Tata Group's diversified business model spans steel, autos, IT, and hospitality, emphasizing innovation and sustainability.

What is the business model of Tata Group of Company?

Introduction  –

The business model of Tata Group of Company encompasses diverse industries such as steel, automobiles, IT, and focusing on innovations. Tata Group is India’s largest business empire, which has started work in all fields, yet the leader of this empire is not the richest person in India, like Mukesh Ambani, the leader of Reliance Industries, became the richest person in India. Tata Group earns the most profit in India, then to whom does that profit go. Here we will try to practice how the Tata group started, how Tata group companies are working in every field, what is its business model. Here we will try to analyze how much share the company gives in the Tata Group, we will try to know how its management works. What is the difference between foreign companies and Tata Group and we will try to find out the reasons for how it became an international company.

The world’s largest company was about to be declared bankrupt at one time, emerging from it to become the best company in the world today. Will try to find out what are the reasons for this and how Tata Group has been able to achieve such sustained success. The Tata Group’s companies also work at the international level, but will try to find out who are its customers and who are the customers of foreign companies. Will try to get information about how Tata Group has bought big foreign companies.

How much benefit did the Tata group get from the protection policy of the Government of India and will the Tata group be able to perform so much in the open market? Will try to find the reason for this. The reason for writing this article will be to learn something new from it and some new information will be gained from the revision. In terms of innovation, foreign companies are far ahead of Indian companies and we have to make a lot of development in technology, considering which Reliance and Tata Group are leading Indian 5000 major leader companies.

Jamshedji Tata – Founder of Tata Group

Jamsetji Tata came from a Parsi family whose last generation only his father Nusserwanji had started the business. Earlier generations used to work as Parsi Priests who got a lot of respect. But financially, he was not so good, later his father expanded his business and gave 21000 rupees to Jamsetji Tata at the age of 29 at that time. It would be worth around $60 million as of today.

He started his business career on his own with this money, before that his father sent him to China to get information about the business of Opium, where he understood one thing that there is a good future in the cotton business. That’s why he started his business with cotton business from Mumbai. He did his graduation from Elphinstone College, Mumbai and for several days he was involved in his father’s business and finally started the car in 1870 at the age of 29 by buying the first cotton mill which closed oil factory and became a profitable company two years later. sold in

He built Taj Hotel in his life which was his dream and he also had dreams which he could not fulfill in his life but his next generation fulfilled those dreams. Build steel plants, hydro electrical plants and educational institutions of high quality. Jamshedpur This big industry was established in his name, which was his dream, which even today the Tata Group’s steel plant is considered a big steel plant not only in India but in the whole world. Establishing a steel plant from the old times required a lot of money, which was not a matter of anyone’s bus.

History of Tata Group –

In 1870, Jamsetji Tata bought the Purani Oil Company in Mumbai and converted it into a cotton mill and named it Alexandra Mill, which he made a profit making company and sold it two years later. In 1874 in Nagpur he started another cotton mill company named “Impress Mill”, his business objectives were to become a good steel factory in India, his dream was to build a good luxury hotel, to build an educational institution of world class And finally setting up a hydro electrical plant was his life’s dream.

Out of this, he built the famous Taj Hotel in Mumbai in his life and the rest of his dreams were fulfilled by his next generation. In which after the death of Jamsetji Tata in 1904, his son Dorabji became the chairman of the Tata company, which in 1907 laid the foundation of Tata Steel, which was named Tata Steel and Organization i.e. TISCO, which was later changed to Tata Steel. Soon Dorabji Tata founded Hydro Electrical Power and Tata Institute of Science in 1911 and fulfilled his father’s dream.

In 1938, JRD Tata became the chairman of the Tata Group, when he became the chairman of the Tata Group, then the Tata Group was a 100 million dollar company, which he made a 5 billion dollar company during his tenure. In 1952, JRD Tata established India’s first private airline company, which in 1953 was retained by the Government of India to control it. Under India’s disinvestment policy, that company has come back to the Tata Group today.

Although JRD Tata remained the chairman of this airline company till 1977, but his control was kept by the Government of India. In the meantime, Tata Motors was established in 1945 and today the most important company of the Tata Group, which has been a big part of its success, is Tata Consultancy Services, this company was established in 1968. Ratan Tata ji took over the command of Tata Group in 1991 and today we see the success graph of Tata Group, which from salt to software has been the biggest contribution of Ratan Tata ji, even though he is not the chairman today but even today the company It can be assumed that it operates under their influence.

Important Companies of Tata Group  –

  • Tata Consultancy Services (Information Technology)
  • Tata Alexi (Information Technology)
  • Tata Communication (Telecom & Media)
  • Tata Sky (Telecom and Media)
  • Tata Tele Services (Telecom & Media)
  • Tata Steel
  • Tata Motors (automobiles)
  • Jaguar Land Rover (Automobile)
  • Tata Autocomp Systems (Automobiles)
  • Tata Chemicals (Consumer & Retail)
  • Tata Consumer Products (Consumer & Retail)
  • Titan Company (Consumer & Retail)
  • Infinity Retail (Consumer & Retail)
  • Voltas (Consumer & Retail)
  • Tata Capital (Finance)
  • Tata AIA Life (Finance)
  • Tata Power (Infrastructure)
  • Tata Project (Infrastructure)
  • Tata Consulting Engineers(Infrastructure)

Important Aquisitions of  Tata Group –

The aviation company which was founded in 1932 by JRD Tata was nationalized by the Nehru government in 1953. In 1990, India made changes in its policy, under which privatization was started, called disinvestment, under which in October 2021, the central government through bidding made it clear that Air India would become part of the Tata Group. We see disappointment in people investing in the aviation sector as this business model is quite complex.

It was started in 1932 by JRD Tata with an investment of Rs 2 lakh through Tata Aviation Service, which is going to be 89th birthday on 15th October, this company can be considered a matter of pride for the Tata group. Keeping a company profitable in the aviation sector is a very difficult task and due to the uncertainty of oil prices, many companies are running at a loss. But the Tata group being in this diversified business sector, they can say that they are able to make this business successful by spending on a business expert team.

Air India has running at a loss for many days, although it is said that the aviation sector of India is fighting with cost control. Bringing the Tata Group to this company as a profist will be a testing time and it seems possible considering the success of other companies. Viewing the aviation sector as a profit making sector is considered a prestige business in the market business world, so it is very difficult to make a profit in it.

 Business Strategy of Tata Group –

  • It has been the strategy of Tata Group before that, do not work in any one sector, try your hand in all sectors, so the risk of failure is reduced, this is the reason that Tata Group’s company is working in all sectors from salt to software.
  • The Tata Group is the oldest company in India and as an Indian brand it is linked to the emotional sentiments of the customers, this has been used well by the Tata Group for its branding.
  • Being the oldest company, the Tata Group has been able to utilize its capital well.
  • India is a progressive country, so there is s more economic disparity here, so the Tata Group, considering its social responsibility, spends a large part of its profit for the society, so their brand has emerged as a good image in the society, so that it benefits while selling its products. Is.
  • Due to being companies in all sectors of Tata Group, it costs less than other companies to make products for them, due to which they get the benefit of entry barrier in the market, for example – Steel is available at a good price for Tata Motors from Tata Steel Company.
  • Management of Tata Group It is its specialty which gives freedom to all the company to conduct their business.
    In India, Tata group companies have the highest number of orders from the government, which they get because of their credibility.
  • Steel received by the auto sector, being its own company, Tata Motors can use better steel than other competing companies without loss, this helps their vehicles to remain better than other vehicles.
  • Tata Consultancy Services of the Tata Group is their biggest profit making company, which works at the international level, almost all of it is with the government’s important project TCS.
  • By providing good facilities to their employees, they benefit in increasing the productivity of Tata Group.
    the Tata Group employs 9.35 lakh employees, while Mukesh Ambani’s Reliance company employs 2.36 lakh employees.
  • Reliance Industries and Tata Group’s companies Nifty and Sensex are the major companies in the Indian stock market.
  • In terms of revenue, Tata Group is ahead of Reliance Industries and this figure is US $ 106 billion, while this figure of Reliance is US $ 92 billion.

Features of Tata Group –

  • The Tata Group’s companies do their business successfully in almost all sectors in India and internationally.
  • The Group is the company with the largest market capital in India, with a market capitalization of $300 billion today.
  • The biggest share in the success of the Tata Group i.e. 52% of the market capital is held by Tata Consultancy Services, followed by Tata Steel Company, which holds 16% of the market capital of the Tata Group.
  • Government tax website, digital transactions of banks like SBI, this important service is looked after by a company like TCS.
  • Due to the best setup of the Tata Group in electrical vehicles, in the coming times, all eyes are going to be on the Tata Group companies for investment in this sector, due to which the future of the Tata Group is looking good.
  • Despite the failure of the Nano project, the Tata Group was able to quickly emerge in the market due to the success of its individual companies.
  • The acquisition of companies such as Jaguar, Land Rover and Corus has helped the Tata Group grow its brand value internationally.
  • Natarajan Chandrasekaran may be the chairman of the Tata group, but Ratan Tata is working as a mentor for the Tata group, due to which there are not many management disputes in the Tata group.
  • Tata Group Despite being India’s largest company, Ratan Tata does not come among the richest people of India, his stake goes to the Tata Group’s trust Sir Dorabji Tata Trust and Ratan Tata Trust, whose stake in Tata Group is more than 50%. .
  • Ratan Tata’s stake in the Tata group is less than 1%, so he is not among the richest people.
    Criticism on Tata Group / Criticism of Tata Group –

The Tata Group’s vehicles, mostly perform well in countries which are less developed, it is said that in countries like America, Europe, Tata Group has not been very successful in competing with the companies there, even though they have made a difference in the likes of Jaguva, Land Rover. Have bought the company. Government projects are an important source of income of the Tata Group in India, so it is not so easy for Tata Group to compete with international companies in open competition. If India’s market reduces the regulation for foreign companies, then it can be very difficult for Indian companies, so it is important for Tata Group to stay updated in technology.

Due to his company Tata Indicom Jio in the telecom sector, he had to retreat in the market. Due to the controversies of the previous chairman of the Tata Group, Cyrus Mistry, the society saw a very bad image of the Tata Group, which Tata Group’s mentor Ratan Tata tried to fill and made the company a stable company again. India is completely dependent on foreign companies for the technology and it buys the patents for the Tata Group to use the technology in the auto sector and is completely dependent on the semiconductors in the case of a modification.

The important problem of all companies in India is research and development in which this group is not competing with foreign companies, only the people of India become experts in using the proposed technology. Otherwise, there was not much flaw in the company, due to which the Tata Group companies are everyone’s favorite companies in the share market since the inception of the company.

 Comparative Study of Tata Group & Reliance Group –

  • Starting from the Tata Group’s steel plant, it has expanded its business to a tech company like TCS, while the Reliance Group has established itself as India’s largest player in the telecom sector today by starting its business from the oil refinery.
  • In terms of market capital, both these companies remain the top companies in the Indian stock market out of 5000 companies.
  • Mukesh Ambani is the CEO and chairman of Reliance Group, while Ratan Tata has made Tata Group’s leadership Natarajan Chandrasekaran.
  • 60% of the income of Tata Group comes from this technology company TCS and the company is working in all sectors from auto sector to consumer products, Reliance Jio and oil petrochemical and retail platform of Reliance is the main business.
  • All the companies of Tata Group are run through Tata Trust, while Reliance Company is run by Reliance Industries through this petrochemical company.
  • Tata Group is known as a global brand while Reliance Industries wants to keep its business focused in India.

Conclusion –

The reason for taking the subject of Tata Group for writing was that how he runs his management, which is run by almost 6.5 lakh employees directly and many lakhs people are indirectly associated with Tata group, due to which they get income. Get a chance to earn. Here we tried to know about Jamsetji Tata, the founder of Tata Group, how he started Tata Group and how the Tata Group runs its business differently from other companies.

Many Tata Trusts are working in many social sectors like Cancer Hospital, Hospitals, Education, Sports. Although it is not easy to work successfully in many fields, but due to the management, leadership, capital strength of Tata Group, this skill is shown by expert management. Because it is not so easy to succeed in a new field and it is very difficult to mobilize good people i.e. employees for a project, but it has been shown by Tata Group by doing success.

Ratan Tata spends most of his income in the social sector, so there is a sense of respect among the people towards him in the society. Tata Group had to face failure in many projects, but they were able to emerge from that problem quickly, this is the reason why their success emerged as India’s biggest company, Tata Group Company. We have tried to know how the business model of Tata Group is through the article in which we have practiced with comparative analysis from Reliance Industries.



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