Tata
companies operate in seven business sectors: communications
and information technology, engineering, materials, services,
energy, consumer products and chemicals. They are, by and
large, based in India and have significant international
operations. The total revenue of Tata companies, taken
together, was $70.8 billion (around Rs325,334 crore) in
2008-09, with 64.7 per cent of this coming from business
outside India, and they employ around 357,000 people
worldwide. The Tata name has been respected in India for 140
years for its adherence to strong values and business ethics.
Every Tata
company or enterprise operates independently. Each of these
companies has its own board of directors and shareholders, to
whom it is answerable. There are 27 publicly listed Tata
enterprises and they have a combined market capitalisation of
some $60 billion, and a shareholder base of 3.5 million. The
major Tata companies are Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata
Tea, Indian Hotels and Tata Communications.
Tata Steel
became the sixth largest steel maker in the world after it
acquired Corus. Tata Motors is among the top five commercial
vehicle manufacturers in the world and has recently acquired
Jaguar and Land Rover. TCS is a leading global software
company, with delivery centres in the US, UK, Hungary, Brazil,
Uruguay and China, besides India. Tata Tea is the second
largest branded tea company in the world, through its UK-based
subsidiary Tetley. Tata Chemicals is the world’s second
largest manufacturer of soda ash and Tata Communications is
one of the world’s largest wholesale voice carriers.
In tandem
with the increasing international footprint of Tata companies,
the Tata brand is also gaining international recognition.
Brand Finance, a UK-based consultancy firm, recently valued
the Tata brand at $9.92 billion and ranked it 51st among the
world's Top 100 brands. Businessweek magazine ranked
Tata 13th among the '25 Most Innovative Companies' list and
the Reputation Institute, USA, recently rated it 11th on its
list of world's most reputable companies.
Founded by
Jamsetji Tata in 1868, Tata’s early years were inspired by the
spirit of nationalism. It pioneered several industries of
national importance in India: steel, power, hospitality and
airlines. In more recent times, its pioneering spirit has been
showcased by companies such as TCS, India’s first software
company, and Tata Motors, which made India’s first
indigenously developed car, the Indica, in 1998 and recently
unveiled the world’s lowest-cost car, the Tata Nano.
Tata
companies have always believed in returning wealth to the
society they serve. Two-thirds of the equity of Tata Sons, the
Tata promoter company, is held by philanthropic trusts that
have created national institutions for science and technology,
medical research, social studies and the performing arts. The
trusts also provide aid and assistance to non-government
organisations working in the areas of education, healthcare
and livelihoods. Tata companies also extend social welfare
activities to communities around their industrial units. The
combined development-related expenditure of the trusts and the
companies amounts to around 4 per cent of the net profits of
all the Tata companies taken together.
Going
forward, Tata is focusing on new technologies and innovation
to drive its business in India and internationally. The Nano
car is one example, as is the Eka supercomputer (developed by
another Tata company), which in 2008 was ranked the world’s
fourth fastest. Anchored in India and wedded to traditional
values and strong ethics, Tata companies are building
multinational businesses that will achieve growth through
excellence and innovation, while balancing the interests of
shareholders, employees and civil society.