The Untold Story of Tata Group | Fact Glow
The Untold Story of Tata Group
If you live in India, you must have come across some product of Tata Group of Companies at some point of time. If you look at the vehicles running on the roads, then look at Tata Motors. If you look at the planes flying in the air, then look at Air India. And the iconic Taj Hotel here is famous all over the world, which is owned by Tata Group.
From power to fashion and from tea to salt, Tata Group of Companies rules everywhere. There are more than 100 small and big companies all over India. There are companies which come under the Tata Group. Now here you would think that all this success has come from the courage and vision of Ratan Tata. Yes, his contribution is definitely there but the links of success of this empire that we see today go back 150 years.
In today’s article, we will open this story and know how a visionary made his dreams come true and made Tata Group a global power house. Tata Group’s products from 150 Exports are made to more countries, while Tata Group itself manages its operations in more than 100 countries.
According to the estimates of 2024, the capital of Tata Group is 403 billion dollars, which is 33500 billion in Indian currency, while in Pakistani rupees, this number is It is so big that the debt owed by Pakistan can be paid off not once but twice. Be it vehicles, jewellery, salt or leaves, from the airline industry to real estate service, Tata Group has established its presence in more than 24 products or services.
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This journey of success was started not by Ratan Tata’s grandfather but by his great grandfather Jamshed ji Tata, 156 years ago, he started his business with only with 21 Thousands Rupees. Jamshed ji used to work in cotton trading with his father and when he was 1868, he started his own business. The cotton he sold was mostly exported and some of it was bought by textile mills and sold in the form of clothes.
In this way, Jamshed ji got the idea that along with selling cotton, he could also open a textile mill. But setting up a mill required a lot of investment and it was quite risky to invest so much money in a new business. At that time, an oil mill in Chinch Pokli was incurring huge losses and took the ultimate decision when the bank failed so they bought it at cheap rates.
He bought an oil mill and converted it into a cotton mill and started running it. The mill was named Alexandra. After two years, he sold the loss-making mill at a profit and saved the money for a new manufacturing plant. Bombay was the hub of the cotton market, which was also called Cotton Opolis of India. Jamshed ji himself belonged to Bombay, but despite this, he established his new cotton mill in Nagpur, 770 km away from Bombay.
This new mill was named Empress Mill. The name was given to him, on which the people of Bombay taunted him for building a mill so far away from the cotton market. No one could understand that when Bombay is the hub of the cotton market, then why did Jamshed ji set up a mill in Nagpur? But time proved that this decision of Jamshed ji was very good.
Firstly, the raw material i.e.cotton crops were mostly near Nagpur, due to which there was no issue of supply of raw material. Secondly, the region was water. Supply Cotton requires a lot of water during the process of making cloth and Nagpur has many rivers and lakes due to which water supply was not an issue.
The third region was the availability of laborers because the demand for laborers is high in cities like Bombay. Due to this reason, there was often shortage of laborers there and due to high cost off in the city, their rates were also high there but due to high unemployment in Nagpur, the rates here were very low and the availability was high now because in this area Earlier, there was no cotton mill, that is why the workers there were not very trained.
There was a need to work hard on them. Jamshed ji noticed that the workers did not pay much attention to the work and after that they took leave and this also happened on most of the days. Jamshedji Tata was troubled by the fact that more than 20% workers were on leave, but to solve this issue, he adopted a method 150 years ago which is difficult to imagine even in today’s modern era.
Instead of scolding the workers and cutting their salaries, he decided to provide them with great facilities. He introduced a scheme that all the workers of his factories would get pension after retirement. They were also provided medical insurance and organized sports days for their entertainment. And family days were also organized and the better performing workers were also given rewards in front of everyone, that is, all this is understandable in today’s era, but in that era, doing this was no less than a dream
This scheme of his also worked, the workers started feeling valued, they started working considering the company as their own. Jamshed ji believed that to make India strong, it is very important for everything to be manufactured in India and this was his mission.
He kept trying for this and started setting up more Companies. At that time, silk was considered a very premium fabric and the most A class silk was imported from France. French silk worms were known all over the world for producing the best silk.He went and from there brought the French silk worm breed to India but the issue was that these silk worms were capable of giving good production only in the climate of Europe and it was very difficult for them to survive in India, hence he established a silk firm in Bangalore.
The Climate there was much better for this particular silk worm but was not perfect. In the beginning they had to face a lot of difficulties as French silk worms were often prone to diseases. To fix these issues, for the first time, silk was grown in a controlled environment. The concept of worm farming was also brought by Jamshed ji Tata.
Luckily, this experiment worked and in this way Jamshed ji made India capable of producing excellent silk in the form of Tata Silk. Today India is one of the largest silk producers in the world. And all this has become possible because of those first experiments, innovations and research. At that time India was under the rule of British East India Company and French East India Company.
Jamshed ji targeted the French East India Company and in 1885 a company was established in Pondicherry. The sole purpose of which was to introduce Indian textiles to the French colony, but this idea did not succeed due to low demand. Apart from cotton, he also wanted to expand his network further.
He wanted whatever things are used in India. It should be completely manufactured in India. He had a total of four dreams: iron and steel manufacturing, hotel, education and hydroelectric plant. The only dream that he could see fulfilled was The Taj Mahal Hotel, which was completed in 1903.When Taj Mahal Hotel was opened for the first time, it was the first hotel in India which had electricity connection.
Apart from this, American fans, German elevators and Turkish bath were also installed in it. Initially the room rent of Taj Mahal Hotel used to be only 13 Indian rupees which included attached bathroom. There are many famous stories about what was the reason behind opening the Taj Mahal Hotel. It is said that once Jamshed ji did not get permission to go to the famous Watsons Hotel of Bombay, which is also known today as Esplanade Mansions because it was only for Britishers.
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It was for this reason that he decided to build Taj Mahal Hotel but this story was declared false by a writer named Charles Allen and wrote that Jamshed ji could not take such a small thing to heart but he was very fond of his city Bombay. And he wanted to give a gift to his home town. The Taj Mahal hotel was designed in such a way that the view of the sea is visible from every room in such a way that it seems as if the hotel is floating on the sea.
The British were rapidly laying a railway network across India, in which thousands and millions of tons of iron were imported from Britain. Jamshed ji had a dream to manufacture steel in India itself, due to which he used the iron reserves to make steel all over India. Started searching, this search continued for 17 years and finally iron reserves were found in Bengal.
Steel plant was started in 1899 but unfortunately, Jamshed ji was not destined to see steel being made. Jamshed ji died in 1904. And to carry forward his incomplete mission, his son Dorabji Tata had to come into the field. To carry forward this mission, Iron and Steel Company was established in 1907, which is today known as Tata Steel, this is the first in Asia.
There was a steel plant and during the World War I, the British fulfilled their demand for steel through this plant. Under the influence of Dorabji Tata, Tata Group started growing rapidly. In 1910, he established India’s first hydro electric company in the name of Tata Power. Where electricity started being generated with the help of natural waterfalls and artificial lakes and many big industries started supplying electricity from this power plant because at that time science was progressing all over the world and Tata Group India.
He did not want to look back under any circumstances, that is why he laid the foundation of the Indian Institute of Science, Bangalore so that it could compete with the world in the field of science and research and this institute also helped India a lot in making its first computer and its first aircraft.
Tata Group Not only was it making progress, but it was bringing such a facility to the workers which no other company in the world was adopting. The shift of the workers was limited to eight hours so that they could finish quickly and go back home and be with their families. We spent time together and today this policy of Tata which was introduced 100 years ago is working all over the world.
Here Dorabji Tata’s life also came to a full stop. He died in 1932 but in these 28 years he worked for Tata. The group was blessed with steel power science and many other things. After Dorabji the responsibilities of Tata Group came into the hands of one of his family members, JRD Tata. JRD Tata had experience in aviation, that is why as soon as he took control, he decided to take control of India.
JRD Tata will give his own airline. JRD Tata laid the foundation of TATA Airlines, which was no less than a revolution. India had got its own airline, the first flight of which was flown by JRD Tata himself as a pilot and he also got the title of being India’s first commercial pilot. But after getting independence in 1947, the Indian government took control of many industries present in India, including Tata Airlines and its name was changed to Air India.
Now it was the turn of the chemical industry. JRD Tata realized that the chemical industry in India was Industries exist but to complete their work, they have to import most of the important chemicals from other countries. For example, caustic soda and soda ash were required to make products like glass soap and surf, but these chemicals are not produced in India.
They were imported from other countries, that is why in 1939, a company by the name of Tata Chemicals was opened which produced all the chemicals for India itself. This company helped a lot in growing India in the field of fertilizer and other sectors. Once again JRD Tata turned to transportation and started a company manufacturing trucks and engines, which we know today as TATA Motors.
TATA Motors makes many models of cars, trucks and other vehicles. TATA is still India’s motor. It is a big name in the industry and vehicles are also sent from here to South Africa. After that, when the world started moving towards computers and technologies in 1960, TATA Group was also not left behind. They established India’s first software and IT company TCS i.e. TATA Consultancy Service.
In 1984, JRD Tata realized that people in India drink tea very fondly, that is why TATA Group also took steps to meet the demand for tea. He started a company by the name of Tata Tea and that company became famous in the world. Till date, JRD Tata is a big name among the tea manufacturing companies, along with this, JRD Tata had now become old, that is why he called one of his family members from USA to India to take command of the business.
This family member is none other than Tata. Rather, it was Sir Ratan Tata. Initially Ratan Tata was given responsibilities only in Tata Steel and he took Tata Steel from loss to profit. JRD Tata was very impressed and that is why he made Ratan Tata the chairman of Tata Group in 1991. Because Ratan Tata was a man of the modern era, he wanted to use technology in everything.
As soon as he became the chairman, he thought that Tata Motors has been making cars and trucks but even today there is not a single vehicle whose complete manufacturing can be done in India. That is, some parts had to be imported from outside, that is why TATA Motors set up a new car manufacturing plant and India’s first car Indica was launched in 1998.
TCS, which earlier used to do only basic data entry and management work, It was shifted to software development and brought it in the list of world’s leading software companies. Under Ratan Tata, Tata Group started buying world’s famous brands. Tata acquired the then famous tea company Tetley Tea. Tata Steel acquired Corus Group and Tata Motors acquired jaguar.
In 2012 Ratan Tata Resign as a Chairman due to becoming old and appoint Cyrus Mistry as new Chairman. September 4 Cyrus Mistry died in accident and now chairman is Natarajan Chandrasekaran. Tata Group is still growing rapidly and is playing its role for the people not only in India but all over the world in every aspect of life. It is not the hard work of a person but the result of the blood and sweat of many people for 150 years.
So here is the “Untold Story of Tata Group”
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