSAT networks and automation.<br />
• Coastal Gujarat Power (CGPL): The subsidiary behind the Mundra<br />
project.<br />
Industrial Energy: A joint venture with <strong>Tata</strong> <strong>Steel</strong> to develop captive power<br />
plants<br />
<strong>Tata</strong> Motors is India’s largest automobile company. Established in 1945, it is also<br />
among the world’s top five manufacturers <strong>of</strong> medium and heavy trucks and the<br />
world's second largest medium and heavy bus manufacturer. It entered the<br />
passenger vehicles segment in 1991 and now ranks second in India's in this market.<br />
The company, formerly known as <strong>Tata</strong> Engineering and Locomotive Company,<br />
began manufacturing commercial vehicles in 1954 with a 15-year collaboration<br />
agreement with Daimler Benz <strong>of</strong> Germany. It has, since, developed <strong>Tata</strong> Ace,<br />
India's first indigenous light commercial vehicle, <strong>Tata</strong> Safari, India's first sports<br />
utility vehicle, <strong>Tata</strong> Indica, India's first indigenously manufactured passenger car,<br />
and the Nano, the world's cheapest car.<br />
<strong>Tata</strong> Motors has over 1,400 engineers and scientists in six R&D centres in India,<br />
South Korea, Spain and the UK. Its vehicles are exported to Europe, Africa, the<br />
Middle East, South and Southeast Asia and South America.
Areas <strong>of</strong> business<br />
<strong>Tata</strong> Motors makes passenger cars, multi-utility vehicles and light, medium and<br />
heavy commercial vehicles.<br />
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• Passenger cars: The company launched the compact <strong>Tata</strong> Indica in 1998, the<br />
sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. <strong>Tata</strong><br />
Motors also distributes Fiat’s cars in India.<br />
• Utility vehicles: The <strong>Tata</strong> Sumo was launched in 1994 and the <strong>Tata</strong> Safari in<br />
1998.<br />
• Commercial vehicles: The commercial vehicle range extends from the light<br />
two-tonne truck to heavy dumpers and multi-axled vehicles in the above 40tonne<br />
segment.<br />
• Passenger buses: The company also manufactures and sells passenger buses,<br />
12-seaters to 60-seaters, in the light, medium and heavy segments.<br />
Joint ventures, subsidiaries, associates<br />
<strong>Tata</strong> Motors has joint ventures with Marcopolo, the Brazil-based maker <strong>of</strong> bus and<br />
coach bodies, and with Fiat Auto (to build a commercial vehicle at Fiat's facilities<br />
in Córdoba, Argentina).<br />
Other associates include:<br />
• <strong>Tata</strong> Daewoo Commercial Vehicle Company, a 100-per cent subsidiary <strong>of</strong><br />
<strong>Tata</strong> Motors in the business <strong>of</strong> heavy commercial vehicles<br />
• <strong>Tata</strong> Motors European Technical Centre is a UK-based, 100-per cent<br />
subsidiary engaged in design engineering and development <strong>of</strong> products.<br />
• Telco Construction Equipment Company makes construction equipment and<br />
allied services. <strong>Tata</strong> Motors has a 60 per cent holding; the rest is held by<br />
Hitachi Construction Machinery Company, Japan.<br />
• <strong>Tata</strong> Technologies provides specialised engineering and design services,<br />
product lifecycle management and product-centric information technology<br />
services.
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• <strong>Tata</strong> Motors (Thailand) is a joint venture between <strong>Tata</strong> Motors (70 per cent)<br />
and Thonburi Automotive Assembly Plant Co (30 per cent) to manufacture<br />
and market the company’s pickup vehicles in Thailand.<br />
• <strong>Tata</strong> Cummins manufactures high horsepower engines used in the<br />
company’s range <strong>of</strong> commercial vehicles.<br />
• HV Transmissions and HV Axles are 100-per cent subsidiaries that make<br />
gearboxes and axles for heavy and medium commercial vehicles .<br />
• TAL Manufacturing Solutions is a 100-per cent subsidiary that provides<br />
factory automation solutions and designs and manufactures a wide range <strong>of</strong><br />
machine tools.<br />
• Hispano Carrocera is a Spanish bus manufacturing company in which <strong>Tata</strong><br />
More has a 21-per cent stake.<br />
• Concorde Motors is a 100 per cent subsidiary retailing <strong>Tata</strong> Motors’ range <strong>of</strong><br />
passenger vehicles.<br />
• <strong>Tata</strong> Motors Finance is a 100 per cent subsidiary in the business <strong>of</strong> financing<br />
customers and channel partners <strong>of</strong> <strong>Tata</strong> Motors<br />
Jaguar Land Rover<br />
Jaguar Land Rover is a business built around two great British car brands with<br />
exceptional design and engineering capabilities. Jaguar Land Rover’s<br />
manufacturing facilities are in the UK.<br />
Areas <strong>of</strong> business<br />
Jaguar Cars, founded in 1922, is one <strong>of</strong> the world’s premier manufacturers <strong>of</strong><br />
luxury saloons and sports cars. Land Rover has been manufacturing 4x4s since<br />
1948. Its products have defined the segments in which they operate.<br />
Jaguar Land Rover’s manufacturing facilities are in the UK. The Jaguar Land<br />
Rover business employs over 16,000 people, predominantly in the UK, including<br />
some 3,500 engineers at two product development centres, in Whitley in Coventry<br />
and Gaydon in Warwickshire.
The Jaguar XF, XJ and XK models are manufactured at the company's Castle<br />
Bromwich plant in Birmingham, UK, while the Jaguar X-TYPE is produced<br />
alongside the Land Rover Freelander 2 at the Halewood plant in Liverpool, UK.<br />
Land Rover's Defender, Discovery 3, Range Rover Sport and Range Rover models<br />
are all built at Solihull, UK.<br />
The business is a major wealth generator for the UK, with 78 per cent <strong>of</strong> Land<br />
Rovers exported to 169 countries and 70 per cent <strong>of</strong> Jaguars exported to 63<br />
countries. Sales to customers are conducted principally through franchised dealers<br />
and importers.<br />
Location<br />
Jaguar Land Rover is based in the UK.<br />
Hooghly Met Coke and Power Company (HMCPC)<br />
Incorporated in 2005, Hooghly Met Coke and Power Company (HMCPC) is a joint<br />
venture involving <strong>Tata</strong> <strong>Steel</strong> and the West Bengal Industrial Development<br />
Corporation (WIBDC). <strong>Tata</strong> <strong>Steel</strong> holds a 98 per cent stake in the company<br />
Areas <strong>of</strong> business<br />
HMCPC is setting up a greenfield project at Haldia, West Bengal (in eastern India)<br />
with a proposed capacity <strong>of</strong> 1.6 million tonne <strong>of</strong> metallurgical coke. The project<br />
will supply metallurgical coke to the blast furnaces <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> at Jamshedpur,<br />
and for sale in the domestic and international market. Designed to meet stringent<br />
environmental norms, the plant’s waste heat will be harnessed for power<br />
generation by <strong>Tata</strong> Power Company.<br />
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Location<br />
The company’s headquarters is in Kolkata, India.<br />
INCAT<br />
INCAT is a global leader in engineering and design services outsourcing and IT<br />
services. Founded in 1989, the US-based company became a subsidiary <strong>of</strong> <strong>Tata</strong><br />
Technologies in 2005. It has more than 3,000 employees at facilities in North<br />
America, Europe and the Asia Pacific region.<br />
The company is engaged in product and information lifecycle management,<br />
engineering and design services, enterprise solutions and plant automation.<br />
Areas <strong>of</strong> business<br />
INCAT's services include product design, analysis and production engineering,<br />
knowledge-based engineering, product lifecycle management (PLM), enterprise<br />
resource planning and customer relationship management systems. It operates<br />
mainly in the aerospace, automotive and general manufacturing sectors.<br />
The <strong>org</strong>anisation also distributes, implements and supports PLM products from<br />
leading solution providers such as IBM, Dassault Systèmes, UGS and Autodesk.<br />
Location<br />
INCAT’s main <strong>of</strong>fices are in Michigan (USA), Pune (India) and Stuttgart<br />
(Germany). Infiniti Retail operates a national chain <strong>of</strong> multi-brand electronics<br />
stores under the brand name Croma. It is a wholly owned subsidiary <strong>of</strong> <strong>Tata</strong> Sons,<br />
the holding company <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>.<br />
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The Croma chain<br />
The company has a technical and sourcing agreement with Australian retail giant<br />
Woolworths. Under the arrangement Infiniti Retail owns and runs retail operations<br />
in India while Woolworths provides technical support and strategic sourcing<br />
facilities through its global network.<br />
Areas <strong>of</strong> business<br />
The Croma chain <strong>of</strong> stores <strong>of</strong>fers, in different cities <strong>of</strong> India, a wide range <strong>of</strong><br />
consumer electronics products across categories and brands. The stores are spread<br />
over 12,000 to 20,000 sq ft and have more than 6,000 products and 180 brands in<br />
eight categories: home entertainment, small appliances, white goods, computers,<br />
communication, music, imaging and gaming s<strong>of</strong>tware<br />
.<br />
118
Location<br />
Infiniti Retail is headquartered in Mumbai.<br />
Jamshedpur Utilities and Services Company (Jusco<br />
The Jamshedpur Utilities and Services Company (Jusco) is India’s first private<br />
sector integrated civic services provider with a focus on water services.<br />
Jusco was formerly a part <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> and has been providing municipal services<br />
for Jamshedpur since 1907. It was hived <strong>of</strong>f as a separate company in 2003. Today<br />
the company works with several urban local bodies and is currently executing<br />
projects across the country in Kolkata, Haldia, Muzaffarpur, Bhopal, Gwalior,<br />
Bangalore, etc.<br />
Jusco is the only Indian water company to have received recognition for its<br />
contribution to the development <strong>of</strong> water sector on the Indian subcontinent by<br />
London-based Global Water Intelligence in 2008. The company is also the first<br />
Indian water company to receive the prestigious 5th Asia Water Management<br />
Excellence Award in 2008 for its contribution towards the development and<br />
improvement <strong>of</strong> the water industry in Asia.<br />
Areas <strong>of</strong> business<br />
• Water and waste water management: Operation and maintenance,<br />
construction, concession, etc <strong>of</strong> water and wastewater systems.<br />
• Power services: Operation, maintenance and distribution <strong>of</strong> power.<br />
• Planning, engineering and construction: Town planning, industrial<br />
construction and urban infrastructure.<br />
• Public health and horticulture services: Environmental management for<br />
healthy living.<br />
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Location<br />
Jusco is located in Jamshedpur, India.<br />
Landmark<br />
Landmark is one <strong>of</strong> the leading retailers <strong>of</strong> books and music in India. Established<br />
in 1987 as a book retailer in India, it became a part <strong>of</strong> Trent, the <strong>Tata</strong> company that<br />
runs the Westside retail chain, in 2005.<br />
Areas <strong>of</strong> business<br />
Landmark, with over 100,000 book titles, has a wide range <strong>of</strong> books across<br />
different segments. It also has an extensive range <strong>of</strong> regional publications and a<br />
comprehensive selection <strong>of</strong> music. Its other products include magazines, home<br />
accessories, gift items and toys.<br />
The company has an online e-store called landmarkonthenet.com and its own<br />
distribution business (Westland) that supplies books to all Landmark stores as well<br />
as other retailers. The chain also acts as an event host for book launches and<br />
promotions, quiz shows, music promotions, etc.<br />
Location<br />
Landmark is headquartered in Chennai and has stores in Ahmedabad, Bangalore,<br />
Chennai, Gurgaon, Lucknow, Mumbai, Pune and Vadodra.<br />
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Mount Everest Mineral Water (MEMW)<br />
Mount Everest Mineral Water (MEMW) became a part <strong>of</strong> <strong>Tata</strong> Tea in 2007. The<br />
company bottles and sells natural mineral water under the brand name Himalayan,<br />
which is the only internationally accepted natural mineral water from India.<br />
Areas <strong>of</strong> business<br />
MEMW sources its water directly from an underground aquifer located about 130<br />
metres below the earth's surface in the Shivalik range <strong>of</strong> the Himalayas. Himalayan<br />
is bottled at source.<br />
The company's clientele includes luxury hospitality chains, premium airliners,<br />
multiplexes and restaurants.<br />
Location<br />
The company's bottling plant is at Dhaula Kuan in Himachal Pradesh, India.<br />
Nat <strong>Steel</strong><br />
Nat <strong>Steel</strong> Asia is the leading provider <strong>of</strong> steel in the Asia Pacific region. It has<br />
in seven countries:<br />
Singapore, China, Thailand, Vietnam, Malaysia, the Philippines and Australia. The<br />
Singapore-based company produces about 2 million tonnes <strong>of</strong> premium steel<br />
products. Nat<strong>Steel</strong> became a part <strong>of</strong> <strong>Tata</strong> <strong>Steel</strong> in 2005.<br />
121
Areas <strong>of</strong> business<br />
The company makes reinforcement bars, wire rods, wire mesh, prefabricated<br />
cages, steel couples and ecomas starter bar systems.<br />
Joint ventures, subsidiaries, associates<br />
• Singapore: NatFerrous Pte; Nat<strong>Steel</strong> Trade International<br />
• Australia: Best Bar Pty; Nat<strong>Steel</strong> Australia Pty<br />
• China: Wuxi Jinyang Metal Products ; Nat<strong>Steel</strong> (Xiamen)<br />
• Indonesia: PT Material Recycling Indonesia<br />
• Malaysia: Easteel Services (Malaysia) Sdn Bhd; Southern <strong>Steel</strong> Bhd<br />
• Philippines: <strong>Steel</strong> Asia Manufacturing Corp<br />
• Thailand: The Siam Industrial Wire<br />
• Vietnam: Nat <strong>Steel</strong> Vina<br />
• United Arab Emirates: Middle East FZE<br />
Location<br />
The company is based in Singapore.<br />
Nelco<br />
Nelco is focused on system integration, automation and product management<br />
solutions for industrial controls, power electronics, defence electronics and VSAT<br />
networks.<br />
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The company was established in 1940 to manufacture consumer electronic<br />
products for the Indian market. It now specialises in the areas <strong>of</strong> security and<br />
surveillance for defence and civil applications, traction, electronics for<br />
locomotives, SCADA (supervisory control and data acquisition system) projects,<br />
drives and automation, real-time and embedded s<strong>of</strong>tware, and VSAT-based<br />
networks.<br />
Areas <strong>of</strong> business<br />
Nelco caters to core industries such as defence, railways, steel, cement,<br />
automobile, oil and gas, paper and ceramics. The company operates the following<br />
business units:<br />
• Strategic electronics: Provides electronic-based solutions in the security and<br />
surveillance sectors, including intrusion detection systems, e-fencing systems,<br />
integrated security solutions, scanners, explosive detectors and weather<br />
management systems.<br />
• Building management systems: Integrated building management systems,<br />
including HVAC controls, fire alarms, access controls and CCTV.<br />
• Energy network management systems: Develops and supplies SCADA<br />
systems for sectors such as electrical utilities, railways, water distribution, steel<br />
plants, oil and gas industries.<br />
• Traction electronics: Provides power electronics equipment to various works<br />
<strong>of</strong> the Indian Railways for passenger and freight AC locomotives.<br />
• Drives: Provides medium and low voltage AC drives for industrial use.<br />
• <strong>Tata</strong>net network solutions: Provides VSAT-based networking solutions such<br />
as internet over VSAT, bandwidth on demand, interactive distance learning, IP<br />
multicast and digital streaming. Also delivers server co-location and managed<br />
services facilities.<br />
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Joint ventures, subsidiaries, associates<br />
• Nelito Systems: A joint venture with Itochu, Japan.<br />
• <strong>Tata</strong>net Services: Operates the <strong>Tata</strong>net VSAT network<br />
Location<br />
Nelco is based in Mumbai, with a manufacturing plant at Navi Mumbai. It has a<br />
countrywide sales and service network.<br />
North Delhi Power (NDPL)<br />
North Delhi Power (NDPL) is a power distribution company that operates in Delhi,<br />
India. The company was set up as a 51:49 joint venture between <strong>Tata</strong> Power and<br />
the government <strong>of</strong> Delhi in 2002. NDPL has a consumer base <strong>of</strong> over 1 million<br />
customers and supplies a peak load <strong>of</strong> 1,150mw.<br />
NDPL is a member <strong>of</strong> the UN Global Compact Charter. It is also a certified ISO<br />
9001, ISO 14001 and OHSAS 18001 company, with a commitment to safety and<br />
environment issues.<br />
Areas <strong>of</strong> business<br />
The company supplies power over a geographical area <strong>of</strong> more than 500sq km. It<br />
has instituted several customer-centric initiatives such as online bill payment,<br />
automated bill payment kiosks and complaint management systems.<br />
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Location<br />
The company is located in Delhi, India.<br />
Rallis India<br />
Rallis India is one <strong>of</strong> India’s leading agrochemicals companies. It has more than<br />
150 years <strong>of</strong> experience in servicing rural markets and a comprehensive portfolio<br />
<strong>of</strong> pesticides, herbicides, fungicides and plant nutrients for Indian farmers.<br />
The company has factories in five locations in India and a network <strong>of</strong> 1,500<br />
distributors that reach more than 40,000 retail counters. It has the largest<br />
agrochemicals capacity in the country (10,000 tonnes per annum <strong>of</strong> technical grade<br />
pesticides and 30,000 tonne litres per annum <strong>of</strong> formulations).<br />
Areas <strong>of</strong> business<br />
• The domestic formulation business caters to the crop protection and yield<br />
enhancement needs <strong>of</strong> the Indian farmers through a wide portfolio <strong>of</strong> products,<br />
including insecticides, fungicides, herbicides, plant-growth nutrients and seeds.<br />
• The domestic institutional business caters to the bulk and technical<br />
requirements <strong>of</strong> institutional customers.<br />
• The international business handles exports <strong>of</strong> pesticides to all parts <strong>of</strong> the<br />
world. The export basket includes technical-grade pesticides, branded formulations<br />
and contract-manufactured products<br />
Location<br />
The company’s head <strong>of</strong>fice is in Mumbai. Plants are located at Akola, Lote,<br />
Turbhe, Ankleshwar and Patancheru, all in India.<br />
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<strong>Tata</strong> Africa Holdings<br />
<strong>Tata</strong> Africa Holdings is the main promoter company <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> in Africa.<br />
The company is responsible for identifying development opportunities and<br />
promoting new projects. A subsidiary <strong>of</strong> <strong>Tata</strong> International, it was established in<br />
Johannesburg, South Africa in 1994.<br />
<strong>Tata</strong> Africa operates in several business sectors across Africa and has entered into<br />
joint ventures and partnerships with several African companies. <strong>Tata</strong> Africa has<br />
<strong>of</strong>fices in Ghana, Kenya, Malawi, Mozambique, Nigeria, Senegal, South Africa,<br />
Tanzania, Uganda, Zambia and Zimbabwe<br />
Areas <strong>of</strong> business<br />
Employing over 750 people, the company operates in many industrial sectors,<br />
among them automobiles, steel and engineering, chemicals, information<br />
technology, hospitality, food and beverages and farming. The company is also<br />
interested in energy and mining.<br />
Joint ventures, subsidiaries, associates<br />
Some <strong>of</strong> the major <strong>Tata</strong> Africa companies are: <strong>Tata</strong> Zambia, <strong>Tata</strong> Zimbabwe, <strong>Tata</strong><br />
Holdings Moçambique Lda, <strong>Tata</strong> Holdings (Tanzania), <strong>Tata</strong> Africa Holdings (SA)<br />
and <strong>Tata</strong> Ghana.<br />
Location<br />
<strong>Tata</strong> Africa Holdings is headquartered in Johannesburg, South Africa.<br />
<strong>Tata</strong> Africa Holdings<br />
<strong>Tata</strong> Africa Holdings, established in 2005, is an joint venture between <strong>Tata</strong> <strong>Steel</strong><br />
and BlueScope <strong>Steel</strong> for manufacturing and marketing products in coated steel,<br />
steel-building solutions and related building products.<br />
126
Based in Australia, BlueScope <strong>Steel</strong> is the global leader in high-quality metallic<br />
coated and painted steel products for building and construction, general<br />
manufacturing and the automotive sector.<br />
Areas <strong>of</strong> business<br />
<strong>Tata</strong> BlueScope <strong>Steel</strong> has two business divisions: buildings solutions and coated<br />
steel. The building solutions business markets pre-engineered buildings, rollformed<br />
ro<strong>of</strong> and wall-cladding solutions and related building components; the<br />
coated steel business markets metallic coated and pre-painted steel for the building<br />
and construction industry.<br />
Location<br />
The company’s head <strong>of</strong>fice is in Pune, India. The building solutions division has<br />
three manufacturing facilities, at Pune, Chennai and Bhiwadi, and a network <strong>of</strong> 20<br />
sales <strong>of</strong>fices.<br />
<strong>Tata</strong> BP Solar India<br />
<strong>Tata</strong> BP Solar India <strong>of</strong>fers innovative solar solutions that cater to the needs <strong>of</strong><br />
individual customers, large institutions and communities. The company was set up<br />
in 1989 as a joint venture between <strong>Tata</strong> Power and BP Solar, one <strong>of</strong> the largest<br />
solar energy companies in the world.<br />
More than 60 per cent <strong>of</strong> company sales come from exports, mostly to Europe and<br />
America.<br />
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Areas <strong>of</strong> business<br />
<strong>Tata</strong> BP Solar provides customised solar solutions for:<br />
• Homes, streets and communities.<br />
• The pumping <strong>of</strong> water for irrigation.<br />
• Heating <strong>of</strong> water for residential and commercial applications.<br />
• Road-safety aids.<br />
• The building <strong>of</strong> integrated photovoltaic capacities.<br />
Location<br />
The company’s head <strong>of</strong>fice and manufacturing facilities are in Bangalore.<br />
<strong>Tata</strong> Capital<br />
<strong>Tata</strong> Capital is a finance company that fulfills the financial needs <strong>of</strong> retail and<br />
institutional customers in India. It was established in 2007 as a wholly owned<br />
subsidiary <strong>of</strong> <strong>Tata</strong> Sons and is registered with the Reserve Bank <strong>of</strong> India as a<br />
systemically important non-deposit taking non-banking financial company<br />
(NBFC).<br />
The company is focused on providing multiple financial services through an<br />
extensive network <strong>of</strong> over 1,000 customer touch-points covering tier I, tier II and<br />
tier III cities.<br />
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Areas <strong>of</strong> business<br />
<strong>Tata</strong> Capital has financial products and services in the following seven sectors:<br />
1. Distribution and broking: Third-party investment products, equity and<br />
commodity trading for retail and institutional customers.<br />
2. Retail finance: Passenger and commercial vehicle loans, used car loans,<br />
personal loans, home loans, credit cards and consumer durable loans for retail<br />
customers.<br />
3. Commercial finance: Financial products for small and medium enterprises,<br />
and project finance for capital equipment and infrastructure.<br />
4. Investment banking: Advisory and debt and equity market products for<br />
corporate and small and medium enterprises.<br />
5. Private equity: Investments in India and other countries.<br />
6. Wealth management: Suite <strong>of</strong> advisory and investment <strong>of</strong>ferings for high net<br />
worth individuals.<br />
7. Rural finance: Relevant financial products for rural customers, including<br />
financing <strong>of</strong> farm equipment, agricultural inputs and agricultural enterprises.<br />
The company has entered into an understanding with Japan-based Mizuho<br />
Securities Co to promote an alliance in private equity, investment banking<br />
including cross border merger and acquisition, securities business including<br />
broking and distribution, structured finance and other business areas such as wealth<br />
management. It has also entered into an understanding with Equifax Inc and<br />
CRISIL to develop plans to create a credit information company in India.<br />
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Joint ventures, subsidiaries, associates<br />
• <strong>Tata</strong> Securities (TSL): A wholly owned subsidiary <strong>of</strong> <strong>Tata</strong> Capital Limited<br />
engaged in retail and institutional distribution and broking. TSL distributes thirdparty<br />
investment products and <strong>of</strong>fers stock broking services <strong>of</strong> buying, selling or<br />
dealing in securities, including futures and options, in its capacity as a member <strong>of</strong><br />
the Bombay Stock Exchange and the National Stock Exchange. TSL is also a<br />
depository participant.<br />
• <strong>Tata</strong> Capital Markets (TCML): A wholly owned subsidiary <strong>of</strong> <strong>Tata</strong> Capital<br />
engaged in debt and equity capital markets and M&A advisory. TCML has a<br />
category I merchant banking license from the Securities and Exchange Board <strong>of</strong><br />
India.<br />
• e-Nxt: A KPO unit specialising in the area <strong>of</strong> financial services; owned by<br />
<strong>Tata</strong> Capital, <strong>Tata</strong> Sons and others.<br />
• <strong>Tata</strong> Capital also owns around 4 per cent <strong>of</strong> equity capital <strong>of</strong> Development<br />
Credit Bank, a growing private sector bank.<br />
Location<br />
The company is headquartered in Mumbai, India.<br />
<strong>Tata</strong> Ceramics<br />
<strong>Tata</strong> Ceramics produces and sells fine-bone china crockery and tableware in India<br />
and other markets. The company was incorporated in 1991 and is an associate<br />
company <strong>of</strong> <strong>Tata</strong> Power.<br />
The company's products are exported to Australia, Canada, Germany, Ireland,<br />
Italy, South Korea, New Zealand, the UK and the US. It also sells to institutional<br />
customers.<br />
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Areas <strong>of</strong> business<br />
The company's range includes hollow ware, flat ware and mugs in fine-bone china<br />
and fine china, in an international range <strong>of</strong> designs. The china is sold to reputed<br />
brands such as Wedgewood, Royal Doulton and Churchill.<br />
Location<br />
The <strong>Tata</strong> Ceramics factory is in Kochi, Kerala (southern India).<br />
<strong>Tata</strong> Chemicals (TCL<br />
<strong>Tata</strong> Chemicals (TCL) is the second largest producer <strong>of</strong> soda ash in the world. It is<br />
India's market leader in the branded and iodised salt segment as well as in urea and<br />
phosphatic fertilisers.<br />
Established in 1939 at Mithapur in the Indian state <strong>of</strong> Gujarat, TCL has, over the<br />
last few years, invested in increasing its stake in the global soda ash business. It<br />
has acquired UK-based Brunner Mond group and American company General<br />
Chemical Industrial Products Inc, making the conglomerate the second largest soda<br />
ash producer in the world.<br />
The company also makes food additives and fertilisers and has a varied user<br />
industry base comprising glass, paper, textiles, food additives, petroleum, refining,<br />
chemicals, dyes, pesticides, direct farm application, etc. It exports to markets in<br />
Europe, Africa, South East Asia and the Middle East.<br />
Areas <strong>of</strong> business<br />
• Chemicals: The range <strong>of</strong> chemicals produced at the company’s integrated<br />
complex at Mithapur includes soda ash, caustic soda, salt, cement, sodium<br />
bicarbonate, bromine and bromine based compounds and gypsum.<br />
• Fertilisers: The company manufactures nitrogenous fertilisers at the Babrala<br />
plant. The company’s plant at Haldia produces phosphatic fertilisers like diammonium<br />
phosphate, NPK complexes and single super phosphate.<br />
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• Food additives: TCL’s food additives business has two premium products:<br />
branded salt and sodium bicarbonate. TCL manufactures four varieties <strong>of</strong> salt,<br />
iodised salt, crystalline salt, vacuum salt and pure salt, and has over 40 per cent<br />
market share in the branded salt segment in India.<br />
• Agri-services: The company has set up a network <strong>of</strong> <strong>Tata</strong> Kisan Sansars (or<br />
<strong>Tata</strong> farmer centres) in the northern Indian states <strong>of</strong> Uttar Pradesh, Punjab,<br />
Haryana and Uttaranchal. The centres are one-stop resource centres for farmers<br />
Joint ventures, subsidiaries, associates<br />
• Brunner Mond group: The UK-based company is Europe's second largest<br />
soda ash business; acquired in 2006.<br />
• General Chemical Industrial Products Inc: US-based soda ash manufacturer;<br />
acquired in 2008.<br />
• Khet Se Agriproduce India: A 50:50 joint venture set up in 2007 with Total<br />
Produce, Ireland, the third largest fruits and vegetable distribution company in the<br />
world, to start a fruits and vegetables distribution business in India.<br />
• Indo Maroc Phosphore SA: An equal partnership with Chambal Fertilisers<br />
and global phosphate major, OCP <strong>of</strong> Morocco; set up in 2005.<br />
Location<br />
TCL is headquartered in Mumbai, India. The soda ash plants are located in India,<br />
the UK, Kenya, the Netherlands and the US. TCL's cement and salt facilities are in<br />
Mithapur, the nitrogenous fertiliser facility is in Babrala and the phosphatic<br />
fertiliser plant is in Haldia.<br />
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<strong>Tata</strong> Power Trading Company (TPTC)<br />
<strong>Tata</strong> Power Trading Company (TPTC) is in the business <strong>of</strong> trading power units in<br />
India. It was incorporated in 2003 as a wholly owned subsidiary <strong>of</strong> the <strong>Tata</strong> Power<br />
Company, with an equity capital <strong>of</strong> Rs2 crore. TPTC was the first company in<br />
India to receive a power trading licence from the Central Electricity Regulatory<br />
Commission, back in June 2004.<br />
Areas <strong>of</strong> business<br />
TPTC was initially allotted a category ‘A’ licence, which restricted it to trades up<br />
to 100 MUs. This licence was elevated to category ‘F’ to cater to the requirements<br />
<strong>of</strong> a growing business. The company can now, by enhancing its equity base to<br />
Rs20 crore, trade in higher volumes without any upper limit.<br />
TPTC sources surplus power from various states and private-sector power<br />
generation utilities, captive power plants and state-owned electricity boards. Its<br />
trading partners include the Maharashtra State Electricity Board, the Madhya<br />
Pradesh State Electricity Board, the West Bengal State Electricity Board, the<br />
Power and Electricity Department <strong>of</strong> Government <strong>of</strong> Mizoram, the Damodar<br />
Valley Corporation, the Haryana Power Generation Corporation and Delhi<br />
Transco.<br />
Location<br />
TPTC has its <strong>of</strong>fice in Mumbai.<br />
<strong>Tata</strong> Sky<br />
<strong>Tata</strong> Sky, an 80:20 joint venture between <strong>Tata</strong> Sons and the Star group, provides<br />
satellite television services to Indian viewers. The company was incorporated in<br />
2004 and <strong>of</strong>fers a range <strong>of</strong> media and entertainment options to customers.<br />
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Areas <strong>of</strong> business<br />
<strong>Tata</strong> Sky's direct-to-home satellite platform delivers more than 100 television<br />
channels, movies and interactive services for games, learning, recipes, news, chat<br />
rooms, etc. It has state-<strong>of</strong>-the-art digital infrastructure and a retail network that<br />
covers more than 4,500 towns in India<br />
Location<br />
Based in Mumbai, the company has three call centres (Pune, Chandigarh and<br />
Hyderabad).<br />
The <strong>Tata</strong> Tea<br />
The <strong>Tata</strong> Tea group is the world’s second largest global branded tea operation with<br />
a presence in over 60 countries. The prominent companies in the group are <strong>Tata</strong><br />
Tea, the UK-based Tetley group and <strong>Tata</strong> C<strong>of</strong>fee.<br />
Set up in 1964 as a joint venture with the UK-based James Finlay and Company,<br />
the group has operations in branded tea, bulk tea, c<strong>of</strong>fee and other beverages, and<br />
also has plantations. The <strong>Tata</strong> Tea brand leads in volume market share in India<br />
while the Tetley brand is the second-largest teabag brand in the world. The group<br />
has interests in South African tea company Joekels Tea Packers and Polish tea<br />
brands Vitax and Flosana.<br />
Areas <strong>of</strong> business<br />
• Branded tea: The company has five major brands in the Indian market —<br />
<strong>Tata</strong> Tea, Tetley, Kanan Devan, Chakra Gold and Gemini — catering to all major<br />
consumer segments for tea. <strong>Tata</strong> Tea’s distribution network in the country caters to<br />
over 1.2 million retail outlets.<br />
• Specialty tea: <strong>Tata</strong> Tea sells black, green, fruit and herbal teas under the<br />
brands <strong>of</strong> Tetley, Good Earth and JEMCA.<br />
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• Instant tea: <strong>Tata</strong> Tetley has an export unit that sells a range <strong>of</strong> instant tea<br />
powders in the US.<br />
• C<strong>of</strong>fee: <strong>Tata</strong> C<strong>of</strong>fee produces 9,000 million tonnes <strong>of</strong> instant and ground<br />
c<strong>of</strong>fee annually. It has an exclusive stocking arrangement with the Barista range <strong>of</strong><br />
c<strong>of</strong>fee bars. Eight O'Clock C<strong>of</strong>fee is the third-largest c<strong>of</strong>fee brand in the US.<br />
• Other beverages: Ready-to-drink teas, energy drinks and Himalayan branded<br />
mineral water are a part <strong>of</strong> <strong>Tata</strong> Tea's portfolio.<br />
• Plantation operations: The company has over 50 tea estates in India, as well<br />
as interests in Sri Lankan plantations.<br />
Joint ventures, subsidiaries, associates<br />
• Eight O’Clock C<strong>of</strong>fee: Acquired by <strong>Tata</strong> C<strong>of</strong>fee.<br />
• <strong>Tata</strong> C<strong>of</strong>fee: Formerly Consolidated C<strong>of</strong>fee, a subsidiary <strong>of</strong> <strong>Tata</strong> Tea.<br />
• <strong>Tata</strong> Tea Inc: A subsidiary <strong>of</strong> <strong>Tata</strong> Tea based in Florida, USA; supplies basic<br />
instant tea powders in bulk to manufacturers.<br />
• <strong>Tata</strong> Tetley: A subsidiary <strong>of</strong> <strong>Tata</strong> Tea; runs an export unit that supplies<br />
instant tea powders to the US.<br />
• Tetley <strong>Group</strong>: UK-based tea major; has worldwide branded tea operations.<br />
<strong>Tata</strong> Tea is also associated with the following companies:<br />
• Mount Everest Mineral Water Company: Producer <strong>of</strong> the Himalayan brand<br />
<strong>of</strong> bottled mineral water.<br />
• Watawala Plantations: <strong>Tata</strong> Tea has a substantial interest in this Sri Lankan<br />
plantation company.<br />
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• Kanan Devan Hills Plantation Company: Produces and manufactures black<br />
tea out <strong>of</strong> 18 estates in Kerala, India.<br />
• Zhejiang Tea Export and Import Company: <strong>Tata</strong> Tea has recently signed a<br />
joint venture contract with this Chinese company to manufacture polyphenols and<br />
instant tea extracts.<br />
Location<br />
The company is headquartered in Kolkata, India. It has plants and facilities in the<br />
UK, the US, Australia, Canada, Poland, Russia, Pakistan, Bangladesh and South<br />
Africa.<br />
<strong>Tata</strong> Technologies<br />
<strong>Tata</strong> Technologies iKS is the world's leading provider <strong>of</strong> engineering knowledge<br />
and training. Established more than 15 years ago, iKnowledge Solutions (formerly<br />
Cadpo) became a subsidiary <strong>of</strong> <strong>Tata</strong> Technologies in 2006.<br />
Renamed <strong>Tata</strong> Technologies iKS, the company provides solutions related to the<br />
acquisition, distribution, certification and verification <strong>of</strong> engineering knowledge to<br />
the world's top manufacturing <strong>org</strong>anisations. The company is internationally<br />
known for its flagship product — i get itTM, an online learning system used by<br />
more than 90,000 members and 5,000 enterprises<br />
Areas <strong>of</strong> business<br />
TM is a comprehensive online learning system that provides engineering<br />
knowledge delivery for AutoCAD, Inventor, SolidWorks, Solid Edge, UG /NX,<br />
Pro / ENGINEER Wildfire, Teamcenter, COSMOSWorks and CATIA on a single<br />
delivery platform.<br />
The company also <strong>of</strong>fers iCHECK, a product that addresses data quality and<br />
standards compliance, and knowledge-based engineering products.<br />
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Location<br />
The company has <strong>of</strong>fices in Singapore, New Delhi, India and Ireland. Its<br />
headquarters is in Colorado, USA.<br />
Tayo Rolls<br />
Tayo Rolls is a market leader in the manufacture and supply <strong>of</strong> cast and f<strong>org</strong>ed<br />
steel rolls. The company was promoted in 1968 by <strong>Tata</strong> <strong>Steel</strong> in collaboration with<br />
Japanese companies Yodogawa <strong>Steel</strong> Works and Nissho Iwai Corporation (since<br />
merged with Sojitz Corporation).<br />
Tayo Rolls manufactures state-<strong>of</strong>-the-art rolls for modern flat and long product<br />
rolling mills. Its customers include key integrated steel plants and rolling mills, the<br />
paper, rubber, textile and food processing sectors, and the government mint. It has<br />
also been exporting rolls to Australia, Austria, Bangladesh, Belgium, Canada,<br />
Egypt, Germany, Indonesia, Kazakhstan, Nepal, Norway, New Zealand, Oman,<br />
Qatar, Saudi Arabia, Sweden, Singapore , South Africa, Trinidad, Taiwan, UAE,<br />
Romania, Czech Republic and the US.<br />
Areas <strong>of</strong> business<br />
Tayo Rolls is a one-stop shop for both cast and f<strong>org</strong>ed rolls. The company has<br />
diversified into the production <strong>of</strong> special castings for use in power plants. As a part<br />
<strong>of</strong> its backward integration, Tayo Rolls has set up a mini blast furnace <strong>of</strong> 40,000<br />
tpa for the manufacture <strong>of</strong> pig iron.<br />
Tayo has a license and know-how agreement with Sheffield F<strong>org</strong>emasters<br />
International, UK, for the transfer <strong>of</strong> technology to manufacture f<strong>org</strong>ing quality<br />
ingots, including round ingots, f<strong>org</strong>ed bars, engineering f<strong>org</strong>ings and f<strong>org</strong>ed rolls.<br />
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Location<br />
The company's plant is located at Gamaria, about 16km from Jamshedpur, in<br />
Jharkhand, India.<br />
The Tetley <strong>Group</strong><br />
The Tetley <strong>Group</strong> is an overseas subsidiary <strong>of</strong> <strong>Tata</strong> Tea. The group is in the<br />
worldwide branded and packaged tea business and Tetley is the second-largest<br />
teabag brand in the world. The group was acquired by <strong>Tata</strong> Tea in 2000.<br />
Tetley was established in 1837. Every year over 60 branded teas are blended and<br />
packed for sale in over 67 countries. Tetley is the UK’s favourite brand and is also<br />
the brand leader in Canada. The company, which introduced the teabag to the UK<br />
in 1953, has one <strong>of</strong> the largest teabag factories in the world.<br />
Areas <strong>of</strong> business<br />
Tetley makes a vast range <strong>of</strong> teas, including black teas, fruit and herbal teas, green,<br />
red, iced, <strong>org</strong>anic, decaffeinated and ready-to-drink teas.<br />
Joint ventures, subsidiaries, associates<br />
• Good Earth Corporation: A herbal and specialty tea business with an<br />
established base in the US west coast; acquired in 2005.<br />
• JEMCA: The leading tea company in the Czech Republic, with a strong<br />
portfolio <strong>of</strong> black, green and fruit and herbal teas; acquired in 2006.<br />
• Joekels Tea Packers: A South African tea company that manufactures and<br />
sells a strong portfolio <strong>of</strong> brands spanning the economy and mainstream tea<br />
sectors; acquired in 2006.<br />
• Vitax and Flosana brands: Leading brands in Poland; trademarks acquired in<br />
2007, making Tetley the No 2 brand in the Polish tea market.<br />
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Location<br />
The Tetley group has its headquarters in Greenford, West London. It has<br />
commercial operations in Australia, Canada, the Czech Republic, Poland and the<br />
US, tea-buying operations in Kenya and Malawi, and joint ventures in Pakistan and<br />
Bangladesh. The manufacturing facility is located at Eaglescliffe, near Darlington<br />
in the northeast <strong>of</strong> England.<br />
The Indian Hotels Company (IHCL)<br />
The Indian Hotels Company (IHCL) is India’s largest hospitality enterprise.<br />
Established in 1903, the company runs more than 70 hotels under its umbrella<br />
brand <strong>of</strong> Taj Hotels Resorts and Palaces in India and overseas.<br />
The latest additions to the Taj portfolio are The Pierre, New York's iconic hotel,<br />
the Taj Boston, Campton Place in San Francisco and the Blue in Sydney. Its<br />
flagship property continues to be the Taj Mahal Palace in Mumbai.<br />
IHCL is the main promoter company and owns about a third <strong>of</strong> the Taj group's<br />
inventory <strong>of</strong> rooms. In 1993, the company established the Indian Institute <strong>of</strong> Hotel<br />
Management in Aurangabad in Maharashtra in western India.<br />
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Areas <strong>of</strong> business<br />
The Taj group operates three business units: luxury hotels, leisure hotels and<br />
business hotels. Its other products include:<br />
• spa therapies under the brand name Taj Spas;<br />
• service apartments;<br />
• wildlife tourism in collaboration with CC Africa;<br />
• Taj Air, a luxury private jet operation, and Taj Yachts, three-bedroom luxury<br />
yachts;<br />
• airline catering services.<br />
Joint ventures, subsidiaries, associates<br />
• TajSats Air Catering: The largest airline catering service in South Asia and a<br />
joint venture with Singapore Airport Terminal Services, a subsidiary <strong>of</strong> Singapore<br />
Airlines.<br />
• Roots Corporation: A wholly owned subsidiary that operates the Ginger<br />
chain <strong>of</strong> budget hotels in India.<br />
Location<br />
IHCL’s head <strong>of</strong>fice is in Mumbai, India. Taj properties are located in Asia, the UK,<br />
the US, Australia and Africa.<br />
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Titan Industries<br />
Titan Industries, a manufacturing company, produces India's largest and bestknown<br />
range <strong>of</strong> personal accessories: watches, jewellery, sunglasses and<br />
prescription eye wear. The company was established in 1984 as a joint venture<br />
between the <strong>Tata</strong> <strong>Group</strong> and Tamil Nadu Industrial Development Corporation. It<br />
has, since then, grown to become the largest watch manufacturer in India and the<br />
sixth largest in the world.<br />
Areas <strong>of</strong> business<br />
Titan has four main business units: watches, jewellery, eyewear and precision<br />
engineered components.<br />
• Watches: Titan currently has four main watch brands. The flagship brand is<br />
Titan and there are a number <strong>of</strong> sub-brands that cater to strong customer segments.<br />
The company also markets Tommy Hilfiger and Hugo Boss products under<br />
licensing arrangements. Titan's after sales service is a benchmarked operation, with<br />
a network <strong>of</strong> 750 service centres. The company has a world-class design studio for<br />
watches and accessories.<br />
• Jewellery: Tanishq is India's largest jewellery brand, <strong>of</strong>fering a range <strong>of</strong> gold<br />
and platinum jewellery, embellished with precious stones. It is available in more<br />
than 100 boutiques in 70 cities across India. The jewellery division has an<br />
exclusive design studio.<br />
• Eyewear: Eye+ is Titan's new division, selling Fastrack sunglasses and a<br />
range <strong>of</strong> prescription eyewear (frames, lenses, sunglasses, accessories and contact<br />
lenses).<br />
• Precision engineering division: This unit supplies precision components to<br />
the avionics and the automotive industry. It also manufactures dashboard clocks<br />
for car manufacturers in Europe and America<br />
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Location<br />
Headquartered in Bangalore, India, Titan has manufacturing and assembly<br />
operations in Hosur (Karnataka), Dehradun (Uttarakhand), Roorkee (Uttarakhand)<br />
and Baddi (Himachal Pradesh) and a plant in Goa.<br />
The company has more than 200 exclusive showrooms across 112 Indian cities,<br />
making it one <strong>of</strong> the largest retail chains in the country.<br />
Virgin Mobile India<br />
Virgin Mobile India is a brand franchise association between the Virgin Mobile<br />
<strong>Group</strong> and <strong>Tata</strong> Teleservices to launch the Virgin Mobile brand <strong>of</strong> services in<br />
India. The <strong>org</strong>anisation was set up in 2007 to focus on telecom services for the<br />
youth market.<br />
The Virgin Mobile <strong>Group</strong> has created internationally recognised brands in mobile<br />
telephony, transportation, travel and leisure, and music. <strong>Tata</strong> Teleservices is one <strong>of</strong><br />
India's leading telecom service providers, with a customer base <strong>of</strong> over 23 million.<br />
Areas <strong>of</strong> business<br />
Virgin Mobile India will design, market and service Virgin Mobile products in<br />
India. The brand will be available in 20 telecom circles and will be serviced by<br />
nine centres across nine Indian cities.<br />
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Location<br />
The company is headquartered in New Delhi, India.<br />
Voltas<br />
Voltas is among India's leading air-conditioning, refrigeration and engineering<br />
services companies. Set up in 1954, its core competencies lie in air conditioning<br />
and cooling appliances and services.<br />
Voltas is India's largest supplier <strong>of</strong> engineering products and services for the textile<br />
machinery sector and is a major manufacturer <strong>of</strong> forklift trucks. It provides<br />
solutions in turnkey pumping projects for water, effluent and sewage treatment,<br />
and water pollution control. The company has ISO 9001-2000 certification and has<br />
executed projects in the Middle East, Southeast Asia, Central Asia, Africa and<br />
Europe.<br />
Areas <strong>of</strong> business<br />
The company mainly operates in the following areas:<br />
• Heating, ventilation and air-conditioning (HVAC) solutions: Includes the<br />
entire range <strong>of</strong> mechanical, electrical and plumbing services for a diverse range <strong>of</strong><br />
applications, spanning <strong>of</strong>fice complexes, airports, malls, mercantile ships, atomic<br />
energy plants, IT parks, hospitals, etc.<br />
• Cooling appliances: Design, manufacture and marketing <strong>of</strong> a range <strong>of</strong> air<br />
conditioners and water coolers for household and institutional use.<br />
• Engineering products and services: Design, sourcing, installation, training,<br />
maintenance, etc <strong>of</strong> engineering products and services in the fields <strong>of</strong> textile<br />
machinery, machine tools, mining and construction equipment and materials<br />
handling equipment.<br />
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• Chemicals: Import and distribution <strong>of</strong> an array <strong>of</strong> industrial, specialty and<br />
pharmaceutical chemicals, industrial plastics and bulk drugs. The company also<br />
exports gelatine, ultramarine blue and agrochemicals.<br />
Joint ventures, subsidiaries, associates<br />
Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice<br />
Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and<br />
Auto Aircon (India).<br />
Location<br />
Voltas has its head <strong>of</strong>fice in Mumbai and regional <strong>of</strong>fices in several major cities in<br />
India. Its overseas <strong>of</strong>fices are in Abu Dhabi (UAE), Hong Kong and Singapore.<br />
The company has factories at Thane (Maharashtra), the union territory <strong>of</strong> Dadra<br />
and Sanathnagar (Andhra Pradesh), all in India.<br />
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Market capitalisation <strong>of</strong> <strong>Tata</strong> companies<br />
Market capitalisation <strong>of</strong> 13 <strong>Tata</strong> <strong>Group</strong> companies as on 8th October<br />
Name <strong>of</strong> the Company Rs. Cr $ billion<br />
<strong>Tata</strong> Consultancy Services 53,490 11.1<br />
<strong>Tata</strong> Elxsi 323 0.1<br />
<strong>Tata</strong> Communications 13,144 2.7<br />
<strong>Tata</strong> Motors 11,564 2.4<br />
Voltas 2,396 0.5<br />
<strong>Tata</strong> <strong>Steel</strong> 24,716 5.1<br />
Taj Hotels, Resorts and<br />
Palaces<br />
145<br />
3,508 0.7<br />
<strong>Tata</strong> Power 17,492 3.6<br />
<strong>Tata</strong> Tea 3,831 0.8
Titan 3,955<br />
Trent 754 0.2<br />
<strong>Tata</strong> Chemicals 4,005 0.8<br />
Rallis 485 0.1<br />
Note: Exchange rate $ = Rs48.00<br />
146<br />
0.8
INNOVATION<br />
Overview<br />
In the last few years the <strong>Tata</strong> <strong>Group</strong> has extended its global footprint,<br />
just as it has enhanced its performance and competitiveness. One <strong>of</strong><br />
the key drivers <strong>of</strong> this critical transition has been innovation<br />
The <strong>Group</strong> looks at innovation as a strategic approach to global growth and has<br />
adopted a three-pronged strategy to encourage it. The three key drivers are better<br />
communication and recognition <strong>of</strong> innovative ideas and efforts; facilities for<br />
learning from other companies; and support for collaborative research and<br />
partnerships with academic institutions.<br />
Communication and recognition<br />
A number <strong>of</strong> initiatives have been launched to spread the message <strong>of</strong> innovation<br />
and recognise innovators:<br />
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• <strong>Tata</strong> <strong>Group</strong> Innovation Forum (TGIF): This initiative brings together a<br />
community <strong>of</strong> ‘innovation enthusiasts’ from across <strong>Tata</strong> companies. The role<br />
<strong>of</strong> TGIF members is to assist their companies in experimenting with ideas,<br />
propagate the relevant ones and spread them through the enterprise.<br />
• Innovation workshops: <strong>Tata</strong> Quality Management Services invites experts<br />
to talk about various aspects <strong>of</strong> innovation and share best practices with <strong>Tata</strong><br />
managers. Clayton Christensen, Langdon Morris and David Wittenberg are<br />
among those who have held such workshops in the recent past.<br />
• <strong>Tata</strong> Innovation Day: Instituted to encourage creative thinking, this annual<br />
event and contest recognises and awards innovation among <strong>Group</strong><br />
companies.<br />
• <strong>Tata</strong> Innovation Mission: Under this programme,senior <strong>Tata</strong> executives<br />
visit global companies to study how they foster innovation.These missions<br />
have visited companies such as Micros<strong>of</strong>t, Intel, HP and 3M in the US,and<br />
Nissan, Fuji, Ito En, Olympus, Toshiba and Hitachi in Japan
<strong>Tata</strong> <strong>Group</strong> Innovation Forum<br />
The objective <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong> Innovation Forum is to help create a<br />
culture that fosters innovation in <strong>Tata</strong> companies<br />
Managed by <strong>Tata</strong> Quality Management Services, the <strong>Tata</strong> <strong>Group</strong> Innovation<br />
Forum (TGIF) <strong>org</strong>anises a number <strong>of</strong> events and workshops to facilitate interaction<br />
among <strong>Tata</strong> companies and stimulate innovative thinking. TGIF members<br />
comprise senior executives <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>, innovation experts and<br />
academicians. The team is headed by R Gopalakrishnan, chairman <strong>of</strong> the forum,<br />
and has the following members:<br />
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• Homi Khusrokhan, <strong>Tata</strong> Chemicals<br />
• Bhaskar Bhat, Titan<br />
• R Ramanan, CMC<br />
• Vinayak Deshpande, <strong>Tata</strong> Teleservices<br />
• Clive Hickman, <strong>Tata</strong> Motors European Technical Centre<br />
• Satish Pradhan, <strong>Group</strong> HR<br />
• B Bowonder, <strong>Tata</strong> Management Training Centre<br />
• PS Viswanathan, <strong>Tata</strong> Consultancy Services<br />
• Murali Sastry, <strong>Tata</strong> Chemicals<br />
• B Shiva, <strong>Tata</strong> Consultancy Services<br />
• Sunil Sinha, <strong>Tata</strong> Quality Management Services<br />
• Ravi Arora, <strong>Tata</strong> Quality Management Services<br />
Innovation workshops<br />
TGIF invites academics and other experts in the field to conduct workshops and<br />
seminars which introduce new innovation concepts and tools and stimulate<br />
innovative thinking among <strong>Tata</strong> managers.
Thought leadership<br />
In order to capture and disseminate the learning from various initiatives, the <strong>Tata</strong><br />
Management Training Centre in Pune and the <strong>Group</strong> Publications unit at <strong>Tata</strong> Sons<br />
have been bringing out publications that feature innovation case studies from<br />
across the world, while also covering the <strong>Tata</strong> innovation missions to the US and<br />
Japan.<br />
Innovation awards<br />
TGIF celebrates ‘<strong>Tata</strong> Innovation Day’ to recognise innovators in the <strong>Tata</strong> <strong>Group</strong>.<br />
Technology and research clusters<br />
To create opportunities for technological innovation, TGIF brings together<br />
technologists and researchers from different <strong>Tata</strong> companies, and undertakes a<br />
technology mapping exercise.<br />
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COMPETITORS<br />
Reliance Power Limited,<br />
A part <strong>of</strong> the Reliance Anil Dhirubhai Ambani <strong>Group</strong>, was established to develop,<br />
construct and operate power projects in the domestic and international markets.<br />
Reliance Energy Limited, an Indian private sector power utility company along<br />
with the Anil Dhirubhai Ambani <strong>Group</strong> promotes Reliance Power.<br />
Along with its subsidiaries, it is presently developing 13 medium and large-sized<br />
power projects with a combined planned installed capacity <strong>of</strong> 28,200 MW.<br />
About the company<br />
The company was incorporated in January 1995 as Bawana Power Private Limited<br />
and changed its name to Reliance Delhi Power Private Limited in February 1995.<br />
Later, it changed its name to Reliance EGen Private Limited in January 2004, to<br />
Reliance Energy Generation Limited in March 2004, and to Reliance Power<br />
Limited in July 2007. [1]<br />
The company website identifies project sites broadly to be located in western India<br />
(12,220 MW), northern India (9,080 MW) and northeastern India (2,900 MW) and<br />
southern India (4,000 MW). They include six coal-fired projects (14,620 MW) to<br />
be fueled by reserves from captive mines and supplies from India and abroad, two<br />
gas-fired projects (10,280 MW) to be fueled primarily by reserves from the<br />
Krishna Godavari Basin (the "KG Basin") <strong>of</strong>f the east coast <strong>of</strong> India, and four<br />
hydroelectric projects (3,300 MW), three <strong>of</strong> them in Arunachal Pradesh and one in<br />
Uttarakhand.<br />
150
Business Pr<strong>of</strong>ile<br />
Reliance Power Limited is part <strong>of</strong> the Reliance Anil Dhirubhai Ambani <strong>Group</strong> and<br />
is established to develop, construct and operate power projects domestically and<br />
internationally. The Company on its own and through subsidiaries is currently<br />
developing 13 medium and large sized power projects with a combined planned<br />
installed capacity <strong>of</strong> 28,200 MW, one <strong>of</strong> the largest portfolios <strong>of</strong> power generation<br />
assets under development in India. Our 13 power projects are planned to be diverse<br />
in geographic location, fuel type, fuel source and <strong>of</strong>f-take, and each project is<br />
planned to be strategically located near an available fuel supply or load center. The<br />
identified project sites are located in western India (12,220 MW), northern India<br />
(9,080 MW) and northeastern India (2,900 MW) and southern India (4,000 MW).<br />
They include six coal-fired projects (14,620 MW) to be fueled by reserves from<br />
captive mines and supplies from India and abroad, two gas-fired projects (10,280<br />
MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the "KG<br />
Basin") <strong>of</strong>f the east coast <strong>of</strong> India, and four hydroelectric projects (3,300 MW),<br />
three <strong>of</strong> them in Arunachal Pradesh and one<br />
Uttarakhand. Reliance Power has acquired the two ultra mega power projects <strong>of</strong><br />
4,000 MW each at Sasan in Madhya Pradesh and Krishnapatnam in Andhra<br />
Pradesh. The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected<br />
to be the largest gas-fired power project at a single location in the world. We<br />
intend to sell the power generated by these projects under a combination <strong>of</strong> longterm<br />
and short-term PPAs to state-owned and private distribution companies and<br />
industrial consumers<br />
151
F<strong>org</strong>ing ahead, JSW <strong>Steel</strong> Ltd. is one among the largest Indian <strong>Steel</strong> Companies<br />
in India today.<br />
India’s third largest steelmaker, JSW <strong>Steel</strong> Ltd. consists <strong>of</strong> the most modern, ec<strong>of</strong>riendly<br />
steel plants with the latest technologies for both upstream & downstream<br />
processes. JSW <strong>Steel</strong> Ltd. has received all the three certificates<br />
152<br />
• Hot Rolled Product<br />
• Cold Rolled Product<br />
• Galvanised Product<br />
• Pre-painted Galvanised Product<br />
• Jindal Vishwas
Bharti Airtel<br />
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and<br />
the first private telecom services provider with a footprint in all the 23<br />
telecom circles. Bharti Airtel since its inception has been at the forefront <strong>of</strong><br />
technology and has steered the course <strong>of</strong> the telecom sector in the country<br />
with its world class products and services. The businesses at Bharti Airtel<br />
have been structured into three individual strategic business units (SBU’s) -<br />
Mobile Services, Airtel Telemedia Services & Enterprise Services. The<br />
mobile business provides mobile & fixed wireless services using GSM<br />
technology across 23 telecom circles while the Airtel Telemedia Services<br />
business <strong>of</strong>fers broadband & telephone services in 94 cities. The<br />
Enterprise services provide end-to-end telecom solutions to corporate<br />
customers and national & international long distance services to carriers.<br />
All these services are provided under the Airtel brand.<br />
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and<br />
the first private telecom services provider with a footprint in all the 23<br />
telecom circles. Bharti Airtel since its inception has been at the forefront <strong>of</strong><br />
technology and has steered the course <strong>of</strong> the telecom sector in the country<br />
with its world class products and services. The businesses at Bharti Airtel<br />
have been structured into three individual strategic business units (SBU’s) -<br />
Mobile Services, Airtel Telemedia Services & Enterprise Services. The<br />
mobile business provides mobile & fixed wireless services using GSM<br />
technology across 23 telecom circles while the Airtel Telemedia Services<br />
business <strong>of</strong>fers broadband & telephone services in 94 cities. The<br />
Enterprise services provide end-to-end telecom solutions to corporate<br />
customers and national & international long distance services to carriers.<br />
All these services are provided under the Airtel brand.<br />
153
Business Divisions<br />
MOBILE SERVICES<br />
Bharti Airtel <strong>of</strong>fers GSM mobile services in all the 23-telecom circles <strong>of</strong> India and<br />
is the largest mobile service provider in the country, based on the number <strong>of</strong><br />
customers.<br />
INTERNET<br />
The group <strong>of</strong>fers high speed broadband internet with a best in class network. With<br />
Landline services in 94 cities we help you stay in touch with your friends & family<br />
and the world<br />
The group focuses on delivering telecommunications services as an integrated<br />
<strong>of</strong>fering including mobile, broadband & telephone, national and international long<br />
distance and data connectivity services to corporate, small and medium scale<br />
enterprises.<br />
The Company compliments its mobile and broadband & telephone services with<br />
national and international long distance services. It has over 35,016 route<br />
kilometers <strong>of</strong> optic fibre on its national long distance network. For international<br />
connectivity to east, it has a submarine cable landing station at. For international<br />
connectivity to the west, the Company is a member <strong>of</strong> the South East Asia-Middle<br />
East-Western Europe – 4 (SEA-ME-WE-4) consortium along with 15 other global<br />
telecom operators.<br />
154
EXPORT<br />
Exports surpass target in 2007-08<br />
India succeeded in surpassing its export target <strong>of</strong> $160 billion in the last<br />
fiscal (2007-08), as per the latest date released by the Directorate General<br />
<strong>of</strong> Commercial Intelligence and Statistics.<br />
The cumulative value <strong>of</strong> exports for 2007-08 stood at $162.9 billion,<br />
registering a growth <strong>of</strong> 29.02 per cent over the same period last year, while<br />
in rupee terms, it reached a level <strong>of</strong> Rs. 6.55-lakh crore as against Rs. 5.71lakh<br />
crore, a growth <strong>of</strong> 14.71 per cent.<br />
Major drivers<br />
The major drivers <strong>of</strong> exports during the period were engineering goods<br />
(27.34 per cent), petroleum products (51.97 per cent), gems and jewellery<br />
(23.27 per cent), agriculture and allied products (55.51 per cent) and ores<br />
and minerals (30.34 per cent).<br />
Exports <strong>of</strong> textiles, handicrafts and sports goods, which were badly hit<br />
during 2006-07 due to appreciation <strong>of</strong> the rupee vis-a-vis the U.S. dollar<br />
since September 2006, showed improvement in their performance during<br />
the year, the data said.<br />
<strong>Tata</strong> Motors pr<strong>of</strong>it up at Rs1,913 crore<br />
<strong>Tata</strong> Motors has announced a net pr<strong>of</strong>it <strong>of</strong> Rs. 2,028.90 crore for 2007-08, an<br />
increase <strong>of</strong> 6 per cent over the previous year’s Rs. 1,913.46 crore.<br />
The company’s margins were under pressure during the year due to rising interest<br />
rates, constraints in availability <strong>of</strong> vehicle financing from outside sources and<br />
unprecedented increase in input prices. The company had focussed on cost<br />
reduction measures but there have been delays in the introduction <strong>of</strong> two new<br />
products, which are soon to be launched.<br />
155
Total sales volume (including exports) was at 5.86 lakh units (5.80 lakh units),<br />
which is the highest ever for the company. The company maintained its leadership<br />
position in commercial vehicles and was among the top three in the passenger<br />
vehicles, although it lost some market share. In the domestic market, commercial<br />
vehicle sales increased by 4.8 per cent to 3.13 lakh units and passenger vehicle<br />
sales declined by 4.5 per cent to 2.18 lakh units. Also, after six years <strong>of</strong><br />
consecutive growth, 2007-08 saw a 5.3 per cent decline in the company’s sales<br />
volume due to heightened competition and other factors.<br />
The company has maintained the dividend at Rs. 15 per share <strong>of</strong> Rs. 10 each for<br />
2007-08. .<br />
A new plant at Pant Nagar (in Uttarakhand) for Ace and the Magic range went on<br />
stream during 2007-08. Construction activity is on at Singur (in West Bengal) for<br />
<strong>Tata</strong> Nano and at Dharwad (in Karnataka) for buses to be made by the company’s<br />
joint venture, <strong>Tata</strong> Marcopolo Motors.<br />
The plants in Pune, Jamshedpur and Lucknow are undergoing expansion and<br />
modernisation.<br />
Addressing the media here on Wednesday, Ravi Kant, Managing Director, <strong>Tata</strong><br />
Motors, said the investment over the next four to five years would be Rs. 10,000<br />
crore.<br />
“We have plans to introduce around 100 product/variants over the next 4-5 years.<br />
The World Truck product will be launched by the end <strong>of</strong> this year and the platform<br />
will unfold over the next 12-15 months. It will be launched simultaneously in India<br />
and Korea. The bus plant at Dharwad will probably be the largest bus<br />
manufacturing facility in the world,” he said.<br />
Over the next 12-18 months, the company will be introducing variants <strong>of</strong> Ace,<br />
Marcopolo buses, the World Truck which is a medium and heavy commercial<br />
vehicle by <strong>Tata</strong> Daewoo, defence vehicles and ready to use solutions. Among the<br />
passenger vehicles, the company will introduce versions <strong>of</strong> Sumo Grande, a new<br />
Indica, Nano, Crossover, New Indigo, a new utility vehicle platform and the Fiat<br />
Punto and Fiat Linea from Fiat.<br />
156
Impact <strong>of</strong> LIBERALIZATION, GLOBALIZATION AND PRIVATIZATION on the Current and Future Business<br />
Prospectus<br />
Restructuring Initiatives- Successes and challenges<br />
As the initial europium <strong>of</strong> opening <strong>of</strong>f the company since 1991 subsided, corporate<br />
India was hit by the negative effects <strong>of</strong> facing up to global competition. Global<br />
deflation and reduced margins earlier strategies report that corporate India was left<br />
with only one option-restructure and cut costs or perish.<br />
History is full <strong>of</strong> examples <strong>of</strong> industrial groups that thrived in the industrial RAJ<br />
but failed to adjust to the competitive era <strong>of</strong> the liberalized economy. On the other<br />
hand, there were groups that restructured themselves and survived and have<br />
prospered in the greater freedom that they now enjoy. <strong>Tata</strong> group is one <strong>of</strong> them<br />
who had changed themselves according to the liberalization demand.<br />
<strong>Tata</strong> group is probably the best example <strong>of</strong> a group that has gone through<br />
substantial restructuring over the past few years and had survived the slowdown in<br />
economy and the lower margins. <strong>Tata</strong> group had three elements to restructuring the<br />
<strong>org</strong>anization:<br />
157<br />
1. Changing the group ethos: Restructuring <strong>of</strong> <strong>Tata</strong> group is more interesting<br />
because the issues were not only <strong>of</strong> adjusting to a different economic<br />
environment but also <strong>of</strong> trying to make a group more cohesive.
158<br />
A)Greater say in management <strong>of</strong> companies:<br />
The <strong>Tata</strong> group operated as a confederation <strong>of</strong> loose entities where the<br />
pr<strong>of</strong>essional management <strong>of</strong> each <strong>of</strong> the <strong>Tata</strong> companies in operation had total<br />
control on the companies and ran it as their felfdom.<br />
b) Raising ownership limits: The <strong>Tata</strong> managed most <strong>of</strong> the companies with<br />
very small stakes. One <strong>of</strong> the anecdotes a decade ago used to be the fact that<br />
Birlas have a higher in TISCO than the TATAS. They now have a stake at least<br />
26% in all major companies making it morally and legally easier to manage<br />
them.<br />
c) Crating a common brand equity: The <strong>Tata</strong> name has historically been<br />
associated with a reputation for honesty and integrity. However there was no<br />
formal set <strong>of</strong> values running across the various companies in the group. There is<br />
now a common code <strong>of</strong> <strong>of</strong> operation in the group that is followed by all the<br />
companies and reflects what the <strong>Tata</strong> brand name should stand for.<br />
d) Creating common standards: This involved having a common quality<br />
standard, which each company adopt, so that the consumer had the assurance <strong>of</strong><br />
getting a certain minimum from any <strong>Tata</strong> product.<br />
2) Restructuring <strong>of</strong> companies internally: This included cutting costs and<br />
improving efficiencies to make the companies viable in the new economic<br />
environment. For most investors this is the most visible and existing part <strong>of</strong><br />
restructuring <strong>of</strong> a company or a group. However, we must remind investors that<br />
given the protected nature <strong>of</strong> the economy, it was more important to create the<br />
psychological frame-work so that there was minimum resistance to the changes<br />
that were being implemented at the company levels.
159<br />
3) Restructuring <strong>of</strong> the product portfolio: It was said that restructuring <strong>of</strong> the<br />
product portfolio <strong>of</strong> the group by identifying seven core businesses that did not<br />
fit with in these seven years. Restructureing <strong>of</strong> the product portfolio <strong>of</strong> the<br />
group by identifying seven core business that did not fit within these seven<br />
years. Restructuring <strong>of</strong> the product portfolio again was not an easy exercise, as<br />
can be gauged by the fact that there was a need to start with the basic fact <strong>of</strong><br />
taking an inventory <strong>of</strong> the companies constituting the <strong>Tata</strong> group. The <strong>Tata</strong><br />
group comprised 85 companies in 45 industry group.<br />
The report card<br />
We believe the restructuring <strong>of</strong> businesses has made the <strong>Tata</strong> group leaner and<br />
more competitive. While investors do tend to criticize the pace <strong>of</strong> being too<br />
slow, we believe the willingness to sell businesses and the divestment <strong>of</strong><br />
businesses ecxeeds that <strong>of</strong> any other group in India.<br />
Divestment and Acquisition Accepted By The <strong>Group</strong><br />
Willingness To Sell Businesses: We believe the greatest positive <strong>of</strong> the <strong>Tata</strong><br />
group restructuring has been the willingness <strong>of</strong> Mr. <strong>Tata</strong> to sell out <strong>of</strong><br />
businesses. While this is commonly accepted in western countries, in India,<br />
traditionally, asset ownership was taken as a benchmark <strong>of</strong> power and<br />
progress amongst corporate.<br />
Greter aggression in the group: The group has traditionally been a conservative<br />
group and has tented to be slow in decision making. There are enough signs,<br />
however that this has changed. Apart from some <strong>of</strong> the restructuring initiatives<br />
highlighted above, the group has been an active bidder in the government<br />
privatization process. It has bagged two companies – VSNL and CMC amongst<br />
tough competition.<br />
Pace <strong>of</strong> restructuring-slow but irresible: Investors have <strong>of</strong>ten raised concern on the<br />
pace <strong>of</strong> restructuring. While in hindsight, we agree that the pace could have been<br />
hastened, the bigger challenge was changing the mid-set <strong>of</strong> the people internally so<br />
that they accept the restructuring process.
Shifting <strong>Group</strong> To Knowledge Based Sectors<br />
Inability <strong>of</strong> businesses to earn retuns greater than cost <strong>of</strong> capital:<br />
Another criticism has been the inability <strong>of</strong> some <strong>of</strong> the key businesses <strong>of</strong> the group<br />
to earn return on capital employed greater than the cost <strong>of</strong> capital.<br />
Shift from generic-driven to brand led business: The group has also been making a<br />
conscious shifts towards bards driven businesses and services. In FY 1991, brand<br />
businesses accounted for around one fifth <strong>of</strong> sales. Now they account for one fifth<br />
<strong>of</strong> sales in terms <strong>of</strong> pr<strong>of</strong>it similarly, brand businesses and services are playing a<br />
more significant role. While<br />
the commodity businesses are more cyclical, pr<strong>of</strong>its in IT services have secular<br />
growth.<br />
Liberalization<br />
Growth rates are affected by liberalization but they also depend on other factors,<br />
such as savings and investment rates and education policy. In examining<br />
inequalities within countries, a further set <strong>of</strong> theoretical considerations is crucial. In<br />
particular, in looking at distributional outcomes it is vital to distinguish primary<br />
incomes from secondary incomes. Primary incomes are those generated by the<br />
economic system (e.g., wages or dividends) and these are affected by the impact <strong>of</strong><br />
changes in the structure <strong>of</strong> the market on the incomes people earn. Secondary<br />
incomes, on the other hand, consist <strong>of</strong> deductions from individuals' primary<br />
incomes (e.g., through taxes), or additions to income such as through pensions<br />
provided by the state, or remittances from other family members, or public goods,<br />
provided mainly by the state, but also by nongovernmental <strong>org</strong>anizations (NGOs)<br />
and families. Secondary incomes are thus affected by changes in government<br />
taxation and expenditure policies and by access to publicly provided goods and<br />
services.<br />
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Privatization<br />
The <strong>Tata</strong> Sons takeover <strong>of</strong> Computer Maintenance Corporation shows that it is<br />
possible to privatise without controversy.<br />
A <strong>Tata</strong>-dominated board decides to use VSNL's cash reserves to invest in <strong>Tata</strong><br />
Teleservices. Privatisation, in practice, thus becomes a means through which<br />
public resources are used to finance private accumulation.<br />
Prior to VSNL's disinvestment, the government got VSNL to pay out a dividend <strong>of</strong><br />
500 per cent, through which step, given its 52 per cent equity holding, it mopped<br />
up Rs.741 crores <strong>of</strong> the company's reserves. The total dividend VSNL would have<br />
paid out at that time would, based on these figures, have amounted to Rs.1,425<br />
crores. In addition, VSNL was made to pay out a special dividend <strong>of</strong> 750 per cent,<br />
which gave the government Rs.1,111 crores. Here again, the total dividend paid<br />
out by VSNL would have been Rs.2,136.5 crores. In this manner, VSNL was<br />
stripped <strong>of</strong> Rs.3,561.5 crores <strong>of</strong> its cash reserves prior to privatisation. Add to this<br />
the Rs.1,200 crores that VSNL is investing in TTSL, and the total<br />
works out to Rs.4,761.5 crores - which is more than the total equity capital <strong>of</strong><br />
TTSL. That is, without resorting to strategic sale the government could not only<br />
have retained control <strong>of</strong> a pr<strong>of</strong>itable telecom major like VSNL, but could have<br />
through its own investments integrated with the consumer. In hindsight, the<br />
government's decision not to give VSNL a basic services licence was a way <strong>of</strong><br />
preventing it from exercising this option, perhaps f<strong>org</strong>ed by the decision to hand<br />
the firm over to the private sector.<br />
161
Globalization<br />
It is a company that stated its operations less than a decade ago and in the brief<br />
span has charted its course on the world map. <strong>Tata</strong> autocomp systems has traveled<br />
the long road. In the competitive auto components industry, the company has<br />
strengthend its position in the domestic market and f<strong>org</strong>ed joint venture<br />
partnerships in order to become a major global player.<br />
The auto comp industry is subject to a three level global tierisation. On the first<br />
rung are those manufacturers who supply directly to the automaker.<br />
The company now aspires to become a tier one supplier globally. A step towards<br />
that direction was taken recently with a $100 million order from ford for supply <strong>of</strong><br />
plastic parts. At the tier two level, TACO is supplying wiring harness to Yazaki, its<br />
Japanese partner. Yazaki, in turn supplies its products to Toyota and Nissan. This<br />
is worth between 7 and 8 million dollars in the current year, but the company<br />
accepts it to grow to $100 million per annum in future. Another example <strong>of</strong> its tier<br />
two business is<br />
a partnership with Ficosa. <strong>Tata</strong> Ficosa will become the sole supplier for the internal<br />
view mirror, for Ficosa customers worldwide.<br />
“Having now paved the way into international businesses, the next challenge for<br />
TACO is to become a one-stop-shop supplier.” Says D.S.Gupta, M.D <strong>of</strong> TASCO.<br />
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The major players <strong>of</strong> the auto industry are present in the US, Europe and Japan. It<br />
is, Therefore, important for the company to set up show in Asia and the West. In<br />
Asia, TACO is looking at setting up <strong>of</strong>ficers in Thailand, China, Taiwan, Vietnam,<br />
Malayasia and Koria.<br />
Asian countries have certain advantages that India can use to its benefit. TACO has<br />
spotted some <strong>of</strong> the advantages in its partner countries. Malayasia produces cheap<br />
rubber, China has raw materials for plastic, while Taiwan is well known for actual<br />
assembly <strong>of</strong> electronic components.<br />
The company should be able to use the core facility and to learn to build capability<br />
at low cost. TACO has recently acquired an order from General Motors and Ford.<br />
It is in the process <strong>of</strong> setting up a corporate <strong>of</strong>fice in the US that will oversee<br />
operations both in the Us and Europe. The company also proposes to set up<br />
manufacturing and engineering <strong>of</strong>fices in Germany and France in the near future.<br />
Despite the global recession in the auto industry, TACO has managed to survive<br />
and grow by focusing on quality, cost and delivery. The company has created<br />
values for its customer by pushing quality through<br />
the six sigma programme. Sequential delivery system is a global norm and by<br />
adhering to it, TACO illustrates its strengths in QCD. As a result <strong>of</strong> this, the<br />
company has been growing at a CAGR <strong>of</strong> 30% p.a. The companys turnover was<br />
Rs. 817 crore in 2002-03, and this year it is expected to gross between 1200 to<br />
1300 crores.<br />
163
164
<strong>Tata</strong>s Some Acquisitions And Partnership Globally<br />
<strong>Tata</strong> to acquire 26% in telecom JV with S.Africa Govt.<br />
The <strong>Tata</strong>s are picking up 26% in infra co, a new telecom company in S.Africa. The<br />
remaining stke in the company will be held by the South Africa Government. The<br />
joint venture will be the third network operator in S.Africa, and apart from <strong>of</strong>fering<br />
long distance services within the country, it will also build and operate marine<br />
telecom infrastructure for international long distance traffic.<br />
The deal also marks the TATAS second telecom venture in South Africa. VSNL<br />
already has a 26% stake in SNO Telecom, which has license to provide all telecom<br />
services, except mobile services.<br />
Infra co. will require about $350 million just to launch operations. Of this, the<br />
S.African Government will provide $225 m, VSNL about $ 60m, while the rest<br />
will be funded by debt.<br />
<strong>Tata</strong>s pick up 30% in US bottled water co. for $677m.<br />
TATA TEA, Indias largest tea maker, will pay about $677m to buy 30% <strong>of</strong> US<br />
based energy brands, which sells a range <strong>of</strong> nutrient rich and flavoured water<br />
brands. The deal values EBI at $2.3b, or 6.4 times its sales, and is the largest ever<br />
acquisition by an Indian company, edging out Dr. Reddy’s $570m buy out <strong>of</strong><br />
Germany’s betapharm.<br />
The Acquisition expands <strong>Tata</strong> Tea’s foothold in American market and is aimed at<br />
consolidating the company’s position in the global beverage industry. The buyout<br />
<strong>of</strong> Tetley for 271m in 2000 gave a company a major presence in the UK and the<br />
US.This was followed by the june ’06 purchase <strong>of</strong> Eight O’Clock C<strong>of</strong>fee for about<br />
$220m.<br />
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<strong>Tata</strong> tea will finance the deal by investing $192 in tata Tea GB, The UK subsidiary<br />
which own Tetley. The firm’s consolidated debt- equity ratio at the end <strong>of</strong> march<br />
’06 was 1:1, and it generated Rs.300 crore net cash from operating activities.<br />
<strong>Tata</strong>’s buy Ritz-Carlton<br />
In a deal that will expand its presence in US market, Indian Hotels, which runs<br />
Hotels and Resorts under Taj brand, is buying the Boston based Ritz-Carlton hotel<br />
for $170m.The deal will be carried out through its US subsidiary, International<br />
Hotel Management Service.<br />
The 79 years old Ritz-Carlton is the longest continuously run hotel in the US, and<br />
is owned by millennium partner. The Hotel opened for business in 1927 and was<br />
bought by Millenium Partners <strong>of</strong> New York in 1999 for $122m. Indian Hotels<br />
owns 75 Hotels, is currently carrying out due diligence for the Ritz-Carlton.<br />
<strong>Tata</strong> steel acquired Singapore-based Nat<strong>Steel</strong> in Rs.1313 Crore deal in 2004.<br />
<strong>Tata</strong> steel acquired Thailand-based Millenium <strong>Steel</strong> for about Rs. 675 Crore in<br />
2005.<br />
<strong>Tata</strong> steel also trying to acquire Dutch based Corus (which is 7 th largest steel<br />
company in terms <strong>of</strong> volumes) in about $ 8.3 bn .<br />
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Important Milestones and Turning Points<br />
Will it be a million this fiscal? Domestic passenger car and utility vehicle sales are<br />
racing ahead with 8.02 lakhs vehicles being sold in the April- February 2004<br />
period. Just domestic sales may fall tantalizingly short <strong>of</strong> the mark but if exports<br />
(1.12 lakh cars in the same period) are included, total industry sales will cross the<br />
magic million milestone quite comfortabely in 2003-04.<br />
This is a significant figure for the automobile industry and could well be turning<br />
point from where there is no looking back. The significance is not just in the<br />
number <strong>of</strong> cars sold but in the quality and category <strong>of</strong> sales <strong>of</strong> sales. In what can be<br />
constructed as a maturing <strong>of</strong> the market, sales in the mid segments –that is, the Rs.<br />
4.5-6.5 lakh range –has galloped, growing at a faster pace than the mass market B<br />
and A segments. Just consider these numbers. Just consider these numbers. Total<br />
passenger car and utility vehicle sales grew by 30 percent in the April-february<br />
period. While the A and B segments grew by 24 percent each, the real push came<br />
from the same C, or mid-sized car, segment which witnessed a 53 per cent<br />
growth. Equally impressive was the performance <strong>of</strong> the D segment where volumes<br />
shot up 12-fold to 12,526 cars, or a little more than a 1000 cars a month.<br />
And this segment boasts <strong>of</strong> the Skoda Octavia and the Toyata Corolla, which are<br />
supposed to be premium models with limited market. Roughly one out <strong>of</strong> every<br />
five cars sold in the last one year was in the mid-size segment and that is<br />
almost the same as the entery level A segment where the only model is<br />
Marutis M-800. In 2002-2003 the corresponding ratio was one out <strong>of</strong><br />
every six. So what do these numbers convey?<br />
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Market is evolving without doubt we are witnessing a significant evolution in the<br />
passenger car market with buyers upgrading to mid-size cars, which is really the<br />
entery-level segment in the developed markets. There could be a couple <strong>of</strong> factors<br />
driving sales in this segment. One is better choice. There are more models<br />
available in this segment today compared to the couple <strong>of</strong> years back.<br />
The arrival <strong>of</strong> the <strong>Tata</strong> Indigo has served to expand the market for midsize cars as<br />
have the Opel Corsa from General motors and the new Honda city.<br />
These three models, along with the the Hyundai Accent, appear to have been the<br />
main drivers for growth in this segment even as those such as Mitsubishi Lancer<br />
and Fiat Siena have lagged in the market-share sweepstakes.<br />
This segment is dominated by <strong>Tata</strong> Motors and Hyundai with a 20 per cent share<br />
each; marutis share is just half that.<br />
The second factor is rising income levels, especially the concentration <strong>of</strong> high<br />
incomes at the hands <strong>of</strong> young people who are obviously aspiring for better quality<br />
cars that are present in the mid-size segment. Adding fuel to this are the various<br />
finance schemes available in market that reduce an Opel corsa or a <strong>Tata</strong><br />
Indigo to a monthly EMI <strong>of</strong> about Rs 5,000, which is considered quite<br />
affordable.<br />
168
169
Progress over the years<br />
The <strong>Tata</strong> group Indias best known conglomerate in the private sector with a<br />
turnover <strong>of</strong> around US $ 20.4 billion. Long known for its adherence to business<br />
ethics, it is Indias most respected private sector group. With 210,443 employees<br />
across 93 companies, it is also Indias largest employer in the private sector.<br />
The <strong>Group</strong>s early years were inspired by the spirit <strong>of</strong> nationalism. The group<br />
pioneered several in first Indian industries: Indias first private sector steel mill, first<br />
private sector power utility, first luxury hotel chain and first international airlines,<br />
amongst others. The groups pioneering spirit continued with <strong>Tata</strong> consultancy<br />
services, today Asias largest S<strong>of</strong>tware and services company, and <strong>Tata</strong> Motors, the<br />
first car maker in a developing country to design and produce a car from the<br />
ground up.<br />
The business operations <strong>of</strong> the group currently encompass seven business sectors –<br />
Engineering, Materials, Energy, Chemicals, Consumer Products, Services, and<br />
Communications and information systems, and the scale <strong>of</strong> the groups operations<br />
and increasingly turning global. <strong>Tata</strong> Tea is the first Indian MNC in the global tea<br />
industry and indias largest integrated tea company; <strong>Tata</strong> Chemicals is asias largest<br />
manufacturer <strong>of</strong> soda ash; Titan is one <strong>of</strong> the worlds top six manufacturer brands in<br />
the watch segment and <strong>Tata</strong> Motors is amongst the top six commercial vehicle<br />
manufacturers in the world.<br />
The group is increasingly focusing on new technology areas: it has the largest<br />
footprints in Indias new economy, and is the countrys largest private sector<br />
telecom service provider, and group company VSNL is one <strong>of</strong> Indias leading<br />
international communication and internet service providers.<br />
170
The group has always believed in returning wealth to the society which it serves.<br />
Thus, nearly two-thirds <strong>of</strong> the equity <strong>of</strong> <strong>Tata</strong> sons, the groups promoter company,<br />
is held by philanthropic truste which have created a host <strong>of</strong> national institutions in<br />
natural sciences, medical care, energy and arts, and which give substantial annual<br />
grants and endowments to deserving indivisuals and institutions in the areas <strong>of</strong><br />
education, healthcare and social upliftment.<br />
171
Development <strong>of</strong> <strong>Tata</strong> Iron & <strong>Steel</strong> Company: Late 1800s-1980s<br />
From the mid-1880s, <strong>Tata</strong> commissioned a series <strong>of</strong> surveys in India's coalproducing<br />
areas, such as Bihar and Orissa in the northeast <strong>of</strong> the subcontinent, to<br />
locate iron ore within easy reach <strong>of</strong> coal deposits and water, both essential<br />
elements in steel production. He visited the United States to seek the advice <strong>of</strong> the<br />
world's foremost metallurgical consultant, Julian Kennedy, and went to<br />
Birmingham, Alabama, to study the coking process in action. In England in 1900,<br />
he discussed his plans with the secretary <strong>of</strong> state for India, Lord Ge<strong>org</strong>e Hamilton.<br />
In India, the way had been opened for private enterprise with the introduction <strong>of</strong> a<br />
more liberalized mineral concession policy in 1899. With Julian Kennedy's help,<br />
American specialists were brought in and began surveying in 1903. After a series<br />
<strong>of</strong> disappointments, rich iron ore deposits were identified in the dense jungle in<br />
Bihar at the confluence <strong>of</strong> two rivers near Sakchi three years after Jamsetji <strong>Tata</strong>'s<br />
death in 1904. Also involved in the surveying was <strong>Tata</strong>'s nephew, Shapurji<br />
Saklatvala, whose health suffered so much that he was sent to London to<br />
recuperate. There, he joined his uncle's London <strong>of</strong>fice, which had been established<br />
some years earlier to represent the interests <strong>of</strong> the family cotton business. His<br />
energies were soon channeled away from business matters and into politics, and he<br />
became Communist member <strong>of</strong> Parliament for Battersea North in 1922.<br />
Four years after <strong>Tata</strong>'s death, his sons Dorabji and Ratanji began development <strong>of</strong><br />
the Bihar site. A factory and township were carved from the jungle and named<br />
Jamshedpur. A conscious decision was made to retain control within India <strong>of</strong> the<br />
new enterprise, the <strong>Tata</strong> Iron and <strong>Steel</strong> Company, by seeking out Indian investors.<br />
In the face <strong>of</strong> warnings that India could not afford a flotation <strong>of</strong> this size, the <strong>Tata</strong><br />
brothers set out to raise Rs 23.2 million in shares. Within eight weeks some 8,000<br />
Indian investors came forward and the whole share issue was taken up.<br />
172
The <strong>Tata</strong>s retained 11 percent <strong>of</strong> the stock for themselves. There were enormous<br />
initial problems in clearing the Sakchi site and, once production began, in ensuring<br />
that the coal was <strong>of</strong> a uniform quality. By 1916, however, production was meeting<br />
expectations and during World War I the company exported 1,500 miles <strong>of</strong> steel<br />
rails to Mesopotamia. Rapid expansion to support the Allied war effort was<br />
followed by Depression during the 1920s with escalating prices, transport and<br />
labor difficulties, and a major earthquake in Japan, by now TISCO's biggest<br />
customer. The company had to suspend its dividend for 12 out <strong>of</strong> 13 years in this<br />
period and was on the brink <strong>of</strong> closing in 1924 when Sir Dorabji <strong>Tata</strong> had to<br />
pledge his personal fortune to secure the necessary bank loans to keep the business<br />
afloat. TISCO emerged from the 1930s, however, as the biggest steel plant in the<br />
British Empire. World War II brought a resurgence in demand for <strong>Tata</strong> products<br />
and the company specialized in the manufacture <strong>of</strong> armored cars, known as<br />
<strong>Tata</strong>nagars, which were used extensively by the British Army in the North African<br />
desert.<br />
Following six years <strong>of</strong> almost continuous production to serve the war effort, it<br />
became imperative in the late 1940s to begin replacement <strong>of</strong> the plant. In<br />
association with Kaiser Engineering <strong>of</strong> the United States capacity was expanded<br />
and a Modernization and Expansion Program (MEP) was launched in 1951,<br />
upgraded four years later to the Two Million Ton Project (TMP) to give TISCO the<br />
capacity to produce two million tons <strong>of</strong> crude steel. This was achieved in 1958 but<br />
further expansion was put on hold during the 1960s while the country passed<br />
through a period <strong>of</strong> devaluation and recession. By 1970, however, TISCO<br />
employed 40,000 people at Jamshedpur, with a further 20,000 in the neighboring<br />
coal mines.<br />
Government attempts to nationalize TISCO in 1971 and 1979 were defeated, in<br />
part, it was believed, to retain an efficient private sector yardstick against which<br />
the performance <strong>of</strong> public sector companies could be judged. An ever-increasing<br />
range <strong>of</strong> government legislation to bring private sector businesses into line with<br />
national economic planning on the Soviet model, however, hampered <strong>Tata</strong>'s<br />
freedom to develop in the postwar period. In 1978, the government restricted<br />
TISCO's dividend to 12 percent to force it, as India's only private sector steel<br />
producer, to plough money into modernization. Expansion was restricted by a<br />
government committed to helping nationalized industry.<br />
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Further difficulties were created in the late 1970s by chronic shortages <strong>of</strong> coal,<br />
power, and rail transport. An estimated Rs 45 crores <strong>of</strong> salable steel was lost<br />
during 1979-80 because <strong>of</strong> these shortages. TISCO soldiered on, however, and in<br />
the following decade began to benefit from a relaxation <strong>of</strong> government control as a<br />
more pragmatic attitude to the importance <strong>of</strong> private sector industry emerged. In<br />
1989, the <strong>Tata</strong> group increased its stake in the steel firm to ward <strong>of</strong>f any attempts<br />
by outside shareholders to gain control <strong>of</strong> the company. By 1990, TISCO remained<br />
India's largest nonpublic company, announcing a 30 percent increase in pr<strong>of</strong>its<br />
against a backdrop <strong>of</strong> general depression in the Indian economy as a whole.<br />
Growth <strong>of</strong> the <strong>Tata</strong> Empire Over the Course <strong>of</strong> the 20th Century<br />
The growth <strong>of</strong> Jamshedpur and the involvement <strong>of</strong> the firm in every aspect <strong>of</strong> its<br />
industrial and municipal life was the subject <strong>of</strong> several studies. Jamsetji <strong>Tata</strong> was<br />
both a nationalist and a philanthropist. He showed a paternalistic concern for the<br />
well-being <strong>of</strong> his employees, which set the tone for future company policy. The<br />
British proponents, pioneers <strong>of</strong> social reform Sydney and Beatrice Webb, were<br />
invited out to India from England to advise the <strong>Tata</strong>s on the best form <strong>of</strong> social,<br />
medical, and cooperative services for the newly established Jamshedpur and as a<br />
consequence schools, recreational facilities, creches, and other amenities were<br />
established on site at an early stage. An eight-hour working day had been<br />
introduced in 1912, an <strong>of</strong>ficially recognized <strong>Tata</strong> Workers' Union established with<br />
Gandhi's associate, C.F. Andrews, as its first president, and pr<strong>of</strong>it-sharing schemes<br />
were brought in in 1934. Against this, it was argued that the Workers' Union<br />
operated in fact as a management tool to impose its will on a workforce so<br />
heterogeneous by nature that rival unions made little headway. Despite the<br />
reputation <strong>of</strong> the <strong>Tata</strong> family for concern over workers' rights, there was much<br />
unrest among the workforce during the 1920s over wages and conditions and it has<br />
been claimed that this, as much as anything, contributed to advances. The<br />
commitment <strong>of</strong> the Indian Trades Union Congress after independence to the same<br />
goals as central government--economic self-sufficiency and prosperity--allowed<br />
the <strong>Tata</strong>s a relatively free hand in dictating their own industrial relations policy.<br />
Whatever the arguments, TISCO could claim in 1989 that it had not lost a day's<br />
work through industrial action in 50 years, and its management illustrated its<br />
commitment to the welfare <strong>of</strong> its employees by commissioning an audit <strong>of</strong> its<br />
"social performance" by a team <strong>of</strong> eminent public figures.<br />
174
TISCO's success spawned numerous <strong>of</strong>fshoots making use <strong>of</strong> <strong>Tata</strong> products, some<br />
<strong>of</strong> them part <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>. These included the <strong>Tata</strong> Engineering and<br />
Locomotive Company (TELCO). This ripple encouraged other areas <strong>of</strong> Indian<br />
industry to become suppliers <strong>of</strong> spare parts for new products and by 1970 TELCO<br />
had more than 500 Indian ancillary suppliers.<br />
The second element in Jamsetji <strong>Tata</strong>'s plan for India's modernization was the<br />
development <strong>of</strong> a hydroelectric capability. Within reach <strong>of</strong> Bombay's thriving,<br />
basically steam-driven cotton spinning industry lay the monsoon-swollen rivers <strong>of</strong><br />
the western Ghats. If Bombay's captains <strong>of</strong> industry could be persuaded to invest in<br />
the necessary conversion from steam to electricity, the natural resources existed to<br />
provide this new source <strong>of</strong> power. To encourage the process, the <strong>Tata</strong>s bought up<br />
sufficient mills to create the necessary demand before launching <strong>Tata</strong> Hydro-<br />
Electric Power Supply Company in 1910. By 1915, the required dams and<br />
reservoirs, ducts, and pipelines had been laid to feed the new turbines. Two further<br />
power stations followed in 1916 and 1919. Between the wars the family had to sell<br />
some 50 percent <strong>of</strong> its stake in the hydroelectric company to a U.S. syndicate to<br />
support other less successful firms within the group. By the 1960s, power stations<br />
had been supplemented by four thermal installations, which together satisfied<br />
Bombay's entire domestic and industrial requirement.<br />
TISCO, TELCO, and <strong>Tata</strong> Hydro-Electric Power Company were only three parts<br />
<strong>of</strong> the <strong>Tata</strong> empire that by the late 1970s included 30 separate companies. Together<br />
the group accounted for 1.8 percent <strong>of</strong> India's GNP, with TISCO alone providing<br />
0.4 percent, far more than any single equivalent firm in the United States or United<br />
Kingdom. In 1970, the managing agency system that had characterized much <strong>of</strong><br />
Indian industry since the British period was abolished. Under this system, British<br />
investments in the subcontinent were managed by firms <strong>of</strong> agents who charged<br />
commission for their services. <strong>Tata</strong> Industries Ltd. acted in this capacity for many<br />
<strong>of</strong> the firms in the <strong>Tata</strong> <strong>Group</strong>, and until 1970, central control was not difficult.<br />
After this date, shares in the 30 or so <strong>Tata</strong> enterprises were retained by <strong>Tata</strong><br />
Industries, whose chairman from 1938 was Jehangir Ratanji Dadabhoy <strong>Tata</strong>, a<br />
distant relative <strong>of</strong> the founder <strong>of</strong> the <strong>Tata</strong> industrial dynasty. He was succeeded in<br />
1981 by Ratan Naval <strong>Tata</strong>, whose father had been adopted by Ratanji <strong>Tata</strong>'s widow<br />
in 1917. Following the Monopolies and Restrictive Practices legislation <strong>of</strong> 1969,<br />
which represented the views <strong>of</strong> a government hostile to large private enterprises,<br />
175
the <strong>Tata</strong> group was self-conscious within India about the size <strong>of</strong> its operation and<br />
great emphasis was placed on publicizing the independent nature <strong>of</strong> each <strong>of</strong> its<br />
firms. It was pointed out that 75 percent <strong>of</strong> the firms' shares was owned by trusts<br />
established by the <strong>Tata</strong> family to promote research and welfare projects. In reality,<br />
the <strong>Tata</strong>s had been adept in holding together their empire with a steady growth in<br />
the group's assets, much informal consultation between firms, a recurrence <strong>of</strong><br />
names in the lists <strong>of</strong> directors, and a shared head <strong>of</strong>fice in Bombay.<br />
The continued prosperity <strong>of</strong> the group during the difficult postwar years for private<br />
sector firms was probably also helped by its refusal to take up an overtly political<br />
stance in opposition to prevailing government policy. The only exception was in<br />
1956, when it backed the short-lived Forum <strong>of</strong> Free Enterprise against a<br />
government committed to assigning a dominant role to public sector industry.<br />
Government monopoly legislation also restricted diversification into high-pr<strong>of</strong>it<br />
areas such as fertilizers or pharmaceuticals, an obvious move for a group such as<br />
<strong>Tata</strong> whose traditional staple was high-cost, low-pr<strong>of</strong>it industry. There were no<br />
restrictions on overseas investment or new technology, however, and inroads into<br />
both these areas were made. India needed firms such as TISCO or TELCO if the<br />
country was to maintain a viable industrial capability. Therefore, even when<br />
government controls <strong>of</strong>ficially restricted growth, the <strong>Tata</strong> Electric Company was<br />
given the green light during the 1970s to build privately a new 500-megawatt<br />
plant, and sanction was given to TELCO to increase its output from 24,000 to<br />
36,000 vehicles per year.<br />
TISCO developed as one <strong>of</strong> the independent but interrelated companies within the<br />
<strong>Tata</strong> group. Among the better known <strong>of</strong> these firms is the Indian Hotels Company,<br />
whose centerpiece, the Taj Mahal Hotel, in Bombay, was conceived by Jamsetji<br />
<strong>Tata</strong> and opened in 1913, as the first hotel in the country using electricity. <strong>Tata</strong><br />
Chemicals was launched in 1939, and its Mithpur plant produced mineral extracts<br />
required for glass, ceramic, and leather production. The plant had a checkered<br />
history in its early years owing to delays in perfecting the soda ash process. With<br />
the support <strong>of</strong> the <strong>Tata</strong> group and the usual <strong>Tata</strong> resourcefulness in times <strong>of</strong> crisis,<br />
however, the company stayed in business. For example, when a drought in 1962<br />
threatened to close the plant, management prevailed upon the local population to<br />
ration the domestic consumption <strong>of</strong> water. This "lakeless week" was a great<br />
success and ensured that sufficient supplies <strong>of</strong> water remained for the company to<br />
176
continue in production. Another venture in 1962 involved joining with James<br />
Finlay and Company <strong>of</strong> Scotland to form the <strong>Tata</strong>-Finlay Company, which bought<br />
Finlay's 53 tea estates and has become the biggest tea producer in the world.<br />
In the field <strong>of</strong> electronics, <strong>Tata</strong> joined the Burroughs Corporation <strong>of</strong> Detroit in<br />
1977 to market the U.S. firm's computer systems and to begin to develop the<br />
manufacture <strong>of</strong> mainframe computers in India. With such an array <strong>of</strong> experience<br />
and expertise, the group entered the consultancy market with the establishment <strong>of</strong><br />
the <strong>Tata</strong> Consulting Engineering and <strong>Tata</strong> Economic Consulting Services. One<br />
<strong>Tata</strong> initiative that slipped through the net was air travel. An air service was<br />
inaugurated to carry the mail between Bombay, Karachi, and Madras in the 1930s.<br />
In 1946, however, <strong>Tata</strong> Airlines went public as Air India Ltd, and the company<br />
was nationalized in 1953 to form Air India and Indian Airways.<br />
The third requirement <strong>of</strong> Jamsetji <strong>Tata</strong> for a successful and independent India was<br />
a system <strong>of</strong> technical education. His scheme to launch a Science University in<br />
India in 1898 was opposed by the viceroy Lord Curzon as overambitious and<br />
inappropriate for Indian needs. <strong>Tata</strong> persevered, however, and <strong>of</strong>fered to<br />
underwrite the project with an endowment derived from his Bombay properties. He<br />
did not live to see the scheme realized. After Curzon's departure, the government<br />
<strong>of</strong> India showed itself more amenable to the proposal, and in 1911, Bangalore was<br />
chosen as the site for an Indian Institute <strong>of</strong> Science with joint funding from the<br />
<strong>Tata</strong> family, central, and provincial governments. The institute produced a number<br />
<strong>of</strong> eminent scientists and became a focus for much pioneering research. <strong>Tata</strong> funds<br />
have gone into other projects such as the Bhabha Atomic Research Center in<br />
Bombay, which has developed techniques for more efficient power generation.<br />
One <strong>of</strong> Jamshedji's greatest legacies was a concern for creating better educational<br />
opportunities for his countrymen. By the 1920s, one in five <strong>of</strong> Indian recruits to the<br />
Indian civil service had benefited from <strong>Tata</strong> scholarships.<br />
This commitment to education, welfare, and other humanitarian projects continues<br />
today and is part <strong>of</strong> the <strong>Tata</strong> distinctiveness. TISCO, for example, took part in a<br />
Green Millennium Countdown program and planted 1.5 million trees. In 2001, it<br />
also supported the Lifeline Express program that provided healthcare to those<br />
living in remote areas. TISCO is also known for providing relief during natural<br />
disasters and was awarded the Outstanding Corporate Citizen Award from the<br />
Economic Times.<br />
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The <strong>Tata</strong> family was <strong>of</strong>ten accused <strong>of</strong> paternalism toward its workers, <strong>of</strong> an <strong>of</strong>ten<br />
ill-judged concern for the continued existence <strong>of</strong> every member <strong>of</strong> the corporate<br />
group irrespective <strong>of</strong> pr<strong>of</strong>itability, and <strong>of</strong> an over-concentration on traditional highcost<br />
but low-pr<strong>of</strong>it industries. TISCO, however, cut its workforce from 78,669<br />
employees in 1993 to 48,821 in March 2001. The management culture <strong>of</strong> the group<br />
as a whole was changing in the new millennium. <strong>Tata</strong> directors were focused on<br />
pr<strong>of</strong>itable operations as well as securing leading industry positions for each <strong>Tata</strong><br />
company.<br />
Since the abolition <strong>of</strong> the managing agency system in 1970, TISCO and the various<br />
<strong>Tata</strong> companies operated entirely independently, but they retained many personal,<br />
family, and business ties. TISCO and most <strong>of</strong> the larger firms in the "family"<br />
shared the same head <strong>of</strong>fice in Bombay. The <strong>Tata</strong> sense <strong>of</strong> identity survived a<br />
postwar period <strong>of</strong> almost continuous economic and political adversity. At the start<br />
<strong>of</strong> the new millennium, the <strong>Tata</strong> group included 80 companies involved in various<br />
industries including engineering, chemicals, energy, materials, consumer products,<br />
IT and communications, and services.<br />
TISCO Operations During the 1990s<br />
During the 1990s, TISCO was faced with trying economic times as it f<strong>org</strong>ed ahead<br />
with modernization and expansion. During the decade, the steel firm began its<br />
fourth stage <strong>of</strong> upgrades and improvements. As part <strong>of</strong> the modernization, TISCO<br />
planned to increase its annual steelmaking capacity in Jamshedpur to 3.2 million<br />
metric tons by 1999, up from 2.7 million tons in 1996.<br />
The steelmaker also broadened its geographic reach. In 1990, a U.S. subsidiary,<br />
<strong>Tata</strong> Inc., was established and the following year, the firm opened <strong>of</strong>fices in<br />
Singapore and Dubai. It was during 1991 that restrictions on licensing, price, and<br />
distribution were lifted in India, allowing TISCO to expand its capacity. India also<br />
began allowing foreign manufacturers involved in such steel-dependent industries<br />
as electronics and automobiles to operate in the country. As demand increased,<br />
TISCO set plans in motion in 1995 to construct India's largest blast-furnace mill<br />
with an eventual annual capacity <strong>of</strong> ten million metric tons. By 1996, steel<br />
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consumption in India had grown by ten percent in each <strong>of</strong> the last four years. That<br />
year, TISCO expanded further and teamed up with Inland International Inc. to<br />
create <strong>Tata</strong>-Ryerson, a joint venture that would provide industrial materials<br />
management services in India.<br />
During the mid-to-late 1990s, however, India's steel industry and economic climate<br />
weakened. Many construction projects in the region were put on hold. As steel<br />
demand and prices fell, TISCO's pr<strong>of</strong>its plummeted. In 1998, the company<br />
reported a 61 percent fall in net income. As such, TISCO began aggressive costcutting<br />
measures and drastically cut its workforce. While most companies involved<br />
in the steel industry reported losses, TISCO was able to keep its bottom line in the<br />
black.<br />
Despite the trying economic conditions, TISCO was able to complete its $1.5<br />
billion modernization program in April 2000. It began operation <strong>of</strong> a 1.2 million<br />
metric ton cold rolling mill and also became one <strong>of</strong> the lowest-cost producers <strong>of</strong><br />
hot-rolled coils. During fiscal 2000, TISCO reported earnings <strong>of</strong> $90.1 million, an<br />
increase over $60.2 million earned in the previous year.<br />
In 2001, after 30 years <strong>of</strong> service, Jamshed Irani, TISCO's managing director,<br />
retired, leaving B.D. Muthuraman at the helm. Under a new director, TISCO<br />
pledged to continue cutting costs and focus on new growth areas such as making<br />
investments in the telecom industries. Although conditions in the steel industry<br />
remained uncertain and the economic climate in India remained unstable, TISCO<br />
appeared to be well positioned to handle the problematic environment.<br />
Principal Subsidiaries: <strong>Tata</strong> Refractories Ltd (51%); The <strong>Tata</strong> Pigments Ltd.;<br />
Kalimati Investment Company Ltd.; <strong>Tata</strong> Korf Engineering Services Ltd. (60.1%);<br />
<strong>Tata</strong> Incorporated; Stewarts & Lloyds <strong>of</strong> India Ltd.; <strong>Tata</strong> Technodyne Ltd.<br />
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<strong>Tata</strong> steel (formerly TISCO)<br />
Company Perspectives:<br />
Consistent with the vision and values <strong>of</strong> founder Jamsetji <strong>Tata</strong>, <strong>Tata</strong> <strong>Steel</strong> strives to<br />
strengthen India's industrial base through the effective utilization <strong>of</strong> staff and<br />
materials. The means envisaged to achieve this are high technology and<br />
productivity, consistent with modern management practices. <strong>Tata</strong> <strong>Steel</strong> recognizes<br />
that while honesty and integrity are the essential ingredients <strong>of</strong> a strong and stable<br />
enterprise, pr<strong>of</strong>itability provides the main spark for economic activity.<br />
Key Dates:<br />
1907: <strong>Tata</strong> <strong>Steel</strong> is established by Jamsetji <strong>Tata</strong>.<br />
1924: On the brink <strong>of</strong> disaster, Sir Dorabji <strong>Tata</strong> pledges his personal fortune to<br />
secure bank loans to keep the company afloat.<br />
1939: By now, TISCO operates as the largest steel plant in the British Empire.<br />
1951: A Modernization and Expansion Program (MEP) is launched.<br />
1955: The MEP is upgraded to the Two Million Ton Project (TMP).<br />
1970: TISCO employs 40,000 people at Jamshedpur and 20,000 workers in<br />
neighboring coal mines.<br />
1978: The Indian government forces TISCO into modernization efforts.<br />
1989: The <strong>Tata</strong> <strong>Group</strong> doubles its stake in TISCO to thwart takeover attempts.<br />
1990: TISCO begins expanding and establishes subsidiary <strong>Tata</strong> Inc. in New York.<br />
1996: The company begins a joint venture with Inland International to build a<br />
steelworks facility in India.<br />
1998: TISCO records a 61 percent decline in net income due to a downturn in the<br />
steel industry.<br />
2000: TISCO completes a ten-year, $1.5 billion modernization program.<br />
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Future Prospectus and Outlook<br />
Nano manufacturing at Singur to start in Q4<br />
<strong>Tata</strong> Motors expects to start manufacturing <strong>of</strong> its much-hyped mini car Nano at<br />
Singur in the fourth quarter <strong>of</strong> this calendar year. The high volumes <strong>of</strong> Nano is<br />
expected to dramatically change <strong>Tata</strong> Motors’ market position, reach and visibility,<br />
said company chairman Ratan <strong>Tata</strong> in the latest annualreport. The Singur<br />
manufacturing facilities would be expanded to meet domestic and global demand<br />
in the future.<br />
<strong>Tata</strong> Motors, the country’s largest truck maker, is working on new variants <strong>of</strong> the<br />
world’s cheapest car Nano to overcome challenges posed by high fuel prices,<br />
which could negatively impact vehicle sales, Mr <strong>Tata</strong> said.<br />
<strong>Tata</strong> Motors has also started developing new variants <strong>of</strong> Nano to meet<br />
environmental and fuel price challenges, as also market requirements <strong>of</strong> several<br />
international markets. The move comes in the run-up to the scheduled roll out <strong>of</strong><br />
the gasoline-powered Nano from Singur.<br />
<strong>Tata</strong> Advanced Internship Programme<br />
The <strong>Tata</strong> Advanced Internship Programme (TAIP), a <strong>Group</strong>-level summer<br />
internship programme, aims at garnering talent from premier international business<br />
schools in the United States and Europe as well as giving students an insight into<br />
the <strong>Group</strong>'s ethos, work practices and business philosophy. It intends to bring in<br />
young management students from premier international business schools from<br />
USA and UK and build the <strong>Tata</strong> brand on campuses abroad.<br />
The programme is being managed by <strong>Tata</strong> <strong>Group</strong> HR with the support <strong>of</strong> <strong>Group</strong><br />
companies where the candidates may be placed as summer interns. Selection <strong>of</strong><br />
candidates and allocation <strong>of</strong> projects is based on their work experience, academic<br />
focus areas and areas <strong>of</strong> interest.<br />
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<strong>Tata</strong> International Internship Programme<br />
In keeping with the <strong>Tata</strong> <strong>Group</strong>'s globalization strategy, <strong>Group</strong> HR has initiated an<br />
international internship programme (IIP) that aims to give an opportunity to young<br />
undergraduates and postgraduate students from across the world to gain the <strong>Tata</strong><br />
experience.<br />
Initiated in 2006, this <strong>Group</strong> level internship programme intends to bring in<br />
management students from international business schools and build the <strong>Tata</strong> brand<br />
on campuses abroad. Beginning with three <strong>of</strong> Singapore's leading universities —<br />
National University <strong>of</strong> Singapore, Nanyang Technical University, and Singapore<br />
Management University — the programme also collaborates with the Asian<br />
Institute <strong>of</strong> Management in Manila and the Peking University and Tsinghua<br />
University in Beijing.<br />
IIP Interns can be placed with any <strong>Tata</strong> <strong>Group</strong> company, based on their work<br />
experience, academic focus areas and areas <strong>of</strong> interest.<br />
K. Subramanya, COO, <strong>Tata</strong> BP Solar, discusses the Indian and global renewable<br />
energy industry, and the company's plans to tap potential markets<br />
<strong>Tata</strong> BP Solar, a joint venture between <strong>Tata</strong> Power Company and BP Solar, one <strong>of</strong><br />
the largest solar power companies in the world, is determined to light up a great<br />
many lives over the next few years. <strong>Tata</strong> BP Solar chief operating <strong>of</strong>ficer K.<br />
Subramanya elaborates on plans <strong>of</strong> becoming a $300-million company by 2010,<br />
and how it is moving from strength to strength.<br />
Considering the fact that <strong>Tata</strong> BP Solar has established a name for itself not only in<br />
the domestic market but also internationally, has the company any investment<br />
plans with regard to production expansion, etc?<br />
<strong>Tata</strong> BP Solar has plans <strong>of</strong> investing over Rs 100 crore in 2006 in expanding its<br />
capacity. The company's track record has been very good so far and we have been<br />
growing at a rate <strong>of</strong> about 20-25 per cent every year. We hope to sustain this and<br />
want to be a $300-million company by 2010.<br />
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Right now we are at $100 million. The company is readying itself for the <strong>Tata</strong><br />
Business Excellence Model process in the coming years. With regard to production<br />
capacity, we aim to have 43-MW solar cell manufacturing capacity in the near<br />
future. Right now our solar cell manufacturing capacity is about 16 MW.<br />
OUTLOOK<br />
<strong>Group</strong> chairman Ratan <strong>Tata</strong> speaker on a wide range <strong>of</strong> issue concerning the <strong>Tata</strong><br />
<strong>Group</strong> and its pace in a world changing dramatically than ever before what will be<br />
the nature ad scope <strong>of</strong> <strong>Tata</strong> <strong>Group</strong> engagement in the coming years with a world<br />
changing more rapidly than ever before. Here are numerous questions and who<br />
better to address and opportunities before the group as it continuous reinforcing<br />
and reinventing itself in India and in the world.<br />
Over the next five to seven years the group has to start looking seriously and<br />
strategically at creating brand awareness for ourselves in new business<br />
commercially and strategically in this region’s the group also says that in<br />
commodities the brand is not as important as it is in product.<br />
The group chairman Ratan <strong>Tata</strong> says that we are not promoting our one brand but<br />
we are getting serious <strong>of</strong> properties that have their one brand it can also happen<br />
with a company like Titan if you are willing to spend huge amount <strong>of</strong> money<br />
propagating the brand it will work.<br />
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Succession planning<br />
Although Ratan <strong>Tata</strong> is 68 years old he look more like some who is in late<br />
40’s/early 50’s the million dollar question on everybody mind is who will succeed<br />
Ratan <strong>Tata</strong>. Ratan <strong>Tata</strong> move is not seen to create any waves being more in the<br />
realm <strong>of</strong> a technical change.<br />
Mr. TATA can continue to be non-executive chairman <strong>of</strong> <strong>Tata</strong> sons till he is<br />
70years old. Some goes for the position <strong>of</strong> chairman he holds at other <strong>Tata</strong><br />
companies as well, a group <strong>of</strong>ficial said. To oversee the conglomerate, a <strong>Group</strong><br />
Executive Office(G.E.O) with executive directors was put in place some times<br />
back. It is guided by the highest policy forming body <strong>of</strong> the group, the corporate<br />
centre, a think-tank that brings together GEO directors and group seniors,<br />
including Mr. <strong>Tata</strong>. The change to Mr. <strong>Tata</strong> authority was best described<br />
by a senior <strong>of</strong>ficial, likening it to a technical shift from a formal zone to an<br />
informal one.”All that is happening on 28 th is that he ceases to be Executive<br />
Chairman, ” he said, citing as example the <strong>of</strong> Dr. J.J Irani, who on turning 65<br />
stepped down as Managing Director, <strong>Tata</strong> <strong>Steel</strong>, continues to be a non-executive<br />
Director <strong>of</strong> <strong>Tata</strong> sons and is Chairman<br />
<strong>of</strong> <strong>Tata</strong> Teleservices. A common response across the group was that the late<br />
J.R.D.TATA was non-executive chairman for many years. So , it makes no<br />
difference, ”one <strong>of</strong>ficial said. Thus December 28 does not by itself raise the spectra<br />
<strong>of</strong> a succession plan at Bombay House. There is time till December 2007,when Mr.<br />
TATA turns 70.The way insiders see it: Mr. <strong>Tata</strong>’s chairmanship is founded on<br />
grounds much stronger than his retention <strong>of</strong> executive authority. Taking over a<br />
collection <strong>of</strong> companies, some <strong>of</strong> them ruled by long-lasting fiefdoms, Mr.<br />
TATA’s central achievements was putting the glue back into the group. The<br />
Promoter’s stake in key <strong>Tata</strong> companies was increased and adherence for the<br />
<strong>Tata</strong>’s. Along the way, the group made solid advances with its old economy<br />
companies- <strong>Tata</strong>’s steel new cold rolled mill, <strong>Tata</strong> Engineering’s foray into cars<br />
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and <strong>Tata</strong> Tea’s acquisition <strong>of</strong> the UK-based Tetley. Exits occurred, from the<br />
erstwhile <strong>Tata</strong> oil mills company, Lakme and Acc. slip-ups too happened, most<br />
publicized being the still unraveling mess at <strong>Tata</strong> Finance. But further on the<br />
upside, the <strong>Tata</strong>’s are now a leading role in telecom with the VSNL and <strong>Tata</strong><br />
Teleservices, while infotech major <strong>Tata</strong> consultancy services is touted as a<br />
significant unlocking <strong>of</strong> value due in near future. Simply put ,Mr. Ratan <strong>Tata</strong> has a<br />
track record that finches respect with or without executive powers. Though he<br />
joined the <strong>Tata</strong> in 1962 , it was his appointment in October 1981 as chairman, <strong>Tata</strong><br />
industries-the group’s holding company for new businesses-that pushed Mr. Ratan<br />
<strong>Tata</strong> centre stage.<br />
As he took over that post from J.R.D, he was seen to be a successor in the making.<br />
Coming Saturday, nothing like that is due at <strong>Tata</strong> Industries, if chairmanship there<br />
were indeed the accepted route to eventual succession at <strong>Tata</strong> sons. On the other<br />
hand, changes in management structure at the group’s apex –essentially the<br />
corporate center and<br />
GEO-could be interpreted as preparing the <strong>Tata</strong>’s for a time when its original<br />
family promoters are not so closely associated with the operations <strong>of</strong> the group, as<br />
at present. have the <strong>Tata</strong> then, adopted a structure, which can run without a <strong>Tata</strong> at<br />
the helm?<br />
There is no answer to this either.”It shows the extreme pr<strong>of</strong>essionalism <strong>of</strong> the<br />
group at the highest level,” was all what one top <strong>of</strong>ficial would say.<br />
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OFFICE DYNAMICS SUCCESS PLANNING<br />
Workplaces have begun to look very different from the way they used to in the<br />
past-pastel colours, s<strong>of</strong>t furnishings, open plans, piped music, attractive cafeterias,<br />
play and relaxation areas. In some BPO <strong>org</strong>anisation, calendarised and hyped-up<br />
fun events run by dedicated section <strong>of</strong> the HR department from part <strong>of</strong> the<br />
employee engagement and retention strategy. Work teams are beginning to become<br />
diverse in terms <strong>of</strong> age, academic training and experience-and, yes most<br />
heartening, in terms <strong>of</strong> gender as well. There is much greater openness to having<br />
people in their in senior positions. Increasingly, people in the same workplace have<br />
different relationships with the <strong>org</strong>anisation they are working for-some are<br />
employees, other are consultants, and others are vendors’ employees. Some <strong>of</strong><br />
them are employed by a ‘temping’ <strong>org</strong>anisation, while some work from home or<br />
only part-time. Many can come and go at different times <strong>of</strong> the day-times <strong>of</strong> their<br />
choosing. Among employees, some get paid more then others in similar roles,<br />
based on how the <strong>org</strong>anisation values their knowledge, skills, experience, network,<br />
or potential. Employees are increasingly opting forretials. Instead, they are taking<br />
charge <strong>of</strong> their financial planning, exploring avenues such as mutual funds and<br />
stock markets more aggressively. They are going for insurance policies with varied<br />
features that suit their risk mitigation needs.The workplace <strong>of</strong> the future will only<br />
accelerate these trends.<br />
The interesting thing about the future is that a lot <strong>of</strong> it is already here in seedling<br />
form,in the form <strong>of</strong> fringe movements, ’videos’ and weak signals strengthen .The<br />
challenge for us is to know in advance which <strong>of</strong> these will in fact become<br />
significant realities in the future.<br />
The shape <strong>of</strong> things to come so, what sense can we make <strong>of</strong> future? I think people<br />
will increasingly make three demands: choice, flexibility and autonomy, in all<br />
aspects <strong>of</strong> their lives, including work. The work place <strong>of</strong> the future will strive to<br />
provide these for individuals-and in the process, l earn to cherish the values <strong>of</strong><br />
commitment, consistency and co-existence.<br />
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Choice and commitment will have to go hand in hand-each can exits only when the<br />
other does. Similarly, the world seems to be becoming more tolerant <strong>of</strong> multiplicity<br />
<strong>of</strong> views and approaches, yet seeking greater predictability and consistency. There<br />
will be as much value placed on diversity and spontaneity as on achieving<br />
sixsigma. Finally, empowerment and autonomy, signaling freedom from<br />
supervision, are leading employees to learn to temper their behaviors to align<br />
efforts with those they work with the changing demographics the world over and<br />
especially in India will mean that the ‘baby boomers’ <strong>of</strong> today will find the ‘genX’<br />
and ‘genY’ opportunities to save which preoccupied the baby boomers we are<br />
seeing the search for opportunities to spend amongst the emerging workforce.<br />
Malls and multiplexes are bringing weak signals’ <strong>of</strong> the future <strong>of</strong> the work<br />
place.How will all this translate into the workforce? Here are few vignettes <strong>of</strong> what<br />
we might we walk into a workplace <strong>of</strong> the future:<br />
Greater focus on skills and capability, which will bring greater stress on what a<br />
person brings to the table, rather than who he/she is or has been in the past.<br />
Redefinition <strong>of</strong> employees-companies will have to maintain a fine balance between<br />
career planning and free agent ship a new work ethic. Focus on doing work that is<br />
enjoyable and meaningful to do. Multicultral workforce greater respect by<br />
individuals and <strong>org</strong>anisations for individuality, local communities and natural<br />
surroundings. Diffusion <strong>of</strong> <strong>of</strong>fice space and work timings. You are likely to catch<br />
yourself messaging from home in the middle <strong>of</strong> the right to colleagues across the<br />
planet!End <strong>of</strong> steady jobs and fixed roles. We will see a transition from jobs-forlife<br />
to specific assignments. Markets will price assignments differentially meaning<br />
that people may move from higher paying to less paying to less assignments, while<br />
making other trade-<strong>of</strong>fs. More teamwork at the same time, more work will get<br />
done by teams, rather than by individuals. Greater interdependence in work<br />
processes and less stand-alone work. People may have greater autonomy in their<br />
own work but will have greater inter-linkage and inter-dependence with the work<br />
<strong>of</strong> others.<br />
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Fewer meeting!Many face-to-face interactions will be replaced by face-to-screen<br />
interactions-screens that will be touch-sensitive, glare-free, with life-like pictures<br />
and sounds. Intuitive machine-man interfaces that can be operated by speech and<br />
tactiles stimuli will become the vogue. Personalized work plans and performance<br />
goals, agreed with the superior, reviewed regularly, with a very serious focus on<br />
coaching along the way.<br />
This will be needed to ensure people get work they enjoy doing, and therefore stay<br />
on this will also be necessary for the rapid grooming <strong>of</strong> talent that will become<br />
imperative. End <strong>of</strong> the age <strong>of</strong> super-annotation and in fact, an end to the<br />
phenomenon <strong>of</strong> specifying lower and upper age limits for roles. More socially<br />
useful productive work for CEO’s. the challenge <strong>of</strong> social fracture as a<br />
consequence <strong>of</strong> economic and opportunity disparities will drive more recognition<br />
<strong>of</strong> the fact that ‘island’ <strong>of</strong> prosperity and well being cannot exits admist disenfranchisement,<br />
poverty and squalor. Many <strong>of</strong> the other forces will bring greater<br />
proximity <strong>of</strong> areas that could be ignored in the past like downtown neighborhoods<br />
and sub-saharan African or part <strong>of</strong> other societies, greater involvement <strong>of</strong> business<br />
leaders in managing social issues-heath care, insurance, quality <strong>of</strong> academic<br />
institution, school syllabi, infrastructure creation and maintenance, stronger<br />
partnerships. Access to capabilities will be seen as more important than<br />
‘ownership’ <strong>of</strong> assets -people, factories, etc. <strong>Organisation</strong> and individuals will<br />
come together for mutual benefits in diverse kinds <strong>of</strong> relationship, depending on<br />
the value that needs to be created at the moment .The whole concept <strong>of</strong> a<br />
‘workplace’ may become redundant as where people work and the place where<br />
their payment comes from could be completely different greater demand for<br />
privacy and protection <strong>of</strong> the individual accompanied by greater need for<br />
information on the individual by government, corporate and services related<br />
system-fears <strong>of</strong> ‘Big Brother Watching will get heightened. The challenge for large<br />
corporation to create the small-<strong>org</strong>anization ethos will continue to seem daunting,<br />
despite the extensive use <strong>of</strong> communication technology. This will spur the<br />
emergence <strong>of</strong> an ‘empowered middle manager’ <strong>of</strong> a different kind, and corporate<br />
roles <strong>of</strong> coordination and enabling <strong>of</strong> a less intrusive and directive kind.<br />
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Greater transparency and openness around business policies, including those<br />
related to employees. Greater courage to question them by one and all such<br />
courage will be encouraged due to its salutary effect on corporate intelligence<br />
about business issues <strong>of</strong> the <strong>org</strong>anisation they work for all this could sound be<br />
wilding to some and exhilarating to others. To me the future has potency, challenge<br />
and ,most fascinating <strong>of</strong> all, space for the eternal paradox <strong>of</strong> predictability and<br />
unpred-ictability.so welcome to our worst nightmare and our best dream all into<br />
one! welcome to the workplace <strong>of</strong> tomorrow.<br />
The world is my <strong>of</strong>fice S Padmanabhan, executive vice president and head, Global<br />
human resourses, TCS. Boundaries in the business world are increasingly<br />
dissolving. As delivery move around the world are increasingly dissolving. As<br />
companies move around the world setting up <strong>of</strong>fices, services delivery centers and<br />
manufacturing hubs, there will be an even forward. The globalization <strong>of</strong> the<br />
workforce will have a far-reaching impact on every aspects <strong>of</strong> human resources.<br />
Processes, policies and system will have to evolve and challenge according to the<br />
region or country. But the biggest challenge we face is integrating this global<br />
workforce. For the <strong>Tata</strong> <strong>Group</strong>, acquisition have become a way <strong>of</strong> life and handling<br />
integration issues has become a way <strong>of</strong> life and handling integration issues has<br />
become a critical function <strong>of</strong> HR departments. In international acquisition, we have<br />
to deal with different nationalities, regulatory issues and even the tensions <strong>of</strong> being<br />
acquired or merged. There are also many s<strong>of</strong>t issues involved with integrating the<br />
management, the workforce, and business practices. Earlier at TCS, foreign<br />
nationals formed less then one per cent <strong>of</strong> the workforce with over 62,000<br />
associates from 53 nationalities, the company is emerging as a true global firm<br />
with a diverse employee base. We have found that the best way <strong>of</strong> assimilating<br />
them into TCS’s culture is to have them work on projects together with our people<br />
both in India and outside while recruiting internationally, we need to respect the<br />
local legal norms, cultures and attitudes. That has been the learning at TCS. We<br />
need to understand what is relevant to people in different societies, and change our<br />
pitch to suit local contexts. For instance, Indians love to travel and work abroad,<br />
189
ut in ways other countries people like to work in their own town city. So we need<br />
to focus on their roles and targets in TCS rather than the opportunity<br />
to work in different geographies. Work-life balance today it is very fashionable to<br />
ask,” Do you have a work-life balance?”But this is a choice people have to make.<br />
A company cannot dictate or regulate it by switching <strong>of</strong>f lights at 5 pm or ask<br />
employees to go on a picnic.<br />
What companies can do is to faster a productive work environment within the<br />
working days. If employees need to work outside, then this should be facilitated<br />
though the internet and mobile phones. I feel we should give more opportunities<br />
for people to work outside, then this should be facilitated though the internet and<br />
mobile phones. I feel we should give more opportunities for people to work from<br />
home if they want to and make work more flexible. So it may not be necessary that<br />
the entire workforce <strong>of</strong> TCS comes to <strong>of</strong>fice every morning at the same time. Such<br />
an approach will also cut down on commuting time and enable employees to spend<br />
more time with their families. Work-sharing is another way in which couples. or<br />
any two people, share the work. All this would not mean less productivity but<br />
result in happier employ at TCS we are creating opportunities for employees ‘<br />
‘families to understand what is happening in the company. This gives them a sense<br />
<strong>of</strong> pride in the work that the spouse or parent is doing and makes them feel less<br />
neglected. The issue <strong>of</strong> work-life balance is going to become bigger future. We<br />
have start looking at the work environment very differently from the way we do<br />
today. In all this companies need to look at certain regulatory requirements in<br />
different countries. People should not lose out on benefits such as superannuation<br />
and gratuity because employment laws do not permit these for part-time<br />
employees. We will need to consider some structural changes in policies and<br />
people practices attracting and retaining employees compensation has been, and<br />
will continue to be, the big driver in retaining people. But I feel the importance <strong>of</strong><br />
money varies at different stages <strong>of</strong> life and in different roles that people play.<br />
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Once people reach a minimum level <strong>of</strong> compensation, what matters to them are<br />
their aspiration-and this is where role planning and the work environment are<br />
critical.<br />
Goals and targets need to be clear so that people can know what they are going to<br />
do and they have achieved. These two rules have been in focus for last 25 years <strong>of</strong><br />
my life and they will continue to be important. It’s also universally true that people<br />
join companies but work with bosses and equally true, people leave bosses; not a<br />
company. What people will also look for is a comfort level that they have a good<br />
job to do in the company. A company needs to create a good employer brand,<br />
internally as well as externally, by ensuring that people have good jobs which<br />
make them feel proud <strong>of</strong> working for the <strong>org</strong>anisation.<br />
After that, depending on the demography and age <strong>of</strong> the person, companies need to<br />
add certain benefits that create a social status for the person, give him or her<br />
recognition outside the company .People want their place under the sky.<br />
Employees can be given opportunities to make presentations at international<br />
forums, or made members <strong>of</strong> academic institutes or industry associations this will<br />
increase retention. It is increasingly evident that people are reaching higher, faster.<br />
So where do you go when you approach the top? A company can take you only so<br />
far in your personal ambition and growth. After that<br />
the company should allow you to move to an internal or external company. In this<br />
respect, the TATA GROUP has a phenomenal advantage. TATA have more than<br />
90 companies, there is a good opportunity for mobility in groups.<br />
Helping them to grow outside the <strong>Group</strong> is also good because if that process is well<br />
managed, you have a wider populace as a friend- because if the leader (in another<br />
company) is your friend, the others will align with the leader. For the <strong>Group</strong>, the<br />
TATA brand will continue to be a magnet for people looking for a job. In the<br />
Indian ethos there is a certain value attached to the TATA.<br />
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Brief on the Stalwarts and their role in shaping the Business house<br />
For the <strong>Tata</strong> family <strong>of</strong> people and companies, the year gone by was a call to<br />
remembrance as much as it was a time for achievements and accolades<br />
Theyear 2004 was momentous for the <strong>Tata</strong> <strong>Group</strong> in more ways than one, marking<br />
as it did the death centenary <strong>of</strong> <strong>Group</strong> founder Jamsetji <strong>Tata</strong>, the birth centenaries<br />
<strong>of</strong> two other stalwarts, JRD <strong>Tata</strong> and Naval <strong>Tata</strong>, and a slew <strong>of</strong> achievements by<br />
<strong>Tata</strong> companie in various industry sectors.<br />
Among the many activities undertaken to commemorate theCentury <strong>of</strong> Trust<br />
initiative in memory <strong>of</strong> the three <strong>Tata</strong> titans was a travelling exhibition, a business<br />
quiz competition, an advertising campaign and the publication <strong>of</strong> Lasting Legacies,<br />
a special edition <strong>of</strong> <strong>Group</strong> magazine <strong>Tata</strong> Review.<br />
The following is an encapsulated recap <strong>of</strong> the strides that the <strong>Tata</strong> <strong>Group</strong> and its<br />
major companies took in the year gone by.<br />
Products and services<br />
<strong>Tata</strong> <strong>Group</strong> companies continued to respond to the needs <strong>of</strong> its customers and<br />
clients with agility while launching a variety <strong>of</strong> new products and services:<br />
192<br />
• <strong>Tata</strong> Motorshad a bunch <strong>of</strong> significant launches this year. It introduced the<br />
New Indica V2, the Indigo Advent, the Indigo Marina and the Sumo Victa.<br />
It also launched the Indica and Indigo in South Africa.<br />
• In May,<strong>Tata</strong> Asset Management launched its <strong>Tata</strong> Equity P/E Fund, which<br />
identifies suitable investment opportunities by analysing undervalued stocks<br />
on the basis <strong>of</strong> price-to-earnings ratio.<br />
• In June,Indian Hotels launched indiOne, its smart basics hotels in an<br />
innovative attempt to redefine the hospitality landscape with a new category<br />
that is comfortable yet affordable. In September, it opened India's first<br />
luxury homes complex, Wellington Mews, in Mumbai. In November, the<br />
company launched theTaj Exotica Resort and Spa in Mauritius. This<br />
property is spread over 27 acres on Wolmar Beach and laps the turquoise<br />
waters <strong>of</strong> Tamarin Bay.
193<br />
• In July,Titan touched a new milestone in creativity by launching Flip, India's<br />
first dual-face watch, with dual functionality and styling.<br />
• In September,VSNL announced the launch <strong>of</strong> <strong>Tata</strong> Indicoms global calling<br />
card, which allows Indians travelling abroad to make calls to India or any<br />
other international destination from any mobile, landline or pay phone.<br />
• In October, <strong>Tata</strong> Chemicalslaunched <strong>Tata</strong> Kisan Sansar, a chain <strong>of</strong> one-stop<br />
resource centres for farmers that <strong>of</strong>fer end-to-end agricultural solutions.<br />
• In November,<strong>Tata</strong> Teleservices became the first company in the Indian<br />
telecom market to launch Push-To-Talk services, which allow customers to<br />
call a group <strong>of</strong> people at one time by simply pressing a button.<br />
• In December,<strong>Tata</strong> AIG Life unveiled operation quantum leap, an aggressive<br />
business growth strategy for the next three years. It has set its sights on<br />
becoming a top player in the private insurance sector and on securing a<br />
market share <strong>of</strong> 20 per cent by 2007.<br />
New partnerships<br />
Many <strong>Tata</strong> companies f<strong>org</strong>ed new alliances and grew through acquisitions: These<br />
are some <strong>of</strong> the noteworthy developments on this front:<br />
• In August, <strong>Tata</strong> <strong>Steel</strong>acquired Nat<strong>Steel</strong>, the dominant steel producer <strong>of</strong><br />
Singapore, for Rs 1,313 crore. This was part <strong>of</strong> the companys quest to<br />
increase its global footprint.<br />
• <strong>Tata</strong> Motors acquired South Koreas second largest heavy truck maker, the<br />
Daewoo Commercial Vehicle Company. The new entity then went on to<br />
launch a heavy duty truck model, Novus, in the South Korean market.<br />
• In November, VSNL acquired Tyco Global Network, among the worlds<br />
most advanced and extensive submarine cable systems, for $130 million. In<br />
March, purchased Chennai-based Dishnet DSLs internet service provider<br />
division for Rs 270 crore.
Hitting the headlines<br />
<strong>Tata</strong> companies made news throughout 2004 in different ways. Here are some<br />
highlights:<br />
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• <strong>Tata</strong> Projects, now a leading company in the field <strong>of</strong> power generation,<br />
transmission and distribution, and in civil infrastructure projects, celebrated<br />
its silver jubilee in February.<br />
• Voltas, the refrigeration and air-conditioning giant, is celebrating the fiftieth<br />
year <strong>of</strong> its existence.<br />
• <strong>Tata</strong> Racing, which has been supporting Narain Karthikeyan, the fastest<br />
Indian in the world, added the promising Karun Chandhok to its stable <strong>of</strong><br />
racing drivers in April.<br />
• In May, <strong>Tata</strong> International, the international business gateway <strong>of</strong> the <strong>Tata</strong><br />
<strong>Group</strong>, joined the billion dollar club with a 22-per cent rise in turnover.<br />
• On July 29, the birth anniversary <strong>of</strong> late <strong>Tata</strong> <strong>Group</strong> chairman JRD <strong>Tata</strong>,<br />
s<strong>of</strong>tware giant <strong>Tata</strong> Consultancy Services made its foray into the with an<br />
initial public <strong>of</strong>fering. The issue was a roaring success, stock markets being<br />
oversubscribed seven times over. The year also saw the company providing<br />
infotech solutions and engineering services to Formula One racing carmaker<br />
Ferrari.<br />
• In September, <strong>Tata</strong> Motors became the first company in the Indian<br />
engineering sector to list its securities on the New York Stock Exchange.<br />
• In October, Titan announced that Indian film idol Aamir Khan would be its<br />
brand ambassador.<br />
• In November, VSNL launched the <strong>Tata</strong> Indicom Cable, Singapores first<br />
fully Indian-owned undersea fibre-optic cable. This cable system will<br />
increase the existing bandwidth capacity into India.<br />
Early life<br />
Jamsetji <strong>Tata</strong> was born to Nusserwanji and Jeevanbai <strong>Tata</strong> on 3 March 1839 in<br />
Navsari, a small town in South Gujarat. Nusserwanji <strong>Tata</strong> was the first<br />
businessman in a family <strong>of</strong> Parsi Zoroastrian priests. He moved to Bombay and<br />
started trading.
Jamsetji joined him in Bombay at the age <strong>of</strong> 14 and enrolled at the Elphinstone<br />
College. He was married to Hirabai Daboo [2] while he was still a student. [3] He<br />
graduated from college in 1858 and joined his father's trading firm. It was a<br />
turbulent time to step into business as the Indian Rebellion <strong>of</strong> 1857 had just been<br />
defeated by the British government.<br />
Legacy<br />
The company started by Jamsetji <strong>Tata</strong> came to be known as the <strong>Tata</strong> <strong>Group</strong> and is<br />
today among the largest and most respected companies <strong>of</strong> India.<br />
Jamsetji, was however, known for much more than just starting a company. He<br />
was a pioneer in his field and thought way ahead <strong>of</strong> his times.<br />
When he started the Empress Mills in Nagpur, he didn't just think <strong>of</strong> novel ways to<br />
manufacture textiles, he also put in place very good labour practices. This was long<br />
before any labour laws came into existence.<br />
Though India remained under British rule while he was alive, he interacted with<br />
activists such as Dadabhai Naoroji and Pherozeshah Mehta. He was strongly<br />
influenced by their thinking. However, he always maintained that political freedom<br />
must be accompanied by economic self sufficiency. Not only did he manage to<br />
create thousands <strong>of</strong> jobs, he paved the way for many future enterprises. The<br />
establishment <strong>of</strong> Indian Institute <strong>of</strong> Science was initiated by him.<br />
Jamshedpur, also known as <strong>Tata</strong>nagar, a city in the Indian state <strong>of</strong> Jharkhand is<br />
named after him. The <strong>Tata</strong> <strong>Group</strong> has many facilities there, including <strong>Tata</strong> <strong>Steel</strong>.<br />
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Jehangir Ratanji Dadabhoy <strong>Tata</strong> (July 29, 1904–November 29, 1993) was a<br />
pioneer aviator and important businessman <strong>of</strong> India. He was awarded Bharat Ratna<br />
during his life time.<br />
Early life<br />
J.R.D. <strong>Tata</strong> was born in Paris, France, the second child <strong>of</strong> Ratanji Dadabhoy <strong>Tata</strong><br />
and his French wife Suzanne Brière [citation needed] . His father was a first cousin <strong>of</strong><br />
Jamsetji <strong>Tata</strong>, a pioneer industrialist in India. 'Jeh', or 'JRD' as he was commonly<br />
known, came to be regarded as the most famous industrial pioneer in modern India.<br />
As his mother was French, he spent much <strong>of</strong> his childhood in France and as a<br />
result, French was his first language. <strong>Tata</strong> also attended the French Foreign Legion.<br />
He attended the Cathedral and John Connon School, Bombay (now Mumbai).<br />
J.R.D. <strong>Tata</strong> was inspired early by aviation pioneer Louis Blériot, and took to<br />
flying. In 1929 <strong>Tata</strong> got the first pilot license issued in India. He later came to be<br />
known as the father <strong>of</strong> Indian civil aviation. He founded India's first commercial<br />
airline, '<strong>Tata</strong> Airlines', in 1932, which in 1946 became Air India, now India's<br />
national airline.<br />
Businessman<br />
J.R.D. <strong>Tata</strong> studied engineering at the University <strong>of</strong> Cambridge. He did not<br />
continue beyond matriculation as mentioned in his biography, by Mr R M Lala.<br />
At the age <strong>of</strong> 34, he became Chairman <strong>of</strong> <strong>Tata</strong> Sons, the holding Company <strong>of</strong> the<br />
<strong>Tata</strong> <strong>Group</strong>. For decades, J R D directed the huge <strong>Tata</strong> <strong>Group</strong> <strong>of</strong> companies, with<br />
major interests in <strong>Steel</strong>, Engineering, Power,Chemicals and Hospitality. He was<br />
famous for succeeding in business while maintaining high ethical standards -<br />
refusing to bribe politicians or use the black market. Under J R D's Chairmanship,<br />
the number <strong>of</strong> companies in the <strong>Tata</strong> <strong>Group</strong>, grew from 15 to over 100. Monetarily,<br />
the assets <strong>of</strong> <strong>Tata</strong> group grew from Rs 62 crores to over Rs 10000 crores.<br />
He was awarded the Legion d'honneur, by the French Government in 1954. He also<br />
received the prestigious Guggenheim Medal for aviation in 1988. He was awarded<br />
the Bharat Ratna, India's highest civilian award in 1992 for his service to industry<br />
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and nation building. He died in Geneva, Switzerland in 1993 at the age <strong>of</strong> 89. He is<br />
buried at Père Lachaise Cemetery in Paris.<br />
Naval Hormusji <strong>Tata</strong>: The People's Person<br />
Born in August 1904, Naval H. <strong>Tata</strong> joined the <strong>Tata</strong> <strong>Group</strong> in<br />
1930, and by 1933 he was the secretary <strong>of</strong> the <strong>Group</strong>'s Aviation<br />
division. In 1939 he was made the Managing Director <strong>of</strong> the<br />
<strong>Group</strong>'s textile companies and in 1941 was made the Director <strong>of</strong><br />
<strong>Tata</strong> Sons. Mr. Naval <strong>Tata</strong> was actively engaged with the <strong>Tata</strong><br />
Charities and served as the Chairman <strong>of</strong> the Sir Ratan <strong>Tata</strong> Trust<br />
from 1965 to the time <strong>of</strong> his passing. He was the founder President <strong>of</strong> the Indian<br />
Cancer Society and held the position from 1951 through 1989.<br />
His most valuable contribution outside <strong>of</strong> business was in the domain <strong>of</strong> labor<br />
relations. He believed in responsible negotiations between employers, workers and<br />
governments in the search for equitable solutions to labor issues. For over four<br />
decades he provided a voice <strong>of</strong> reason, consideration and conciliation to national<br />
and international <strong>org</strong>anizations working to minimize employer-employee friction.<br />
He was an employer who always regarded himself as a trustee <strong>of</strong> the rights and<br />
interests <strong>of</strong> workers. Mr. Naval <strong>Tata</strong> became part <strong>of</strong> Geneva-based International<br />
Labor <strong>Organisation</strong> governing body in 1951 and continued in the post till 1989. He<br />
was also a member <strong>of</strong> the International <strong>Organisation</strong> <strong>of</strong> Employers for 38 years and<br />
was the president <strong>of</strong> the Employers' Federation <strong>of</strong> India from 1959 to 1985. Naval<br />
<strong>Tata</strong> symbolized all that is best <strong>of</strong> the <strong>Tata</strong> spirit <strong>of</strong> giving back to society and the<br />
communities in which its enterprises grow.<br />
He was also an avid sports lover and Indian field hockey was another beneficiary<br />
<strong>of</strong> his capabilities. He was the administrative head <strong>of</strong> the game in India when the<br />
country won gold in three successive Olympics. Mr. Naval <strong>Tata</strong>'s caring and<br />
endearing nature, his abiding concern for the poor, his love <strong>of</strong> a good laugh and his<br />
instinct to trust even those not worthy <strong>of</strong> it, made him one <strong>of</strong> a kind. He married<br />
Simone in 1955. Mr. Naval <strong>Tata</strong> passed away in 1989.<br />
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Ratan Naval <strong>Tata</strong><br />
Ratan <strong>Tata</strong> was born into the wealthy and famous <strong>Tata</strong> family <strong>of</strong> Mumbai. He was<br />
born to Soonoo and Naval Hormusji <strong>Tata</strong>, a Gujarati-speaking Parsi family. Ratan<br />
is the great grandson <strong>of</strong> <strong>Tata</strong> group founder Jamsetji <strong>Tata</strong>. Ratan's childhood was<br />
troubled, his parents separating in the mid-1940s, when he was about seven and his<br />
younger brother Jimmy was five. His mother moved out and both Ratan and his<br />
brother were raised by their grandmother Lady Navajbai. He was schooled at the<br />
Campion School, Mumbai and graduated from Cornell University in 1962 with a<br />
degree in Architecture and Structural Engineering.<br />
Ratan joined the <strong>Tata</strong> <strong>Group</strong> in December 1962, after turning down a job with IBM<br />
on the advice <strong>of</strong> JRD <strong>Tata</strong>. He was first sent to Jamshedpur to work at <strong>Tata</strong> <strong>Steel</strong>.<br />
He worked on the floor along with other blue-collar employees, shoveling<br />
limestone and handling the blast furnaces. [1] Ratan <strong>Tata</strong>, a shy man, rarely features<br />
in the society glossies, has lived for years in a book-crammed, dog-filled bachelor<br />
flat in Mumbai's Colaba district. [2]<br />
In 1971, Ratan was appointed the Director-in-Charge <strong>of</strong> The National Radio &<br />
Electronics Company Limited (Nelco), a company that was in dire financial<br />
difficulty. Ratan suggested that the company invest in developing high-technology<br />
products, rather than in consumer electronics. J.R.D. was reluctant due to the<br />
historical financial performance <strong>of</strong> Nelco which had never even paid regular<br />
dividends. Further, Nelco had 2% market share in the consumer electronics market<br />
and a loss margin <strong>of</strong> 40% <strong>of</strong> sales when Ratan took over. Nonetheless, J. R. D.<br />
followed Ratan's suggestions.<br />
From 1972 to 1975, Nelco eventually grew to have a market share <strong>of</strong> 20%, and<br />
recovered its losses. In 1975 however, India's Prime Minister Indira Gandhi<br />
declared a state <strong>of</strong> emergency, which led to an economic recession. This was<br />
followed by union problems in 1977, so even after demand improved, production<br />
did not keep up. Finally, the <strong>Tata</strong>s confronted the unions and, following a strike, a<br />
lockout was imposed for seven months. Ratan continued to believe in the<br />
fundamental soundness <strong>of</strong> Nelco, but the venture did not survive.<br />
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In 1977, Ratan was entrusted with Empress Mills, a textile mill controlled by the<br />
<strong>Tata</strong>s. When he took charge <strong>of</strong> the company, it was one <strong>of</strong> the few sick units in the<br />
<strong>Tata</strong> group. Ratan managed to turn it around and even declared a dividend.<br />
However, competition from less labour-intensive enterprises had made a number <strong>of</strong><br />
companies unviable, including those like the Empress which had large labour<br />
contingents and had spent too little on modernisation. On Ratan's insistence, some<br />
investment was made, but it did not suffice. As the market for coarse and medium<br />
cotton cloth (which was all that the Empress produced) turned adverse, the<br />
Empress began to accumulate heavier losses. Bombay House, the <strong>Tata</strong><br />
headquarters, was unwilling to divert funds from other group companies into an<br />
undertaking which would need to be nursed for a long time. So, some <strong>Tata</strong><br />
directors, chiefly Nani Palkhivala, took the line that the <strong>Tata</strong>s should liquidate the<br />
mill, which was finally closed down in 1986. Ratan was severely disappointed with<br />
the decision, and in a later interview with the Hindustan Times would claim that<br />
the Empress had needed just Rs 50 lakhs to turn it around.<br />
In 1981, Ratan was named Chairman <strong>of</strong> <strong>Tata</strong> Industries, the <strong>Group</strong>'s other holding<br />
company, where he became responsible for transforming it into the <strong>Group</strong>'s<br />
strategy think-tank and a promoter <strong>of</strong> new ventures in high-technology businesses.<br />
In 1991, he took over as group chairman from J.R.D. <strong>Tata</strong>, pushing out the old<br />
guard and ushering in younger managers. Since then, he has been instrumental in<br />
reshaping the fortunes <strong>of</strong> the <strong>Tata</strong> <strong>Group</strong>, which today has the largest market<br />
capitalization <strong>of</strong> any business house on the Indian Stock Market.<br />
Under Ratan's guidance, <strong>Tata</strong> Consultancy Services went public and <strong>Tata</strong> Motors<br />
was listed on the New York Stock Exchange. In 1998, <strong>Tata</strong> Motors introduced his<br />
brainchild, the <strong>Tata</strong> Indica.<br />
On January 31, 2007, under the chairmanship <strong>of</strong> Ratan <strong>Tata</strong>, <strong>Tata</strong> Sons<br />
successfully acquired Corus <strong>Group</strong>, an Anglo-Dutch steel and aluminum producer.<br />
With the acquisition, Ratan <strong>Tata</strong> became a celebrated personality in Indian<br />
corporate business culture. The merger created the fifth largest steel producing<br />
entity in the world.<br />
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Ratan <strong>Tata</strong>'s dream fulfilled, His <strong>Tata</strong> Nano Car 2008<br />
Ratan <strong>Tata</strong>'s dream was to manufacture a car costing Rs 100,000 (1998: approx.<br />
US$2,200; today US$2,528). He realized his dream by launching the car in New<br />
Delhi Auto Expo on January 10, 2008. Three models <strong>of</strong> the <strong>Tata</strong> Nano were<br />
announced, and Ratan <strong>Tata</strong> delivered on his commitment to developing a car<br />
costing only 1 lakh rupees, adding that "a promise is a promise," referring to his<br />
earlier promise to deliver this car at the said cost.Recently when his plant for Nano<br />
production was obstructed by Mamta Banerjee(plant was shut down for 2 weeks,its<br />
first car for use in the market will be delayed by a couple <strong>of</strong> weeks), his decision <strong>of</strong><br />
going out <strong>of</strong> West Bengal was warmly welcomed.This would affect the image <strong>of</strong><br />
West Bengal in rest <strong>of</strong> India and abroad as well.Although, Industrialization in West<br />
Bengal is only supported by CM Budhadeb Bhattacharjee.The final decision is yet<br />
to come.<br />
On March 26, 2008, <strong>Tata</strong> Motors, under Ratan <strong>Tata</strong>, bought Jaguar & Land Rover<br />
from Ford Motor Company. The two iconic British brands, Jaguar and Land Rover,<br />
were acquired for £1.15 billion ($2.3 billion).<br />
On October 7, 2008, After a controversial stay in West Bengal, Ratan <strong>Tata</strong> and his<br />
men on Tuesday shifted their Rs 1-lakh car Nano project to Sanand near<br />
Ahmedabad at an investment <strong>of</strong> Rs 2,000 crore (Rs 20 billion), delcaring that<br />
efforts will be made to roll out the world's cheapest car from a make-shift plant to<br />
meet the deadline. Praising Modi for speedy allocation <strong>of</strong> about 1,100 acres <strong>of</strong><br />
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centrally located land, Ratan <strong>Tata</strong> said that the company had a great deal <strong>of</strong><br />
urgency in having a new location and was driven by the reputation <strong>of</strong> the state.<br />
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CONCLUSION<br />
Since the opening <strong>of</strong> the Indian economy in 1991, <strong>Tata</strong> has been subject to global<br />
competition, making it imperative for the group to become competitive in India<br />
against the new entrants. To gain scale, reduce their exposure to the cyclicality <strong>of</strong><br />
India’s economy, survive, and achieve a sustainable competitive position in<br />
industries that are globalizing, most <strong>Tata</strong> companies then looked overseas. <strong>Tata</strong>’s<br />
recent experience is an excellent case for analyzing ‘accelerated<br />
internationalization’ (Matthews 2002). As it pertains to a challenger conglomerate<br />
from formerly peripheral areas that goes international in order to access resources,<br />
the <strong>Tata</strong> group has been driven by multiple factors, including the need to access<br />
new markets (e.g., in BPO services), the opportunity to integrate the value chain<br />
(e.g., in steel), and the quest for brand control (e.g., in tea). This strategy proved<br />
feasible because <strong>Tata</strong> possesses strong leadership combined with vision; can<br />
exploit the possibility <strong>of</strong> leveraging increasingly developed financial markets in<br />
India, a large domestic market, and global liquidity; and reacted fast to the opening<br />
<strong>of</strong> specific opportunities at given times.<br />
The process <strong>of</strong> growth, especially when it takes form through international<br />
acquisitions, has considerable consequences on the nature <strong>of</strong> corporations, their<br />
internal characteristics, and their relationship with stakeholders. Changes take time<br />
to unravel and loops may originate whereby target companies pass their DNA to<br />
the acquirer and modify the latter’s basic features. Such transformational dynamics<br />
is likely to be more complex in the case <strong>of</strong> emerging economies’ multinationals.<br />
On the one hand, these companies may use acquisitions in order to access<br />
resources they do not have, rather than to deploy un-imitable ones in the way that<br />
is predicted by the standard models <strong>of</strong> traditional multinationals. On the other<br />
hand, for this very reason emerging economies’ multinationals are likely to<br />
conclude their deals in more developed economies, where firms are not very<br />
amenable to adopt management methods and values developed in poorer countries.<br />
Operating across borders and time zones and integrating diverse management<br />
teams and corporate governance practices do not seem to have modified the <strong>Tata</strong><br />
imprinting. Of particular interest is the fact that <strong>Tata</strong> has not blindly embraced<br />
ready-made recipes to face the challenges <strong>of</strong> multinational management, preferring<br />
instead <strong>org</strong>anizational solutions aimed at fostering mutual recognition and<br />
knowledge exchange within the multinational conglomerate. A praise for this way<br />
<strong>of</strong> managing the group came from Standard & Poor’s, which in December 2006<br />
expressed the view that the “policy to support its companies and the improved<br />
financial pr<strong>of</strong>ile <strong>of</strong> its entities also enhances the overall financial flexibility <strong>of</strong> <strong>Tata</strong><br />
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Motors.” In the case <strong>of</strong> VSNL, a strategic link with TCS has given the advantage<br />
<strong>of</strong> <strong>of</strong>fering customers a single partner option that can deliver a combined IT and<br />
telecom solution. Another <strong>Tata</strong> advantage is the fact <strong>of</strong> being run by a very<br />
successful minority, the Parsis, without stirring anger amid the majority <strong>of</strong> the<br />
population (as is tragically common in other countries, see Chua 2002). This gentle<br />
approach may distinguish <strong>Tata</strong> from counterparts that produce much noise in their<br />
expansion.<br />
The process <strong>of</strong> internationalization <strong>of</strong> large corporations from non-Western<br />
countries – be they in some kind <strong>of</strong> East like China, India, or Russia, or in some<br />
kind <strong>of</strong> South like Latin America, South Africa, or Turkey – is more than a passing<br />
fashion. Future research will inevitably focus on detailed case studies <strong>of</strong> key firms,<br />
to analyze a broad variety <strong>of</strong> issues, from management practices and industrial<br />
relations, to the <strong>org</strong>anization <strong>of</strong> R&D function and innovation. Mimicking the<br />
trajectory <strong>of</strong> the history <strong>of</strong> industrial nations’ business, the issue <strong>of</strong> hybridization –<br />
i.e. the process whereby corporate models, far from converging on a single model,<br />
take multiple and diverging roads to innovate and become increasingly open to the<br />
global economy – will figure prominently in the research agenda. This paper has<br />
<strong>of</strong>fered a first modest contribution in this direction, especially in analyzing the time<br />
and geographic dimensions <strong>of</strong> diversification.<br />
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BIBLIOGRAPHY<br />
Our mentors provided a lot guidance but apart from this we took help from these<br />
sources.<br />
MAGAZINE<br />
NURTURING IDEAS – DRIVING GROWH<br />
BUSINESS WORLD<br />
INDIA TODAY<br />
NEWSPAPER<br />
FINANCIAL EXPRESS<br />
BUSINESS STANDARD<br />
TIMES OF INDIA<br />
WEBSITE<br />
www.google.co.in<br />
www.tata.com<br />
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