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Organizational

Structure of TATAGroups

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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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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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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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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Cyrus P Mistry

Cyrus P Mistry, 45, is the sixth Group Chairman. He

was appointed as the Chairman of the Tata Sons board inDecember 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 Pallonjisconstruction 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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Tata Leadership Team

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Business sectors

Tata companies operate across seven

business sectors. This section details thecompanies 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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Tata group sector-wise operations

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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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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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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 Chairmanof 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.

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