Tata Group
Encyclopedia
Tata Group is an Indian multinational
conglomerate
company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization
and revenue. It has interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. It comprises 114 companies and subsidiaries in eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel
(including Tata Steel Europe
), Tata Motors
(including Jaguar and Land Rover
), Tata Consultancy Services
, Tata Technologies
, Tata Tea (including Tetley
), Tata Chemicals
, Titan Industries
, Tata Power
, Tata Communications
, Tata Sons
, Tata Teleservices and the Taj Hotels
.
The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata
, who took over from J. R. D. Tata
in 1991 and is one of the major international business figures in the age of globality
. The company is currently in its fifth generation of family stewardship. TATA Group's 114 companies are held by its main company Tata Sons
and the main owner of Tata Sons are various charitable organisations developed and run by Tata Group. Out of which JRD Tata Trust & Sir Ratan Tata Trust are the main holders. About 65% ownership of Tata Sons which is the key holding company of the other 114 Tata Group Company is held by various charitable organisations.
The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India. The group was awarded the Carnegie Medal of Philanthropy
in 2007 in recognition of its long history of philanthropic activities. Tata gets more than 2/3 of its revenue from outside India. In June 2011, based on market value Tata Group has become India's wealthiest group with $98.7 billion.
), British India
. This was followed by the installation of 'Empress Mills' in Nagpur
in 1877. Taj Mahal Hotel
in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji Tata
became the chairman of the group after his father's death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala
headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals
(1939), Tata Motors
, Tata Industries (both 1945), Voltas
(1954), Tata Tea
(1962), Tata Consultancy Services
(1968) and Titan Industries
(1984). Ratan Tata
, the incumbent chairman of the group succeeded JRD Tata in 1991.
The Tata Group has donated a Rs. 220 crore
($50 million) to the prestigious Harvard Business School
(HBS) to build an academic and a residential building on the institute’s campus in Boston, Massachusetts. The new building will be called the Tata Hall and used for the institute’s executive education programmes.
The amount is the largest from an international donor in the business school's 102-year-old existence.
The recent The Brand Trust Report
, 2011 has ranked TATA as the second most trusted brands of India.
One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home water-purification device. It was called Tata swach
which means “clean” in Hindi
and would cost less than 1000 rupees (US $21). The idea of Tata swach
was thought of from the 2004 tsunami in the Indian Ocean, which left thousands of people without clean drinking water. This device has filters that last about a year long for a family of five. It is a low-cost product available for people who have no access to safe drinking water in their homes. The advantage of this device is that it does not require the use of electricity.
TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. “The children of the people who have been through our literacy program are all in school,” says Pankaj Baliga, global head of corporate social responsibility for TCS.
In 1912, Tata Group expanded their CEO’s concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before any other company in the world. In 1917, they recommend a medical-services policy for Tata employees. The company would be among the first worldwide to organise modern pension systems, workers’ compensation, maternity benefits, and profit-sharing plans.
In general, about 66% of the profits of Tata Group go to charity. The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science, Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them.
After the Mumbai attacks, Salries of then heavily 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. Ratan Tata personally visited families of all the employees that were affected. The employee’s relatives were flown to Mumbai from outside areas and were all accommodated for 3 weeks. Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks. A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help. Tata also granted the education of 46 children of the victims of the terrorist attacks.
had 'grabbed' forest land of 3000 acres (12.1 km²) at Munnar
. The Tatas, on the other hand, say they possess 58741.82 acres (237.7 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. Chief Minister of Kerala
V.S. Achuthanandan, who vowed to evict all government land in Munnar formed a special squad for the Munnar land takeover mission. However, later he had to abort the mission as there were many other influential land grabbers and faced opposition from his own party.
, Orissa, 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. When pushed for comment, TATA officials said the incident was unfortunate but that it would continue with its plans to set up the plant.
and facilitate investments by Carbide’s new owner Dow Chemical. Tata had proposed leading a charitable effort to clean-up the toxic wastes abandoned by Carbide in Bhopal. At a time when the Government of India has held Dow Chemical liable for the clean-up and requested Rs. 100 crores from the American MNC, survivor’s groups felt that Tata’s offer was aimed at frustrating legal efforts to hold the company liable, and motivated by a desire to facilitate Dow’s investments in India.
in West Bengal
led to further questions over Tata’s social record, with protests by locals and political parties 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 Chief Minister of Gujarat, who quickly made land available for the Nano project.
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.
Protests by Greenpeace to Dhamra Port construction is also alleged to be less on factual data and more on hype and DPCL's (Dhamra Port Company Limited) response to Greenpeace questions harbours on these facts.
, and it could possibly affect the lake's ecosystem and its neighbouring dwellers.
Tata was planning to change the site of the plant so it would be built 32 km from the lake, but the opposition still thinks it would negatively disturb the environment. 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.
has ranked the $68-billion conglomerate, Tata Group,as 50th most valuable brand in the world.The most recent Global 500 report by Brand Finance shows that despite the controversies, Tata Group's brand value has soared to $15.08 billion for the current year compared to $11.2 billion last year in 2010.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
and revenue. It has interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. It comprises 114 companies and subsidiaries in eight business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts. Companies which form a major part of the group include Tata Steel
Tata Steel
Tata Steel is a multinational steel company headquartered in Jamshedpur, India and part of Tata Group. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tonnes, and the largest private-sector steel company in India measured by domestic production...
(including Tata Steel Europe
Tata Steel Europe
Tata Steel Europe is a multinational steel-making company headquartered in London, United Kingdom. It is the second-largest steel-maker in Europe and is a subsidiary of Tata Steel of India, one of the ten largest steel producers in the world.Corus Group was formed through the merger of Koninklijke...
), Tata Motors
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
(including Jaguar and Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
), Tata Consultancy Services
Tata Consultancy Services
Tata Consultancy Services Limited is a global IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India...
, Tata Technologies
Tata Technologies Limited
Tata Technologies Limited is a company in the Tata Group that provides services in Engineering and Design , Product Lifecycle Management , Enterprise Solutions, manufacturing and product development IT services to Tier 1 automotive and aerospace OEMs and their suppliers...
, Tata Tea (including Tetley
Tetley
Tetley, a wholly owned subsidiary of Tata Global Beverages , is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, Tetley's manufacturing and distribution business is spread across 40 countries and sells over 60 branded tea bags...
), Tata Chemicals
Tata Chemicals
Tata Chemicals Ltd is a Tata Group Company based in Mumbai. The company is one of the largest chemical companies in India with significant operations in India and Africa.-Plant locations:*Mithapur *Babrala *Nanded...
, Titan Industries
Titan Industries
Titan Industries is the world's fifth largest wrist watch manufacturer and India's leading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys brand names. It is a joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation...
, Tata Power
Tata Power
Tata Power is India’s oldest and largest private sector power utility with an installed generation capacity of over 2977 MW.On the 22 March 2011 it has announced partnership with Sunengy an Australian firm, to build India's first floating solar plant....
, Tata Communications
Tata Communications
Tata Communications Limited ) is a telecommunications company located in Mumbai. They own a submarine cable network, a Tier-1 IP network, and also rent data center and colocation space. They operate India's largest data center in Pune...
, Tata Sons
Tata Sons
Tata Sons is a promoter of the key companies of the Tata Group and holds the bulk of shareholding in these companies. It was established as a trading enterprise by Group founder Jamsetji Tata in 1868...
, Tata Teleservices and the Taj Hotels
Taj Hotels
Taj Hotels Resorts and Palaces is a worldwide chain of hotels and resorts. A part of the Tata Group, one of India's largest business conglomerates, Taj Hotels Resort and Palaces own and operate 76 hotels, 7 palaces, serviced apartments, 6 private islands and 12 resorts and spas, spanning 52...
.
The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata
Ratan Tata
Ratan Naval Tata is the present chairman of Tata Sons and therefore, Tata Group. Also, he is one among the few in the world...
, who took over from J. R. D. Tata
J. R. D. Tata
Jehangir Ratanji Dadabhoy Tata was a pioneer aviator and important businessman of India. He was awarded India's highest civilian award, the Bharat Ratna in 1992 and the Legion of Honour from the French government in 1954.-Early life and education:J. R. D...
in 1991 and is one of the major international business figures in the age of globality
Globality
Globality is the end-state of globalization – a hypothetical condition in which the process of globalization is complete or nearly so, barriers have fallen, and "a new global reality" is emerging....
. The company is currently in its fifth generation of family stewardship. TATA Group's 114 companies are held by its main company Tata Sons
Tata Sons
Tata Sons is a promoter of the key companies of the Tata Group and holds the bulk of shareholding in these companies. It was established as a trading enterprise by Group founder Jamsetji Tata in 1868...
and the main owner of Tata Sons are various charitable organisations developed and run by Tata Group. Out of which JRD Tata Trust & Sir Ratan Tata Trust are the main holders. About 65% ownership of Tata Sons which is the key holding company of the other 114 Tata Group Company is held by various charitable organisations.
The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The survey included 600 global companies. The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India. The group was awarded the Carnegie Medal of Philanthropy
Carnegie Endowment for International Peace
The Carnegie Endowment for International Peace is a foreign-policy think tank based in Washington, D.C. The organization describes itself as being dedicated to advancing cooperation between nations and promoting active international engagement by the United States...
in 2007 in recognition of its long history of philanthropic activities. Tata gets more than 2/3 of its revenue from outside India. In June 2011, based on market value Tata Group has become India's wealthiest group with $98.7 billion.
History
The beginning of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji Tata established a trading company dealing in cotton in Bombay (now MumbaiMumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
), British India
British Raj
British Raj was the British rule in the Indian subcontinent between 1858 and 1947; The term can also refer to the period of dominion...
. This was followed by the installation of 'Empress Mills' in Nagpur
Nagpur
Nāgpur is a city and winter capital of the state of Maharashtra, the largest city in central India and third largest city in Maharashtra after Mumbai and Pune...
in 1877. Taj Mahal Hotel
Taj Mahal Palace & Tower
The Taj Mahal Palace & Tower is a five-star hotel located in the Colaba region of Mumbai, Maharashtra, India, next to the Gateway of India. Part of the Taj Hotels, Resorts and Palaces, this building is considered the flagship property of the group and contains 565 rooms...
in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji Tata
Jamsetji Tata
Jamsetji Nusserwanji Tata was an Indian entrepreneur and industrialist, prominent for his pioneering work in Indian industry. He was born to a Parsi family in Navsari, Gujarat, India....
became the chairman of the group after his father's death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala
Nowroji Saklatwala
Nowroji Saklatwala was the only non-Tata chairman of the Tata group from 1932 till his sudden death due to heart attack. He was also a cricket player and represented the Parsees against the Europeans in 1904.-References:...
headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals
Tata Chemicals
Tata Chemicals Ltd is a Tata Group Company based in Mumbai. The company is one of the largest chemical companies in India with significant operations in India and Africa.-Plant locations:*Mithapur *Babrala *Nanded...
(1939), Tata Motors
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
, Tata Industries (both 1945), Voltas
Voltas
Voltas Limited is an engineering, air conditioning and refrigeration company based in Mumbai, India. It makes stuff for industries in areas such as heating, ventilation and air conditioning, refrigeration, construction equipment, materials handling, water management, building management systems,...
(1954), Tata Tea
Tata Tea
Tata Tea Limited, also known as Tata-Tetley, is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, the Tata Tea Limited markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMČA...
(1962), Tata Consultancy Services
Tata Consultancy Services
Tata Consultancy Services Limited is a global IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India...
(1968) and Titan Industries
Titan Industries
Titan Industries is the world's fifth largest wrist watch manufacturer and India's leading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys brand names. It is a joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation...
(1984). Ratan Tata
Ratan Tata
Ratan Naval Tata is the present chairman of Tata Sons and therefore, Tata Group. Also, he is one among the few in the world...
, the incumbent chairman of the group succeeded JRD Tata in 1991.
Tata Group of Companies
This section lists the Tata companies and details their business:Philanthropy
The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India. The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of the group's long history of philanthropic activities. Some of the institutes established by the Tata Group are:The Tata Group has donated a Rs. 220 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....
($50 million) to the prestigious Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
(HBS) to build an academic and a residential building on the institute’s campus in Boston, Massachusetts. The new building will be called the Tata Hall and used for the institute’s executive education programmes.
The amount is the largest from an international donor in the business school's 102-year-old existence.
The recent The Brand Trust Report
The Brand Trust Report
The Brand Trust Report, India Study, 2011 is published by Trust Research Advisory . The book is a result of a syndicated primary research on Brand Trust that generated 10,00,000 data points and 16,000 unique brands from over 10,000 hours of fieldwork conducted in 9 cities TRA’s study partners in...
, 2011 has ranked TATA as the second most trusted brands of India.
One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home water-purification device. It was called Tata swach
Tata swach
The Tata Swach water purifier is developed by Tata Chemicals, a part of the Tata group in India. The Swach was designed as a low cost purifier for Indian low-income groups, who lack access to safe drinking water...
which means “clean” in Hindi
Hindi
Standard Hindi, or more precisely Modern Standard Hindi, also known as Manak Hindi , High Hindi, Nagari Hindi, and Literary Hindi, is a standardized and sanskritized register of the Hindustani language derived from the Khariboli dialect of Delhi...
and would cost less than 1000 rupees (US $21). The idea of Tata swach
Tata swach
The Tata Swach water purifier is developed by Tata Chemicals, a part of the Tata group in India. The Swach was designed as a low cost purifier for Indian low-income groups, who lack access to safe drinking water...
was thought of from the 2004 tsunami in the Indian Ocean, which left thousands of people without clean drinking water. This device has filters that last about a year long for a family of five. It is a low-cost product available for people who have no access to safe drinking water in their homes. The advantage of this device is that it does not require the use of electricity.
TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. “The children of the people who have been through our literacy program are all in school,” says Pankaj Baliga, global head of corporate social responsibility for TCS.
In 1912, Tata Group expanded their CEO’s concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before any other company in the world. In 1917, they recommend a medical-services policy for Tata employees. The company would be among the first worldwide to organise modern pension systems, workers’ compensation, maternity benefits, and profit-sharing plans.
In general, about 66% of the profits of Tata Group go to charity. The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science, Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them.
After the Mumbai attacks, Salries of then heavily 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. Ratan Tata personally visited families of all the employees that were affected. The employee’s relatives were flown to Mumbai from outside areas and were all accommodated for 3 weeks. Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks. A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help. Tata also granted the education of 46 children of the victims of the terrorist attacks.
Controversies, and Environmental record
Despite their public commitment to philanthropy the Tata group has attracted several controversies.here are some:Munnar, Kerala
The Kerala Government had filed an affidavit in the high court saying that Tata TeaTata Tea
Tata Tea Limited, also known as Tata-Tetley, is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, the Tata Tea Limited markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMČA...
had 'grabbed' forest land of 3000 acres (12.1 km²) at Munnar
Munnar
Munnar is one of the most popular hill station in Kerala and in southern India. Munnar is located on the Western Ghats, situated in the Idukki district....
. The Tatas, on the other hand, say they possess 58741.82 acres (237.7 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. Chief Minister of Kerala
Chief Minister of Kerala
The Chief Minister of Kerala is the elected head of government of the state of Kerala, India. By the Constitution of India, the Chief minister is appointed by the Governor of the state....
V.S. Achuthanandan, who vowed to evict all government land in Munnar formed a special squad for the Munnar land takeover mission. However, later he had to abort the mission as there were many other influential land grabbers and faced opposition from his own party.
Kalinganagar, Orissa
On 2 January 2006, policemen at KalinganagarKalinganagar
Kalinganagar is a small town in Jajpur district of coastal Orissa, India, a region influenced by the Naxalite movement. It is rich in iron ore. Recently, because of high global demand for steel, Kalinganagar is becoming a major global hub in steel and ancillary products...
, Orissa, 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. When pushed for comment, TATA officials said the incident was unfortunate but that it would continue with its plans to set up the plant.
Dow Chemical, Bhopal Gas Disaster
In November 2006, survivors of the Bhopal gas disaster were outraged by Ratan Tata’s offer to bail out Union CarbideUnion Carbide
Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company. It currently employs more than 2,400 people. Union Carbide primarily produces chemicals and polymers that undergo one or more further conversions by customers before reaching consumers. Some are high-volume...
and facilitate investments by Carbide’s new owner Dow Chemical. Tata had proposed leading a charitable effort to clean-up the toxic wastes abandoned by Carbide in Bhopal. At a time when the Government of India has held Dow Chemical liable for the clean-up and requested Rs. 100 crores from the American MNC, survivor’s groups felt that Tata’s offer was aimed at frustrating legal efforts to hold the company liable, and motivated by a desire to facilitate Dow’s investments in India.
Supplies to Burma’s military regime
Tata Motors reported deals to supply hardware and automobiles to Burma’s oppressive and anti-democratic military junta has come in for criticism from human rights and democracy activists. In December 2006, Gen. Thura Shwe Mann, Myanmar’s chief of general staff visited the Tata Motors plant in Pune. In 2009, TATA Motors announced that it would press ahead with plans to manufacture trucks in Myanmar.Land acquisition in Singur
The Singur controversyTata Nano Singur controversy
Tata Nano Singur Controversy refers to the controversy generated by land acquisition of the proposed Nano factory of Tata Motors at Singur in Hooghly district, West Bengal, India....
in West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
led to further questions over Tata’s social record, with protests by locals and political parties 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)
Communist Party of India (Marxist)
The Communist Party of India is a political party in India. It has a strong presence in the states of Kerala, West Bengal and Tripura. As of 2011, CPI is leading the state government in Tripura. It leads the Left Front coalition of leftist parties in various states and the national parliament of...
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
Narendra Modi
Narendra Damodardas Modi is the current Chief Minister of the Indian state of Gujarat.He was born in a middle class family in Vadnagar; and is a member of Rashtriya Swayamsevak Sangh since childhood, as also an active politician since early in life. He holds a masters degree in political...
, the Chief Minister of Gujarat, who quickly made land available for the Nano project.
Dhamra Port
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
Larsen & Toubro
Larsen & Toubro Limited is an Indian multinational conglomerate company headquartered in Mumbai, India. The company has four main business sectors: technology, engineering, construction and manufacturing. L&T has an international presence, with a global spread of offices and factories, further...
, has come in for criticism for its proximity to the Gahirmatha Sanctuary and Bhitarkanika National Park
Bhitarkanika National Park
Bhitarkanika National Park is a national park located in the Kendrapara District of Orissa in Eastern India. The park encompasses an area of 672 km² of the Bhitarkanika Mangroves, a mangrove swamp which lies in the river delta of the Brahmani, Baitarani, and Dhamara rivers. The national park...
, from Indian and international organisations, including Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
. Gahirmatha Beach
Gahirmatha Beach
Gahirmatha Beach is a beach in the Indian state of Orissa. The beach separates the Bhitarkanika mangroves from the Bay of Bengal, is the world's most important nesting beach for Olive Ridley Sea Turtles...
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.
Protests by Greenpeace to Dhamra Port construction is also alleged to be less on factual data and more on hype and DPCL's (Dhamra Port Company Limited) response to Greenpeace questions harbours on these facts.
Soda extraction plant in Tanzania
Tata, along with a Tanzanian company, joined forces to build a soda ash extraction plant in Tanzania. The Tanzanian government is all for the project. On the other hand, environmental activists are opposing the plant because it would be near Lake NatronLake Natron
Lake Natron is a salt lake located in northern Tanzania, close to the Kenyan border, in the eastern branch of Africa's Great Rift Valley. The lake is fed by the Ewaso Ng'iro River but also by mineral-rich hot springs and is quite shallow, less than three meters deep, and varies in width depending...
, and it could possibly affect the lake's ecosystem and its neighbouring dwellers.
Tata was planning to change the site of the plant so it would be built 32 km from the lake, but the opposition still thinks it would negatively disturb the environment. 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.
Acquisitions
Recognition
The international brand consultancy Brand FinanceBrand Finance
Brand Finance is an independent intangible asset valuation consultancy. It advises strongly branded organisations, or those with valuable intangible assets, on how to maximise their value through effective management of their brand and other intangible assets...
has ranked the $68-billion conglomerate, Tata Group,as 50th most valuable brand in the world.The most recent Global 500 report by Brand Finance shows that despite the controversies, Tata Group's brand value has soared to $15.08 billion for the current year compared to $11.2 billion last year in 2010.
See also
- Pallonji MistryPallonji MistryPallonji Shapoorji Mistry is an Irish-Parsi construction tycoon. According to Forbes, his wealth is estimated to be US$8.8 billion as of 2011. He is the richest person of Parsi descent followed by Adi Godrej at US$7.3 Billion . With his 18.5% stake in Tata Sons, he is the single largest...
- Noel TataNoel TataNoel Tata an Indian businessman, who is the Chairman of Trent Ltd.Noel Tata is the son of Naval Tata and Simone Tata. He is married to Aloo Mistry, the daughter of Pallonji Mistry, who is the largest single shareholder in Tata Sons...
- Sir Dorabji Tata and Allied TrustsSir Dorabji Tata and Allied TrustsThe Sir Dorabji Tata Trust was established by Sir Dorab Tata , the elder son of Tata Group founder Jamsetji Tata. Founded in 1932, it is one of the oldest non-sectarian philanthropic organisations in India.-History:...