There are two reasons for which companies are established – one is to make money for the stakeholders, and the second is to create value for the society. There is one company that has explored both the sectors and enriched the way of doing business. This company is the Tata Group, an Indian Global Giant that has refined the principles of working and achieved supreme heights in their fields. Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten different lines. The group has its operations in more than 100 countries across six continents, with a mission 'To improve the quality of life of the communities they serve globally, through long-term stakeholder value creation based on Leadership with Trust’.
The promoter and principal holding company of Tata Group is Tata Sons, one of the largest conglomerate businesses of South Asia. Being established as a trading firm in 1968, Tata Sons engaged primarily in tea trade before gaining control over the Tata Group. More than 66% of the equity share capital of Tata Sons is held by philanthropic trusts, who promote education, health, art, culture and different social activities. The main feature of the Tata Group is that each company operates individually, and has a different set of supervisors and board of directors presiding over the same. The company, since its inception, grew by leaps and bounds as it entered into unlinked segments with the sole motive to revolutionize the way of conducting business in the Indian Subcontinent.
MAJOR COMPANY SEGMENTS
➢ Tata Consultancy Services –
TCS is an IT service, consulting and business solutions organization that has invested in some of the largest global institutions and acted as the medium of change in the sector. The company has gained recognition because of the its place in global sustainability indices and is among the top 10 Global IT firms in the world.
➢ Tata Steel –
This company is the leading global steel company with an annual steel production capacity of 33MnTPA. Established in 1907, the company has broadened its scope of operations by means of expanding both vertically and horizontally. It currently operates in 5 continents and has an employee base of 65000. In addition, the company also manufactures products like Wires, Tubes, Agricultural equipment’s and Industrial by-products.
➢ Tata Motors –
Tata Motors is a leading global manufacturer of cars, buses, trucks and all transportation vehicles. It operates in various places like India, UK, South Korea, Thailand, etc. and is a home to 109 subsidiaries including the Jaguar and Land Rover. The widespread extent of its branches has made Tata Motors on of the biggest manufacturers of automobiles.
➢ Tata Chemicals –
Starting its journey in in isolated land of Mithapur, Gujarat, the company was formed with the sole moto to employ science and achieve goals to redefine business. It is a global company that deals in Basic Consumer Products, Basic Specialty Products. Its salt and spices reach over 148 million households which helps promote the incomes of the farmers.
➢ Tata Power -
Tata Power is India's Biggest Integrated Power Company, present across the entire value chain of conventional & renewable energy, power services and future customer solutions including solar rooftop and EV charging stations. Since its establishment a hundred year back, it has been creating value and changing the life of its customers by its world class initiatives.
➢ Tata Hotel Chain –
The company opened its 1st hotel, the Taj Mahal Palace in 1903. Tata aims to set a prescribed standard of quality in the hospitality sector by ensuring world class facility to its consumers. Certain partnerships with TATA Sia Airlines (Vistara), Mastercard, American Express has helped promote its hotel business.
WHAT DIFFERENTIATES TATA?
The Tata Group is known for its remarkable business culture and its way of conducting business. With its omnipotent presence in every sector, to employing more than 7,00,000 employees throughout its offices, they have proved their mettle and safely be called one of the greatest business houses of India. The factors that differentiate Tata in the business world are –
➢ Conglomerate – The Tata Group is a conglomerate with a diverse business group spread over a number of companies. This can make a huge impact on its valuation and extrapolates its varying presence in various sectors.
➢ Global Presence – The Tata Group has the biggest global presence of all companies in India. It has footprints in more than 6 continents spread over 100 countries. Since its inception, they have maintained their approach to spread internationally and have created a worldwide customer base due to the same.
➢ Independence in Operations – As mentioned above, the Tata Group have a unique hierarch of management structure where every company has a different set of leaders and top management. With the increased diversification amongst its top management, Tata services remain up-to-date with the happenings of the current markets.
➢ Philanthropy – The principle guide to Tata’s system of operations. Since the beginning, they have been able to strike an appropriate balance between money and social parameters. Sri Ratan N. Tata stands as a living example continuing the principle of ‘with age comes wisdom’ so as to bring a positive social impact.
➢ Distinct Business Culture – Along with philanthropy, comes 5 different values in the form of excellence, innovation, quality management, diversity and employee care and respect. These form a mixture of a refined way of doing business and helps differentiate Tata’s from others.
CONCLUSION
The Tata Group plays a central role in the Indian markets and is currently at the helm of globalizing the Indian economy. The core principles of Integrity, Innovation, Quality and excellent work ethic form the foundation of Tata’s brand recognition. Since majority of its shares are held by philanthropic trusts, the goal to eradicate the problems of healthcare, education, sanitary problems, has seen significant achievements and with the guiding leadership of Sri Ratan Ji Tata, the company aims to set standards in the field of Corporate Social Responsibility.
The Tata Group's worth framework coordinates the development and business of all parts we work in. Moulded by an ancestry of sound and direct business standards, the Tata Group is based on an establishment of trust and straightforwardness. This forms the premise of each business we work in. Bleeding edge advancement, a severe spotlight on quality, economical tasks and business greatness are the signs of the trust the Tata name is best perceived for.
Take the stones people throw at you. And use them to build a monument.
