Tata Group: Backbone of India

Indian company Tata Sons is principal investment holding company and promoter of Tata companies with 66%. The Tata group is one of India’s biggest and oldest industrial and business conglomerates in India. It is known and recognized as the country’s backbone.

The group is headquartered in Mumbai, Maharashtra. Presently Natarajan Chandrasekaran is the chairman. As of June 2020 the group reported a combined market capitalization of a whopping $123 billion.

Jamsetji Nusserwanji Tata had founded the Tata Group way back in 1868 as a private trading incorporation with an initial capital of 21000 Indian rupees. Jamsetji had four dreams which were – to set up a world class learning institution, build a hydroelectric plant, Iron and Steel company and a very unique hotel. It was during his lifetime around 1903 where he could fulfill one of them and which later on came to be known as India’s most famous and oldest Taj Mahal Hotel at the Colaba waterfront in Mumbai. This was India’s first hotel with electricity.

After Jamsetji’s death, his son Dorabji Tata carried forward his dreams and legacies, he established the Tata Iron and Steel company presently known as Tata Steel. This company helped the group set foot abroad and subsequently Tata Power was founded and India’s first ever hydro plant was born. And finally by 1911 the Indian Institute of Science came to be. Thus ensuring all the goals of the founder were achieved and fulfilled.

The group has been driving growth in India for over the past 150 years. By 1930s, Tata Steel was catering to over 72% of India’s requirement for steel that was covering defence applications to the Indian railways and several major iconic projects such as the Howrah Bridge.

Today every third tyre made in India uses Tata Steel. Their steel components have also been used in the production of Boeing and Airbus airline products and at least two thirds of the steel used in India’s metro rails, bridges, highways and flyovers comes from Tata Steel.

“In fact, not many people know that a little more than a third of infrastructure projects in India today use our steel,” said Peeyush Gupta, Vice President for Marketing and Sales, Tata Steel.

Over 120 gigawatts of Indian’s aggregate installed energy capacity has been generated by Tata and at least 500 million people have benefited from this including the Tata Power plant located in Trombay, which generates electricity to power BSE.

Tata Consultancy Services (TCS) is the second most valuable information technology company in the world, this corporation drives the core functions of Bombay Stock Exchange (BSE) and State Bank of India by sharing its systems and software. Their technology powers over 100 banks altogether.

All of Tata Group companies together have amassed wealth for India by contributing at least ₹47,196 crores that is 2.24% of the total tax collected by the government in 2017 alone.

“We have been instrumental in running the economic backbone of the country, covering the stock exchange, the regulators, the depositaries, manufacturing, retail, utilities that is what our expanse is. Our internal assessment is that we touch the lives of one in every two citizens of the country,” Ujjwal Mathur, the vice president and head of India business at TCS said.

As of today there are over 30 companies directly operating under the Tata Group amongst various industrial sectors who have made huge strides and set their footprints not just in India but the world. Each of those companies operate independently through the guidance and supervision of its own set of shareholders and board of directors. The group and its founder apart from actively partaking in building, nurturing and guiding young start-ups have been very forthcoming and reputable for their ethics and philanthropy.

“We are invisible but we are involved in nation building at every level from basic water and waste management to energy, power, military and space,” Amit Sharma of TCE says.

Not too long ago the group made a major announcement regarding their foray into the semiconductor manufacturing segment through Tata Electricals to cater to the present global chip shortfalls. They have already begun the recruitment process of employing 18,000 people for this venture and of those at least 90% are said to be women. Randhir Thakur has been named the director who will run this show. He was Intel Corp.’s chief supply officer and head of the chip business.

“At the Tata Group, we have already set up a business to seize the promise of high-tech manufacturing of electronics, precision manufacturing, assembly and testing, and semiconductors in the medium term. On rebalancing supply chains, India can benefit from global shifts. The Tata group has already set up a business to seize the promise of high-tech manufacturing for electronics. A domestic electronics industry could unlock $1 trillion in GDP and create millions of jobs,” said Natarajan Chandrasekaran, Chairman.