Jamshedji Tata Pioneer of Indian Start-up
How did Jamshedji Tata make multinational giant that it is today and just how big it is?
Jamshedji Tata Family Background
- As far as modern day’s companies are concerned TATA is very old company older than automobile powered flight and household electricity.
- The company was founded way back in 1868 by Jamshedji Nuseerwanji Tata .
- In retrospect after Tata’s success some have held Jamshedji Tata as one of the founders of modern India.
- He was born in 1839 Jamshedji Tata’s first professional role was working in his father’s banking firm outside of Mumbai India.
- There was some key events in Jamshedji Tata’s life that would shape the history of India and eventually help shape global business landscape.
- It would be travel that opened his eyes Jamshedji Tata travelled to England America and Europe for business.
- And through his opportunistic mind he saw that Indian companies could make large impact in textile industry which was dominated by British at that time.
Jamshedji Tata Humble Beginning
- In 1868 after learning from his time working in his father’s banking firm a 29 year old Jamshedji Tata bought an old oil Mill and convert it into a cotton mill.
- This seemingly insignificant event.
- It was the very beginning of multinational giant.
- Jamshedji Tata always had inclination to care greatly for people of India and had an interest in giving back.
- This is outlined by Jamshedji Tata’s The Four Dream Goals.
- During his life Tata strive for four simple goals within his heart.
- They were to create an iron and steel company ,a world class education institution,a hotel and hydroelectric plant.
- It would only be the hotel was to become reality during Jamshedji Tata’s life.
- It was completed one year before Jamshedji Tata’s death in 1903.
Jamshedji Tata Legacy
- In 1907 Tata’s son Dorabji would push to realize his dad’s dream of Tata Steel.
- Asia’s first and India’s largest steel company.
- In 1911 the third dream was completed in the form of Indian institute of science.
- It is preeminent Indian institution for research and education in science and engineering.
- The final piece of Jamshedji Tata‘s original dream was realized in 1915 when Dorab set up Tata hydro electronic power Supply Company.
- Now it’s India’s largest private electric company.
- So to do so many things in so little time my seem like immense innovation for early 20th century.
- But there’s bigger picture to this Tata as company was thinking differently even when compared to global practice at that time.
- To give you idea how forward thinking Tata was for the time they started the eight hour work day in 1912 .
- And they were the first companies in the world to implement which is now a standard practise.
- In 1917 the company introduce medical benefits for employees a very advanced concept for the time.
- Since Jamshedji Tata founded company in 1868 the rains have been handed down to multiple generations.
Jamshedji Tata’s TATA is Multinational brand Now
- The company’s DNA would ensure success in the future .
- Today Tata operates over 100 companies in more than 100 countries and exports to 150 countries.
- How big is TATA exactly and what they do ?
- In 2014 the company made 103.27 billion dollars revenue in which 67% came from business outside India.
- The TATA group companies employ more than 581000 employees’ people worldwide.
- Thats more than Samsung group .
- Tata is ranked 34th among top 500 most valuable global brands according to brand finances global 500 report.
What do Jamshedji Tata’s TATA do?
- Let’s take closer look at some of Tata companies .
- Tata Steel ,Tata Motors,Tata Consultancy Services,Tata Chemials,Tata Global Beverages,Tata teleservices,communications and Indian Hotels,Tata ceramics,Tata power,Tata starbucks,Tata Industry,Tata Sky,Landmark Book Stores and the list goes on.
- Tata actually owns South Korean car company manufacturer Daewo but that isn’t all Tata has actually formed a habit of buying up British companies.
- It’s rather ironic if you know the 19th and 20th century relations between India and Britain.
- In 2000 they bought up British company Tetley Tea for 407 million dollars .
- And then next was Jaguar and Land Rover in 2008 after the GFC for the 2.3 billion dollars.
Jamshedji Tata’s Real Legacy by Ratan TATA a Short Story
- It’s quiet an interesting story in 1999 Ratan Tata and his team were humiliated.
- When they went to sell Tata Motor division to Ford .
- Due to a poor response after launch of hatchback which happned to Tata’s first passenger car .
- The American Ford officials showed interest and taking over company but did say in harsh manner.
- They told Tata you did know anything why did you start passenger car?
- They said they will favour Tata by buying the car division but as it turn out the deal didn’t end up going through between Tata and Ford.
- At that time Ford Jaguar and land rover coudn’t really work out how to get the cars to sell .
- By 2008 things got so bad that Ford had to sell Jaguar and Land Rover to the company which they found few years ago useless.
- And today Tata had turned Jaguar and Land Rover around and sales are doing well in US .
Jamshedji Tata’s International Achievements
- In terms of size Tata my sound like a few other multinational companies but surprising difference here is that Tata is actually very successful in many of their fields.
- For instance Tata communications is world’s largest wholesale voice carrier.
- And Tata Motors is among the top five commercial vehicle manufacturers in the world.
- Their steel division Tata steel is among top ten best steel Makers .
- Communication service is among top ten global IT service companies.
- The global beverages division is second largest tea company in the world.
- And their chemical division world’s second largest manufacturer soda ash which is used for manufacturing of glass.
Jamshedji Tata’s Philanthropic Legacy
- Another aspect which makes Tata different and we need to appreciate them is as company their nature.
- Tata carries on its founders caring attitude and as result they have a sort of self imposed moral obligation.
- What do I mean by this?
- The company actually made it habit to return some of its wealth to society mainly through providing investments back into local economy.
- This is not only for India but for many countries over globe.
- Tatas are also very active in philanthropy through its trusts.
- The company gives back in areas of medical research technology science and education social welfare and healthcare.
- One example is Tata Swatch a compact inhome water purification device that costs less than 21 US dollars.
- The idea of Tata Swatch came from 2004 tsunami which left thousands of people without clean drinking water.
- The device has filters that last about one year for family of five.
- The advantage if this device is that it doesn’t require any electricity and very low costs.
- Due to these philanthropic activities in 2009 Tata group was ranked number 11 in worlds top 100 reputable companies by Forbes magazine.
- One man Jamshedji Tata that could leave legacy that lasted over century. Jamshedji Tata founded city in India that has now 1.3 million people i.e Jamshedpur.