Conglomerate

Tata Sons

Last edited by nity68 on July 17, 2010 - 6:47pm
Company Snapshot: 

Tata Sons is the promoter and major shareholder of all key companies of the Tata Group. The chairman of Tata Sons has traditionally been the chairman of the Tata Group. About 66 percent of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The largest of these trusts -- created by the families of the sons of Jamsetji Tata -- are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust.

Tata describes itself as a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (Indian rupees 3 trillion, at Rs. 48 = $1). More than 60 percent of this revenue is from business outside India.

According to the company's website [www.tata.com], the Tata group is involved in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products, and chemicals. The group's 27 publicly listed enterprises have a combined market capitalisation of some $60 billion and a shareholder base of 3.2 million. The major companies in the group include 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 world's top five commercial vehicle manufacturers and recently acquired Jaguar and Land Rover. Tata Chemicals is the world’s second largest manufacturer of soda ash, an operation associated with severe pollution.

Tata's carefully nurtured public image has taken a severe beating over the past decade because of its involvement in numerous human rights and environmental violations in Orissa, West Bengal, Gujarat, Andhra Pradesh, and Chattisgarh.

Tata’s legacy in India dates back to the 18th century British colonial times, when it benefited from trade generated by the British empire's military campaigns in North Africa and elsewhere. The company was also involved in opium trade in the Far East at a time when opium was banned in China. In the company's early years, Ruttonjee Dadabhoy Tata of Tata & Co. fought to keep opium trading free of regulation in Hong Kong, Britain's newly won colony. Ruttonjee Dadabhoy Tata was J.N. Tata’s first cousin, and the father of J.R.D. Tata, who headed the family business well into the 20th century.

Profile editor: 
dharmesh
Profile editor: 
nity68
Ownership status: 
Privately held
Number of employees worldwide: 
350,000
Chief executive officer: 
Ratan Tata
Website: 
Tata Group
Tel: 
+91 22 66658282
Corporate accountability
Accountability overview: 

Tata and its group of companies have been named for violating human and labour rights and environmental standards, as well as for involvement in financial scams. Both historically and today, Tata companies have struck business deals with repressive governments. In its early days, Tata benefited from business deals arising out of the British empire's colonial conquests. More recently, it has drawn criticism for opportunism including open support for repressive adminstrations such as the Hindu fundamentalist right in Gujarat and Chhattisgarh. The [www.bhopal.net International Campaign for Justice in Bhopal], has documented the Tata Group's crimes against the environment and human rights, noting the company's links with Myanmar's military junta.

Barely a year earlier, Tata Steel, the group's flagship company, had announced plans for its subsidiary TM International Logistics, to expand into Myanmar. [Source: Tata Steel arm to tap market. November 16, 2005.]

Tata's flagship company, Tata Steel has been involved in several conflicts with indigenous people over mineral resources. In the Sukinda district of Orissa, Tata operates one of the world's largest chromite mines. Sukinda has been listed as one of the 10 most polluted sites in the world. On January 2, 2006, State Police shot dead 12 indigenous people who were part of a large protest against Tata Steel's takeover of their land. [Source: Battle over steel mills. BBC News. 26 February, 2006.]

Labor: 

In 2009, line with pre-merger plans to cut costs by 350 million pounds sterling, Tata Steel, the group's flagship company, slashed the workforce of its subsidiary, Corus Steel, by 2,500 in the UK.

Human rights: 

From the times of its war profiteering during the campaign of the British imperial forces in Northern Africa, to opium trade during the opium wars with China, Tata has seized opportunities thrown up by situations of conflict and aggression. It has not hesitated to build up ties with even globally tainted and oppressive regimes, such as the military junta in Burma, or the Hindu fundamentalist Narendra Modi Government in Gujarat.

In December 2006, Gen. Thura Shwe Mann, "Myanmar’s chief of general staff and possibly the second-most important leader of the military junta after Senior Gen. Than Shwe" visited the Tata Motors plant in Pune. The Pune plant reportedly manufactures vehicles for the Indian military. [Source: "Myanmar Ties." December 8, 2006. The Telegraph, Calcutta, India]

On March 29, 2009, the Bangkok Post reported in a misleading titled article -- India and Tata to build Nano factory in Burma -- that Tata Motors was considering setting up a heavy vehicle unit in Burma with financial assistance from the Indian Government.

In 2008, after the greenfield factory for its much-hyped $2000 car -- the Nano -- was forced to move out of Singur, West Bengal owing to the refusal of sharecroppers and land-owners to part with their land even under threat of force, Tata Motors accepted the invitation of Narendra Modi, Chief Minister of Gujarat, to set up the car plant in Sanand, Gujarat. "By deciding to go to Gujarat, Tata has bestowed unprecedented legitimacy and respectability upon Modi and his ghastly brand of politics," wrote noted columnist Praful Bidwai. As a new chief minister, Modi had presided over one of the worst pogroms against Muslims in 2002, and is widely criticised as a "Hitler," by many.

In Dantewada district of Chattisgarh's Bastar region, the State Government has been accused of using force, intimidation and subterfuge to acquire more than 5000 acres of land for Tata Steel's factory and mines. Many of 1750 tribal land-losers have been beaten and jailed for refusing to part with their land, even while Tata Steel has maintained that land acquisition is the State Government's job. For a detailed account on the human rights violations on account of land acquisition for Tata Steel's project in Chattisgarh, read the World Policy Journal report titled "The Forever War: Inside India's Maoist Conflict."

Political influence (national and international): 

Tatas are among the largest contributors to the two key and rival political parties in the Indian national scene. The Indian National Congress Party received the largest share of Tata's financial largesse between 2003 and 2007, netting $860,000 (Rupees 43 million). The BJP too, tainted as it was with allegations of perpetrating the Gujarat riots targeting Muslims in 2002, received $540,000 from the Tatas during 2003-2007. ["BJP, Congress hog big biz funds." DNA. 05 March, 2009]

In December 2004, immediately after the Congress-led United Progressive Alliance formed the Government at the Centre, Ratan Tata was appointed chair of the Investment Commission that was to develop a roadmap for the Government in attracting Foreign Direct Investment to India. ["Ratan Tata to head Investment Commission." Times of India. New Delhi. 6 December, 2004.]

In March, 2009, Tata Sons chairman Ratan Tata was taken to court by Ms. Shruti Singh, an advocate of the Patna High Court, for launching the Nano car ahead of the elections. This, she alleged was done to "help" Gujarat Chief Minister Narendra Modi, who provided land to the Tatas after their car project was kicked out of Singur, West Bengal by farmers and farm labourers whose lands and livelihoods were to be sacrificed to accommodate the prject.

In an article published by the Economic Times, the lawyer said "I filed the case against Ratan Tata to expose his attempt to help Modi in the elections by commercially launching Nano to send (the) message that it was possible thanks to Modi." She alleged that the launch of the Nano, the world's cheapest car with a base price of Rs100,000 ($2,000), was timed in such a way that it could influence the elections. ["Patna lawyer goes to court against Ratan Tata for 'helping' Narendra Modi. 24 Mar 2009, 1304 hrs IST, IANS]