Winning Bizness Desk

Mumbai.How Tata Group grew from ₹21,000 trading firm into ₹31 lakh crore global conglomerate

Tata Group, one of India’s largest private sector business groups, has grown over 158 years from a small trading firm into a global conglomerate with operations across nearly 30 companies. Of these, 26 are listed on stock exchanges. Their combined market capitalisation is more than ₹31 lakh crore, while the group employs around 11.6 lakh people globally.

From trading to hospitality, 1868 marked the beginning

Jamsetji Nusserwanji Tata founded the group in Mumbai in 1868 with an initial capital of ₹21,000. He later moved into manufacturing and established textile mills in Nagpur in 1877. His vision gradually expanded beyond business, with a focus on building industries and institutions that could contribute to India’s development.

In December 1903, Jamsetji Tata opened the Taj Mahal Palace hotel in Mumbai, marking Tata Group’s entry into the hospitality sector. After his death in 1904, his son Sir Dorabji Tata took charge and carried forward several major projects planned by the founder.

• Tata Iron and Steel Company, now Tata Steel, was established in 1907 at Sakchi, which later became Jamshedpur.
• Tata Hydro-Electric Power Supply Company, now Tata Power, was formed in 1910.
• The Indian Institute of Science was established in Bengaluru in 1911.

JRD Tata era expands the industrial footprint

JRD Tata became Chairman of Tata Sons in 1938 and remained in the position for 53 years. During his tenure, the number of companies in the group rose from 14 to 95, as Tata expanded into aviation, chemicals, automobiles and information technology.

Tata Airlines was founded in 1932 and was nationalised in 1953, eventually becoming Air India. Tata Chemicals was established in 1939, while Tata Engineering and Locomotive Company, or TELCO, was founded in 1945 and later became Tata Motors. Tata Consultancy Services, now known as TCS, was established in 1968.

Ratan Tata takes group onto global stage

Ratan Tata became Chairman of Tata Sons in 1991 and pushed the group towards international expansion through major acquisitions. The strategy transformed Tata from a largely India-focused industrial house into a multinational business group with significant overseas operations.

Among the biggest acquisitions under his leadership were Tetley Tea in the UK for $432 million in 2000, Corus Group of the UK and Netherlands for $12 billion in 2007, and Jaguar Land Rover in the UK for $2.3 billion in 2008.

Global revenues cross 65% under Ratan Tata

Ratan Tata’s tenure also saw the group launch products aimed at the Indian market, including the Tata Indica, described as India’s first fully indigenous passenger car, and the Tata Nano. International expansion became a major part of the group’s business, with overseas revenues eventually accounting for more than 65% of total group revenue.

JRD Tata’s contribution to aviation and technology also remained significant. India’s first licensed commercial pilot, he founded Tata Airlines in 1932 and helped establish the country’s civil aviation industry. He also founded TCS in 1968. He was awarded the Bharat Ratna in 1992.

Chandrasekaran leads restructuring and new investments

Natarajan Chandrasekaran became Chairman of Tata Sons in 2017 and is the first non-family professional to hold the position. Having earlier served as CEO of TCS, he has focused on restructuring the group’s business verticals, reducing debt and strengthening supply chains.

His tenure has also seen a renewed focus on electric vehicles, digital services, electronics and green energy. Tata Group acquired Air India from the Government of India in January 2022 and launched Tata Neu as a digital consumer platform.

• Semiconductor assembly and fabrication facilities are being developed in Gujarat and Assam.
• Tata Motors is expanding its electric vehicle portfolio.
• Battery gigafactories are part of the group’s EV strategy.
• Tata Power Renewable Energy is expanding its green power capacity.

Five leaders shape Tata Group’s evolution

The group’s evolution has been shaped by five major leaders: Jamsetji Nusserwanji Tata, Sir Dorabji Tata, JRD Tata, Ratan N. Tata and Natarajan Chandrasekaran. Each led the organisation through a different phase, from industrialisation and institution-building to global acquisitions and newer technology-focused businesses.

Sir Dorabji Tata established Tata Steel and Tata Power and introduced employee welfare measures, including an eight-hour working day in 1912 and medical benefits in 1915. Jamsetji Tata, meanwhile, laid the foundation for Jamshedpur and the group’s philosophy of linking business with community development.

Tata Sons remains the group’s principal holding company

Tata Sons Private Limited is the principal investment holding company of the Tata Group. Its ownership structure is distinctive, with philanthropic trusts founded by the Tata family holding 66% of its equity share capital.

The two largest trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. The Shapoorji Pallonji Group holds an 18.37% stake, while the remaining equity is held by Tata Group companies and family members.

Philanthropic trusts: 66% of Tata Sons’ equity. Shapoorji Pallonji Group: 18.37%. Tata Group companies and family members: remaining equity.

Five priorities define Tata’s current growth strategy

The group’s current strategy is centred on five broad areas as it seeks to expand its presence in emerging industries while consolidating existing businesses.

• Semiconductors: Setting up semiconductor packaging and fabrication facilities in Assam and Gujarat.
• Electric vehicles: Expanding Tata Motors’ EV portfolio and developing battery gigafactories.
• Renewable energy: Increasing green power generation through Tata Power Renewable Energy.
• Aviation: Integrating Vistara with Air India and expanding the airline’s international fleet.
• Digital services: Scaling up Tata Neu and its wider digital consumer ecosystem.

From a ₹21,000 trading venture started by Jamsetji Tata in 1868, the group has evolved into a diversified business network spanning manufacturing, technology, automobiles, aviation, hospitality, power, chemicals and digital services. Its present focus on semiconductors, electric mobility, renewable energy, aviation and digital commerce represents the latest phase of a 158-year corporate journey.