Ethical Leadership: Ratan Tata and India's Tata Group




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About The Tata Group

The Tata Group, which was founded by Jamsetji Tata in 1868, had grown to comprise over 100 companies in seven business sectors - communications and information technology, engineering, materials, services, energy, consumer products, and chemicals. Initially inspired by the spirit of nationalism, the group had pioneered several industries of national importance in India - steel, power, hospitality, and airlines. As of early 2012, the major Tata companies were Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications, and Indian Hotels.

The group had operations in 80 countries across the globe, and its companies exported products and services to 85 countries. It had revenues of US$83.3 billion in 2010-11, with 58% of this coming from business outside India. Tata companies employed over 425,000 people worldwide. The Tata Group’s contribution to the Indian exchequer for the year 2010-11 was US$6.93 billion out of the total US$210.26 billion.

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Each enterprise in the Tata Group operated independently, with its own board of directors and shareholders. These enterprises had a combined market capitalization of about US$80.59 billion (as on January 19, 2012), and a shareholder base of 3.6 million. The Tata Group had had a series of illustrious leaders - Jamsetji Tata (1868-1904), Sir Dorab Tata (1904-1932), and JRD Tata (1932-1991) - who spurred the growth of the company, taking it into newer businesses. But it was Ratan Tata, who took over the reins of the company in 1991, who was credited with making Tata a truly global group.....

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