BUSINESS CASE STUDY-PRACTICALS TATA AND SONS

CLASS: II M.Com

Team Members:
Juliana Magdalene Veronica .J 19MCO019

Kasthuri Vinisha .P 19MCO023

Vinushya .V 19MCO054
Ahmed Soilihi Riama 19MCO058
Kavya .G 19MCO024
Emmanual .C N 19MCO014

DEPARTMENT OF COMMERCE-SKASC PAGE -1

 TATA AND SONS

INTRODUCTION
Tata Group is an Indian multinational conglomerate holding company headquartered
in Mumbai, India. Founded in 1868 by Jamsetji Tata, the company gained international
recognition after purchasing several global companies. The group operates in more than 100
countries across six continents, with a mission ‗To improve the quality of life of the
communities they serve globally, through long-term stakeholder value creation based on

Leadership with Trust‘. Sixty-six percent of the equity share capital of Tata Sons is held by
philanthropic trusts, which support education, health, livelihood generation and art and
culture.
Each Tata company operates independently
under the guidance and supervision of its own
board of directors and shareholders. Significant
Tata companies and subsidiaries include Tata
Steel, Tata Motors, Jaguar Land Rover, Tata
Consultancy Services, Tata Advanced Systems
Limited, Tata Power, Tata Chemicals, Tata
Global Beverages, Tata Coffee, Tata
Teleservices, Titan, Voltas, Tata Cliq, Tata
Communications, and The Indian Hotels
Company Limited (Taj Hotels), TATA
Autocomp Systems Ltd.

CHAIRMEN OF TATA SONS

Jamsetji Nusserwanji Tata (1868-1904)

Sir Dorab Tata (1904–1932) Ratan Tata (Interim Chairman, Oct 2016 onwards)

Nowroji Saklatwala (1932– 1938)

TATA GROUP OF COMPANIES

 Tata Consultancy Services

 Tata Motors

 Tata Steel

 Tata Chemicals
Jehangir Ratanji Dadabhoy Tata (1938–1991)

Ratan Tata (1991–2012)

Cyrus Pallonji Mistry (2012- 2016)

Natarajan Chandrasekaran

 Tata Global Beverages

 Titan

 Tata Capital

 Tata Power

 Tata Advanced Systems

 Indian Hotels and

 Tata Communications
THE BOMBAY HOUSE

Bombay House is a historic privately owned building in Mumbai, India 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-story colonial structure built with Malad stone,
and was designed by Scottish architect George Wittet, who designed over 40 buildings for the
group and later became the head of Tata Engineering Company Limited, now Tata Motors.

The building houses the office of chairman and all top directors of Tata Sons, the
holding company. Core companies of the group-Tata Motors, Tata Steel, Tata Chemicals,
Tata Power, Tata Industries, Tata airlines and Trent-operate out of the Bombay House.
JAMSETJI TATA (1868 – 1904)

Jamsetji Tata was more than just the entrepreneur who helped India take her
place in the league of industrialised nations. He was a patriot and a
humanist whose ideals and vision shaped an exceptional business
conglomerate.

INTRODUCTION

Jamsetji was born on March 3, 1839 in Navsari in Gujarat. He was the first child and
only son of Nusserwanji Tata, the scion of a family of Parsee priests. Many generations of the
Tatas had joined the priesthood, but the enterprising Nusserwanji broke the mould, becoming
the first member of the family to try his hand at business. Nusserwanji got him enrolled at
Elphinstone College, from where he passed in 1858 as a 'green scholar', the equivalent of
today's graduate. In 1868, aged 29 and wiser for the experience garnered by nine years of
working with his father, Jamsetji started a trading company with a capital of Rs21,000. His
first expedition to England soon followed, where he learnt about the textile business.

To Jamsetji Tata, the textiles business, a favourite with his contemporaries at the time,
was a way to increase India‘s industrial prosperity. On his maiden expedition to England, and
others that he made in subsequent years, he became convinced that there was tremendous
scope for Indian companies to make a dent in the prevailing British dominance of the textile
industry.

INDIA’S TEXTILE HUB – 1874

Jamsetji made his move into textiles in 1869. He acquired a dilapidated and bankrupt
oil mill in Chinchpokli, in the industrial heart of Bombay, renamed the property Alexandra
Mill and converted it into a cotton mill.

Two years later, Jamsetji sold the mill for a significant profit to a local cotton
merchant. He followed this up with an extended visit to England, and an exhaustive study of
the Lancashire cotton trade.

The quality of men, machinery and produce that Jamsetji saw during this sojourn was
impressive, but he was certain he could replicate the story in his own country. Jamsetji
believed he could take on and beat the colonial masters at a game they had rigged to their
advantage.
 At the time, Bombay was the favoured location for the textiles industry, but Jamsetji's
geniuses took him in another direction. He deduced he could maximise his chances of success
if he factored three crucial points into his plans: close proximity to cotton-growing areas, easy
access to a railway junction, and plentiful supplies of water and fuel.

Tata made its first entry into manufacturing and industry in 1874, when it founder,
Jamsetji Tata, started The Central India Spinning, Weaving and Manufacturing Company in
Victoria Mills, later renamed Empress Mill when Queen Victoria was proclaimed Empress of
India on 1 January 1877. In 1887, Jamsetji purchased the failing Dharamsi Mills located at
Kurla, renamed it Swadeshi Mill, and made it a success, with its produced cloth extensively
exported to China, Korea, Japan, .The Ahmadabad Advance Mills began its operation in
1903.

PIONEERING WORKERS WELFARE - 1886

When Jamsetji started the Central India Spinning, Weaving and Manufacturing
Company in Nagpur, it became his laboratory. Here he tried experiments in technology and
labour welfare never before attempted in India. The excellence of his new plant was matched
by his care for the workers. He offered his people shorter working hours, well-ventilated
workplaces, a crèche for young mothers, and provident fund and gratuity long before
they became statutory in the West. He installed the first humidifiers and fire-sprinklers in
India. In 1886, he instituted a Pension Fund, and in 1895, began to pay accident
compensation. He was decades ahead of his time and miles ahead of his competitors. The
Empress Mill experiment showed that not only profits but people mattered to him.
 Even as he battled for the survival of his industry, he was not too busy to think of the
health of his workers. As polluted water was a cause of illness, he installed a water filtration
plant and arranged for sanitary hutments. A grain depot was opened, followed by a
dispensary, provident fund and pension schemes.

TATA ENDOWMENT FUND - 1892

Jamsetji‘s idea of philanthropy was far removed from conventional and contemporary
notions of charity. It was with this idea that he set up in 1892, the JN Tata Endowment, the
first Tata benefaction in the field of education, and possibly the first of its kind in the world.

Over 125 years ago, Jamsetji Nusserwanji Tata, the Founder of the Tata group, made
an investment in India‘s youth — and a colonised nation‘s future — when he set up the JN
Tata Endowment for the Higher Education of Indians. The first of the Tata family‘s
philanthropic initiatives, the Endowment enabled Indian students, regardless of caste or creed,
to pursue higher studies outside the country. To say that the investment has paid off would be
an understatement: since it was set up in 1892, the JN Tata Endowment has supported
generation after generation of promising minds in the country.

TAJ MAHAL PALACE – 1903

Diamond By The Sea When the Taj Mahal Palace first opened its doors in 1903, it
inspired pride in every Indian, exactly as Jamsetji Tata had intended it. Over a 100 years later,
it continues to be a grand icon of Indian hospitality.

Jamsetji Tata was more than an industrialist—he was a nationalist with a fervour to
see India ranked among the great nations of the world. To this end, he passionately pursued
his
dreams for India, only one of which was truly complete in his lifetime—a hotel Bombay and
the country could be proud of. Jamsetji Tata spent more than £300,000 on the Taj Mahal
hotel. A hundred years ago that was an enormous sum of money. But more than just money
was the care and attention he lavished on it. To many Indians who had never travelled abroad
before, this Taj was an incredible wonder of the modern world, a tantalising glimpse into the
future. The Taj was the first building in Bombay to be electrified. It had the first ice-making
machine. The first soda maker. The first lift. The first generator. The first mechanised
laundry. The first polishing machine. Most important of all, it was a hotel into which any
Indian could walk with his head held high, confident that he would be treated with courtesy
and respect. Ultimately, as Jamsetji Tata well knew, this is really our finest Indian heritage.

SIR DORABJI TATA (1904-1932)

An Indian businessman, and a key figure in the history and

development of the Tata Group. He was knighted in 1910 for his
contributions to industry in British India .

Sir Dorab Tata, the elder son of Jamsetji Nusserwanji Tata, was born on August 27,
1859, when his father, the founder of the Tata Group, was 20 years old. Sir Dorab Tata gave
concrete shape to the vision of his father Jamsetji Tata, the founder of the Tata Group. He
established the Tata Group as an industrial giant while also supporting sport and a variety of
charitable causes. Sir Dorab had an enduring love of sport, trying his hand at different
disciplines in his younger days and, later, becoming a strong patron and supporter of the
Indian Olympic Association.

In fact, India owed its participation in the Olympic Games at Antwerp in 1920 in great
measure to Sir Dorab. As president of the Indian Olympic Council, he financed the Indian
contingent that went to the Paris Olympiad of 1924. He was also a member of the
International Olympic Committee.
NERVES OF STEEL – 1907

It was the early 1900s, and no one believed an Indian company could produce steel.
They hadn‘t met the Tatas. Jamsetji Tata, his son Dorab, and his cousin RD Tata, defied
sceptics and prohibitive colonial policies to build Asia‘s first steel company.

Sir Dorabji Tata, and his cousin RD Tata, to see his dream to completion. Tata Steel
came into being in 1907 and held the distinction of being Asia‘s first integrated steel
company. The torturous twists and turns the steel project took would have defeated lesser
men, but Dorabji and RD Tata were steadfast in their determination to see Jamsetji‘s dream
come to fruition.

Along the way, they had to suffer the scorn of people such as Sir Frederick Upcott,
the chief commissioner of the Great Indian Peninsular Railway, who promised to "eat every
pound of steel rail [the Tatas] succeed in making". There is no record of where Sir Frederick
was when the first ingot of steel rolled out of the plant's production line in 1912. Jamsetji had
been dead eight years by then, but his spirit it was, as much as the efforts of his son Dorab
and cousin RD Tata, that made real the seemingly impossible.
THE POWER OF DREAMS – 1910

Jamsetji‘s mind was already working on the answer. Bombay would have a power
plant. He would find a way. More than a century ago, the visionary Jamsetji Nusserwanji
Tata, resolved to provide pollution-free, clean power to Mumbai, a city that was choking on
the fumes of the boilers of textile mills. The preliminary work had begun on conceptualising
his grand vision, but before the new power company could be formed, Jamsetji passed away.

Though he could not personally accomplish this tough task, Jamsetji‘s sons Dorab and
Ratan subsequently laid the foundation for affordable and clean power for the city of Bombay
(now Mumbai)

In the next few years, three hydroelectric entities, Tata Hydro-Electric Power
Supply Company (in 1910), the Andhra Valley Power Supply Company (in 1916) and the
Tata Power Company (in 1919), were incorporated to give shape to the dream. Together these
three companies were referred to as the Tata Electric Companies. The other two entities were
amalgamated into the Tata Power Company in the year 2000. Tata Power‘s journey over the
last 10 decades has been a fascinating saga of pioneering initiatives and responsible business
with minimal impact on the environment, and the socioeconomic empowerment of the
communities that it touches.

TATA OIL MILLS COMPANY – 1917

Tata Oil Mills Company also known as TOMCO, was a public limited company and
part of Tata group. It was incorporated on 10 December 1917 with head office at Bombay by
Dorabji Tata. It was into manufacture and sale soaps, detergents, cooking oils, glycerine,
cattle and poultry feeds, de-oiled meals, oil cakes and fish products.
 The manufacturing units were spread over India in Maharashtra, West Bengal, Kerala,
Bihar, Uttar Pradesh, Gujarat and Tamil Nadu. In 1952 Lakme was started as a 100%
subsidiary of Tata Oil Mills by JRD Tata. The company owned famous bathing soap brands
like Hamam, Okay, Moti to name a few. During early 1990s Tata's wanted to move out of
businesses that did not meet their long term strategy and TOMCO was sold to their
competitors Hindustan Lever Limited and it was amalgamated into HLL on 28 December
1994 with retrospective effect from 1 April 1993.

SIR RATAN TATA TRUST & ALLIED TRUST – 1919

The Sir Ratan Tata Trust and Allied Trusts is a philanthropic institution established in 1919 in
accordance with the will of Sir Ratan Tata, the younger son of group Founder Jamsetji Tata.
The trust was created "...for the advancement of education, learning and industry in all its
branches, including education in economy, sanitary services and art, or for the relief of
human suffering, or for other works of public utility..."
 The Sir Ratan Tata Trust was set up in 1919 with a corpus of Rs.8 million in
accordance with Sir Ratan Tata‘s will, for ―the advancement of learning and for the relief of
human suffering and other works of public utility‖.

The trusts seek to be a catalyst in development through implementing community

initiatives and by giving grants to institutions in various areas. The grants are provided to
civil society organisations that the trusts can partner to undertake innovative and sustained
initiatives with the potential to make a visible difference in the areas of education; health;
rural livelihoods and communities; arts, craft and culture; and civil society and governance.
They also provide grants to individuals for education and medical relief.

NOWROJI SAKLATWALA (1932-1938)

Sir Nowroji Saklatwala was born on September 10, 1875. After the death of Dorab
Tata in 1934, Nowroji headed the group till 1938. His scholastic career was Marked
by a steadliness and Solidity that was to play Greater part in his life. Sir
Nowroji Saklatwala started out as a Tata employee, as an apprentice on a pay
of Rs. 50 a month in 1889. Within a short time nowroji‘s good work in mills
department
and his knowledge about the industry and in 1917 he was made Chairman of Bombay
Millowner‘s Association.
A LEADER OF PEOPLE

• He was known for his vision and passion for employee welfare.
• Nowroji was a great leader of great vision on labour welfare. During his chairmanship
of Tata sons, he gave some labour forces, certain benefits to their employees.

• He approved the Profit sharing scheme to the employees.

 • In September 1937, he took another bold step for his employees by raising the wages
of the lowest paid workers and improving the service conditions of temporary
employees at Tata Iron And Steel Company(TISCO, now tata steel) in Jamshedpur.

• In 1921 he was sent to Geneva as Representative of Indian employees at International

Labor Conference.

CONSOLIDATING FORCE

• He focused his energies on consolidating the core business of iron and steel, cotton
mills, banking and hydro-electric works

• Next, his attention to merging several cement business in India(Associate cement

company, later known as ACC)

• He backed the idea of having club and recreation rooms in Bombay House for all
employees

• As a chairman of Sir Dorabji Tata Trust, nowroji helped channel the funds at disposal
of the trust to help the needy.

WELFARE TOWARDS COUNTRY

• He sponsored the idea of Cancer Institution which is a symbol of Tata group‘s

• And also on building the great institutions, like Cricket Club of India. He worked with
them and gave sporting fraternity something to be proud of.

CONNECTION WITH INDIAN CRICKET

• He played for the Parsees team during 1904-05.

• He represented the Parsees against Europeans in 1904.
• Nowroji was the first chairman of Cricket Club of India.
• He passed away unexpectedly due to heart failure in France 1938, he served so well
for 40 years

• His greatest desire was to see his people in tat group prosper even after he was gone.
JEHANGIR RATANJI DADABHOY TATA (1938-1991)

He was born on 29th July 1904 an Entrepreneur, chairman of Tata group and
shareholder of Tata sons. He was the founder of industries like Tata Consultancy services,
Tata salts, Voltas and Air India. As his mother was French, he spend much of
his days in France so he got citizenship in France. In 1929, JRD re-announced
his French citizenship and became an Indian citizenship and he started
working at Tata.

DREAM TO FLY

• Passion for flying

• 1st Indian to pass pilot‘s examination
• 1st person to get pilot License in India
• Father of Civil aviation in India
• Founder of Air India
• Founder of 1st International airline- Air India International
• Became president of international air transport association (IATA)

He founded India‘s first commercial airline, Tata Airlines in 1932, which became Air
India in 1946, now it is India‘s national airline. He became chairman of Tata sons in 1938 at
the age of 34 and he was the head of largest industrial group in India. In 1945 he founded

Tata Motors. In 1948, JRD Tata launched Air India International as India‘s first international
airline and the government also appointed him as chairman of Air India.
AWARDS

• 1948 – Honorary rank of Group Captain by the Indian Air Force.

• 1974 – Air Vice Marshal.
• 1985 – Edward Warner Award of the International Civil Aviation.
• 1955 – Padma Vibhushan.
• 1992 – Bharat Ratna.
• 1992 – United Nations Population Award.
TATA ON A 1994 STAMP OF INDIA

BEST LEADER

He was known for his honest business dealings. Under his expert guidelines, the tata
groups successfully ventured into such diverse fields like power generation and distribution,
iron, trucks, motors, chemicals, engineering, computers, hotels, air conditioners, electronics,
cement, tea, medicines, venture and many other.

SOCIAL RESPONSIBILITY

He was the trustee of the Sir Dorabji Tata trust from its inception in 1932, under his
guidance, the trust established Asia‘s first cancer hospital, The Tata Memorial Center For
Cancer, Research And Treatment, in Bombay in 1941.
 • Founded the TISS (Tata institute of social science) IN 1936, Tata institute of
fundamental research in 1945 and National Center for Performing Arts.

• He had 14 enterprise when he started which expanded to 95 enterprises half a

century later.

• JRD Tata died in Geneva, Switzerland on 29th November 1993 at the age of 89
due to kidney infection. The Indian parliament was adjourned in his memory.

RATAN TATA (1991-2012)

Ratan Naval Tata (born 28 December 1937) is an

Indian industrialist, investor, philanthropist, and a former chairman of Tata
Sons who serves as its chairman emeritus. He was also chairman of Tata
Group, from 1991 to 2012, and again, as interim chairman, from October

2016 through February 2017, and continues to head its charitable trusts. He
is the recipient of two of the highest civilian awards of India – Padma Vibhushan (2008) and
Padma Bhushan (2000). He is well-known for his business ethics and philanthropy. Born in
1937, he was a scion of the Tata family, and great-grandson of Jamsetji Tata, the founder of
Tata Group. He is an alumnus of the Cornell University College of Architecture. He joined to
company in 1961, and was the apparent successor to J. R. D. Tata upon the latter's retirement
in 1991. During Ratan Tata's chairmanship of 21 years, revenues grew over 40 times, and
profit, over 50 times. He boldly got Tata Tea to acquire Tetley, Tata Motors to acquire Jaguar
Land Rover, and Tata Steel to acquire Corus, in an attempt to turn Tata from a largely India-
centric group into a global business. During the 21 years he led the Tata Group, revenues
grew over 40 times, and profit, over 50 times. Where sales of the group as a whole,
overwhelmingly came from commodities when he took over, the majority sales came from
brands when he exited. He boldly got Tata Tea to acquire Tetley, Tata Motors to acquire
Jaguar Land Rover and Tata Steel to acquire Corus. All this turned Tata from a largely India-
centric group into a global business, with over 65% revenues coming from operations and
sales in over 100 countries.He conceptualised the Tata Nano car. As he explained in a recent
interview for the Harvard Business School's Creating Emerging Markets project, the
development of the Tata Nano was significant because it helped put cars at a price-point
within reach of the average Indian consumer.
 Ratan Tata resigned his executive powers in the Tata group on 28 December 2012,
upon turning 75, appointing as his successor, Cyrus Mistry, the 44-year-old son of Pallonji
Mistry of the Shapoorji Pallonji Group, the largest individual shareholder of the group and
related by marriage. On 24 October 2016, Cyrus Mistry was removed as the chairman of Tata
Sons and Ratan Tata was made interim chairman.

STRATEGY

After Jamshedji, Jehangir Ratanji Dadabhoy Tata (JRD) became the Chairman of the
Tata Group and played a significant role in continuing the vision of the Group. Tata's assets
climbed from INR620 million in 1939 to INR100 billion in 1990. Tata Motors had increased
its sales to INR1 million in the year 1991 and it had rolled out 3 million vehicles in the same
year. In 1991, Ratan Naval Tata took over the Although he was initially criticised for his poor
performance, over the years, Ratan Tata disproved his critics. He restructured Tata Group's
business operations and made the group compete globally. Under Ratan Tata's chairmanship,
Tata Consultancy Services went public and Tata Motors was listed in the New York Stock
Exchange. Starting from the late 1990s, Ratan revamped the operations of Tata Steel and
made it one of the lowest cost steel producers in the world. However, as the Tatas lack an heir
who can succeed Ratan, the group is at a crossroads to decide who will be the next chairman.
After Ratan Tata's retirement, the dilemma is who will succeed him and carry the vision of
the group.

• The group‘s mission statement in 2007 read, ―The Tata name is a unique asset
representing leadership with trust. Leveraging this asset to enhance Group
synergy and becoming globally competitive is the route to sustained growth and
long-term success.‖
 • Ventures like TATA Nano do not get successful overnight, they happen to be
successful by design and thought. Tata companies have unleashed a virtuous cycle of
evolution and execution of sustainability embedding a society-minded logic to value
creation, their learning in turn has strengthened their corporate identity, and
encouraged bold steps in rethinking transportation, IT, and steel manufacturing. These
all factors make TATA a success.

• ―Ratan Tata in 2005 said, ―One hundred years from now, I expect the Tatas to be
much bigger than it is now. More importantly, I hope the Group comes to be regarded
as being the best in India — best in the manner in which we operate, best in the
products we deliver and best in our value systems and ethics. Having said that, I hope
that a hundred years from now we will spread our wings far beyond India‖ ELCO
(now Tata Motors) cruises into the passenger vehicle space with Tata Sierra, followed
by Tata Estate in 1992.‖

LEADERSHIP QUALITIES

1. He is a visionary. When he joined the group, it was barely doing any business outside
India. Even though many opposed him, he maintained that the company had to go global.
Today half of Tata‘s revenues come from overseas. Under his leadership Tata acquired
brands like Tetley, Jaguar Land Rover, and Taj Boston.

2. He is known for his humility, and there are countless examples. He started out
working as a blue collar employee for Tata Steel. He personally visited the families of the 80
employees who were affected because of the 26/11 attacks. He remembers almost everyone
by their first names, and is not dismissive. There are many examples of how attentive he is,
and he is well loved by all who know him.
3. He is a decision maker. A famous quote of his is ―I don‘t believe in making the right
decisions. I take decisions and then make them right.‖
4. He inspires people. Tata does well because its employees and management adhere to
its values. Ratan Tata has made sure that the huge conglomerate sticks to the Tata values. The
mission of the company is ―to improve the lives of the communities we serve globally.‖

5. He is a risk taker. He has made big moves like launching the Tata Nano, and
acquiring the second largest steel-maker in Europe.

―A life without excitement, ups and downs is too much boring and dull. You need to be a
storyteller to your grandchildren, why don‘t prepare for that from now? We get this life only
once, experience every aspect of it. No one ever have grown without falling once, fail as
many times as you can, then only you can succeed. So quit complaining and start exploring,‖
he has said.

CYRUS PALLONJI MISTRY (2012 – 2016)

Cyrus Pallonji Mistry (born 4 July 1968) is an Irish

businessman of Indian origin who was the chairman of Tata Group, an
Indian business conglomerate, between 2012 and 2016. He was the sixth chairman of the
group, and only the second (after Nowroji Saklatwala) to not bear the surname Tata.

In mid-2012, he was chosen by a selection panel to head the Tata Group and took
charge in December the same year. On 24 October 2016, the board of Tata Group's holding
company, Tata Sons, voted to remove Mistry from the post of chairman; former chairman
Ratan Tata then returned as interim chairman, and Natarajan Chandrasekaran was named as the
new chair a few months later. He owns an 18.4% stake in Tata Sons, through his firm, Cyrus
Investments Pvt. Ltd. In 2018, his net worth was approximately $10 billion. He was a
member of the National Integration Council.

Cyrus Mistry resigned from Shapoorji Pallonji & Co. upon being made deputy
chairman of the Tata Group. Soon after, his father passed control of the entire Shapoorji
Pallonji Group to Shapiro Mistry. Cyrus Mistry‘s appointment came after a period of great
expansion for the
Tata Group, which comprised more than 100 companies, including Britain‘s Jaguar Land
Rover car manufacturer and the Corus Group, a major European steel producer. His
responsibilities included streamlining the group‘s structure, consolidating related businesses,
and opening up management to skilled individuals who might not be connected to the Tata or
Mistry families. In 2012 he officially succeeded Ratan Tata as chairman of the Tata Group.
Mistry‘s tenure as chairman lasted until October 2016 .

The board of Tata Sons replaced chairman Cyrus Mistry and brought back Ratan Tata
as interim chairman for four months. In a letter to employees of the group, Ratan Tata said the
board had requested him to perform the role of chairman and he had agreed to do so ―in the
interest of stability of and reassurance to the Tata group‖.

Ratan Tata had been Tata Sons chairman from 1991 until his retirement on December
28, 2012. Cyrus Mistry had succeeded Tata to be the sixth chairman of the Tata group. While
Mistry will remain an independent director on the board of Tata Sons – a position he held
before he became chairman – he will quit as chairman of all group companies.

In the extraordinary general meeting (EGM) held on February 6, 2017 at Bombay House in
Mumbai, the 11-member board of Tata Sons Limited passed with requisite majority the
resolution to oust Cyrus P. Mistry as Director in Tata Sons. This was the final separation of
any official connection between Cyrus Mistry and Tata Group companies.

STRATEGY

• With overseas business making up 70% of Tata group‘s revenue, chairman Cyrus
Mistry remains optimistic about acquisitions—both within and outside India—as
also growth through the organic route.

• Mistry wants his companies to have speed and agility to adapt to ―turbulent
times". Each of the group companies is charting its own strategy and growth story,
with a focus on sustainable and profitable growth, he asserted.

• ―We continue to remain open to growth opportunities in India and overseas,

through the organic route and acquisitions," he said. The group invested 4,15,000
 core ($79 billion) in cape over the last decade. Of this, 1,70,000 core ($28 billion)
was invested in the last three years alone.

• In an interview to the in-house magazine, Mistry, who took over the reins in late
2012 from the legendary Ratan Tata, also spoke about coming to grips with
responsibility of chairmanship, multiple challenges facing Tata companies,
essentials of technology, innovation and customer centricity, and continuing
Tatas‘ commitment to societal causes.

WHY CYRUS MISTRY WAS REMOVED

MEDIA-SHY

While Mistry himself is media-shy and has never given an interview, his strategy and
management style have become apparent through discussions with a dozen Tata executives,
fund managers, analysts and others who have dealings with the group, most of whom asked
not to be identified so that they could speak freely. He declined to be interviewed for this
article.

VISION 2025

Mistry‘s plan for that is called Vision 2025. It means propelling Tata companies into
the top 25 globally by market value within 10 years and making their products and services
available to a quarter of the world‘s population. Last year, he earmarked $35 billion to carry
this out, in part by growing the businesses that do financial services and technology, make
military drones, helicopters and missiles, and which target consumers. Those include units
that run clothing shops, operate supermarkets in a tie-up with Britain‘s Tesco Plc, and
brought Starbucks stores to India.
NATARAJAN CHANDRASEKARAN

Mr. Natarajan Chandrasekaran was the Chief Executive Officer and Managing
Director of Tata Consultancy Services (TCS), a leading global IT solution and consulting
firm, a position he has held since 2009. A Tata lifer, he had joined the company in 1987.
He was

appointed as a Director on the board of Tata Sons on October 25, 2016.

Natarajan Chandrasekaran is Chairman of the board of Tata Sons, the holding

company and promoter of more than 100 Tata operating companies with aggregate annual
revenues of more than US $100 billion. He joined the board of Tata Sons in October 2016
and was appointed Chairman in January 2017.

He is also Chairman of Tata motors and Tata global beverages(TGB). He is the first
non-Parsi and professional executive to head the Tata Group. Chandrasekar also chairs the
boards of several group operating companies, including Tata Steel, Tata Power, Indian Hotels
Company — of which he was chief executive from 2009-17.

His appointment as Chairman followed a 30-year business career at TCS, which he

joined from university. Chandrasekar rose through the ranks at TCS to become CEO and
managing director of the leading global IT solutions and consulting firm. Under his
leadership, TCS generated total revenues of US $16.5 billion in 2015-16 and consolidated its
position as the largest private sector employer in India and the country‘s most valuable
company.

TCS has also been placed among the ‗big 4‘ most valuable IT services brands
worldwide, ranked as one of the World‘s Most Innovative Companies by Forbes and
recognized as a Global Top Employer by the Top Employers Institute across 24 countries.
Chandrasekhar embedded a culture of customer-focus and innovation at TCS.

In addition to his professional career at Tata, Chandrasekhar was also appointed as a

director on the board of India‘s central bank, the Reserve Bank of India, in 2016. He has been
appointed on the International Advisory Council of Singapore‘s Economic Development
Board in 2018.

He is the Chairman of Indian Institute of Management Lucknow as well as the

President of the court at Indian Institute of Science Bengaluru. Chandrasekhar is an active
member of India‘s bilateral business forums including USA, UK, Australia and Japan.

HIS BUSINESS LEADERSHIP HAS BEEN RECOGNISED BY SEVERAL

CORPORATE AND COMMUNITY ORGANISATIONS, AND HE HAS RECEIVED
NUMEROUS AWARDS, INCLUDING

• ―Business Leader award‖ at the ET Awards for Corporate Excellence 2016.

• Qimpro Platinum Standard Award 2015 (Business) and Business Today‘s Best CEO
2015 (IT & ITEs).

• He was voted the ‗Best CEO‘ for the fifth consecutive year by the Institutional
Investor‘s 2015 Annual All-Asia Executive Team rankings.

• During 2014 was voted as one of CNBC TV 18 - ‗Indian Business Icons'. He was
also awarded CNN-IBN Indian of the Year 2014 in business category.

• ―Best CEO for 2014‖ by Business Today for the second consecutive year.
• He has also received the Medal of the City of Amsterdam - Frans Banninck Coqc - in
recognition of his endeavor to promote trade and economic relations between
Amsterdam and India.

PERFORMANCE OF CHANDRASEKARAN

• Tata Sons, the holding company of the Tata group, has reported flat financial
performance under Chairman N Chandrasekaran‘s first year in office.

• According to sources, its net profit was up 4.3 per cent to Rs 8.73 billion in the
financial year ending March 2018, on the back of 6 percent rise in revenues at Rs

81.56 billion in the same period.

 • The company plans to raise an additional Rs 100 billion in fiscal 2019 by
participating in the buyback of shares of Tata Consultancy Services
(TCS) apart from raising more debt from banks and tapping international
markets, according to a source close to the development.

AFTER EMERGING OF CHANDRASEKARAN

Chandrasekar, who took over in February 2017 as chairman, has charted an ambitious
plan to bring Tata sons back on tracks. The company‘s infrastructure arm has won crucial
section of Navi Mumbai to Sewri trans-harbour sea link project, along with Larsen & Toubro,
and would require funding for the project.

Earlier this year, Tata Sons sold TCS shares valued at almost Rs 90 billion (1.63 per cent
stake). Besides, during 2017-18, the holding company received Rs 102.78 billion from
buyback of shares announced by TCS.

Tata Sons also repaid Rs 170 billion of Tata Teleservices‘ loans in fiscal 2018 to a
consortium of bankers in January. Tata Teleservices still has to repay the remaining Rs 60
billion before concluding the deal with Bharti.

The next couple of years are crucial for the holding company as it plans to raise $1.5
billion overseas loan for the first time since 2007.

AWARDS OF TATA POWER

PRESENT SITUATION OF TATA & SONS

• 2018 was a difficult year for tata sons. It not only helped its telecom arm to repay
bank debt and pay Docomo to buyback shares in Tata tele services but also raised
stake in key listed companies.

• According to bankers, in the coming months, the firm plans to invest in key group
companies, including in infrastructure, defence, aerospace /airlines, and retail and
would raise debt from banks and international markets to fund these projects.

• As on July 31, Tata Sons‘ standalone cash and cash equivalents were about Rs
55.87 billion, which would be used to fund its ambitious growth plans,
bankers said.
 During the year, Tata Sons also made provisions of Rs 119 billion for losses in
Tata Teleservices.

• 9.7 lakh equity shares and 497 redeemable preference shares to shareholders of
Tata Teleservices as part the merger between the two companies.

TATA SONS FIVE YEAR VISION PLAN

• Updates on mergers and acquisitions.

• Progress on the creation of different business verticals.
• Benefits of the proposal to purchase Bhushan Steel And Power.
• Plan to merge Tata Teleservices with Airtel.
• Tata Sons and Singapore Airlines, to purchase 50 additional planes.
CONCLUSION

Organizational change is a constant challege to the leaders. The ever changing

technologies make yesterdays choices obstacle. The economical, social, and legal factors in
the environment make organization to fo for change.This situations being an effective change
agent necessitating a leader not to copy a single leadership style but to have a combination of
styles and strategies which shall work every time systematically. Tata sons also had their own
vision towards the growth and success path. They have come over so many difficulties and
they have faced many changes in the market and evolution of technology. From the period of
1868 starting a textile industry to now getting engaged into the e-Vehicles sector they‘d
achieved a lot through their strategies and leadership qualities.