This brief history of the Tatas charts the contribution of every Tata chairman and explores the values at the heart of the Tata Group.
[alert type=”e.g. warning, danger, success, info” title=””]The Greatest Company in the World?
The Story of TATA
Peter Casey
Publisher: Penguin
Pages: 228; Price: Rs.599[/alert]
The author of this book Peter Casey is the Founder and Executive Chairman of Claddagh Resources which operates in four continents. He is a prominent Irish-American businessmen and has a wide portfolio of business interests, including residential, commercial and agricultural property in Ireland.
Peter Casey narrates the extraordinary story of the Indian business giant, Tata. How did Tata transform itself from a family-owned business to one of the most professionally managed enterprises in the world?
This brief history of the Tatas charts the contribution of every Tata chairman — from Jamsetji Tata to Cyrus Mistry — and explores the values at the heart of the Tata Group, as well as the role played in its development by their philanthropic trusts .Today Tata Group employs nearly half a million people, and earns revenues of $ 100 billion; with a profit of $ 6.23 billion in 2011-12 and controls assets valued at $27.7 billion.
Tata Group has evolved from being a family-owned business to becoming one of the best-run, professionally managed groups in the world. The philanthropic trusts control a majority of the Tata holding company, Tata Sons. The Tata family is a very small shareholder. The stakeholders include shareholders, employees ,customers and society itself.
We have a precise analysis of all the Chairmen from Jamsetji Tata to Cyrus Mistry. Jamsetji Tata founded the Company not merely to make profit and create personal wealth, but to improve the lives of his fellow Indians.
Every key element in his make-up has figured as an abiding theme in the history of the Tata Group and its major companies. Jamsetji had three major aims. He wanted to build an Iron and Steel plant. Attending a lecture in Manchester he heard Thomas Carlyle declare – “Those who control the iron and steel will in time come to control the gold as well.” Though he did not live to see it this is the Steel Plant in Jamshedpur.
His second aim was to construct a vast hydroelectric plant and this is the TATA Hydro-electric Power Supply Company established in 1910—after his death. The third aim was to create a world class science institute in India. Seven years after he passed away the Indian Institute of Science opened its doors in Bangalore. One dream fulfilled during his lifetime is the Taj Mahal Hotel, with world class standards.
Jamsetji was succeeded by Dorabji Tata who tirelessly worked to ensure his father’s dreams materialized. He helped to establish three hydroelectric power companies, an oil and soap company, an insurance business and two cement companies and in addition supporting J.R.D.Tata’s aviation unit and extending help to the Indian Institute of Science. Dorabji Tata placed his entire fortune of over 10 million rupees in trust to be used without distinction of place, nationality or creed, for the advancement of learning and research ,the relief of distress and other charitable purposes.
The third Chairman was Nowroji Saklatwala, a cousin of Dorabji Tata. He consolidated the company during the global depression of the 1930s. During his six years Tatas took great social and economic strides. He focused on Tata’s core businesses ; iron and steel, mills, banking and power, several cement businesses in turmoil.
The fourth Chairman was the youngest ( at 34) to ever hold the post, the legendary J.R.D.Tata held the post for 53 years. Under him the business grew from fourteen companies to ninety five and assets catapulted from $ 1—million to more than $ I billion. He was the spectacular head of the largest industrial group in India. One of JRD’s memorable traits was a love of flying, In 1929, he became India’s first recipient of a pilot’s licence.
Three years later, in 1932 he founded the nation’s first commercial airline, Tata Airlines, with an investment of Rs.Two lakhs from Tata Sons. The first commercial flight was made by JRD from Karachi to Bombay with a cargo of mail. In 1948 JRD founded Air India, which later on attained global eminence.
One company that grew under JRD was Tata Chemicals, which today is India’s second largest producer of soda ash. In 1941 JRD established the Tata Memorial Centre for Cancer Research and Treatment. He donated a sizeable portion of his personal wealth to establish the best research institutions in the country. One example is the Tata Institute of Fundamental Research. He also contributed in a big way to studies on Population control.
JRD was succeeded by Ratan Tata whose reign was all about global expansion, often through acquisition. When he took over in 1991 Tata Sons was a $5 billion business. Twenty one years later the revenues rose to $100 million.
In 2009 Tata Motors debuted the Nano, one of the smallest cars ever manufactured—its aim was to preserve the people at every level. During his term the Taj Mahal Hotel became a victim to terrorism and the House of Tatas rendered an admirable role in helping the victims.
Ratan was succeeded by Cyrus Mistry and he was exceptionally qualified to be Ratan’s successor.
There are interesting chapters on TCS, the Tata Trusts, the Tata philosophy. A good bibliography helps the reader to reach further. This book offers deeper insights and understanding of the world of the Tata Group.
P.P. Ramachandran
