INTRODUCTION

OVER VIEW OF INDUSTRY AS A WHOLE

TATAS HERITAGE 1868:The foundation of what would grow to become the Tata Group was laid in 1868 by Jamsetji Nusserwanji Tata then a 29-year-old who had learned the ropes of business while working in his fathers banking firm when he established a trading company in Bombay. A visionary entrepreneur, an avowed nationalist and a committed philanthropist, Jamsetji Tata helped pave the path to industrialization in India by seeding pioneering businesses in sectors such as steel, energy, textiles and hospitality.

1877:-

Empress Mills, a textiles venture set up in Nagpur in central India in 1877, was the first of the big industrial projects undertaken by the Tata Group. Jamsetji Tata was by this time, though, already gripped by what would the three great ideas of his life: setting up an iron and steel company, generating hydroelectric power and creating an institution that would tutor Indians in the sciences. None of these ideas would come to fruition while Jamsetji Tata lived, but they were realized in full measure by those who followed him.

1892:n 1892, Jamsetji Tata established the JN Tata Endowment to encourage Indian scholars to take up higher studies. It was the first of a multitude of philanthropic initiatives by the Tata Group. Over generations, members of the Tata family have bequeathed much of their personal wealth to the many trusts they have created. These trusts today control 65.8 per cent of the shares of Tata Sons, the holding company of the group, and they support an assortment of causes, institutions and individuals.

1903:The most dazzling of the Tata enterprises that came into being during Jamsetji Tatas lifetime was the Taj Mahal Hotel in Bombay, which opened for business in 1903. Legend has it that Jamsetji Tata set his mind on building it after being denied entry into one of the city's fancy hotels for being an Indian. Today, the Taj Group of Hotels is a byword for luxury and quality, with standout properties across the world.

1904:Following Jamsetji Tatas death, in Germany in 1904, the chairmanship of the Tata Group passed to the elder of his two sons, Sir Dorab Tata, who accomplished the daunting task of turning his fathers extraordinary ideas into reality. Sir Dorab was the force behind the setting up, in 1905, of the Tata Iron and Steel Company. Seven years later, India's first iron and steel plant, in Jamshedpur in the eastern part of the country, started production. In 1910, the Tata Group broke new ground once again, this time by generating hydroelectric power from a site near Bombay.

1911:-

In 1911, seven years after his death, Jamsetji Tatas long-cherished dream of establishing an institution where Indians could cultivate their scientific temper was realised. The Indian Institute of Science, set up in Bangalore, would nurture some of the brightest minds in India. It was the first of a clutch of centres of learning and research that would come up with the substantial and steadfast support of the Tata Group.

1912:The Tata Group presently employs about 350,000 people. Taking good care of this large family is a priority for the Group, and it has a tradition to stay true to while doing so. Tata Steel introduced eight-hour working days in 1912, well before it became statutory in much of the West, and the first Tata provident fund scheme was started in 1920 (governmental regulation on this came into force in 1952). The Tata townships, and the facilities they have, are another example of the manner in which the Group extends itself to care for its employees.

1932-1989:Change of guard
By the time of Sir Dorab Tatas death in 1932, the Tata Group had consolidated in businesses while also getting in new areas, notably insurance and the production of soaps, detergents and cooking oil. Sir Dorab was succeeded as chairman of the Group by Sir Nowroji Saklatwala. In 1938, following Sir Nowrojis demise, 34-year-old JRD Tata (left) was appointed as the new chairman. He would lead the Tata Group for the next 53 years with wisdom, foresight and a rare grace that touched everyone he met.

JRDs passion
The first of JRD Tatas big moves in business was born of a childhood fascination for flying. In 1929, he became one of the first Indians to be granted a commercial pilot's licence. In 1932, Tata Aviation Service, the forerunner to Tata Airlines and Air India, Indias national carrier, took to the skies. The maiden flight in the history of Indian aviation took off from Drigh Road in Karachi, now in Pakistan, with JRD Tata at the controls of a Puss Moth. In 1953, the Indian government nationalised Air India.

New beginnings

During the more than five decades that JRD Tata was at the helm, the Tata Group expanded regularly into new spheres of business. The more prominent of these ventures were Tata Chemicals (1939), Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). The post-independence era in India, right up to the early 1990s, was a time of tight government controls on business, but despite this the Tata Group managed to grow considerably.

The legacy continues

The beginning of the 1990s ushered in plenty of change in Indian business. Economic reforms opened up many sectors, signalling increased competition and the arrival of foreign companies. JRD Tatas death, in 1993, symbolised the end of an era in more ways than one. Ratan Tata, who took over as chairman, would guide the Tata Group as it faced a host of challenges in a fast-changing business environment where old rules did not apply and new realities were taking hold.

New horizons
The Tata Group has, over the past decade-and-a-half, changed more than ever before in its long and illustrious history. Rejuvenating existing businesses, entering new ones, manufacturing breakthrough products and expanding into foreign markets are among the initiatives the Group has undertaken with vigour during this period. In 1996, Tata Teleservices was set up to tap into Indias burgeoning telecom market; in 1998, the Indica, Indias first indigenously made car, was successfully launched; in 2002, the Group acquired VSNL, Indias top

United whole
The Tata Group is now more cohesive and united than it has ever been. This is no accident; rather, it is the outcome of a set of policies that have been emphasised and reinforced by chairman Ratan Tata and the Group Corporate Centre, the top decision-making body in the Group. Theres more to the new-world Tata. The pursuit of business excellence has become the norm and there is a focus on innovation. What have not changed are the Groups emphasis on ethical business practices and its commitment to the communities in which it operates.

Global goals

The new millennium has seen Tata companies looking beyond Indian shores for growth opportunities and a global footprint. Acquisitions of foreign enterprises have been one way of doing this. The first big acquisition was by Tata Tea of Tetley back in 2000. In 2004, Tata Motors acquired the heavy vehicles unit of Daewoo Motors, South Korea; in 2005, Tata Steel acquired the Singapore-based NatSteel and Tata Chemicals secured a controlling stake in Brunner Mond Group, UK. The grandest of them all came in 2007, when Tata Steel

Future sense
The future promises plenty for the Tata Group as it sets the agenda for the next phase of its evolution. The words of Group chairman Ratan Tata sum it up best: One hundred years from now, I expect the Tatas to be much bigger, of course, 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 system and ethics. Having said that, I hope that a hundred years from now we will spread our wings far beyond India, that we become a global Group, operating in many countries, an Indian business conglomerate that is at home in the world, carrying the same sense of trust that we

PROFILE OF THE ORGANISATION

Leadership with trust

Tata companies operate in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. They are, by and large, based in India and have significant international operations. The total revenue of Tata companies, taken together, was $70.8 billion (around Rs325,334 crore) in 2008-09, with 64.8 per cent of this coming from business outside India, and they employ around 363,039 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics.

Every Tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. There are 28 publicly listed Tata enterprises and they have a combined market capitalisation of some $60 billion, and a shareholder base of 3.5 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the worlds second largest manufacturer of soda ash and Tata Communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $9.92 billion and ranked it 51st among the world's Top 100 brands. BusinessWeek magazine ranked Tata 13th among the '25 Most Innovative Companies' list and the Reputation Institute, USA, recently rated it 11th on its list of world's most reputable companies. Founded by Jamsetji Tata in 1868, Tatas early years were inspired by the spirit of nationalism. It pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, its pioneering spirit has been showcased by companies such as TCS, Indias first software company, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano. Tata companies have always believed in returning wealth to the society they serve. Two-thirds of the equity of Tata Sons, the Tata promoter company, is held by philanthropic trusts that have created national institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to non-government organisations working in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined developmentrelated expenditure of the trusts and the companies amounts to around 4 per cent of the net profits of all the Tata companies taken together. Going forward, Tata is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 was ranked the worlds fourth fastest. Anchored in India

and wedded to traditional values and strong ethics, Tata companies are building multinational businesses that will achieve growth through excellence and innovation, while balancing the interests of shareholders, employees and civil society.

INTRODUCTION OF TATA MOTORS

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 24,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired

offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. . It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is

focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.