Business needs to go beyond their interest of their companies to the communities they serve.
– Ratan Tata (1937 to 2024)
Today, TATA Groups serve an integral part of every person in India. Be it buying a SUV from TATA Motors, be it having a cup of tea from TATA tea, be it using cometic products of Lakme, be it wearing the luxurious jewelries of Tanishq or be it using TATA Neu. TATA Groups are everywhere. Tata Groups also are an integral part of the Indian Railways via TATA Steel.
Jamsetji Tata
Born to Nusserwanji Tata and Jeevanbai Tata, Jamsetji Tata having received great education in those days, laid the foundation of Tata in 1868 by setting up a new office for the family business in Hong Kong at the age of 20. Jamsetji Tata is known for his great leadership skills and innovative ideas to expand the family business in totally different aspects. It was due to his efforts that today we have amazing enterprises like TATA Steel (the first Indian steel factory in India) and one of the most luxurious hotels, The Taj Mahal Hotel in Mumbai (the first hotel in India to have electricity).
All Images from Google
Setting up a Cotton Mill in Nagpur
In the 1800s, Bombay was known for its cotton industry. Jamsetji inspite of this, decided to set up a cotton mill factory in Nagpur in 1874. Initially, this idea was criticized but in the long run it became the key factor. Nagpur was surrounded with cotton fields and thus was never disturbed with the presence of resources and had cheap labour as well, as compared to Bombay where the labour was expensive.
Problems faced in the cotton mill
The labour seemed to lack activeness, which often worried Jamsetji regarding the business. He thus initiated a a very innovative idea which included pension of the retirement and insurance in case of an accident in the company, where the company would take care of the health care charges. Additionally, he even created a sense of community within the workers which created a light work environment further encouraging them to work in the company.
The Temporary Growth of TATA during the American Civil War
Europe, use to import cotton from America, but since the American Civil war commenced, Europe wasn’t able to receive any imports from America. Jamsetji Tata, taking full advantage of this doubled of the rate of the cotton and started exporting cotton to Europe. But as the civil war ended, Europe once again, resumed imports from America and thus Tata who had experienced great profits, saw huge losses which developed a sense of fear in the investors.
Jamsetji Tata’s dreams
Jamsetji Tata had various goals. Some of them included establishing:
- A hydroelectric power plant
- A steel plant
- A 5-star hotel
Although, Jamsetji could fulfill only one of his goals, that is establishing the Taj Mahal Hotel in Mumbai which was open for people of all classes which directly opposed the racist system that existed in those days. Dorabji Tata, the son of Jamsetji further took lead and handled the enterprise.
Dorabji Tata
Dorabji Tata had a love for sports where he facilitated four athletes and two wrestlers to participate in Antwerp Games in 1919. He further financed the Indian contingent to the 1924 Paris Olympiad as the president of the Indian Olympic Council. In his TATA tenure established
- Tata Power for power generation, transmission and distribution;
- Tata Steel for steel production.
TATA Steel plant
Established in 1910, steel production began soon after its establishment. During World War I, Tata Steel became the largest steel supplier in the country. A British Politician who witnessed the influence of TATA steel in British tanks during the world war later stated “Tata Steel saved us”. Today, it plays a key role the country’s infrastructure. From building towers to laying tracks for increasing railway connectivity, it has expanded its business in every nock and corner!
The repercussion of World War I on TATA
After the denouement of the Worl war I, TATA expanded its enterprises to further build stability by growing in various sectors including:
- Manufacturing of locomotive engines
- Electronics manufacturing
- Salt production
- Increasing Steel production, etc.
Jehangir Ratanji Dadabhoy Tata & The Evolution of Air India
Also known as JRD Tata, he played a crucial role in the development of TATA Groups. JRD Tata, a former pilot joined TATA as an unpaid apprentice in December 1925. At 22, after his father passed away, JRD was on the board of Tata Sons, the group’s flagship company. JRD Tata established TATA Airlines in 1932, which was later renamed as Air India, which is now the national Airline of India. Further he established: –
- Tata chemicals;
- Tata Motors;
- Tata Consultancy Services;
- Cancer Research and Treatment Centre;
- Voltas and;
- Titan.
Post Independence impact on TATA enterprise
After India gained independence in 1947, the government adopted socialist policies and Tata was not quit benefitted by these policies. Further the government even nationalized industries including Air India. JRD Tata was offered opportunity to lead Air India, which he accepted.
Ratan Tata
Born to Naval Tata, Ratan Tata joined Tata Steel in 1962. He further became the chairman of TATA Group in 1991. It was under his leadership that Tata gained ownership of various rich companies like:
- Westside (1998)
- Jaguar and Land Rover (2008)
- Zara (2010)
- Starbucks (2012)
- Vistara (2013)
Ratan Tata additionally even established:
- Tata Nano
- The world’s most affordable car costing just 1 lakh rupees!
- Tata Neu
- Online shipping for grocery, electronics, fashion, electronics and much more.
A company for social upliftment and welfare, not profits!
Although Tata expanded in unimaginable lengths, it never boosted its wealth and power. It always supported charity works, not to mention, Ratan Tata himself had contributed 500 crore rupees to fight the coronavirus pandemic. Additionally, 3630 tons of liquid oxygen was supplied by roads. Where companies today just seek profits, Tata stood apart and proved that social upliftment is what helps business gain profits in the long run and also helps expanding and strengthening the consumer base. Tata groups also provide education to children and had established many hospitals for the welfare pf the people. Furthermore, the work environment that includes insurance scheme and employee welfare makes employers attracted to work for many years, where some even work their lifetime!
In a nutshell, Tata Groups not only emerged as a global power but also didn’t deprive itself from the values of humanity and today helps many low middle-class families in India.
This is why JRD Tata stated