Tata Sons Research Articles

Why Tata Nano Failed? From Ascent to Ashes: Unraveling the Tata Nano Saga – A Chronicle of Triumph, Tragedy, and Missteps

The Tata Nano launched in 2008 was initially marketed as the world's cheapest car, designed to provide an affordable transportation solution for the masses in India. It was a revolutionary concept that aimed to bring mobility to a wider segment of the population. Ratan Tata, the former Chairman of Tata Sons, envisioned the Nano as a symbol of innovation and social impact. Under his leadership, Tata Motors endeavored to create a compact, economical car that could transform the way people in India commuted. The global ambition of the Nano was to showcase India's engineering capabilities and demonstrate how a low-cost, frugal design approach could result in a groundbreaking product. Ratan Tata's vision extended beyond the domestic market, aiming to position the Nano as a viable option for consumers worldwide. However, despite the initial hype and anticipation surrounding the Nano, various factors contributed to its failure in the Indian market. Issues such as quality concerns, safety perceptions, marketing challenges, and changing consumer preferences played a significant role in the Nano's inability to meet sales expectations and establish a sustainable presence in the automotive industry. Ratan Tata made a roapmap to sell Minimum of 3 lacs of Tata Nano car in the first Years, but the reality is Tata Nano couldn’t cross the selling of 3 lacs units even after 8 years, before its get retired. Keywords: Anticipation, Envisioned, Groundbreaking, Innovation, Revolutionary

Exploring Empathy in Management: Compassionate Leadership - The Ratan Tata Way

Empathy in management has increasingly become recognized as a pivotal determinant of organizational success, influencing not only workplace culture but also overall performance metrics. This research paper undertakes a comprehensive exploration of empathetic leadership, spotlighting Ratan Tata, Chairman Emeritus of Tata Sons, as a quintessential example of compassionate leadership. By delving into empirical evidence and employing detailed case studies, this study seeks to illuminate the multifaceted impacts of empathetic leadership within organizational contexts. The paper examines how empathetic leadership practices, as exemplified by Ratan Tata, foster heightened levels of employee engagement, thereby cultivating a workforce that is not only more motivated but also more committed to organizational goals. Furthermore, it explores how such leadership styles contribute to enhancing organizational resilience in the face of challenges, fostering an environment where adaptability and cohesion thrive. Through the lens of Tata's leadership journey, the research aims to uncover specific strategies and behaviors that promote empathy within leadership roles. It analyzes pivotal decisions and interactions where empathy played a critical role in shaping outcomes, such as during significant acquisitions, organizational restructuring, or crisis management scenarios. By drawing on both qualitative and quantitative methodologies, including interviews, archival analysis, and comparative case studies, the paper endeavors to provide actionable insights into the practical application of empathetic leadership principles. Ultimately, this research paper not only underscores the theoretical underpinnings of empathetic leadership but also offers practical implications for organizational leaders and managers seeking to cultivate a more empathetic and inclusive workplace culture. By elucidating the linkages between empathetic leadership and organizational success, the study contributes to a deeper understanding of leadership dynamics in contemporary business environments and advocates for the integration of empathy as a core competency in leadership development programs and organizational strategies

"Catalysts of Corporate Change”: A Profound Examination of the TCS vs. Cyrus Investments Legal Odyssey

In this scholarly investigation, we delve into the highly discussed legal conflict between Cyrus Investments Pvt Ltd. and Tata Consultancy Services Limited (TCS), which brought important issues in corporate governance to the fore. The main goal of this study is to provide an in-depth analysis of this legal dispute, its implications, and the long-lasting effects it has had on India's corporate landscape. An introduction to the case serves as the preface to our discussion and sets the stage for a deeper investigation. Here, we go into the main goal of this study, which is to analyse the many parts of this dispute and shed light on its implications for India's corporate governance sector. We unfold a narrative scenario in the section devoted to the historical and contextual background, illuminating the historical events that led to the estrangement between Tata Sons Private Limited (TATA Sons) and Cyrus Mistry's family. The core of this scholarly paper is encompassed in the analysis of governance conundrums, which includes a critical assessment of Section 241 of the Companies Act, 2013 (Act) and the Articles of Association (AOA) of Tata Sons, specifically Article 75. We examine the legal ramifications while focusing on the discussions and court rulings that have shaped the outline of this battle. The study explores the Tata Group's influence in more detail, thinking about how it may affect the conglomerate's reputation and operational strategy. To determine whether this legal conflict has prompted changes in the field of corporate governance methodology, the regulatory implications are carefully investigated. In this discourse, ethical considerations are painstakingly weaved into the fabric to reveal the case's ethical dimensions, which include corporate morality, fiduciary duties and corporate accountability. We summarize important findings and offer suggestions, highlighting the significant ramifications for corporate governance in India. This research study offers essential insights for policymakers, academics and practitioners in the field of corporate governance by providing a thorough dissection of a legal conundrum that has significantly altered the corporate landscape.

Tata Consultancy Services Limited vs. Cyrus Investments and Ors.

Tata Sons established Tata Consultancy Services (TCS) as a division on April 1, 1968. Mumbai, Maharashtra is home to this multinational Indian information technology (IT) services and consulting company. TCS has locations in 46 different nations. One of the most influential businessmen in India is the businessman, Ratan Tata. He formerly served as both the Chairman of the Tata Group and the Chairman of Tata Sons. Founded on March 7, 1923, Cyrus Investments Private Limited is an unincorporated organization. It serves as a financial adviser. It falls under the definition of a "company limited by shares" and is a private, unlisted firm. Cyrus Mistry is an entrepreneur from India. From 2012 until 2016, he served as Chairman of the sizable Tata Group of companies. He is one of the directors of Cyrus Investments Private Limited, one of his businesses. On October 24, 2016, Tata Sons Limited's Board of Directors and Majority Shareholders ousted Cyrus Mistry and shifted from his role as Executive Chairman after they lost confidence in his ability to lead the company. The chairman of Tata Sons Limited is N Chandrasekaran, formerly the chief executive officer and managing director of TCS. A general meeting of shareholders decided to remove Cyrus Mistry from the Tata Sons board of directors. Cyrus Mistry then filed a complaint with the National Company Law Tribunal (NCLT) in Mumbai, charging Tata Sons' operational mismanagement and violation of Sections 241, 242, and 244 of the 2013 Companies Act[1]. The question at hand in this instance is whether the NCLAT's order to restore Cyrus Mistry can be appealed. This case deals with the question of whether the NCLT's decision to restore Cyrus Mistry to his previous role as chairman of the TCS group is maintainable. In the well-known case of Tata Consultancy Services Ltd. v. Cyrus Investment Pvt. Ltd. & Ors., also referred to as the Tata- Mistry controversy[2], the Hon’ble Supreme Court issued its ruling. The conflict stems from a boardroom takeover in 2016 that resulted in Cyrus Mistry's resignation as chairman. This case is regarded as one of the country's largest corporate legal disputes.

Tata Sons and the Battle for Control: A Case Study of Family, Trusts, and Shareholders

With activities in more than 80 countries and a presence in seven major industries, the Tata Group is one of India's biggest and most prestigious commercial empires. Unlisted and with a complicated ownership structure, Tata Sons is the holding company of the Tata Group. In this case study, we'll look at the circumstances that led to Cyrus Mistry being fired as chairman of Tata Sons and the establishment of a committee to pick his replacement. This case sheds light on ownership structure and power dynamics in major firms play a major role in the complex and dynamic character of industrial relations. Moreover, the situation involving Cyrus Mistry and Tata Sons demonstrates how negotiating may be useful in labor relations. Mistry and Tata Sons reached a resolution through negotiation. Understanding the complexities of labour relations in big businesses is crucial, as demonstrated by this case. The instance illustrates how negotiation, ownership, and power may all have an impact on how workplace interactions are shaped. Companies that want to maintain successful and stable labour relations must be aware of these variables and ready to manage them. Mistry appealed the decision in court after being let go. A settlement was eventually reached after a three-year judicial struggle between Mistry and Tata Sons.

Tata Sons and the Battle for Control: A Case Study of Family, Trusts, and Shareholders

No Abstract.

INDIA'S TOP TEN CSR CONTRIBUTING COMPANIES AND THEIR CONTRIBUTIONS TOWARDS ENVIRONMENTAL SUSTAINABILITY

This research paper explores the top ten CSR-contributing companies in India and their contributions toward environmental sustainability. The study analyzes the CSR spending patterns of these companies and the percentage of their CSR funds directed toward environmental sustainability. The results indicate a significant variation in CSR spending and contribution towards environmental sustainability among the top ten companies. Companies like Wipro Ltd, ITC Ltd, and Infosys Ltd have directed a considerable percentage of their CSR funds toward environmental sustainability. On the other hand, companies like Tata Consultancy Services Ltd, Tata Sons Private Ltd, and Indian Oil Corporation Ltd did not contribute to environmental sustainability, despite significant CSR spending. The findings suggest that there is a need for companies to prioritize environmental sustainability in their CSR activities, given the current environmental challenges faced by the country. The study recommends that companies should adopt sustainable practices and invests more in environmentally sustainable CSR initiatives to achieve a balance between economic development and environmental conservation.

Jamshed Jiji Irani (1936 –2022)

Dr. Jamshed Jiji Irani passed away on 31.10.2022 at the Tata Main Hospital in Jamshedpur. He was 86 and was ailing for some time. In fact, Dr. Irani had received severe internal injuries as he slipped in February, 2021, in the bathroom at his house near Beldih Golf Course in Jamshedpur. He was rushed to the Tata Main Hospital, where he was treated and discharged, but did not fully recover thereafter. Dr. Irani is survived by wife Daisy Irani and three children Zubin, Niloufer, and Tanaaz. Dr. Irani had a close Nagpur connect, as he was born here and had his education upto the post graduation level in the Orange City. Starting his school education in SFS School, he did B.Sc. from College of Science (now Institute of Science) in 1956 and post graduation in geology from the Nagpur University, P. G. Department of Geology in 1958. He decided to switch over to metallurgy and was awarded the J. N. Tata fellowship to study abroad. Dr. Irani earned his master's in 1960 and doctorate in 1963 in metallurgy from the University of Sheffield, U.K.. After a stint with British Iron and Steel Research Association, U. K., he returned to India in 1968 and started his innings with Tata Iron and Steel Co. Ltd. (TISCO), now Tata Steel. He soon rose to higher ranks, getting promoted to the post of Managing Director in 1992. Dr. Irani took over as MD from the high profile Mr. Russi Mody. Soon after, Dr. Irani took steps to make his company's steel prices competitive for the world market and bagged export orders. At this time Tata's steel prices were the lowest in the world. His position as the Head of Tata Steel and his apt handling of the company earned him the title "Steel Man of India" who reinvented Tata Steel. He took giant steps to enable local entrepreneurs around Jamshedpur develop their skills and become suppliers to the Tata companies, including Tata Motors, Jamshedpur. With his initiative, Jamshedpur soon became a hub for ancillary suppliers. With Dr. Irani at the helm of affairs, a new work culture of 8-hour shifts began at Tata Steel. He was elevated as Director, Tata Sons, a post that he held till 2011, along with boardroom posts in other Tata companies including Tata Motors and Tata Tele Services. Dr. Irani continued to remain on the Tata Steel board as Director till 2011. Dr. Irani was conferred an honorary knighthood (KBE) by Queen Elizabeth II in 1997. He was awarded Padma Bhushan in 2007 from Government of India. In 2004, the government appointed him as the Chairman of the Expert Committee for formulation of the new Indian Companies Act. He also held the post of National President of Confederation of Indian Industry (CII) during 1992-93. Dr. Irani was always a cricketer till his last years and also an avid stamp and coin collector. The leader and great visionary retired from all the posts of Tata companies in 2011, settling down at Jamshedpur to lead a peaceful life. Dr. Irani maintained a deep connect with the Gondwana Geological Society and his moral and philanthropic support always came by, whenever requested for. Our Society is extremely grateful to Dr. Irani for his encouragement and support and has sadly lost one of its most esteemed members. We deeply condole the passing away of Dr. Irani.

R. R. Nair Interviews R. Gopalakrishnan

R. Gopalakrishnan a stalwart corporate leader and author truly personifies the successful transmogrified ‘portable’ leader, adept at transitions across functions, intra and inter companies, geographies, and industries, even as he continues to think and write deeply on leadership praxis. Using examples from two companies, Unilever and Tata Sons, in which he spent 48 years, he offers the ‘fruits of labour’ (the manifestations) from deep-seated roots, embedded firmly over the years. The author responds to the changes in the environment as also the cultural kaleidoscope that creates the springboard for leadership action. The author provides lodestones of wisdom fashioned through the anvil of his rich experience, penetrative eye, deep intellect and research, and smart eloquence. Compellingly argued by RG, brilliantly sussed out by Maestro R. R. Nair, this interview will provide rich answers to young practitioners who wish to discover ‘Indianness and the Indian Leader’.

Acquisitions, Mergers, Joint-Ventures, Alliances, Partnerships and other Business Combinations, a study of TATA Sons, their journey, impacts and strategies for the Airline Industry

Acquisitions, Mergers, Joint-Ventures, Alliances, Partnerships and other Business Combinations, a study of TATA Sons, their journey, impacts and strategies for the Airline Industry

Arbitrate and Violate - A Critique of the Foundation Laid by the Delhi High Court in the Case of NTT DoCoMo Inc. vs. Tata Sons Limited

The decision of the Delhi High Court in the matter of NTT DoCoMo Inc vs Tata Sons Limited and the settlement thereof in the year 2017 has attracted significant attention from all stakeholders. The case involves an analysis of the foreign direct investment policy and the regime regarding foreign investments in India and exits of foreign investors from companies in India. The dispute involves an interplay of interpretation of contracts and the role of the Reserve Bank of India. While the Foreign Exchange Management Act, 1999 does not permit “assured returns” to a foreign investor at the time of its exit, it appears that the arbitral tribunal, and the DHC took a favoured view when it came to NTT DoCoMo Inc. The decision of the DHC, upholding the foreign arbitral award for a contract that was in obvious violation of FEMA was quite startling. Unfortunately, this rationale was also used by the Supreme Court in the case of Vijay Karia & Others vs Prysiman Cavi E Sistemi SLR & Others, which further compounds this issue. The Apex Court accepted the view of DHC in the NTT Docomo case, and held that a violation of the provisions of the FEMA does not result in a “breach of public policy of India”. This paper aims to analyse and critiq the decisions taken by the arbitral tribunal, DHC and the Supreme Court in the case of NTT DoCoMo Inc vs Tata Sons Limite and Vijay Karia & Others vs Prysiman Cavi E Sistemi SLR & Others. Besides legality, these two cases also raise serious concerns regarding the quality of corporate governance of companies and the professional ethics of legal advisory services, which has been discussed further in this paper. In the author’s view, RBI, as a custodian of the foreign currency reserves and implementer of FEMA, is best placed to interpret the regulations and operational guidelines issued under FEMA. The decision in these two cases, where the parties have used the international arbitration clause to bye-pass the laws of India, has now provided a template for parties to enter into contracts with a deliberate intention to bypass the provisions of the law, and indulge in unethical practices. The paper tries to elucidate how these cases have set an incorrect precedent as regards assured returns in India. Keywords: “assured returns”, “international arbitration”, “Tata - NTT Docomo Dispute”, “pricing guidelines”

Vistara: Turbulence for the Tatas?

This case talks about Vistara, an airline brand registered under the name of Tata Singapore Airlines (SIA) Airlines Limited, which started as a joint venture between Tata Sons and SIA Limited in 2013. While the company was founded with the intent to expand, as suggested by its brand name, the airlines has failed to register positive returns ever since its inception despite a 190% compound annual growth rate (CAGR) in total revenue from financial year 2016 to financial year 2020. While company’s ratios have shown a dismal performance over the years, its competitors and the market leader have shown better performance or at least some form of leadership in one of the operating aspects. In an industry plagued with problems such as fluctuating crude oil prices, rising maintenance and leasing costs, and other operating costs, most of the airline companies have registered losses in recent years, the magnitude of which has further aggravated due to COVID-19. Vistara will need to revisit its short-term and long-term strategies to expand its position in the Indian as well as the international aviation market.

Ownership Characteristics,Corporate Social Responsibility, Resource Productivity And Firm Performance: An Empirical Study

Corporate governance continues to be at the forefront as evinced by some of the recent incidents at organisations such as Tata Sons, Yes Bank and ICICI bank. Traditionally, ownership characteristics have been considered as close substitutes representing corporate governance, considering that board processes and activity do not yield themselves to much scrutiny beyond a few media reports and analysis. The research article undertakes a study of ownership, corporate social responsibility(CSR) and resource productivity in the Indian context. Using a sample of 900 firms from the non-financial domain, the study uses multivariate regression to identify the effect on market based measure of firm performance. Results indicate that all the ownership variables have a positive and significant influence on market based metrics of organisations. However, the CSR orientation or intent does not indicate any impact on organisation’s market based metric. The resource productivity, on the hand is strongly positive, indicating that markets recognise, intuitively the impact of competencies and capabilities of people. For practitioners, the implications are the quest to identify further levers of strategic and competitive advantage since the governance indicators have merely explained a small part of firm performance.

Tata Sons and the Mystery of Mistry

Tata Sons and the Mystery of Mistry

Tata Sons and the Mystery of Mistry

Tata Sons and the Mystery of Mistry

The Impact of NTT Docomo INC v. Tata Sons Limited on the Enforcement of Foreign Awards in India

This paper attempts to analyse the judgment of Hon'ble Delhi High Court that dealt with the conflict between enforcement of international arbitration awards and the foreign exchange laws or monetary laws.

Vistara: Aiming for the Sky

Vistara—a joint venture between Tata Sons (India) and Singapore Airlines (Singapore)—is a full-service private airline in India that launched operations in January 2015. The airline has been growing at a steady pace and has already won a number of awards, but going forward it shall have a number of challenges to confront, especially on how to increase its market share in an industry dominated by low-cost carriers and prone to uncertainties emerging from external factors beyond its control (e.g., fuel prices and an uncertain political environment). To further complicate issues, Indian aviation, despite being among the fastest growing aviation markets across the world, is still making heavy losses. For Vistara, a lot is at stake considering that the airline is backed by two major reputable organizations. In the times to come, the airline will have to learn how to navigate the complex aviation environment and seeks ways to live up to its name, which means limitless expanse.

CROSS BORDER ACQUISITION OF JLR: A BOON OR PAIN FOR TATA MOTORS

ABSTRACT The trend of mergers and acquisitions (M&A) has seen a surge during the past decades. Indian companies have also adopted the strategy of mergers and acquisitions for their expansion & growth. It facilitates the corporations in gaining competitive advantages and increase in their shareholder’s wealth. The study till date analysed both inbound and outbound deals and M&A’s positive or adverse impact on a company. Studies conducted in the past showed that the rate of unsuccessful mergers and acquisitions were more in number than the successful ones. This paper attempts to evaluate the effect of Earnings before Interest and Tax (EBIT) of Jaguar & Land Rover (JLR) on share prices of Tata Motors. Tata Motors is an Indian conglomerate automotive company of Tata Sons based in India and also the parent of JLR. Tata Motors has acquired JLR, a British multinational automotive company, in 2008 for $2.3bn. This study has taken price movement of a share of Tata Motors on NSE for the year 2008 to 2018 and correlated it with the corresponding years’ EBIT of JLR which significantly contributes to profits of Tata Motors in the form of dividends. Thirteen weeks price moving an average of Tata Motors on NSE is taken as one set of variable, and quarterly EBIT of JLR is taken on another. The study has also taken into consideration various macroeconomic factors that would have had an impact on the performance of JLR and in turn on the prices of Tata motors. This study found that the EBIT of JLR is positively correlated with the share price of Tata Motors. Keywords Acquisition, Earning Before Interest and Tax, Share Price, Correlation

Corporate Governance at Tata

Mr. Cyrus Mistry’s tenure as the Chairman of Tata Sons was cut short in a board meeting conducted on October 24, 2016. Mr. Mistry was the Chairman of Tata sons for the shortest period of time hitherto. According to Cyrus Mistry, his dismissal was illegal and invalid. Cyrus Mistry also claimed that the Articles of Association of the holding company were changed after he took office, “alternative power centres” had been created reducing him to the position of a “lame-duck chairman”. Several theories have been built to explain Cyrus Mistry’s ouster. These theories dwell on under-performance, clash of cultures, reversal of policies and practices, erosion of values, handling of certain delicate situations, Mistry’s inability to deliver on the promises he made at the beginning of his tenure, Mistry kept his plans secret from the directors, although the directors were asking for more visibility. It is indeed confounding that Ratan Tata was at the helm of the Tata conglomerate for more than two decades and even then he could not identify/groom a single person for filling-in his role.

Tata Group: Trauma of Transition

The case is set around the removal of Cyrus Mistry from the Chairmanship of Tata Sons Ltd, the holding company of the Tata Group. The case traces the origin and evolution of the Tata Group, the challenges of succession as experienced by the group and the emerging challenges of adapting to a new paradigm of its global existence. The case also explores the unique organization structure of the group, genesis of its value system, the reality of its suboptimal performance, and the challenges of nurturing organizational processes to ensure all-weather leadership for the changing times. The case brings into focus the social context of an organization and brings in the debate whether profit maximization is the only prime objective of an organization or whether profit maximization has to rank along with the social commitment of the organization.