The Tata Empire: A Billion Dollar Story Centred Around Community Welfare
A Brief Overview of the Tata Group Companies And Their Recent Performances
Established in 1868 by Jamsetji Tata, the Tata Group has gone on to become India’s most valuable brand, currently being valued at around $20 billion dollars.
The Tata’s have always been driven by the motto of ‘Community First’ and in the process of their growth have established several entities and have provided innumerable services to benefit the community such as:
- Empress Mills, one of the first Tata companies, implemented employee welfare schemes long before they were enacted by low
- Before establishing Tata Steel in 1906 in Sakchi, Dorabji Tata first built a hospital in the village
- Tata Power, India’s first hydro plant, was established in 1910 with an aim to bring clean energy to Mumbai
- Dorabji Tata finances the Indian Olympic team going to Paris in 1924
- The Tata Memorial Hospital is established in 1941 with an aim to offer cancer care for all
- The National Centre for Performing Arts was set up in 1969 to preserve India’s rich heritage
Indian Institute of Science, the highest-ranked education institute in India, was established by the Tatas. Air India (then called Tata Airlines) was a visionary of JRD Tata.
The Tata group now comprises 30 companies with over 7 lakh employees.
The Tata Group (Tata Sons) has a market capitalization of over 11 lakh crores split across their 28 publically listed companies. With a presence in almost every sector one can think of, the Tata Group truly diversified.
The Tata group generated a revenue of close to ₹8 lakh crore in FY18–19 and that is close to 4% of India’s GDP. This by itself is a testament to the size of the Tata Empire.
The above chart shows the power of diversification and how the losses of one company are offset by others in the portfolio. Hence, having a diversified portfolio should be the first priority of all investors looking to grow their money at an inflation-beating rate.
The Tatas have come a long way since 1868 and have contributed tremendously to India’s development. We can only hope now that the current dispute between the Tatas and Mistrys passes by soon and the legacy of the Tatas continuous to flourish by focusing on community welfare.
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