About This Book:
Tata, a name that children of India know. The Tata group has a huge hand in building the foundation of New India. Tata has done a lot for the progress and betterment of the country which the countrymen will always remember. Tata Business Group does not just think about earning profit but believes in taking every class of the society along and that is its true identity. In this book, you will learn what are the qualities inside a businessman that helps him to keep his business sustainable.
Who should read this book?
Every person who wants to know about Tata and their leaders, the Leading Business Group of the country. Jamsetji, JRD, and Ratan Tata, the three Pillars of the Tata group who carried on Tata's tradition, must read this book to know about them.
Who is the author of this book?
Girish Kubera, the author of the book "The Tata", is a Marathi journalist and writer. Since 2010, he is the Managing Director of Democracy. Prior to joining Democracy, he was the editor of the Political Branch in The Economics Times. Apart from writing, he has a special interest in International Economics and Politics. He has also received the Marbari Foundation's Parbodhan Thackeray Samaj Parbodhan Award.
Now we Start Summary:
Introduction:
The Tata group is an Indian global business and we can speak this from Proud. But what is the secret of this financial success of the Tata group? How did their journey begin? What is Tata culture? Name, power, money, and success - Tata has everything. But what makes them different from the rest of the world bilinear? You will read the answers to all these questions and many other things in this book.
Nusserwanji of Navsari:
The Tata group was started by a person named Nusserwan. When he was born in 1822, an astrologer had said that one-day Nusravan would rule the whole world. He will become a very rich man, but every child born in Navsari was born with good luck. But Nusrawanji was different from Tata Auro because he showed the truth about that astrologer. As was the custom in those days, Nusrawanji Tata was also married in childhood. And at the age of 17, he also became the father of a son. The child was named Jamshed. He was born in 1839. Most of the people of Navsari did not like to go out of their villages.
For him, his village was the whole world. But Nusrawanji was different, he wanted to go to Mumbai and start a business. He was the first person in his family to have gone out of Navsari. Nusrawanji was neither highly educated nor did he have any business worth of money, even he had no knowledge of the business. But yes, there was definitely a passion to do something in him. His dreams were very big and these dreams brought him to Mumbai. He also took his wife and son with him. Going to Mumbai, he started a cotton business with the help of a friend.
Nusrawanji had big dreams for his son. His business was doing well and he did everything he could to give his son the best education. Then a few years later Jamshedji completed his college studies. Nusrawanji wanted his son to get international business exposure, so he sent his son to Hong Kong's British colony. Going to Hong Kong, Jamshed ji started a business together with three partners. And thus Tata became a dealer of cotton and opium.
A brother-in-law of Nusrawanji was also an opium dealer in Hong Kong. His name was Dada Bhai Tata. Dada Bhai Tata's son Ratanji was 17 years older than Dadabhoy Tata, RD Jamshedji. RD was an opium dealer, as well as a business of perfumes and pearls. He often used to go to France in connection with the business. RD was required to come to French for business purposes, so Jamshedji hired a French teacher for him. But RD not only liked French but also fell in love with the teacher's daughter.
That girl's name was Suzanne. RD was a widow and was older than Susan, yet Suzan liked RD. Both wanted each other. Then soon both of them got married too. But RD feared that his conservative Parsi community would not accept Sujan. So he asked Sujan to convert to Zoroastrianism. Suzanne was ready to become a Parsi, she converted and changed her name to SUNY. RD and SUNY had five children. His second child's name was Jahangir, which is known by the whole world as JRD.
The business of the Tata family was doing well. They used to export opium and cotton to China and Europe and used to import tea, textiles, and gold in India. His business was growing rapidly, and soon Jamshedji opened his second office in Shanghai. Jamshed ji established Tata business Europe in Europe. At that time there were no passenger airlines, so they had to travel by ship.
Cruise ships also did not operate at that time, so people used to travel with their cargo. In fact, Jamshed Ji sometimes had to travel with livestock. Chicken, pigs, got's, etc. were transported for fresh meat. But Jamsetji tolerated everything, the smell of animals, long journeys, and sea-sickness, all because he had his eye on the goal. His dream was to open a Tata office in London.
Who Sowed Dreams in A (a man who weaved dreams) A Man Who Sowed Dreams
Going to England, Jamsetji learned a lot about manufacturing. Now he wanted to do manufacturing business along with cotton trading. In 1873, Jamshedji opened his own spinning and weaving mill. At that time most of the businessmen used to open mills in Bombay or Ahmedabad but Jamsetji chose Nagpur City Chuj which was close to Cotton Farms. Jamsetji ordered the best quality machinery from England and also hired machinery operation experts. He named his new business Empress Mills.
But the biggest challenge in running the mill was the work culture of Nagpur. People of Nagpur were more comfortable while in Bombay, people used to work on holidays too. But in Nagpur, only 80% of people used to work every day. People used to take leave on small matters. In such a situation, instead of giving punishments to the employees, Jamsetji came up with a positive solution. He took out the Provident Fund Scheme for Employees or said pension plan so that even after retirement, the life of the people can run smoothly. Jamsetji also started an insurance scheme.
If an employee is injured or dies during work, he or his family can get medical expenses. He also organized special events for his workers such as Sports Day and Family Day where the winners of the games received cash, wristwatches, or gold chains as prizes. This was the wonder of Jamsetji's innovative ideas, which the workers of Empress Mill started to feel more fatigued about their work. And there were a lot of changes in his work ethic as well.
Such pension plans and insurance were very important and at that time even in England, workers were not being given such facilities. This initiative of Jamsetji not only reveals his goodwill nature but also reveals that he thought far and wide. And these small things are always taken care of in Tata culture. The Empress Mill became the foundation of the Tata Group. This mill lasted for a full 100 years. Jamshedji was always praised as a successful businessman. But he never used to take all the credit himself but used to share it with his employees.
Baptism by Fire:
JRD grew up in France. It was in 1925 when he started working at Tata Steel. In those days Bombay House was made new. His father RD introduced him to John Peterson, who was the managing director of Tata Steel. Peterson became JRD's mentor. After some months JRD was sent to Jamshedpur, which is called the Mecca of Indian Industry. Tata already had a factory there. JRD had to spend a day in each department and see how it works there. When summer came, RD left for France with the rest of the family.
They used to go to their holiday home in France during summer break. But his father told JRD to stay in Jamshedpur for training. RD was 70 years old by that time. One night his eldest daughter asked him to dance. RD got up and started dancing but after a while, he sat down tired. He got slight chest pain and he collapsed. He had a severe heart attack,
RD died at the same time. Did not even get a chance to call the doctor. RD, who had set up a Tata business with Jamsetji, had now departed from this world. This was shocking news for JRD. The responsibility of his 4 siblings was now on his shoulders. Another big challenge in front of them was that RD's companies were sinking and they had a lot of debt.
JRD had to sell some of its properties. He sold Sunita House, Poona Bungalow, and France's Holiday Home. JRD and his siblings started staying at the Taj Mahal Hotel. JRD gave up his French citizenship to run a family business. And he had to learn English because French was his native language. In 1973, board members made JRD the leader of the Tata Empire declare.
The Birth of a Motor Car (Birth of a Motor Car) The Birth of a Motor Car
Rolls-Royce is from England. Mercedes Benz German car and Ford American. Toyota is from Japan and Volvo is from Sweden. In those days no car was made in India. Telco started making trucks. And from this Ratan Tata pulled out two cars, Tata Sierra and Tata Estate. But these models were so expensive that only rich and famous people could buy them. Then Ratan Tata got the idea to build a 100% Indian family car.
In 1993, he publicly announced his plan at an automobile parts maker's meeting. He anchored the local manufacturers to participate in this project. Ratan Tata's next step was to create an engineering team at Telco. But many people were doubtful that this plan will be successful. First, it required a lot of money and second, people felt that there is no market for a family car in India.
And third, can a car really be 100% Indian? But Ratan Tata was a businessman, he wanted a car that had a seating area for five people. Because the common Indian family travels a lot, luggage should also have a place and with this, the vehicle should be strong enough to serve on Indian roads. Ratan Tata got involved in the work, he chose the best engineers.
120 crores, he invested in CAD i.e. Computer-Aided Design. Although it was a very big investment, he knew how much CAD could be used to design good cars. After the design was final, the next step was to reproduce the prototype. Ratan allotted 6 acres in the Telco factory. Many people even mocked him on whether Ratan Tata's dream of building a completely indigenous car would really come true? But he was Ratan Tata, he had big thoughts and dreams too.
They understood that there would be demand for local cars. And for this, a much larger space and top quality machinery will be required in the factory. Ratan came to know about a complete but unused assembly line of Nissan Australia. The Japanese car manufacturer's investor was happy with the fact that he was getting a return as a mentor. Ratan got all this machinery at a very low price i.e. 100 crores. But now there was a change and the rest. He had to transport all this assembly material from Australia to India.
And this work was very difficult because the first thing was that their engineers would have to carefully disassemble all these parts and study the layout of the labels very carefully so that they could be assembled in sequence. Then each piece had to be packed well and sent to India. The total weight of the assembly line was around 14,800 for which 650 containers were attached. It took him about 6 months to bring all this machinery from Australia to India. The final assembly line was set in the Telco factory. It was 500 meters long and 450 robots were working on it.
Ratan Tata came to visit personally. He saw a part which an engineer had to go up and down to assemble. If 300 daily cars would be made in the factory, it meant that the engineer would have to go down 600 times. Ratan Tata ordered a robot to modify that percutaneous part. "We do not want our people to do such a back-breaking job," Ratan Tata said. He also notices that some of his engineers have to go over the 500-meter assembly line every day, so they have used those cycles Ordered so that his energy would not be wasted in the movement.
At the 1998 car exhibition, Ratan Tata himself drove the car, which was completely Indian make. Other car brands kept beautiful models for branding. And their products were placed for display on rotating platforms. But the stall of Tata Walo was different. Male models wore a turban and female models wore saris. Some school children were also standing with a tricolor in their hands. After that Ratan Tata entered the Indian car with great pride. One man commented, "Wow! It looks like Kohinoor is coming and sitting in the car ”. Ratan Tata named his new car "Indica".
A month after launch, Indica held a 14% market share. But a big problem was coming. Many units were coming out defective. Tata Motors fixed the problem by spending the entire 500 crores. He opened a customer care camp inside the entire country where customers could get the defective parts repaired for free. Ratan Tata assured all his customers that their vehicles would be repaired. But despite this, many people still had a doubt about what was made in their country. People were saying that Indica is made in the country, so its parts are coming out defective.
Ratan Tata was extremely disappointed by the public opinion. Then the new version of Tata Motors Indica brought Indica 2.0 i.e. Indica V2. And with this new car, Ratan Tata had proved that we too have the ability to make 100% Indian but world-class quality cars. This new model was better than the previous one. The BBC gave it the award for Best Car. It also won many market surveys.
At this point, Tata Motors started running in full form. Ratan Tata wanted to give this message to the people that if we believe in ourselves then there is nothing impossible. He wanted to convince the young engineers of the country that we Indians can also make world-class things. He wants to teach all Indians to believe in themselves. No one had thought of a Fully Indian Made car before Ratan Tata. But today Tata Motors is hoisting the flag of India all over the world.
The Tata Culture:
Capitalism with a heart (Capitalism with a heart) Tata culture's aim is not just to do charity but to build social wealth. The Tata group believes that if the community grows, the business will also grow. In 1982, Jamsetji gave financial help to some local doctors so that they could go to England for higher education.
Jamshed Ji said to those people, take this money as a loan, and later you can slowly return it. Jamsetji also said that the loan that will be available will be used by other local doctors. And in this way, the foundation of the JN Tata Endowment for Higher Education of Indians was laid and in these 100 years, more than 5000 people have been given an opportunity to study by going to War. And these people pride themselves in calling themselves JN Tata Scholar.
So how is the Tata group different from the rest of the businesses that meet their corporate responsibility? Because there has never been a goal of the Tata group to become the richest or largest business group in the world. Tata has always believed in giving to people. When he opened the Empress Mill in Nagpur, Jamshedji had done something which was not done even in Western countries. He started a new scheme of giving pension plans to his employees. Because he always believed that it is in the good of the society that it is his own good.
The purpose of the Tata group is not just to earn money, Jamsetji always tried to contribute to society. Thinking that our country did not have to import things from outside, he had also opened a steel plant. His Artificial Lake was a large MBecial project. If he wanted, he could open another business with that money, but he knew how much India needed to become independent in hydroelectricity power. He also knew that the country was in great need of engineers and scientists, so he started a science institute by selling his properties.
In 1986, Jamsetji sold four land titles and 17 buildings in Bombay to raise funds. And thus the Indian Institute of Science in Bangalore was born. There is many more bilinear in the world, such as Bill Gates, Henry Ford, and John D. Rockefeller. These people also continue to do a lot of charity work. But the talk of Tata is different. These people do not just believe in social work, but they invest in society, they invest in people. It has always been the endeavor of the Tata group to remove every social problem in our country. That is why Tata has always promoted local talent, while the rest of the business groups call people from outside for cost-cutting. But Tata believes that we should promote local talent and only by developing our young generation skills can we empower them.
The number of poor people in Hosur in Tamil Nadu was very high. These people live on subsistence agriculture. These people have neither special skills nor any means to earn money. Tata opened a plant in Hosur in 1987. Tata would have hired Skilled Workers from Easily Bangalore but he did not do so. Tata Group selected 400 local students of Hosur who were 12th pass.
These 400 students were sent for Bangalore training. There were many of them who were going to a city for the first time. These people were trained and trained and then put to work in the Hosur factory. Initially, these youngsters did not know what to do or who the Tatas were. But the idea of the Hosur plant was quite successful. Students come here and learn to make World Class Watches, which is Tata's Titan Watch brand.
The Search for a Successor:
The three chairmen of the Tata group are quite influential, quite different from each other. Jamsetji was a typical Parsi, Shaklo from Surat as well as manner. And they used to keep shackles as was the custom among Parsi men at that time. JRD Tata was different, he seemed to be a forerunner and always wore a suit. They used to keep clean shaves, so they used to give some friendly gestures as well. And Ratan Tata is an introvert, he is a very reserved nature but gentle and humble. The leadership style of the three is also quite different from each other.
Jamsetji was born a century before the independence of the country. The dream he had dreamed of could be fulfilled after he left. JRD always used to think about the welfare of society, he believed that if you invest in people, the company will grow. He believed in taking every class, big and small, along with him. Ratan Tata is a mental. Putting all the companies of such a big Tata group together in one culture, it is their miracle.
When it came to choosing his successor, Ratan Tata wanted a mental and hardworking man like himself. He was 54 years old in 1991 when he became the chairman of the Tata group. There is a journal rule in the Tata group that no chairman will remain on post after the age of 75. So that's why Ratan Tata started looking for his successor from the age of 73. He created a selection committee of 5 members in which he himself was also involved.
All the members of this committee are quite secretive. These people never talk to the media. However, the people of the press are experts in guessing and the name of the possible scholar is known. But when it came to a successor, Ratan Tata had some standards of his own. The Tata group is a very large and diverse group that can only be taken forward by a visionary, dedicated, and committed human being. Someone who is not arrogant and egoistic.
It is confirmed that the successor will be Indian because of the identity of Tata's philosophy, his identity is absolutely Indian and Tata is also proud of it. The group needs someone who can work for 20 to 30 years. And there is one person who has all these qualities and that is Cyrus Palonji Mistry. 18% of the Tata group belongs to the Cyrus family. Cyrus is the main decision-maker behind bringing Jaguar Land Rover and Karus Steel Company under Tata.
Cyrus Palonji is 43 years old, that is, he can run the group for 20 to 30 years. Like Ratan Tata, he is also of very mild nature and like him, introvert too, he does not like to go to parties, etc. In September 2011, the committee selected Cyrus Palonji Mistry as its successor. Cyrus is from the Parsi family of Bombay. He is the son of Palonji Mistry, a construction magnate and a bilayer. Cyrus's mother is from Ireland. The Mistry Family has been a part of the Tata group for over 100 years.
The era of rumors soon came to an end when Cyrus's name was announced as the next chairman of the Tata Group. However, people also raised questions about Cyrus's credibility. Does. Ratan Tata himself was rebuffed when he replaced JRD. But he showed himself by becoming a strong leader. Now is the time for Cyrus Palonji to prove himself.
The Storm and a New Beginning:
The Tata group is known for its distant thinking and long-term thinking. Tata group decisions are never based on the previous year's Statistics. Tata's foundation has always been of integrity. By the way, Cyrus Palonji Mistry keeps a different approach. They measure performance by numbers. It is their habit to see everything in terms of loss and profit. Cyrus's first major decision was to close businesses that were no longer profiting. He had sold a steel business in England. He also canceled the deal of Orient Express Hotel in Bermuda.
The new chairman wanted to focus on things like Financial Services, Retail, Tourism, Leisure, and Defense. Cyrus Palonji Mistry believes that the Tata group has to generate revenue by staying focused and investing wisely. Then came the time of an annual meeting of the leaders of all Tata companies. Cyrus wanted to hear about everyone's business performance and future plans. He was also fully prepared to answer the questions of his investors. Right now the preparations were going on that Cyrus heard that some board members are having an informal meeting before the event.
They did not know why this meeting was happening or why they were not told about it. Cyrus was a little surprised to see two unexpected guests at the actual anniversary meeting. One was Nitin Nohria, a board member and the other was Ratan Tata himself. Cyrus knew that Ratan would never come to such events. It was a custom in the Tata group that the chairman did not interfere after retiring. Cyrus was very surprised by what is going on.
Soon Nitin Nohria made an announcement that "the board members wanted Cyrus Mistry to re-designate". The agenda of the earlier meeting was to get him posted. Ratan Tata just said, "Sorry Cyrus, it shouldn't have happened". At the meeting, Cyrus was told that this decision has been taken only after the consent of all the board members because they no longer have confidence in Cyrus. No one knows what is the clear region to remove Cyrus. Just 30 minutes after the meeting, this news spread like fire.
The name of the Tata group was in every newspaper headline. Everyone was speculating about the removal of Cyrus Mistry. Some people said that he probably sold the unprofitable business, so it was removed. Some believed that Cyrus ignited the Tata Trust Fund, so it was removed. But Ratan Tata kept quiet, he did not confirm or refuse anything. It was believed that every new chairman would lead for 20 to 30 years. But Cyrus stayed on the post for only 4 years. He also filed a complaint with the National Company Law Tribunal.
Cyrus accused the Tata group of injustice. Well, whatever the Tata group is looking for a new replacement. He soon got a new prospect. Natarajan Chandrasekaran CEO of Tata Consultancy Services. He is an artistic and soft-spoken person. He is in TSC since the beginning of his career. In February 2017, Chandrasekaran was officially announced chairman of the Tata group.
Japanese telecom company Docomo (DoCoMo) was going to do a lawsuit against the Tata group, but the issue was revived by Chandrashekhar's intervention. As his steel business was running in Europe, the new chairman merged Tata Steel Europe with German Corporation. He also sold Tata Teleservices to Airtel. By December 2017, the Tata Group had once again become stable. Natarajan Chandrashekaran will now take the Tata group further, this is what he expects from them.
Conclusions:
You read about the Tata group. You also read about Jamsetji, JRD, and Ratan Tata in this book. You read about Empress Mills and Indica in this book. You also read about Tata Culture's Integrity, Goodwill, and Social Wealth here. There are many intelligent and distant thinking people about the Tata business. But they also use their ability to help the country.
They believe that it is necessary to help the community and the well-being of the company is hidden in the well-being of the people. Perhaps this is the secret of his success. Their purpose is much larger than the Tata company. If you were an engineer at Telco, would you trust Ratan Tata when he said that an indigenous car could be built in India? When the first Indica failed, would you also join the people who are proud of their country's ability to make a complete Make in India world-class car?
Believe in yourself - that's what Lenson Ratan Tata wants to give to every Indian. India also has multi-billion-dollar companies, Flipkart, Pay-Tm. Microsoft has an Indian CEO. So who says that India cannot touch new heights? But first, you have to believe in yourself that you too can do something. Whatever your career, Believe in yourself that you can. When you believe that there is nothing impossible then you will live a life where there will be no limit.
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