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Slideshare Presentationtata-2016-17 PDF
Slideshare Presentationtata-2016-17 PDF
INTRODUCTION
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. Jamsetji Tata
It is head quartered in Maharashtra,
Mumbai.
BOMBAY HOUSE ,2011
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.
The present CEO of TATA Group is Mr.
Ratan Naval Tata.
BUSSINESS SECTOR
Information Consumer
technology and Engineering Materials Services Energy Chemicals
Products
communication
Titan, Tata
Tata Motors Tata Steel Indian Hotel Tata Power
TCS Infinite Retail Chemicals
Tata sky
Its TATA
everywhere!!
Why is it so ?
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
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
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.
Some interesting and inspiring facts about Tata group of
industries
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.
TATA GROUP’S REVENUE
RANKINGS OF TATA GROUP
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
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.
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.
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.
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.
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.
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
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.
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.
Controversies
and criticisms
!!!
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.
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.
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.
Negative
Growth
Questions
over Misty's Increase in
Management Reasons Debt
Style
Ignoring
Ratan Tata’s
Advice
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.
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.
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.
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.
FEW OF THE OTHER REASON’S
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.
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.
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.
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.
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.