Organizational

Structure of TATA
Groups

Boggarapu Nikhil 9/15/14 Managing Organisations






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Organizational Structure of TATA Groups

Profile of TATA (Leadership with trust)
The Tata groups core purpose is to improve the quality of life of the communities it
serves globally, through long-term stakeholder value creation based on leadership with trust.
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise headquartered in
India, and comprises over 100 operating companies, with operations in more than 100 countries
across six continents, exporting products and services to over 150 countries. The revenue of Tata
companies, taken together, was $103.27 billion (around Rs.624, 757/- crore) in 2013-14, with
67.2 percent of this coming from businesses outside India. Tata companies employ over 581,470
people worldwide.
Good corporate citizenship is part of the Tata groups DNA. Sixty six percent of the
equity of Tata Sons, the promoter holding company, is held by philanthropic trusts, thereby
returning wealth to society. As a result of this unique ownership structure and ethos of serving
the community, the Tata name has been respected for more than 140 years and is trusted for its
adherence to strong values and business ethics.
u Each Tata company or enterprise operates independently and has its own board of
directors and shareholders, to whom it is answerable. There are 32 publicly-listed Tata
enterprises and they have a combined market capitalization of about $140.98 billion (as on
September 11, 2014), and a shareholder base of 3.9 million. Tata companies with significant


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Organizational Structure of TATA Groups

scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals,
Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.
Many Tata companies have achieved global leadership in their businesses. For instance,
Tata Communications is the worlds largest wholesale voice carrier and Tata Motors is among
the top five commercial vehicle manufacturers in the world. Tata Steel is among the top 10 best
steelmakers and TCS is amongst the top 10 global IT services companies. Tata Global Beverages
is the second-largest player in tea in the world and Tata Chemicals is the worlds second-largest
manufacturer of soda ash. Employing a diverse workforce in their operations, Tata companies
have made significant local investments in different geographies.
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, valued the
Tata brand at $21.1 billion and ranked it 34th among the top 500 most valuable global brands in
their Brand Finance Global 500 2014 report.
With its pioneering and entrepreneurial spirit, the Tata group has spawned several
industries of national importance in India: steel, hydro-power, hospitality and airlines. The same
spirit, coupled with innovativeness, has been displayed by entities such as TCS, Indias first
software company, and Tata Motors, which made Indias first indigenously developed car, the
Tata Indica and the smart city car, the Tata Nano. Pursuit of excellence has similarly been
manifested in recent innovations like the Silent Track technology developed by Tata Steel
Europe and the next-generation Terrain Response, including infrared laser scanning to predict
terrain, and Wade Aid to predict water depth, by Jaguar Land Rover.
The Tata trusts, majority shareholders of Tata Sons, have endowed institutions for
science and technology, medical research, social studies and the performing arts. The trusts also
provide aid and assistance to non-government organizations working in the areas of education,
health care and livelihoods. Tata companies themselves undertake a wide range of social welfare
activities, especially at the locations of their operations, as also deploy sustainable business
practices.


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Organizational Structure of TATA Groups

Going forward, Tata companies are building multinational businesses that seek to
differentiate themselves through customer-centricity, innovation, entrepreneurship,
trustworthiness and values-driven business operations, while balancing the interests of diverse
stakeholders including shareholders, employees and civil society.
Values and purpose
Purpose
At the Tata group we are committed to improving the quality of life of the communities
we serve. We do this by striving for leadership and global competitiveness in the business sectors
in which we operate.
Our practice of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. We are committed to protecting this heritage of
leadership with trust through the manner in which we conduct our business.

Core values
Tata has always been values-driven. These values continue to direct the growth and
business of Tata companies. The five core Tata values underpinning the way we do business are:


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Organizational Structure of TATA Groups

Integrity: We must conduct our business fairly, with honesty and
transparency. Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity
for our colleagues and customers around the world, and always work for the benefit of the
communities we serve.
Excellence: We must constantly strive to achieve the highest possible
standards in our day-to-day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the group and
with our customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the
countries, communities and environments in which we work, always ensuring that what
comes from the people goes back to the people many times over.



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Organizational Structure of TATA Groups

Cyrus P Mistry
Cyrus P Mistry, 45, is the sixth Group Chairman. He
was appointed as the Chairman of the Tata Sons board in
December 2012. He has been a director of the company since
2006.In addition to being Group Chairman, Mr. Mistry is also
the chairman of leading Tata group companies including Tata
Steel, Tata Motors Jaguar Land Rover, Tata Consultancy
Services, Tata Power Company, The Indian Hotels Company,
Tata Global Beverages, Tata Chemicals, Tata Industries and Tata Teleservices.
Mr Mistry was earlier the managing director of the Shapoorji Pallonji Group. Under his
leadership, Shapoorji Pallonjis construction business grew into a billion dollar enterprise,
evolving from pure-play construction to execution of complex projects, across a number of
international geographies. Mr Mistry graduated with a degree in civil engineering from Imperial
College London, UK, in 1990. In 1997, he received an MSc in management from the London
Business School. He is a recipient of the Alumni Achievement Award from the London
Business School. Mr Mistry is a fellow of the Institution of Civil Engineers, London. He is also a
member of the Presidential CEO Advisory Board of the Massachusetts Institute of Technology.
Hierarchy of TATA Groups




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Organizational Structure of TATA Groups

Tata Leadership Team





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Organizational Structure of TATA Groups

Business sectors
Tata companies operate across seven
business sectors. This section details the
companies and the business sectors they belong to,
the products and services they offer, an overall
roster of all Tata companies, and the mergers and
acquisitions that Tata enterprises have been
involved in since 2000 This subsection details the
Tata group's operations according to the business
sectors that its companies function in



Mergers and Acquisition
Given below is a list of the various companies that have been merged with or have been
acquired by Tata companies-Company wise listing



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Organizational Structure of TATA Groups



Tata group sector-wise operations


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Organizational Structure of TATA Groups

The chart below states how Tata companies in each of these sectors contribute, in
percentage terms, to the overall financial makeup of the group. The table that follows shows the
group's sector-wise financial performance



Tata group figures (Rs crore)
Year Total turnover Sales turnover Value of assets Gross block Exports
2013-14 624,757 617,212 703,734 550,105 76,286
2012-13 527,047 520,469 583,554 435,646 57,292
2011-12 475,721 471,045 515,933 396,218 46,555
2010-11 379,675 374,687 313,960 334,338 37,852
2009-10 319,534 311,129 250,179 292,248 31,721
2008-09 325,334 321,849 237,247 261,276 33,987

Tata Council for Community Initiatives


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Organizational Structure of TATA Groups

The Tata Council for Community Initiatives (TCCI) is a unique initiative that lends
structure to the Tata group's approach of sustainable development while driving its community
engagement and improvement programs TCCI is also involved in assisting Tata companies
address sustainability reporting as per guidelines set by the Global Reporting Initiative. It is the
focal point for the UN Global Compact in India, which has 42 Tata companies as signatories, the
highest in the world from a single business group.
In collaboration with the United Nations Development Program (India), TCCI has crafted
the Tata Index for Sustainable Human Development, a pioneering effort aimed at directing,
measuring and enhancing the community work that Tata enterprises undertake. The Index
provides guidelines for Tata companies looking to fulfil their social responsibilities.




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Organizational Structure of TATA Groups

Company initiatives
The time was the early 1990s and the occasion was a gathering of industrialists called by
Indias prime minister, PV Narasimha Rao. Representing the Tata group were former Chairman
of Tata Sons Ratan Tata and JJ Irani, former managing director of Tata Steel. The prime
minister proposed that we business people set aside 1 per cent of our net profit for community
development projects totally unconnected to the workers and industry any of us was involved
with, recalls Mr Irani. Mr Tata and I looked at each other; we didn't make any comment. Later,
we drew up a chart that quantified Tata Steels contribution on Mr Raos scale. We discovered
that, over a 10-year period, the company had been dedicating between 3 and 20 per cent of its
profits to social development causes. In the years since, depending on profit margins, the figure
has continued to vacillate within this band.
The Tata Steel example is not an anomaly for a Tata company. If there is one attribute
common to every Tata enterprise, it has to be the time, effort and resources each of them devotes
to the wide spectrum of initiatives that come under the canopy of community development. The
money numbers are staggering: by a rough estimate, the Tata group as a whole, through its trusts
and its companies, spent about 3 percent of its net profits on development-related programs, in
2011.