Presentation - TATA group-Analysis

2. A CASE STUDY ON TATA GROUP

3. Tata Group is a Indian Multinational
conglomerate holding company.
It is India's largest conglomerate.
It was founded in the year 1868 by
Jamsetji Tata.
 It is head quartered in Maharashtra,
Mumbai.
Jamsetji Tata
INTRODUCTION

4. Bombay House is a historic privately
owned building in Fort, Mumbai that
serves as the head office of the Tata
Group.
Situated near Flora Fountain it was
completed in 1924 and has been the
Tata Group's headquarters ever since.
The building is a four storey colonial
structure built with Malad stone.
It was designed by architect George
Wittet, who later became the head of
Tata Engineering Company Limited,
now Tata Motors.
BOMBAY HOUSE ,2011

5. The present CEO of TATA Group is Mr.
Ratan Naval Tata.
Ratan Naval Tata, (born 28 December 1937) is
an Indian businessman, investor, philanthropist
and interim chairman of Tata Sons. He is the
chairman of Tata Group, a Mumbai-based global
business conglomerate from 1991 till 2012 and
again from 24 October 2016 for interim term,
and continues to head its charitable trusts. He is
the recipient of two of the highest civilian
awards of India–Padma Vibhushan (2008)
and Padma Bhushan (2000). He is an alumnus
of The Cathedral & John Connon School,Cornell
University & Harvard Business School.

6. In 2015-16, the revenue of Tata
companies, taken together, is
$103.51 billion.
These companies collectively
employ over 660,000 people.
Each Tata Company or
enterprise operates independently
under the guidance and
supervision of its own board of
directors and shareholders.

7. Chairmen
Jamsetji Nusserwanji
Tata (1868-1904)
Sir Dorab Tata (1904–1932)
Nowroji Saklatwala (1932–
1938)
Jehangir Ratanji Dadabhoy
Tata (1938–1991)
Ratan Tata (1991–2012)
Cyrus Pallonji Mistry (2012-
2016)
Ratan Tata (Interim Chairman,
Oct 2016 onwards)
Jamsetji Nusserwanji
Tata (1868-1904)
Sir Dorab
Tata (1904–1932)
Nowroji Saklatwala
(1932–1938)
Jehangir Ratanji
Dadabhoy
Tata (1938–1991)
Ratan Tata
Cyrus Pallonji
Mistry (2012-2016)

8. BUSSINESS SECTOR
Information
technology and
communication
TCS
Tata
Teleservices
Tata sky
Engineering
Tata Motors
Voltas
Materials
Tata Steel
Services
Indian Hotel
Tata Capital
Energy
Tata Power
Consumer
Products
Titan,
Infinite Retail
Chemicals
Tata
Chemicals
TATA GROUP COMPANIES

9. Its TATA
everywhere!!
Why is it so ?

10. Its TATA everywhere!!
‘TATA’ in your life!!
What makes you lick your fingertips?
TATA Salt
What makes your costume neat and clean?
TATA Swatch
What gives a foundation to your dream?
TATA Capital
What makes you feel fresh?
TATA Hamam
What helps you to prosper?
TATA Yellow Pages
Who/What increase your valuable treasure?
TATA McGraw Hill Publishers
What beeps next to your heart ?
TATA Cellular

11. The Producer of MISSWORLD AND MISS UNIVERSE from India?
TATA LAKME
What makes you relaxed?
TAJ RESORTS
What keeps you on the move?
TATA ENGINEERING AND LOCOMOTION
What protects you from disease?
TATA PHARMA
What makes you punctual?
TITAN
Who gives you roof over your head?
TATA HOUSING

12. Some interesting and inspiring facts about Tata
group of industries
Fact No. 1: JRD Tata was India's first licensed pilot and founder of the
country's first commercial airline company Tata Airlines in 1932;. Tata
Airlines was later renamed as Air India in 1946.
Fact No. 2: Tata Motors, Jamshedpur has a blood bank where
employees get to donate a bottle of blood. In return, not only are
they given off for that day, but they can also avail an extra leave
within 7 days of donating the blood. Employees indeed use it to
extend their holidays and the organisation loses man-hours through
this policy. Nevertheless the company continues this policy to
encourage blood donation to save precious lives.
Fact No. 3: About two-thirds of the huge annual profits generated by
Tata Group go to charity in the form of Tata Trust, and this is done
without publicity.

13. Some interesting and inspiring facts about Tata group of
industries
Fact No. 4: Tata group of companies usually foregoes
contracts rather than paying bribes. This is in
accordance with the established policy of the group of not
giving or accepting bribes.
Fact No. 5: Despite diversification of business interests in
many fields, Tata group has so far abstained itself from
entering into alcohol business or tobacco business.
Fact No. 6:TATA group believes in the parsi
legend, humata hukhta hvarshata, which means
good thoughts, good words and good deeds.

14. PHILANTHROPY
The Tata Group has donated ₹ 2.20 billion ($50 million) to the Harvard
Business School (HBS) to build an academic and a residential building on the
institute's campus in Boston, Massachusetts.
After the Mumbai attacks, salaries of the attacked Taj Hotel employees were
paid despite the hotel being closed for reconstruction. About 1600 employees were
provided food, water, sanitation and first aid through employee outreach
centres. The employee's relatives were flown to Mumbai from outside areas and
were all accommodated for 3 weeks.
In 2013, the Tata group, through the Tata Relief Committee and the
Himmotthan Society, an associate organisation of the Sir Ratan Tata Trust, has
been working in close collaboration with the Uttarakhand government to provide
relief to the impacted local communities in three districts of the state. The relief
activities, which include provision of food and household material, have so far
covered over 65 villages and 3,000 families.

15. TATA GROUP’S REVENUE

16. RANKINGS OF TATA GROUP

18. SUSTAINABLE INNOVATIONS
Innovation centres-
Research, Development and Technology business of Tata Steel Europe; Tata
Chemicals Innovation Centre; Tata Motors European Technical Centre; TCS
Innovation Labs; Advinus Drug Discovery Centre; and National Automotive
Innovation Centre
Few of the examples of innovation’s are :
Tata Swach- Silver Nanotechnology based
water purifier provides micro-biologically safe
drinking water without using harmful chemicals
and electricity,
Diamond bagging- Titan is the first company in
the world to make an automatic diamond
bagging machine.
Pedestrian airbags on cars- from Jaguar Land
Rover for increased safety of pedestrians.

20. Tata Group & CSR
Introduction
Ranging from steel, automobiles and software to consumer goods and
telecommunications the Tata Group operates more than 80 companies . It has around
200,000 employees across India and thus has the pride to be nation‘s largest private
employer. Mr. Ratan N. Tata has led the eminent Tata Group successfully.
Amendments were made to the Articles of Association of the major Tata group
companies in the 1970s. Newly included was an article stating that the "company
shall be mindful of its social and moral responsibilities to consumers, employees,
shareholders, society and the local community. To institutionalize the CSR charter,
a clause on this was put into the group's 'Code of Conduct.' This clause states that
group companies had to actively assist in improving quality of life in the
communities in which they operated. All the group companies were signatories to
this code

21. 1)Tata Steel
Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence Model and
the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its profit after
tax on several CSR initiatives.
(a) Self-Help Groups (SHG’s) Over 500 self-help groups are currently operating under various
poverty alleviation programs; out of which over 200 are engaged in activities of income
generation thorough micro enterprises. Women empowerment programs through Self-Help
Groups have been extended to 700 villages. From the year 2003 to 2006, the maternal and
infant survival project had a coverage area of 42 villages in Gamharia block in Seraikela
Kharsawa and a replication project was taken up in Rajnagar block.
(b) Supports Social Welfare Organizations Tata Steel supports various social welfare
organizations. They include;
I. Tata Steel Rural Development Society
II. Tribal Cultural Society
III. Tata Steel Foundation for Family Initiatives
IV. National Association for the Blind
V. Shishu Niketan School of Hope
VI. Centre for Hearing Impaired Children
VII. Indian Red Cross Society, East Singhbhum

22. Healthcare Projects
In its 100th year, the Tata Steel Centenary Project has just been announced. The healthcare
projects of Tata Steel include facilitation of child education, immunization and childcare,
plantation activities, creation of awareness of AIDS and other healthcare projects.
Economic Empowerment
A program aiming at economic empowerment through improvised agriculture has been taken
up in three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh. An expenditure of
Rs 100 crore has been estimated for the purpose and this program is expected to benefit
40,000 tribal living in over 400 villages in these three States
2)Tata Motors :
(a) Pollution Control Tata Motors is the first Indian Company to introduce vehicles with
Euro norms. Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was
a major effort to introduce emission control technology in India. To make environment
friendly engines it has taken the help of world-renowned engine consultants like Ricardo and
AVL. It has manufactured CNG version of buses and also launched a CNG version of its
passenger car, the Indica.
(b) Restoring Ecological Balance Tata Motors has planted 80,000 trees in the works and the
township and more than 2.4 million trees have been planted in Jamshedpur region. Over half
a million trees have been planted in the Poona region. In Pune, the treated water is conserved
in lakes attracting various species of birds from around the world.

23. 3)Tata Tea
Tata Tea has been working hard since the 1980s to fulfil the needs of specially-abled
people. It has set up the Srishti Welfare Centre at Munnar, Kerala; its various programs
provide education, training and rehabilitation of children and young adults with special
needs.
Srishti has four projects:
a. The DARE School
b. The DARE strawberry preserve unit
c. Athulya
d. Aranya.
Tata Tea‘s welfare officers help identify and encourage relatives or children of
employees who are handicapped to join the Welfare Centre for special education and
rehabilitation.

24. 4)Titan
Corporate social responsibility is a basic element of TITAN Group‘s governing objective and
one of its corporate values.
In its corporate philosophy CSR is defined as doing less harm and more good by adopting the
following practices :
Respecting and supporting local communities
 Caring for the employees
 Being an active member of society
 Committed to sustainable development
 Putting safety(at work) first
Titan has employed 169 disabled people in blue collar workforce at Hosur.

25. 5)TISCO
TISCO was awarded The Energy Research Institute (TERI) award for Corporate Social
Responsibility (CSR) for the fiscal year 2002-03 in recognition of its corporate citizenship
and sustainability initiatives. As the only Indian company trying to put into practice the
Global Compact principles on human rights, labour and environment, TISCO was also
conferred the Global Business Coalition Award in 2003 for its efforts in spreading awareness
about HIV/AIDS.

26. 6)TELCO
TELCO, Puna has started community development activities for the benefit of TELCO
families and local residents in 1973 with the following objectives:
1. To create social awareness in all the employees and their families, to promote
congenial mutual relations amongst them, to improve personal and environmental
hygiene and health
2. 2. To help the families of employees develop better living standards by organizing
extension education programs, training in various trades/skills and providing
opportunities to earn additional income. TELCO is fighting against Leprosy at
Jamshedpur.

27. 7)TCS
TCS aims at the Tata group‘s philosophy of building strong sustainable businesses community
.The elements that make for strong corporate sustainability at TCS include the following:
A fair, transparent corporate governance ,
A strong strategy for long-term growth ,
Best-in-class HR processes ,
Initiatives for community betterment and welfare

28. 8)Tata Archery Academy
The Tata Archery Academy was established in Jamshedpur in 1996 . The academy has all the
training facilities like highly efficient coaches, archery grounds, equipment from India and
abroad. It also provides hostel and multi gymnasium facilities for its cadets. After a rigorous
selection process being carried all over India, the Academy selects boys and girls between the age
group of 13 to 18 years for the four years course and it provides the training during which the
cadets are also imparted with formal education. Some of the major championships where the of
the Tata Archery Academy cadets have participated and have won several medals are Junior
world Archery Championship, Senior World Archery Championship, Asian Archery
Championship, Commonwealth Games and Asian Games.

29. 9)Tata Relief Committee
Tata Relief Committee (TRC) works to provide relief at disaster affected areas.
During natural calamities there are two phases of assistance - (a) relief
measures and (b) rehabilitation program. After the Gujarat earthquake the
group built 200 schools in two years and they rendered help during the Orissa
floods when people lost cattle's. Even after the Tsunami disaster members of
TRC immediately reached the places and supplied the things required.

30. Controversies
and criticisms
!!!

31. 1)Kalinganagar, Odisha
On 2 January 2006, policemen at Kalinganagar, Odisha, opened
fire at a crowd of tribal villagers.
The villagers were protesting the construction of a compound
wall on land historically owned by them, for a Tata steel plant.
 Some of the corpses were returned to the families in a mutilated
condition.
2) Munnar, Kerala
The Kerala Government had filed an affidavit in the high court
saying that Tata Tea had 'grabbed' forest land of 3,000 acres
(12 km2) at Munnar.
The Tatas, on the other hand, say they possess 58,741.82 acres
(237.7197 km2) of land, which they are allowed to retain under
the Kannan Devan Hill (Resumption of Lands) Act, 1971, and
there is a shortage of 278.23 hectares in that.
The then Chief Minister of Kerala V.S. Achuthanandan, who
vowed to evict all on government land in Munnar, formed a
special squad for the Munnar land takeover mission and started
acquiring back properties.
However, later he had to abort the mission as there were many
influential land grabbers and faced opposition from his own party.

32. 3)Land acquisition in Singur
The Singur controversy in West Bengal led to further questions over
Tata's social record, with protests by locals and political parties (though
the involvement of Mamata Banerjee's party is widely criticised as an
act for political gains) over the forced acquisition, eviction and
inadequate compensation to those farmers displaced for the Tata Nano
plant.
As the protests grew, and despite having the support of
the Communist Party of India (Marxist) state government, Tata
eventually pulled the project out of West Bengal, citing safety
concerns.
The Singur controversy was one of the few occasions when Ratan
Tata was forced to publicly address criticisms and concerns on any
environmental or social issue.
Ratan Tata subsequently embraced Narendra Modi, the then Chief
Minister of Gujarat, who quickly made land available for the Nano
project.
In a historic judgement on Aug 31st 2016, the Honorable Supreme
Court of India set aside the land acquisition by West Bengal
Government in 2006 to facilitate Tata Motors to set up its Nano plant,
and directed the West Bengal government to take possession of the land
and distribute it to the land owners within 12 weeks.

33. 4)Data and intellectual property theft
In April 2016, a U.S. Federal Grand Jury
awarded Epic Systems a $940 million judgement
against Tata Consultancy Services and Tata
America International Corp.
Filed Oct. 31, 2014, the charges accused Tata of,
“brazenly stealing the trade secrets, confidential
information, documents and data” and that the
6,477 unauthorized downloads could be used to
enhance Tata's competing product, Med Mantra.
5)Fire breakout at headquarters
On 16 June 2016, a fire broke out at the corporate
headquarters of the company in Mumbai. However,
due to quick containment, no casualties were
reported.

34. 6)Dhamra Port, Odisha
On the environmental front, the Port of Dhamara controversy has received
significant coverage, both within India and in Tata's emerging global markets.
The Dhamra port, a venture between Tata Steel and Larsen & Toubro, has come
in for criticism for its proximity to the Gahirmatha Sanctuary and Bhitarkanika
National Park, from Indian and international organisations, including Greenpeace.
Gahirmatha Beach is one of the world's largest mass nesting sites for the Olive
Ridley Turtle and Bhitarkanika is a designated Ramsar site and India's second
largest mangrove forest.
TATA officials have denied that the port poses an ecological threat, and stated
that mitigation measures are being employed with the advice of the IUCN.
On the other hand, conservation organisations, including Greenpeace, have
pointed out that no proper Environment Impact Analysis has been done for the
project, which has undergone changes in size and specifications since it was first
proposed and that the port could interfere with mass nesting at the Gahirmtha
beaches and the ecology of the Bitharkanika mangrove forest. Dhamra port stake
has been hived off.

35. 7)Soda extraction plant in Tanzania
Tata group, along with a Tanzanian company, joined forces to build
a soda ashextraction plant in Tanzania.
On the other hand, environmental activists are opposing the plant
because it would be near Lake Natron, and it has a very high chance
of affecting the lake's ecosystem and its neighbouring dwellers.
It could also jeopardise the Lesser Flamingo birds there, which are
already endangered.
 Lake Natron is where two-thirds of Lesser Flamingos reproduce.
Producing soda ash involves drawing out salt water from the lake,
and then disposing the water back to the lake.
This process could interrupt the chemical make up of the lake.
Twenty-two African nations are against the creation of the project
and have signed a petition to stop its construction

36. Cyrus Pallonji Mistry (born 4 July 1966) is an Irish businessman of
Indian origin who was chairman of Tata Group, an Indian business
conglomerate, between 2012 and 2016.
He was the sixth chairman of the group, and only the second (after
Nowroji Saklatwala to not bear the surname Tata.
 In mid-2012, he was chosen by a selection panel to head the Tata
group and took charge in December the same year.
On 24 October, 2016, the board of Tata Sons (the group's holding
company) voted to remove Mistry from the post of chairman.
Former chairman Ratan Tata was named interim chairman, and a
selection panel has been appointed to determine a successor.
CYRUS PALLONJI MISTRY

37. Some facts about Cyrus Mistry
1.Educated in Mumbai and London, Cyrus Mistry joined the board of his family's
engineering company, ShapoorjiPallonji& Co Ltd, aged 23 and became its managing
director three years later.
2. Like the Tatas, the Mistrys are part of Mumbai's tight-knit Parsi community. He's the
younger son of billionaire construction magnate Pallonji Mistry, an Irish citizen, whose 18.4
per cent stake in Tata Sons makes him its biggest shareholder. This holding accounts for a
substantial chunk of Pallonji Mistry's $7.6 billion fortune.
3. Cyrus has two sisters: Laila and Aloo. His sister, Aloo, is married to Noel Tata, the half-
brother of Ratan Tata.
4. He is very fond of books which, apparently, occupies a lot of his free time.
5. He loves to play golf in his spare time and is almost a pro at it.

38. Some facts about Cyrus Mistry
6. His father was the financier of 'Mughal-e-Azam', one of the most glorious Indian
films ever made.
7. The senior Mistry, dubbed "The Phantom of Bombay House" for his influence at
Tata's storied colonial headquarters in south Mumbai, gave up his seat on the holding
company board in 2006 to make room for Cyrus.
8. He is married to the daughter of eminent lawyer Iqbal Chagla. Mistry and Rohiqa,
married in 1992, have two sons 15-year-old Firoz and 13-year-old Zahaan. Both the
boys are schooling at Cathedral just like their father. Chagla says that Mistry is "very
much a Bombay boy." Chagla is son of the first chief justice of Bombay High Court,
M C Chagla.
9. Mistry is often described as "soft-spoken, candid and down to earth." Like Tata,
Mistry is said to love cars -- especially SUVs -- and steers clear of the cocktail party
circuit. However, he is known to be a foodie and his favourite holiday destination is
Europe.
10. Besides owning a sea facing mansion in Walkeshwar, Mumbai, the business baron
also has houses in London, Dubai, Pune, Alibaug and Matheran.
11. He is fond of horse racing too. The Mistrys frequently visit their 200 acre Manjri
stud farm in Pune which is one of the oldest in the country.

39. Why was Cyrus
Mistry removed??

40. 4 possible reasons why Cyrus Mistry was removed
Reasons
Negative
Growth
Increase in
Debt
Ignoring
Ratan Tata’s
Advice
Questions
over Misty's
Management
Style

41. a) Negative Growth
During the reign of Rata Tata between 1991 to
2012, Tata Sons grew from $6 billion business
to $100 billion business conglomerate.
Cyrus Mistry was expected to fill the void
created by Ratan Tata, but he failed to impress
the stakeholders and Ratan Tata himself.
During his tenure, Ratan Tata bought tea
maker Tetley for $450 million; Corus Group,
Jaguar Land Rover for $2.3 billion, besides
increasing the group’s overall income.
 On the other hand, with Cyrus at the help, the
group’s turnover decreased to $103 billion in
2015-16, compared to $108 billion previous
year.

42. b) Increase in Debt
Under Cyrus, net debt of Tata Sons increased to
$24.5 billion compared to $23.4 billion previous
year.
Hence, performance is one of the major issues in
the case of Cyrus Mistry, and his sudden removal.
Insiders say that when Cyrus was brought in as
Chairman, his first and foremost task was to bring
down debts of the company, a task he miserably
failed.

43. c) Questions over Mistry’s Management Style
Friction was clearly visible when an article from
The Economist questioned the ability of Tata Sons
to ensure a respectable return for their shareholders,
due to woeful performance in the last few years.
Cyrus Mistry was not known as an ‘expansionist’
within the company, and his management style was
questioned by one and all, as he preferred to write
down the value of an asset, and then sell them off to
bring in money to the table.
An approach resented by Ratan Tata and other
board members.

44. d) Ignoring Ratan Tata’s Advice
As per another set of reports, Mistry ignored Ratan Tata’s advice and
suggestions on some crucial matters, and this was not taken lightly by the Board
members.
His decision to sell off loss making UK Steel plants was considered a blunder,
and the ongoing legal issues related with DoCOMo from Japan was something
which never happened before in Tata Sons.
The way non-profit businesses were being killed by Mistry irked Ratan Tata and
the board members.
As of now, Mistry (via family firm Shapoorji Pallonji Group) holds 18.4%
equity in Tata Sons, which makes him the single largest individual shareholder of
the business empire.
Sir Dorabji Tata Trust and Sir Ratan Tata Trust, on the other hand, has a
controlling stake of 51.6% in Tata Sons.
As Ratan Tata informed PM Modi about the decision, it seems that a lengthy
legal battle will start on this big corporate shake-up.
Tata Sons has already hired senior lawyers such as Tata’s hiring Abhishek Manu
Singhvi and Harish Salve.

46. 1) Tata-Docomo dispute
CNBC-TV18 held that Tata’s legal battle with Japanese
telecommunications major NTT Docomo was responsible for
Mistry’s ouster.
In 2009, NTT Docomo had acquired a 26.5% stake in Tata
Teleservices for $2.7 billion. By 2014, though Docomo had
announced its intention of exiting the joint venture citing
certain targets not being met.
Docomo claims that as per it original agreement, Tata was
responsible for finding a buyer for its stake. In June, the
London Court of International Arbitration agreed with
Docomo and ordered Tata Sons to pay $1.17 billion in
damages – an amount that Tata is yet to cough up.
FEW OF THE OTHER REASON’S

47. 2) Personal relations between Ratan Tata and
Cyrus Mistry
During his term as chairperson, Ratan Tata changed
the character of the Tata Group drastically, making it a
global conglomerate from the Indian one it was till
then.
Under Ratan Tata, the group would buy steel,
beverages and automobiles companies in Europe.
This was a trend Mistry might be uncomfortable
with, given his decision to sell off Tata’s European
steel business.

48. 3)Mistry’s eye for talent is also being
questioned
The people he has hired are not inspirational leaders, just
individuals,” said a former Tata Motors executive.
But the crucial post of the Group CFO remained vacant for
almost 3 years after the retirement of Ishaat Hussain.
The creation of the Group Executive Council (GEC) as
Mistry's main brain trust had upset many in Tata Sons who
perceived it as a parallel power centre.
Only a handful of its members had actual operational
experience of running a business.
 Most of Mistry’s key advisers, including Madhu Kannan,
NS Rajan, Nirmalya Kumar, were also shown the door along
with him.

49. There was a fundamental disconnect between
Mistry and Tata
There was a fundamental disconnect with regard to ethos,
values, vision and the direction that the group was headed in.
Detailed letters were sent to Mistry asking him to spell out
his vision, five-year plan, etc, but the responses were vague
and non-specific.
Things got aggravated as the chairman of Tata Sons and Tata
Trusts were not the same individual.
The former was not a Tata family member but represented
the single largest shareholder while the latter was custodian of
a century old legacy.

51. Conclusion
 "The decision to change the leadership of Tata Sons was a well-
considered and serious one for its board members. This difficult
decision, made after careful and thoughtful deliberation, is one the
board believes was absolutely necessary for the future success of the
Tata Group," the interim chairman wrote to employees.
 If the intention was to send out shockwaves through the corporate
world, create intense media buzz and speculation, and give rise to
headlines and television debates, the sudden "replacement" of Cyrus
Mistry as Chairman of Tata Sons by the board of directors, the effort
succeeded spectacularly.
 The only conclusion that one can come to is that either Tata never
intended to give up the reins of Tata Sons even after his retirement, or
that he had some sort of premonition that things might not work out
with Mistry.