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AN ENTERPRENEUR–

RATAN TATA

Project Group Members :

Nehal Suratwala……… (51)

Vishal Katkam……….. (52)

Kanchan Prajapati…… (53)

Anand Singh…………... (54)

Bharat Chelladurai …… (55)

RATAN NAVAL

TATA : a business legend

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INTRODUCTIONRatan Naval Tata was born December 28, 1937, in Mumbai (Bombay), Bombay Presidency of India is the present Chairman of Tata Sons and therefore, Tata Group, India's largest company founded by Jamsedji Tata and consolidated and expanded by later generations of his family. He was born to Soonoo and Naval Hormusji Tata. Ratan is the great grandson of Tata group founder Jamsetji Tata. Ratan's childhood was troubled, his parents separating in the mid-1940s, when he was about seven and his younger brother Jimmy was five. His mother moved out and both Ratan and his brother were raised by their grandmother Lady Navajbai. He is also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and Tata Teleservices.

A BUSINESS LEGEND Ratan Tata is the chairman of the Tata Group, India’s largest corporation. He is the latest in a long line of Tatas to head the family owned company. Born into an old Parsi family of Bombay on 28th December, 1937. He received a Bachelor’s degree in Architecture from America’s Cornell University in

1962. He returned to India and joined the Tata Group. Tata is single and leads a modest lifestyle in his bachelor apartment. The US educated bachelor lives alone with his two German shepherds in an

apartment in Mumbai. He is known to be a supporter of the traditional Parsi way of life.

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He has a passion for home cooked food and is known to indulge reply in art collection.

A trained pilot who still takes to the skies on his own aircraft has picked a number of awards.

He is known to slip into the front seat alongside his driver to and from work.

At the helm of Tata Group since the retirement of JRD Tata in 1991, Mr. Ratan Naval Tata, the son of Naval H. Tata, has made the Tata Group a global player. The January 10, 2005 issue of Forbes Asia, named Ratan Tata as Asia's Businessman of the Year. Under Mr. Ratan Tata's guidance, the Tata Group has grown rapidly and made forays into new industries and areas of business. Mr. Ratan N. Tata is the Chairman of Tata Sons Limited, the holding company of the Tata Group, and the Chairman of major Tata operating companies. In addition, Mr. Tata serves on the central board of the Reserve Bank of India and is on the Prime Minister's Council on Trade and Industry.

The Recognition Honoured with Padma Bhushan he is a member on Prime Ministers Council on Trade and Industry. Ratan Tata was also honoured by Cornell University as the 26th Robert S. Hatfield Fellow in Economic Education, considered to be the highest honour by the Cornell University. He is also a member of the board of trustees of the RAND Corporation. He is board member on the Republic of South Africa's International Investment Council and is a Asia-Pacific advisory committee member for the New York Stock Exchange.

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RATAN TATA’S BACKGROUND Born December 28, 1937 (age 71)

Mumbai, India

Residence Mumbai, India

Nationality India

Ethnicity Parsi

Citizenship India

Alma mater Cornell University

Occupation Chairman of Tata Group

Home town Mumbai, India

Religious beliefs Zoroastrianism

Spouse(s) Never married

Children None

EARLY CAREERRatan Tata completed a BS degree in architecture with structural engineering from Cornell University in 1962, and the Advanced Management Program from Harvard Business School in 1975. He joined the Tata Group in December 1962, after turning down a job with IBM on

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the advice of JRD Tata. He was first sent to Jamshedpur to work at Tata Steel. He worked on the floor along with other blue-collar employees, shoveling limestone and handling the blast furnaces. Ratan Tata, a shy man, rarely features in the society glossies, has lived for years in a book-crammed, dog-filled bachelor flat in Mumbai's Colaba district. WEALTHRatan Tata has his own capital in Tata Sons., the holding company of the group. His share is around 1%, valuing his personal holding at approximately US$ 1 Billion. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest two of these trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, which were created by the families of the sons of Jamshedji Tata. Ratan Tata is on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board of trustees of the Sir Dorabji Tata Trust, giving him significant influence on the board of Tata Sons, despite his minority personal shareholding.CAREERIn 1971, Ratan was appointed the Director-in-Charge of The National Radio & Electronics Company Limited (Nelco), a company that was in dire financial difficulty. Ratan suggested that the company invest in developing high-technology products, rather than in consumer electronics. J.R.D. was reluctant due to the historical financial performance of Nelco which had never even paid regular dividends. Further, Nelco had 2% market share in the consumer electronics market and a loss margin of 40% of sales when Ratan took over. Nonetheless, J. R. D. followed Ratan's suggestions.

From 1972 to 1975, Nelco eventually grew to have a market share of 20%, and recovered its losses. In 1975 however, India's Prime Minister Indira Gandhi declared a state of emergency, which led to an economic recession. This was followed by union problems in 1977, so even after demand improved, production did not keep up. Finally, the Tatas confronted the unions and, following a strike, a lockout was imposed for seven months. Ratan continued to believe in the fundamental soundness of Nelco, but the venture did not survive

PERSONAL LIFE

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Mr. Ratan Tata has a metallic blue Maserati and Ferrari California. He sometimes likes to pilot his private Falcon Jet himself. He has never been married. He is a dynamic and vibrant businessman and is considered as one of the best managers never compromising on ethics and customer care.

He likes to wear Hermès ties and matching handkerchiefs. His share in the whole group is 1%, or a little less, valuing his personal holding at approximately US $1 Billion, if encashed. 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the original Jameshedji family and the largest share is with Shapoorji Pallonji Mistry (18.5%). The biggest two of the owning trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust (different Ratan Tata), which were created by the families of the sons of Jamshedji Tata. Ratan Tata is on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board of trustees of the Sir Dorabji Tata Trust. Ratan Tata is also best known as the face behind changing India's automotive industry into global climate change era.

RATAN TATA’S QUOTES.“A Company or business that remains static is a business that will die. A company that constantly changes and accepts that there are better way to do things than the ways to do things than the way they are done today, is a company that will survive in the global market that we face.”

HISTORY

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In 1981, Ratan was named director of Tata Industries, the Group's other holding company, where he became responsible for transforming it into the Group's strategy think-tank and a promoter of new ventures in high-technology businesses. In 1991, he took over as group chairman from J.R.D. Tata, pushing out the old guard and ushering in younger managers. Since then, he has been instrumental in reshaping the fortunes of the Tata Group, which today has the largest market capitalization of any business house on the Indian Stock Market. Under Ratan's guidance, Tata Consultancy Services went public and Tata Motors was listed on the New York Stock Exchange. In 1998, Tata Motors introduced his brainchild, the Tata Indica.

On January 31, 2007, under the chairmanship of Ratan Tata, Tata Sons successfully acquired Corus Group, an Anglo-Dutch steel and aluminium producer. With the acquisition, Ratan Tata became a celebrated personality in Indian corporate business culture. The merger created the fifth largest steel producing entity in the world.

On March 26, 2008, Tata Motors, under Ratan Tata, bought Jaguar & Land Rover from Ford Motor Company. The two iconic British brands, Jaguar and Land Rover, were acquired for £1.15 billion ($2.3 billion).

RATAN TATA’S SHARE:

Mr Ratan Tata share in the whole group is 1%, or a little less, valuing his personal holding at approximately US $1 Billion, if encashed. 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the original Jameshedji family and the largest share is with Shapoorji Pallonji Mistry (18.5%). The biggest two of the owning trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust (different Ratan Tata), which were created by the families of the sons of Jamshedji Tata. Ratan Tata is on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board of trustees of the Sir Dorabji Tata Trust. Ratan Tata is also best known as the face behind changing India's automotive industry into global climate change era.

Social and environmental record

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The TATA Group is widely believed to make the largest contribution to charity of any corporation in India. However, during his tenure as Chairman of the Tata Group, Ratan Tata has come in for criticism from human rights and environmental activists for the TATA Group’s record in this sector and the apparent reluctance to address these issues at the Group level.

Dow Chemicals, Bhopal Gas Disaster:In November 2006, survivors of the Bhopal gas disaster were outraged by Ratan Tata’s offer to bail out Union Carbide 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.

Singur displacement: The Singur controversy in West Bengal led to further questions over TATA’s social record, with protests by local villagers and some political parties over forcible eviction and inadequate compensation to those being displaced for the TATA Nano plant. As the protests gathered steam, and despite having the support of the ruling CPI government, TATA eventually pulled the project out of the state 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’s subsequent embrace of and praise for Narendra Modi, Chief Minister of Gujarat, also earned him brickbats on account of Modi’s openly communal stance and his performance as Chief Minister during the 2002 pogrom that saw hundreds of Muslims killed in riots within the state

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Tata GroupTATA COMPANIES

The Tata Groupcomprises 91 operating companies in seven sectors in addition to six international operations:

MATERIALSMetalsTata Steel

TATA INC.CompositesTata Advanced Materials

ENGINEERINGAutomotiveTata MotorsTata Construction Equipment CompanyTata AutoComp Systems

Engineering Products & ServicesVoltasTata Projects

CHEMICALSTata ChemicalsRallis India

ENERGYTata PowerTata BP Solar India

CONSUMER PRODUCTSTata TeaTitan IndustriesTata McGraw HillTrent

INFORMATION SYSTEMS &COMMUNICATIONSInformation Systems

o Tata Consultancy Serviceso Tata Infotecho Tata Technologieso Tata Elxsio Tata Interactive Systemso Nelito Systems

Communicationso Tata Teleserviceso VSNL

Industrial Automationo Nelco

SERVICESHotels, Property Development

o Taj Hotels Resorts and Palaceso International Technology Park

Financial Serviceso Tata AIG Life Insurance Companyo Tata AIG General Insurance Companyo Tata Asset Managemento Tata Financeo Tata Investment Corporationo Tata Share Registry

Other Serviceso Tata Services

INTERNATIONAL OPERATIONS

o Tata International

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Ratan Tata : India's Industrial Architect

Ratan Naval Tata, the Chairman of the Tata Group, one of the largest group of industries ; something he inherits from his earlier generation. Brought up by his grandmother due to separation of his parents, Ratan Tata did his schooling from Cathedral and John Cannon School in Mumbai. Later on he got his Architectural and Engineering Degree from Cornell University. From here he joined his family business. After turning down a job offer from IBM, he joined the Jamshedpur Tata Steel plant working with the Blue Collar employees handling blast furnances.

Peek in the PastIn 1971, Ratan Tata joined Nelco and turned it into a profit churning company. Later on when he joined the sick unit of Tatas Empress Mill, he turned it into a dividend declaring company. In 1981 he was declared the Chairman of the Tata Group of Industries. Today the Company has been listed in New York Stock Exchange.

The Story So FarThe young lad who left the IBM job and brewed the corridors of his own company, is today the Chairman of Tata Group of Companies and has his company listed in New York Exchange. His latest expedition is the Tata Elegante the latest Tata four wheeler he presented at the Geneva Car Expo.

Peek in to the Past The Story So Far

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The Tata name evokes many connotations. For Indians, it is pride in Tata’s illustrious history spanning three centuries, starting from its nationalistic roots to the creation of a progressive, 91 company conglomerate, that stands for integrity, excellence and a commitment to serve society.

Tata Indica

For developed nations, Tata represents world-class information technology services and manufacturing excellence. For the steel industry, Tata Steel represents state-of-the-art production with one of the world’s lowest-cost-of-production. In the automotive industry, Tata Motors ranks among the top six manufacturers of medium and heavy commerical vehicles in the world and is India's largest commercial vehicle manufacturer.

Tata Steel

 

Taj Hotel in Mumbai, adjacent to the Gateway of India

The Tata Group is today one of India’s largest conglomerates with revenues of over US $14.25 billion in 2003-04. The Group companies employ over 22,000 people worldwide and exports products and services to 140 countries with operations in over forty.

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The Tata Companies share a set of five core values derived from the Group’s early beliefs – and these are still drive all business decisions: Integrity, Understanding, Excellence, Unity and Responsibility.

 

Company History:Tata Iron & Steel Company Ltd. (TISCO) is the iron and steel production company associated with the Tata group of some 80 different industrial and other business enterprises in India, founded by members of the Tata family. TISCO operates as India's largest integrated steel works in the private sector with a market share of nearly 13 percent and is the second largest steel company in the entire industry. Its products and services include hot and cold rolled coils and sheets, tubes, construction bars, forging quality steel, rods, structural, strips and bearings, steel plant and material handling equipment, ferro alloys and other minerals, software for process controls, and cargo handling services. Through its subsidiaries, TISCO also offers tinplate, wires, rolls, refractories, and project management servicesIndustry Outlook. The fortunes of the domestic steel industry are linked to economic growth and the level of government spending on infrastructure. Steel-makers experienced a tough year in FY2002, with prices falling to historically low levels amid a worldwide demand downturn. Global steel prices, however, have staged a recovery in 2002 led by improving demand, especially in China, and some amount of production cuts globally. Accordingly, domestic prices have also firmed up. While the recent trend towards protectionism is an unwelcome development overall, it has also helped boost prices.

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Growth of the Tata Empire Over the Course of the 20th Century:

The growth of Jamshedpur and the involvement of the firm in every aspect of its industrial and municipal life was the subject of several studies. Jamsetji Tata was both a nationalist and a philanthropist. He showed a paternalistic concern for the well-being of his employees, which set the tone for future company policy. The British proponents, pioneers of social reform Sydney and Beatrice Webb, were invited out to India from England to advise the Tatas on the best form of social, medical, and cooperative services for the newly established Jamshedpur and as a consequence schools, recreational facilities, creches, and other amenities were established on site at an early stage. An eight-hour working day had been introduced in 1912, an officially recognized. Tata Workers' Union established with Gandhi's associate, C.F. Andrews, as its first president, and profit-sharing schemes were brought in 1934. Against this, it was argued that the Workers' Union operated in fact as a management tool to impose its will on a workforce so heterogeneous by nature that rival unions made little headway. Despite the reputation of the Tata family for concern over workers' rights, there was much unrest among the workforce during the 1920s over wages and conditions and it has been claimed that this, as much as anything, contributed to advances. The commitment of the Indian Trades Union Congress after independence to the same goals as central government--economic self-sufficiency and prosperity--allowed the Tatas a relatively free hand indicating their own industrial relations policy. Whatever the arguments, TISCO could claim in 1989 that it had not lost a day's work through industrial action in 50 years, and its management illustrated its commitment to the welfare of its employees by commissioning an audit of its "social performance" by a team of eminent public figures.

Major Achievements Modernized the Tata Group from an engineering-to-services conglomerate into new

areas such as telecom, passenger cars, retail, biotech Turned Tata Steel into the world's lowest-cost steel producer Introduced India's first Indigenous car, the Indica and, now, the Tata-Nano, which

has nearly doubled the value of Tata Motors Led the Tata Group into the global market place with acquisitions of Tetley Tea for

$475m, steel maker Corus for $11.3bn, Jaguar and Land rover for $2.3bn

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Biggest Achievement

Tata Nano car, 2008

Ratan Tata's dream was to manufacture a car costing Rs 100,000. The Tata Nano is an

inexpensive, rear-engined, four-passenger city car built by the Indian company Tata

Motors and is aimed primarily at the Indian domestic market. Nano, the tiny car with the

even tinier price-tag. A triumph of homegrown engineering, the $2,200 (€1,490, £1,186)

Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity.

Tata Motors began selling its "one-lakh car" in March, 2009. The cheapest car in the world today, though the price continues to rise due to increasing material costs, it is an exemplary example of Gandhian engineering, a concept involving deep frugality and a willingness to challenge conventional wisdom.

He realized his dream by launching the car in New Delhi Auto Expo on January 10, 2008. Three models of the Tata Nano were announced, and Ratan Tata delivered on his commitment to developing a car costing only 1 lakh rupees, adding that "a promise is a promise," referring to his earlier promise to deliver this car at the said cost.

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Recently when his plant for Nano production was obstructed by Mamta Banerjee, his decision of going out of West Bengal was warmly welcomed. Banerjee had the support of the people of Singur, where the Nano plant was being constructed, and many social movements. They criticized Ratan Tata for forcing people out of their land in collusion with the Left Front government in the state, headed by Budhadeb Bhattacharjee.

Hurdles:Tata Motors chairman Ratan Tata said that he was moving the Nano project out of Singur because of the agitation by the Trinomial Congress, led by Mamata Banerjee, and not because of any failure on the part of the West Bengal Government.

On October 3 : Tata Motors chairman Ratan Tata said that he was moving the "Nano" project out of Singur because of the agitation by the Trinamool Congress, led by Mamta Banerjee, and not because of any failure on the part of the West Bengal Government.

He also said the format of the agitation had made them wonder from where the funds had come and what really lay behind the agitation. On whether administrative measures could have been taken to facilitate work at Singur, he said "the government was damned if it did and damned if it didn't" in the situation at Singur, solely resting responsibility on Banerjee for failing to understand the implications of the project.

Tata firmly said it should be left to the company to decide how many acres it needed to set up a plant. He said in Pantnagar too, Tata’s had about 1000 acres, 600 for the company and the rest for ancillary units.

While referring to Banerjee's demand for return of 300 acres from the acquired land and suggestion for moving the ancillary units across the road, Tata said, "Others cannot decide how much place we need to manufacture cars and where we could place our ancillary units."

A visibly tired Ratan Tata said a 100 "Nano" projects will come and go but Bengal had to decide what it wanted, and added, "Thought has to be given to whether the young people want jobs; the state needed infrastructure and investment."

Tata said one has to be conscious of the rural population but consider whether the future generation of the state will have opportunities unless there is investment. He said the state needed to figure out whether it wanted to choose the path of agitation, strike, and assault or wanted to move forward.

Tata who had a meeting with West Bengal Chief Minister Buddhadeb Bhattacharya earlier today, said he had decided to invest in West Bengal, impressed with the industrial policy of the current government.

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He said he had great respect for those policies and leadership of the Chief Minister, but since an understanding could not be arrived at with the opposition TMC on the issue, the Tatas had decided to move out. Tata further said that the decision was taken because the company had a deadline to meet and had made promises to the public on the "Nano" roll out, which needed to be fulfilled, and added that he had a commitment to his shareholders over this.

"The venue for the plant is not finalized but there have been feelers from four or five State Governments," said the Tata Motors Chairman, adding, "Wherever we move, we will look back on the lesson learnt and ensure a congenial atmosphere before work starts."

The ever polite Tata also said the Tata’s would definitely consider investment in West Bengal in future but it was unfortunate that the company had such an experience this time.

Tata said the Chief Minister was extremely distressed and was very persuasive towards the project not moving out. However, he said the responsibility of the employees rested on him and he could not take a risk with their lives. On the losses to the company, Tata said, "Whatever the cost, there was no other option but to do this."

Tata also said that the people, who have received training for jobs for the factory here, among those who willingly gave up land, would hopefully become members of the Tata Motors family in future, but not in Singur. West Bengal Industry Minister Nirupam Sen said the Chief Minister and the government offered all support to the Tatas to continue the project in Singur but Tata said he did not want to continue work with police protection and he wanted a peaceful environment.

"It was unfortunate for the state that despite repeated requests and explanations given to the opposition about the project and the best rehabilitation package in the country given to land losers by the government, they did not agree to the project. The opposition acted irresponsibly on the issue," said Sen. y Ajitha Menon

Awards and Recognition:On the occasion of India's 58th Republic Day on 26 January 2000, Ratan Tata was honoured

with the Padma Bhushan, the third highest decoration that may be awarded to a civilian. On

26 January 2008 he was awarded the Padma Vibhushan, the second highest civilian

decoration. He was one of the recipients of the NASSCOM Global Leadership Awards-2008

given away at a ceremony on February 14 2008 in Mumbai. Ratan Tata accepted the

Carnegie Medal of Philanthropy in 2007 on behalf of the Tata family. Ratan Tata serves in

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senior capacities in various organisations in India and he is a member of the Prime

Minister's Council on Trade and Industry. In March 2006 Tata was honoured by Cornell

University as the 26th Robert S. Hatfield Fellow in Economic Education, considered the

highest honor the university awards to distinguished individuals from the corporate sector.

Ratan Tata's foreign affiliations include membership of the international advisory boards of

the Mitsubishi Corporation , the American International Group , JP Morgan Chase and Booz

Allen Hamilton. He is also a member of the board of trustees of the RAND Corporation ,

University of Southern California and of his alma mater , Cornell University. He also serves

as a board member on the Republic of South Africa's International Investment Council and

is an Asia-Pacific advisory committee member for the New York Stock Exchange. Tata is on

the board of governors of the East-West Center, the advisory board of RAND's Center for

Asia Pacific Policy and serves on the programme board of the Bill & Melinda Gates

Foundation's India AIDS initiative. In February 2004, Ratan Tata was conferred the title of

honorary economic advisor to Hangzhou city in the Zhejiang province of China.

He recently received an honorary doctorate from the London School of Economics and

Indian Institute of Technology Kharagpur. He was listed among the 25 most powerful

people in business named by Fortune magazine in November 2007. In May 2008 Mr Tata

made it to the Time magazine's 2008 list of the World's 100 most influential people. Tata

was hailed for unveiling his tiny Rs. one lakh car 'Nano'.

On 29 August 2008, the Government of Singapore conferred honorary citizenship on Ratan

Tata, in recognition of his abiding business relationship with the island nation and his

contribution to the growth of high-tech sectors in Singapore. Ratan Tata is the first Indian

to receive this honour.

After the 26 November 2008 Mumbai attacks, Forbes opined Ratan Tata be brought into

politics, calling him India's most respected business leader. In 2009 he was appointed an

honorary Knight Commander of the British Empire.

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IMPORTANT DECISIONS BY RATAN TATA:Streamlining the Strategy and Mission Statement:Ratan Tata initiated the restructuring of TATA shortly after he took over because he felt the vast diversity of TATA Group was diluting the market responses. He elucidated the needs of remaining focused rather than diffused, and he insisted on more aggressive attitude towards the growth and market share. The aspiration which triggered off restructuring has been described as (a) Returns must be greater than cost of capital; (b) Each company must be the industry leader occupying one of the top three positions; and (c) The business identified must have potential for high growth and should be globally competitive (From the Internal Company Journal) . Once the goal has been set, strategies were put together for exits and entries. A new scientific and rational approach has been introduced in the company. This perfectly describes how an able entrepreneurs exercise their vision to motivate employees, inspire them to meet the challenges and to “facilitate their attempts to achieve more than they thought possible as they strive to help the firm reach its vision” (Kuratko et al., 2001, p. 62). Ratan Tata chosen to shake off the businesses of soaps and toiletries, cosmetics, consumer electronics, pharmaceuticals, computer and telecom hardware, branded white goods, paints, oil exploration services, cement, textiles ... likewise enthusiastic on his spreading out into lucrative businesses like passenger cars, auto components, retailing, telecom, power and insurance(Lala,2004).

Umbrella Branding:When Ratan Tata took over the chairmanship of Tata Steel he realized that the group need a stronger brand identity and he decided to endorse Tata Brand as an umbrella brand for the entire group which eventually subscribed to the Tata Brand equity scheme. This decision reflects a strong corporate innovation and entrepreneurship as it is also accountable for motivating innovation within the organization after assessing potential new opportunities, resource acquisition, implementation ,exploitation and commercialization of the new products or services (Guthand Ginsberg, 1990) Each five company that subscribed to the scheme would derive the benefits of the centrally promoted Tata brand. RT recommended that the subscribing Tata companies expected to contribute, and the contribution would depend upon each company’s association with the brand (Lala, 2004). Tata Sons considered to use the contributed amount to build a national and later international group brand image by accentuating the core values and ethics, mostly through advertising. The cost estimated by Tata Sons for significant domestic brand promotion was Rs 300 million per annum, much more than the commission collected. A resolution has been passed the board of directors of various Tata companies in 1995 in accordance with this arrangement. However the scheme engenders debate in the media but The Tata Brand transpired into a seal of trust.

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StrategiesCost cutting measures: Besides company is taking following steps to cut costs:

Aim for Better cash management and liquidity management across all units.

Liquidating existing inventory and writing down losses (Tata Steel Thailand).

Increasing cash flow by reducing net working capital and postponing capital expenditure (for Nat Steel Asia)

Maximize sales for most profitable units (Tata Steel India) Tata Steel UK: The company makes steel products for sale around the world, and should benefit from the European stimulus plans as it is the leading supplier of steel for the continent's auto, construction, and household-products industries-direct beneficiaries of the stimulus plans.

Cash savings of up to 600 million pounds (to be realized by H2’09)

Reducing production, saving employment cost (reducing employees by 3500 from 42000 currently.

Tata Steel India Tata Steel (India) exports only 12% of their Steel output, company has said that it will focus more on exports to take benefit of rupee depreciation. According to company Statement Company it plans to triple its exports to 330 mn tonnes to take advantage of currency depreciation.

Industry Performance According to recent report on steel sector 'Indian Steel Industry 2009: squeezed, but strong' by Ernst and Young India has the potential to grow at double digit rates and should target a production of 125 mn tonnes in the medium term. Report mentions, China example from 1998-2003, when world steel production grew by 1.6%, china doubled its steel production growing by 18%.

According to the report, the near-term outlook for the industry is challenging as the growth in key end-user industries such as construction, automobiles and manufacturing has taken a backseat. The down turn has also led to a decline in the prices for raw materials such as iron ore and coking coal, albeit at a lower rate than the dip in steel prices. Further, prices are expected to decline in 2009 as consumption levels are projected to continue plummeting.

To avoid large-scale dumping and protect domestic players, the government, has taken following steps:

1. Removal of export duty

2. Restored DEPB (Duty exemption pass book) to promote exports.

3. Imposed 5% import duty on steel to check cheap imports from china

4. Cut in excise duty from 14% to 10%

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International steel prices rose sharply by 50-60% in the first half of 2008 but prices in the domestic market was reigned in by the government in an attempt to check inflationary pressures and ensure adequate supply. As a result, domestic steel prices went up by around 25% only in the corresponding period. Therefore, as we witness steep correction in international steel prices by 25% (from $1200 to $900), we do not expect similar declines in domestic prices that have fallen by 16% to $750 but rather stabilize in the coming quarters.Strengthening an inheritanceRatan Tata quietly but firmly began to assert the group's authority on the individual companies. He strengthened the unified brand image of the group. A major restructuring effort was undertaken, excess baggage was dropped and businesses were rationalized and consolidated. The effort ended with a leaner portfolio of 93 companies, focused on seven identified industry sectors – engineering, materials, energy, chemicals, services, consumer products, and information systems and communication.

Tata has been instrumental in promoting the Tata brand and the 'Made in India' tag not only in India but across the globe in sectors as diverse as steel, automobiles, chemicals and hospitality. His mandate for group companies was clear: shape up, or ship out; be among the top three players in your business or get out of it.

Under Tata's stewardship, the group is in a leadership position in information technology (TCS, CMC), steel (Tata Steel), chemicals (Tata Chemicals), tea (Tata Tea) and hospitality (Indian Hotels), and the Tata name is reaching new geographies through an aggressive 'internationalization' effort. The group now has a presence in 40 countries and exports to 140. What has ensured the success of Tata's plans is his unwavering focus on the customer. Quality, he insists, must be the hallmark of all Tata products and services, no matter which segment of society or which country they are meant for. Good governance, fair business practices and social responsibility should be the guide for all Tata companies, in all locations and at all times.

Recent years have seen the group make rapid strides in its M&A and JV strategy across the globe. Since 2004 the Tata group has acquired over 30 companies, totaling about $2 billion. The group has also built strategic partnerships with global companies, in order to improve its competitive position. As he drives the group's expansion plans in other geographies, Ratan Tata is encouraging Tata companies in India to shift their focus from the urban to the rural and create products and services that address the needs of the bottom of the pyramid.

The Taj group's recently launched Ginger chain of economy hotels, Tata Motor's proposed Rs 1-lakh small car, Titan's Sonata brand of watches, and Tata BP Solar's initiatives in harnessing solar energy to light up villages, are efforts at creating affordable but quality products and services for small-town and rural customers. Referred to in the media as a recluse, Ratan Tata is not to be found at the regular high- society events patronized by many of his peers. He prefers instead to indulge his passion for flying by piloting a plane or helicopter to his weekend getaway at Mandwa, and spending time with his two Labradors.

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Tata Iron and Steel Company (TISCO) It was established in 1907 by J N Tata1 at Jamshedpur in Bihar, India. TISCO offered a wide range of products and services including Hot rolled/Cold rolled (HR/CR) coils2 and sheets, tubes, construction bars, forging quality steel, rods, structural’s, strips and bearings. It also manufactured material handling equipment, Ferro alloys and other minerals, software for process controls, and offered cargo-handling services.In the early 1980s, TISCO initiated a modernization program of its steel plantBy mid-1990s, TISCO had become India's most cost-effective steel plant. It also became Asia's first and India's largest, integrated steel producer (ISP) in the private sector. By 2000, eight divisions of Tata Steel were ISO-140014 certified, including No amend Iron Operations, West Bokaro, Collieries, Ferro Alloy Plant, Joda, Sukinda Chromite Mines, Joda East Iron Mines, Tubes Division, and Growth Shop & Steel Works.By early 2000, TISCO had completed four phases of the modernization programme with anInvestment of about Rs 60 billion5. The company had invested Rs 4 billion on consultancy fees during 1990 to 2000. The fifth phase of the program had commenced in April 2000

CURRENT ISSUE:New Delhi: Tata Group Chairman Ratan Tata on Thursday hit out at Rajya Sabha MP Rajeev Chandrasekhar, rebutting allegations that the Tatas benefitted most from the government’s dual technology policy.

Former Telecom entreprenur and independent MP Rajeev Chandrasekhar’s open letter alleging that the Tata groups were the main beneficiary in the 2G spectrum allocation evoked the sharpest response from Ratan Tata.

Replying to an open letter by the Rajya Sabha MP, Ratan Tata said the motivation behind the allegations appears to be Chandrasekhar’s affiliation to the BJP and an attempt to embarrass the Prime Minister. Ratan Tata also maintained that his company was never favoured by A Raja or earlier Telecom ministers.Saying that Chandrasekhar and others are motivated by self interest, Tata accused them of lobbying aggressively through Cellular Operators Association of India (COAI).

“The powerful GSM operators are holding spectrum beyond their entitlement free of cost and to the detriment of the other operators. As Tatas did not enjoy ‘captive connections’ in the environment, the Tata Group had no option but to seek an external agency focused at projecting its point of view and countering the misinformation and vested interest viewpoints,” says Tata in the letter. Tata said Chandrasekhar had lobbied actively against a technology neutral policy and had approached Tata in July 2002 to sign a letter in this regard. Tata says Chandrashekar had worked in self interest to protect investment.

“Mr Chandrasekhar parked himself at Taj Mahal Hotel to prevent WLL Limited Mobility. Mr Chandrasekhar also constantly solicited support of CII. Your affiliation to a particular political party is well known and it appears their political aspirations and their endeavour

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to embarrass the Prime Minister and the ruling party may well have been the motivation behind your letter. We should all note that many of the flip flops in the telecom policy occurred during the BJP regime,” he said.

Reacting to Tata’s statement, Chandrashekhar claims that the letter does not address the main issues raised by him. “Your response is typical, ducks main issues. Response attempts to shoot the messenger. I am disappointed, but no longer surprised. Your letter is intensly personal, attributes feeble motives. The response is most unbecoming of the House of Tatas. I think this is a lapse in good judgment. I find your self-appointed defence of Prime Minister very irrelevant. I refuse to fall to your level of personal attacks. On facts, your letter is exceptionally weak,” Chandrashekhar said.

As the corporate battle of open letters and rebuttals gets more personal and acrimonious the government refused to be dragged into it. “It’s a war between indivdiuals and the government is not part of it so I don’t want to say anything,” said Kapil Sibal.

Tata Motors' market share jumps to 65.3 per centTata Motors increased its market share in domestic commercial vehicle sales to 65.3 per cent in February from 60 per cent a year ago, according to data released by Society of Indian Automobile Manufacturers on Monday. Commercial vehicle sales continue to grow after the Supreme Court banned overloading of trucks and on rise in freight rates. Commercial vehicle sales for February stood at 35,049 vehicles, up 19.2 per cent on a yearly basis and 3 per cent on a sequential basis.

Sales in the segment have increased ever since the Supreme Court in a ruling in November banned overloading of trucks, leading to demand for more trucks. The demand for commercial vehicles has also increased due to healthy freight availability, reflected in rising freight rates. The average freight rate for February was Rs 2,333, up 17.6 per cent from a year ago. Tata Motors was the best performer among all players, selling 22,885 units, up 29.6 per cent on year.

As a result, it increased its share in the total domestic commercial vehicle market to 65.3 per cent from 60 per cent a year earlier. Ashok Leyland and Mahindra & Mahindra saw their market shares fall to 15.7 per cent and 8.8 per cent respectively, from 15.9 per cent and 11.6 per cent a year ago. Domestic passenger car sales during February stood at 63,215 units, up 1.8 per cent.

COMPANY RANKING SCORE(China) 6 119

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Gerdau (Brazil) 7 118Nucor (US) 8 116Car-Tech 9 112Nippon Steel (Japan) 10 111Severstal (Russia) 10 111Dofasco (US) 11 109

In the early 1990s, TISCO appointed McKinsey and Booz-Allen & Hamilton to study its operations and suggest ways to cut costs. Irani explained the rationale, "Cost-cutting measures are more important in the present situation where one can no longer control steel prices which are dictated by international markets." The consultants suggested TISCO to focus on various components affecting the cost of steel, which included cost of raw materials, cost of conversion, fuel rate in the blast furnace and mining of coal. TISCO was advised to use the most modern technologies to cut costs further. In the second half of 1998, in association with McKinsey, TISCO implemented TOP program at its blast furnace8. TOP was widely regarded, as a program, which would have a maximum positive impact to the bottom line, with minimum investment, required in minimum time. It aimed at achieving large improvements in throughput, quality and cost in the short term. In the long run, TOP was expected to enable the TISCO to achieve high rates of performance improvement. By March 1999, the G blast furnace achieved a savings of Rs 87 million against the targeted savings of Rs 40 million. TISCO set up a potential savings target for its G blast furnace at about Rs 300million per annum, accounting for more than 10% of its profits in the fiscal 1999. By late 1999, TOP was in Phase V of the Wave. In 1999-2001, TISCO took measures to reduce costs further by adopting innovative strategies and other cost-cutting exercises. For example, TISCO stopped using manganese, an expensive metal used to increase the strength and flexibility of steel. The company made efforts to reduce its product delivery time from 3-4 weeks in 1998 to 2 weeks in 2000. The company aimed to further reduce the time to one week.

TISCO also took steps to reduce its manpower costs. Between 1996 and 2000, TISCO reduced its workforce from 78,000 to 40,000 employees. Analysts opined that cutting its workforce by 38,000employees was not an easy job and the company was able to do it with a lot of communication with employees

Key Rating Sensitivities

Going forward, any significant cash outflow on account of the outstanding SDF loans could impact Tisco's ratings. The key to the ratings would be the company's ability to improve or maintain it’s gearing at current levels despite the various investments that it may make.

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Any investment in noncore areas or any large debt-funded acquisition could result in a revision in the rating, as and when precipitated.

CURRENT ISSUE: New Delhi: Tata Group Chairman Ratan Tata on Thursday hit out at Rajya Sabha MP Rajeev Chandrasekhar, rebutting allegations that the Tatas benefitted most from the government’s dual technology policy.

Former Telecom entreprenur and independent MP Rajeev Chandrashekhar’s open letter alleging that the Tata groups were the main beneficiary in the 2G spectrum allocation evoked the sharpest response from Ratan Tata.

Repying to an open letter by the Rajya Sabha MP, Ratan Tata said the motivation behind the allegations appears to be Chandrasekhar’s affiliation to the BJP and an attempt to embarrass the Prime Minister. Ratan Tata also maintained that his company was never favoured by A Raja or earlier Telecom ministers.

Saying that Chandrasekhar and others are motivated by self interest, Tata accused them of lobbying aggressively through Cellular Operators Association of India (COAI). “The powerful GSM operators are holding spectrum beyond their entitlement free of cost and to the detriment of the other operators. As Tatas did not enjoy ‘captive connections’ in the environment, the Tata Group had no option but to seek an external agency focused at projecting its point of view and countering the misinformation and vested interest viewpoints,” says Tata in the letter.

Tata said Chandrasekhar had lobbied actively against a technology neutral policy and had approached Tata in July 2002 to sign a letter in this regard. Tata says Chandrashekar had worked in self interest to protect investment.

“Mr Chandrasekhar parked himself at Taj Mahal Hotel to prevent WLL Limited Mobility. Mr Chandrasekhar also constantly solicited support of CII. Your affiliation to a particular political party is well known and it appears their political aspirations and their endeavour to embarrass the Prime Minister and the ruling party may well have been the motivation behind your letter. We should all note that many of the flip flops in the telecom policy occurred during the BJP regime,” he said.

Reacting to Tata’s statement, Chandrasekhar claims that the letter does not address the main issues raised by him. “Your response is typical, ducks main issues. Response attempts to shoot the messenger. I am disappointed, but no longer surprised. Your letter is intensely personal, attributes feeble motives. The response is most unbecoming of the House of Tatas. I think this is a lapse in good judgment. I find your self-appointed defence of Prime Minister very irrelevant. I refuse to fall to your level of personal attacks. On facts, your letter is exceptionally weak,” Chandrasekhar said.

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As the corporate battle of open letters and rebuttals gets more personal and acrimonious the government refused to be dragged into it. “It’s a war between individuals and the government is not part of it so I don’t want to say anything,” said Kapil Sibal.

CONCLUSION:Ratan Tata is well known and highly praised for his extraordinary vision, risk-taking ability and high ethical standards. Many of the Global leaders highly praised Ratan Tata as one of the most successful and adorable entrepreneur and innovator... A range of definitions tried to explain innovation, which resulted to a greater ambiguity (Garcia and Calantone, 2002). A variety of theory and models have been created in the literature suggesting that innovation is made up of diverse phases: creation of ideas, research design and development, prototype production, manufacturing, marketing and sales (Dooley and O’Sullivan, 2001; Knox, 2002; Pool ton and Ismail, 2000; Roth well, 1994) which is clearly reflected in Ratan Tata’s decision making and implementation. USC President Steven B. Sample said, “Ratan Tata is highly esteemed, certainly in India, but in the rest of the world as well for his extraordinary talents as a business leader and his dedication to humanitarianism,” said. Mukesh Ambani, Chairman and Managing Director of Reliance Industries praised: “He [Ratan Tata] comes across as an individual with clarity and conviction, a business leader with vision. Ratan Tata has steered the Tata ship in turbulent times. ...above all, I have an immense admiration for Ratan Tata, the man, for his unassuming and warm nature, an outstanding business leader imbued with social concerns and committed to uphold ethics and values." Henry Schacht, former chairman of Cummins Engine, USA, complimented "[Ratan] Tata understood what needed to be done and how it needed to be done." A philanthropist all his life, he created a trust fund for the advancement of learning and for the relief of human suffering and other works of public utility. Ratan Tata is a visionary entrepreneur and leader who have excelled in every component of innovation to pass benefits to mankind, in addition to business and industry.

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ACKNOWLEDGEMENT:

My sincere thanks to MRS SHAILESHRI PRASAD, who provided us Internal Guide, and we thank mam for her valuable guidance and continuous encouragement throughout this dissertation and course of study.

I would also like to thank university for banking & insurance course which provided us great opportunity for knowing this subject.

I am very much greatful to all my staffs members who have given full support and all facility to do the project in a very good manner.

THANK YOU!!!!