The legend and his legacy

january 2014
The legend and his legacy
A tribute to Tata Founder Jamsetji Tata on his 175th birth anniversary
From the editor
W
hen one considers the history of the Tata group — represented by
more than 100 operating companies in industries as diverse as steel,
information technology and consumer goods, and with more than half a
million employees located in 100 countries — it seems remarkable that the seeds
of this venerable and vast organisation were sown more than 140 years ago in an
economy that was subjugated under colonial rule.
The titan who envisioned the Tata institution, not merely as a business
enterprise but as a partner in a still-fettered India’s endeavour for industrial and
social development, was its Founder, Jamsetji Nusserwanji Tata, whose 175th birth
centenary we commemorate this year.
Tata Review takes deep pride in paying homage in this issue to an
uncommon genius, a truly exceptional business leader and, just as importantly,
a wonderful human being. There is much within the folds of this edition about
Jamsetji: his ideas and their realisation, his words and his deeds, his vision and
his legacy. Our effort is aimed at bringing alive, to people far removed from his
time, Jamsetji’s extraordinary sense of business and strength of character.
Fast forwarding more than a hundred years, this issue of Tata Review
illuminates some of the developments and trends that are keeping the Tata brand
vibrant. We have a special report on the 18th Tata Business Excellence Convention,
where industry stalwarts and other high achievers interacted with Tata leaders
and executives. Also featured is an insightful conversation with Group Executive
Council member Mukund Rajan, whose responsibilities cover a wide spectrum of
business spheres.
The global spread of the Tata group is reflected in our stories on the surging
Jaguar Land Rover and the ever-successful Tata Consultancy Services, both from
the United Kingdom, the ‘refreshed’ Eight O’Clock Coffee in the United States
and, from India, the rapidly growing Tata Steel Processing and Distribution.
Tata-supported community initiatives — that indelible inheritance born
of Jamsetji’s world view — are explored in articles on First Book, a nonprofit
that works to improve child literacy in the United States; on Kalike Samruddhi
Upakram, another nonprofit, which is involved in Karnataka, India, with making
education more accessible and inclusive for the poor; and on the exertions
by a clutch of Tata companies to get more American students interested in
science, technology, engineering and math (collectively called STEM) courses.
In many ways, this issue of Tata Review is a microcosm of the Tata group,
with glimpses of its heritage, beliefs, people and operations. We do hope you will
enjoy reading it.
Warm regards,
Christabelle Noronha
Contents
VOL 51 | Issue 4
JANUARY 2014
Cover story
6
Jamsetji Nusserwanji Tata: A
tribute to the legendary leader
on his 175th birth anniversary
8
Navsari — the birthplace story
12 profile
jamsetji and industry
18 Indian Hotels by Raymond Bickson
22 Tata Steel by TV Narendran
26 Tata Power by Anil Sardana
jamsetji’s support for education
30Indian Institute of Science
33 The JN Tata Endowment
and its beneficiaries
42 Tributes by R Gopalakrishnan
and dwijendra Tripathi
46 bombay — citizen jamsetji
49 The quotable jamsetji Tata
Pictures courtesy: Tata Central Archives
In conversation
Business stories
54 Tata Global Beverages:
50 ‘It is a challenge
but I’m learning
Learning to STEM
Refreshing the offering
the tide
— Gayatri Kamath
— Christabelle Noronha
every day’:
Mukund Rajan speaks to
Sangeeta Menon
56 Jaguar Land Rover, UK:
66 Tata Steel
Back in cruise control
Processing and
— Peter Curtis
Distribution:
59 Tata Consultancy
Services, UK:
Digital tide shows the
fast way forward
— Peter Curtis
62 Tata Consultancy
Services, North
America:
‘We want to be a
global benchmark’
— Christabelle Noronha
70 Tata Central
Archives and Centre
for Excellence:
Custodians of
history
— Cynthia Rodrigues
Editor
Christabelle Noronha
Email: [email protected]
Assistant editor
Sujata Agrawal
Editorial team
Anjali Mathur
Cynthia Rodrigues
Gayatri Kamath
Jai Madan
Philip Chacko
Special report
Sangeeta Menon
Shilpa Sachdev
Shubha Madhukar
74 For future’s sake
Leaders and executives from across the Tata group and eminent
personalities from various spheres of endeavour came together at
the latest edition of the Tata Business Excellence Convention to
Contributors
Nithin Rao
Peter Curtis
explore ways in which companies could look past short-term profits
and consider the horizon beyond.
Design
— Sangeeta Menon
Abraham K John
Shilpa Naresh
Production
Community
Strategy
86 Tata Strategic
Management Group:
Divinity in the detail can
deliver benefits
— Pankaj Gupta
Perspective
Mukund Moghe
Edited and created by
in association with
The Information Company.
Email: [email protected]
Website: www.tata.com
contact
Tata Sons
Bombay House
88 Potent can be the
78 More than by the
book: Kyle Zimmer of First
power of patents
— Subramaniam Vutha
Book speaks to Christabelle
Noronha
92 Prepaid solution
— Govind Sankaranarayanan
82 sir ratan tata trust
and Navajbai Ratan
Tata Trust: Lessons of
to life Mumbai 400 001
Phone: 91-22-6665 8282
disclaimer
All matter in Tata Review is
copyrighted. Material published
in it can be reproduced with
Book review
change, from school
— Nithin Rao
24, Homi Mody Street
95 Meek and weak? You
can beat the odds
— Gayatri Kamath
permission. To know more,
please email the editor.
Jamsetji Nusserwanji Tata
(1839-1904)
The Tata group pays tribute to a visionary leader
who worked tirelessly to shape the future of India
6 Tata Review
n
January 2014
Ratan N Tata
Cyrus P Mistry
Former
Chairman,
Chairman,
Tata group
Tata group
There is no finer legacy
than what Jamsetji Tata has
left behind, and it is for us to
grasp the essence of his vision,
his values, his fortitude and his
humaneness as we strive to
make our efforts count.
Jamsetji set the mandate
for the group to look
beyond profits and serve the
communities in which Tata
companies functioned. More
than a hundred years later,
his vision remains the group’s
guiding force.
cover story
The 850 year-old
Vadi-Dar-EMeher, where
Jamsetji was
ordained as a
Parsi priest
The Navsari years
The sleepy town in Gujarat where Jamsetji Tata was born, and
spent the initial 13 years of his life, always remained close to the
Tata Founder’s heart, and he returned to it as often as he could
N
estled in the coastal lowland along the
Purna river in the western Indian state
of Gujarat is Navsari, the birthplace
of Jamsetji Tata, Founder of the Tata
group. It was here, in this picturesque land of
sugarcane fields, chikoo (sapodilla) plantations
and mango trees, that one of India’s greatest
pioneers and industrialists was born, on March
3, 1839, to Nusserwanji and Jeevanbai Tata.
Jamsetji’s family came from a long line
of Parsi priests and they lived in Mota Falia’s
Dastur Vad, an area where families of the Parsi
clergy generally stayed. Jamsetji and his four
younger sisters — Ratanbai, Maneckbai, Virbai
and Jerbai — grew up in this strongly religious
environment, wholeheartedly embracing the
tenets and practices of the Zoroastrian faith.
Ervad (a term of address for Parsi priests)
Homi Kotwal, a 79-year-old, has been looking
after the holy fires in the Parsi temples of VadiDar-E-Meher and the Navsari Atash Behram for
8 Tata Review
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January 2014
the last 50 years. He proudly preserves two old
books: the Athornan Vansavali, which records
the family trees of several families from Navsari,
including the Tatas, and a register of Navars — the
first stage of initiation into the Parsi priesthood
— ordained from 1633 to 1928. He points out
Jamsetji’s name in the register and says that it
was his great, great, granduncle, Ervad Burjorji
Kotwal, who performed the Navar ceremony
that initiated the young Tata into priesthood.
Jamsetji was following in the footsteps of some 25
generations of the Tata family.
Who would have imagined then that this
particular Parsi priest was destined to one day
be acknowledged as one of the ‘nine jewels of
Navsari’? Who would have believed he would lay
the foundations of a business house which today
has more than 100 companies with operations
spread across the globe? It was here, in Navsari,
that the seeds of Jamsetji’s greatness were sown;
it was here that his remarkable story began.
cover story
The Navsari of today bears little
resemblance to what it was when Jamsetji
grew up here, but he lives on in the memories
of oldtimers, and the history of the town is
intimately interwoven with that of the Parsi
community he belonged to. In building the
qualities of head and heart that were to stand
by him both as a priest and as a businessman,
Jamsetji drew upon a rich Parsi heritage that has
moulded life in Navsari for more than 850 years.
the parsi influence
The Parsis, who first landed in India in a town
in Gujarat known as Sanjan, moved to Navsari
around AD 1141 to promote their trade. The
town was known by several different names,
including Nagvardhan, Nagshahi, Nag Mandal,
Nagsarika and, for a while, as Parsipuri (a
place where Parsis resided in large numbers).
Evidently, the Parsi influence was instrumental
in the naming of Navsari. One interpretation has
it that the place came to be known so because
‘Nav’ means ‘new’ and it had the same climate as
a place in Iran called ‘Sari’.
When the population of Parsis began to
increase in Navsari, the need was felt for more
priests to perform religious ceremonies. The
community enlisted the services of a person
called Hom Bahmanyar, whose descendants
came to be known as Bhagarias, or sharers.
Nusserwanji and his family belonged to this
group of Bhagaria priests.
The Bhagaria priests of Navsari were one
of the five groups (panths) of Parsi Zoroastrian
priests in the region, each of which had clearly
demarcated territories in which they could
perform religious ceremonies and earn their
money. Dinshaw Edulji Wacha, a prominent
politician and a contemporary of Jamsetji,
throws light on the environment and influences
that may have affected his industrialist friend in
his book, The life and life work of JN Tata.
According to him, there was a keen rivalry
amongst the priestly cadre in Navsari and the
environment was quite acrimonious. Many of
them held strong views and “doggedness and
perseverance in fact were the two principal traits
of the controversial clergy at Navsari,” Mr Wacha
wrote. Underlying the controversies was the
priests’ fervent wish to protect their faith.
Homi Kotwal, whose great, great
granduncle, Ervad Burjorji Kotwal, initiated
Jamsetji into the Parsi priesthood, holding
the register — open to the page (inset) —
which has the Tata Founder’s name in it
January 2014
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Tata Review
9
cover story
The house in Navsari where Jamsetji was born
Mr Wacha went on to explain: “Brought up
in his boyhood in a community possessing such
traits, it is perfectly intelligible what influence
heredity and environments must have exerted
on Jamsetji Tata, who all through his life was
preeminently distinguished for this great force of
character and perseverance.”
Controversies aside, Navsari was an
important place for Parsis, and their religion,
culture and society thrived here. For nearly 800
years, the town enjoyed the status of being the
religious headquarters of Parsi Zoroastrians
and their priestly families. The holy fire, first
consecrated in Sanjan, was later kept alight in
Navsari for nearly 300 years. The fire was then
moved to Udvada, where it currently resides.
The first Atash Behram — a Parsi temple
where the fire is of the ‘highest grade’ — in India,
other than the one in Udvada, was established in
Navsari in 1765. The town’s Vadi-Dar-E-Meher
(where the Atash Dadgah, or lesser grade of fire, is
housed and mainly used to train Parsi priests and
initiate them into the priestly ranks) is more than
850 years old, and is the oldest of its kind in India.
Among the other well-known Parsis who
hailed from Navsari, two names stand out:
Jamsetjee Jejeebhoy (1783-1859), the first knight
and baronet of India, and Dadabhai Naoroji
(1825-1917), the first Indian to be elected to the
British Parliament.
10 Tata Review
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Not much is known of the early years
and life of Jamsetji in Navsari. In those days,
formal education was nonexistent, and the
only form of teaching was through verbal
instruction in the Zoroastrian faith, the tenets
of which had a strong influence on Jamsetji’s
life. His mother, Jeevanbai, played a crucial role
in the development of his character, it is said,
setting a fine example for the growing boy and
instilling in him a strong dose of moral values,
contemplation, devotion to duty and love for
learning. The Parsi priests also taught him some
basic reading, writing and mathematics.
moving to bombay
Jamsetji’s formal education began at age 13,
when his father called him to Bombay and
he joined a local school. At age 14 he gained
admission to the Elphinstone Institute and
graduated from there as a ‘green scholar’ in 1858.
Although Jamsetji lived most of his life
outside Navsari, he always had a soft spot for
his native land. Even during the illness of his
last few days, he often chatted about his estate
in Navsari. Jamsetji was fond of horticulture
and did not hesitate to spend money on this
hobby, experimenting at his estates in Matheran,
Navsari, Ootacamund, Panchgani and Bangalore.
In Navsari he created a miniature botanical
garden, for which Jamsetji imported shrubs and
cover story
plants from places far and wide, including some
exotic species. According to Frank Harris, his
biographer, he also had several wild animals here
and part of the estate was made into a public
park for others to enjoy. Today, Tata Baug, as it is
called, stands as testimony of his love for nature.
Marzban Giara, author, publisher and
a student and researcher of Parsi history,
whose family hails from Navsari, nostalgically
remembers his mother telling him about the
ditty that she used to sing along with her friends
when they were young: ‘Chalo chhokra wadi jaiye
/ Tata seth ni wadiye’ (come on children, let’s
visit the garden of the wealthy Tata).
Jamsetji was known for his generosity and
hospitality. A rich man not given to display of his
wealth, he was like a benevolent patriarch and
many family members looked to him for advice
and to resolve conflicts. Fondly called Bapooji,
a pet name given to him by one of his younger
sisters, Jamsetji’s home in Bombay, Esplanade
House, was open to all his family members,
including distant relatives, and he enjoyed
meeting them and catching up on all the news.
‘Chalo Navsari’ was his standard invitation
to family and friends in Bombay, and he
welcomed them to his hometown. December
was usually the month when Jamsetji went to
Navsari, and while his wife and her companions
stayed in the house built by his father, he and the
male guests stayed at the house in the park.
Jamsetji was an early riser and he would be
seen in his garden before 6am every day. During
his Christmas break there, ‘Navsari week’ was
celebrated in town, with schoolchildren often
putting up a gala show and receiving prizes.
Older folk were given presents and there was
much merrymaking.
The Tata Founder loved his country
and was a great patriot, but Navsari always
remained close to his heart. During his lifetime
and afterwards, he and other members of his
extended family gave much to the town, by way
of generous acts of philanthropy, some of which
still remind us that the roots of the house of Tata
remain embedded in Navsari. ¨
— Jai Madan
The Navsari Atash Behram (fire temple) with a fire sculpture
and the Asho Farohar (winged guardian angel) on the façade
Jamsetji Tata Marg, the road behind the sprawling Tata Baug,
the private estate where Jamsetji created a botanical garden
A view of another section of the Vadi-Dar-E-Meher
January 2014
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Tata Review
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cover story
Industrialist,
nationalist,
philanthropist
Jamsetji Tata’s vision and business acumen would have been
enough to mark him as an extraordinary figure, but what made
him truly unique, the quality that places him in the pantheon of
modern India’s greatest sons, was his humaneness
12 Tata Review
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cover story
H
ad Mr Jamsetji Tata lived in Europe or
America, his name would have been
more familiar to the public.” This is
what Frank Harris wrote about the
Founder of the Tata group in his book, Jamsetji
Nusserwanji Tata: A Chronicle of his Life.
Jamsetji was more than an entrepreneur
who helped India claim a place in the league of
industrialised nations. He was a patriot and a
humanist, a man of his times and beyond, whose
ideals and vision shaped an exceptional business
conglomerate. These attributes contributed to
shaping Jamsetji’s world view as an industrialist,
one with a sturdy bent for nationalism and a
strong heart for social development.
Born on March 3, 1839, Jamsetji was raised
in the sleepy town of Navsari in Gujarat, the first
child and only son of Nusserwanji Tata, the scion
of a family of Parsi priests. When he was 13,
he joined his father in Bombay (now Mumbai)
and enrolled at Elphinstone College, from
where he passed out in 1858 as a ‘green scholar’,
the equivalent of today’s graduate. The liberal
education he received would fuel in Jamsetji a
lifelong admiration for academics and a love of
reading. Those passions would, though, soon
take a backseat to what he quickly understood
was the true calling of life: business.
The industrialist
An eager learner, Jamsetji gradually grew
from apprentice to a skilful practitioner of the
business arts under the tutelage of his father,
gaining knowledge about commodities and
markets, trading and banking. He started his
first company — a trading firm — in 1868 at the
age of 29, with a capital of `21,000.
Jamsetji made his move into textiles in
1869, when he acquired a dilapidated and
bankrupt oil mill in Chinchpokli, in the
industrial heart of Bombay, renamed the
property Alexandra Mill and converted it into a
cotton mill. Two years later, he sold the mill for a
significant profit to a local cotton merchant.
In 1874, Jamsetji floated a fresh enterprise,
the Central India Spinning, Weaving and
Manufacturing Company in Nagpur, with a
seed capital of `150,000. Three years later, the
Empress Mills — the early beginnings of what
would grow into the Tata group — came into
existence in Nagpur.
The period following the establishment
of Empress Mills was the most significant of
Jamsetji’s busy life. From about 1880 to his death
in 1904, Jamsetji was consumed by his three
great ideas for India: setting up an iron and steel
company, generating hydroelectric power, and
creating a world-class educational institution
that would tutor Indians in the sciences.
The nationalist
Jamsetji had set his heart on building a steel plant
in India that would compare with the best of its
kind in the world. This was a gigantic task. The
industrial revolution that had transformed Britain
and other countries had, by and large, bypassed
India. Officious government policies, the
complexities of prospecting in barely accessible
areas and sheer bad luck made matters worse.
Against the odds, Tata Iron and Steel was
established in 1907 by Jamsetji’s son, Dorab
Tata, and the first ingot of steel rolled off the
A young Jamsetji in traditional Parsi dress
January 2014
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Tata Review
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cover story
plant’s production line in 1912. Jamsetji had
been dead eight years by then, but his vision
continued to guide his descendants. Tata Iron
and Steel was a showcase for worker welfare
schemes: employees benefited from shorter
working hours, well-ventilated workplaces, and
provident fund and gratuity (long before these
practices became statutory in the West). Today
Jamsetji’s dream for India stands tall as Tata
Steel, a company that ranks among the top 10
steelmakers in the world.
Energy was another critical resource which
Jamsetji wanted India to have, because, as he
said, “Clean, cheap and abundant power is
one of the basic ingredients for the economic
progress of a city, state or country.” This was the
impetus for the setting up of India’s first power
plant, a 72MW hydroelectric station in Khopoli,
near Bombay, which was established in 1915
under Dorab Tata’s guidance. Today Tata Power
has grown into India’s largest integrated private
power company.
In all spheres, including philanthropy,
Jamsetji’s thinking was far ahead of his peers. At
a time when the prevailing practice among the
wealthy was to give alms to the poor or sponsor
religious activities, his thoughts focused on
how to make India a developed nation. “What
advances a nation or community,” he said, “is
not so much to prop up its weakest and the most
helpless, as to lift the best and most gifted, so as to
make them of the greatest service to the country.”
He was convinced that national resurgence
was only possible through multilevel
industrialisation, higher education and
scientific research. This was what motivated
him to establish an institution of advanced
scientific education and research, the like of
which even England did not have, at the end of
the 19th century.
Jamsetji donated half of his personal
wealth (14 buildings and four landed properties
in Bombay) towards the creation of the
Indian Institute of Science in Bangalore (now
Jamsetji Tata (extreme left) and the three men who formed the nucleus of the Tata group in its
early years: cousin RD Tata (centre) and sons Ratan Tata (standing) and Dorab Tata (right)
14 Tata Review
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cover story
Bengaluru). This institution opened its doors in
1911 and grew into one of India’s premier centres
for research and advanced scientific study. Over
the years, several of India’s foremost scientists
have been closely associated with the institute,
including Nobel laureate CV Raman, Homi J
Bhabha, Vikram S Sarabhai, and the latest Bharat
Ratna awardee, CNR Rao.
In his efforts to bring to life these three
visionary ventures, Jamsetji had to endure long
years of heartburn, without much tangible
recompense in his lifetime. Fortunately, he did
live to see at least one of his dreams come to
fruition. Jamsetji was keen to set up a luxury
hotel in Bombay, one that would match the
grandest of its kind anywhere in the world.
The foundations of the Taj Mahal Hotel were
laid in 1898 and the hotel was built at a cost of
more than `40 million. It was the first building
in Bombay to be lit by electricity, the first to
have American fans, German elevators, Turkish
baths and English butlers. Preceding the famous
Gateway of India by some 20 years, the hotel was
the first sight for ships calling at the Bombay
port. Today that seed sown by Jamsetji has grown
into the Taj Group, a 120-property hospitality
chain with a presence across the globe.
The philanthropist
Jamsetji’s philanthropic principles were rooted in
the belief that for India to climb out of poverty
its finest minds would have to be harnessed.
With this belief, in 1892 he set up the JN
Tata Endowment, a fund that enabled Indian
students, regardless of caste or creed, to pursue
higher studies in England. This beginning
flowered into the Tata scholarships, which
flourished to the extent that by 1924 two out of
every five Indians coming into the elite Indian
Civil Service were Tata scholars.
Jamsetji’s vision and business acumen
would have been enough to mark him as an
extraordinary figure. But what made him
truly unique, the quality that places him in the
pantheon of modern India’s greatest sons, was
his humaneness.
The distinctive structure the Tata group
came to adopt after Jamsetji’s passing, with a
Jamsetji Tata was a man ahead of his times. He laid the
foundation of an institution that is now spread across seven
business sectors, 100 countries and six continents
huge part of its assets held by trusts devoted
to ploughing money into social development
initiatives, is a direct outcome of the empathy
embedded in the group Founder’s philosophy
of business.
“It is by solid work such as your father
did,” wrote a friend to Dorab Tata, “that
India will be brought up to a higher standard
of comfort and civilisation.” Enshrined in
Jamsetji’s vision for business was the spirit
of nation-building and a commitment to
the community, and that continues to be the
guiding light for the Tata group. ¨
— Gayatri Kamath
January 2014
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Tata Review
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cover story
An excerpt from
The Creation of Wealth,
by RM Lala
A
young Englishman, Norman
Redford, who paid several
visits to Jamsetji, records that
on evening drives Jamsetji and
his colleagues would talk of schemes,
schemes and more schemes. Another
contemporary of Jamsetji recalled that ‘he
was not a man who cared to bask in the
public eye. He sought no honour and he
claimed no privilege. But the advancement
of India and her myriad peoples was with
him an abiding passion.’
Jamsetji’s mind spanned almost
every area of human endeavour, though
he was remembered for his three great
nation-building projects and the famous
Taj Mahal Hotel. He was never short of
schemes. He had plans to construct a
huge circular building where the Prince of
Wales Museum stands today in Bombay.
He wanted it to house an ice factory that
would cool offices in the circular building.
This was long, long before Carrier
invented air conditioning.
In his youth, he had travelled to China
and the Far East as well as to Europe
and the Middle East. In later years he
covered North America. He repeatedly
visited Europe and America for industrial
exhibitions that first became fashionable
in his days. He took advantage of these
journeys to study steel plants, coal
mines and factories abroad. George
Westinghouse encouraged him to visit
the Niagara Falls to study hydro-electric
generation of power.
Wheresoever he toured, whatever
16 Tata Review
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good he saw he wanted to bring its
benefits to his country. He introduced
to India foreign trees and plants which
he personally cultivated at his estates in
Panchgani, Bangalore and Ootacamund.
While in France he made a study of the
cultivation of the silkworm, and when
he visited Japan in 1893 he invited the
Japanese to experiment in sericulture. He
picked on Mysore for climatic reasons. He
discovered later that ages ago silk was a
flourishing industry of that State and he
had selected the right place and revived
the industry. Similarly he chose the Sind
area to experiment with growing longstaple Egyptian cotton. He gave detailed
instructions to a number of people how
to grow and experiment but, alas, the
experiment was not successful.
The textile mills at Nagpur became
Jamsetji’s laboratory. Here he tried
experiments in technology and labour
welfare never before attempted in India. To
conserve the new Company’s capital, he
purchased in Britain low-priced equipment
and, consequently, his yarn turned out
to be of inferior quality. Quickly learning
from his mistake, he replaced it with the
most up-to-date American machinery, ring
spindles, till then untried even by the mills
of Lancashire.
He installed the first humidifiers
and fire-sprinklers in India. In 1886, he
instituted a Pension Fund and, in 1895,
began to pay accident compensation. He
was decades ahead of his time and miles
ahead of his competitors.
cover story
An excerpt from
Jamsetji Nusserwanji Tata:
A Chronicle of his Life, by Frank Harris
M
r Tata was the central figure of
three generations, all of whom
looked to him for assistance or
advice. His father was a partner
and a friend; his sons were to him the
same. The whole family regarded him
with veneration and with a great affection.
Among them he is always spoken of as
‘Bapooji’ — the little father — a name
bestowed upon him by a sister ten years
his junior. He was kind, without being
indulgent, and would not permit his
children to waste time or money. His elder
son, when at Cambridge, was not given
an allowance, but, so long as money was
carefully spent, could draw freely on his
father’s purse.
In boyhood Dorabji Tata was frequently
at his father’s side, and was compelled
each day to give a full account of his time.
Now and again the father would unbend
and play with him, or compel the lad to do
some deed of boyish daring without the
flicker of an eyelash. On one occasion,
when the young Dorabji was balancing
himself upon the parapet of a well, and
every woman in the house was screaming
for him to come down, the father came out,
and assured them of his son’s safety by
encouraging the boy to take a further walk
along his dangerous perch.
If Mr Tata were told that he was
spoiling his nephews by giving them
money, he would retort that they should
learn how to spend it. His nephews loved
him, and looked forward as a great treat to
those occasional Sunday afternoons when
they were solemnly ushered into the study,
and had to give an account of their week’s
work, over ice-creams and cups of tea.
Mr Tata’s travels were timed, as
a rule, to coincide with some great
exhibition, where he saw inventions,
large and small, with which his country
was wholly unacquainted. He loved an
ingenious device. Though he cared little
for music, he bought an electric piano for
his home. When the cinematograph first
appeared, he acquired one at once.
He was a born pioneer. His
purchases were made, not so much for
himself, as to let India know what was
new in the great world across the seas.
His carriages were the first to be fitted
with rubber tyres, whose silent progress
amazed the crowd. In 1901, he brought a
motor-car out to Bombay, and delighted
in taking his friends on uncertain
excursions to which a breakdown only
added a spice of adventure.
He would not have a chauffeur: his
coachman had to learn to drive, and
when the car failed there were plenty of
coolies to haul it home. Someone had
to handle these hobbies. So Mr Jamsetji
selected a servant, to whom he gave a
few months’ training in mechanism, until
the man could adjust defects with varying
success. When Mr Tata bought his first
Diesel engine it had been set going before
the German engineer arrived to piece it
together. For Mr Jamsetji did not believe
in importing experts. “Let the Indian learn
to do things for himself,” said he.
January 2014
n
Tata Review
17
cover story
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cover story
An icon and an ideal
Raymond Bickson, managing director of Indian Hotels Company,
talks about the torch-bearing role played by the Taj Group and the
ways in which it continues to uphold Jamsetji’s vision
A
t Indian Hotels, we consider ourselves
custodians and torchbearers of the
vision of Jamsetji Tata. The company
was founded in 1901 and the Taj Mahal
Hotel opened in Bombay (as it was called then)
on December 16, 1903. Thus, we are the longest
standing operational company in the Tata group,
and we continue on the path that was defined
more than a hundred years ago by Jamsetji’s
ideals and philosophy.
Jamsetji was both an industrialist and a
nationalist. The genesis of the company lies in
his vision of a hotel that would be a beacon for
visitors to Indian shores. Back then, when the
idea of a hotel was germinating, he visited many
of the world’s capitals and stayed in the grandest
hotels. That was the basis on which the Taj
Mahal Hotel was created.
Because of Jamsetji’s vision, we were
pioneers in several aspects of the hospitality
business. We were the first Indian hotel with
electricity, the first to put in electric lifts,
telephones in every room and an ice machine.
We had Bombay’s first liquor licence —
numbered 001 — for the Harbour Bar. The
Taj was essentially a state-of-the-art, worldclass hotel that reflected the modern India of
Jamsetji’s vision. It continues to be so today.
For years now, the Taj has been considered
an icon that symbolises the city of Mumbai.
Much like the Eiffel Tower represents Paris, the
Gateway of India and the Taj behind it stand as
symbols of an India that was resurgent at the
turn of the century and is a strong economic
power today.
Among our people, we have many thirdand even fourth-generation colleagues of the
Taj family. To all of us the hotel is not just a
building or a place to work, but a representation
of our pride in the great hospitality tradition
that the Founder created. The Taj Mahal Hotel is
still recognised by several surveys as one of the
best hotels in the world. It is the flagship of the
122-hotel strong chain that is called the Taj Group
and it continues to encapsulate the idea that the
Founder had: to create a modern palace for India,
one that would rank among the world’s best.
flying the flag
For more than a century, the Taj has maintained
its premier position as the centre point of India’s
hospitality industry. Over the years, the hotel
has been a witness to many historic events of
local, national and international importance.
The farewell speech of Lord Mountbatten, for
instance, took place in our ‘grand ballroom’ (he
boarded his ship and left India after his speech
here). We have what is called the ‘princes’ room’,
January 2014
n
Tata Review
19
cover story
We believe that building the India brand overseas is a
part of nation-building, and in the last 10 years we have
taken our footprint beyond our shores to key source
markets, the only Indian hotel company to do so.
Raymond Bickson, managing director, Indian Hotels
where the royal princes met to discuss becoming
a part of the new India. More recently the hotel
has been the port of call for practically every
important head of state. The Taj continues to
have that cachet in the corporate world, too.
Over the last century, our operations have
changed and guest expectations have evolved.
For example, we were the first to bring in
Chinese cuisine, back in the 1970s. In the new
millennium, we brought in Vietnamese cuisine
through Blue Ginger and Japanese food through
Wasabi by Morimoto.
The vision of the Founder was crafted
around the core idea of nation-building. At
Indian Hotels we carry forward that tradition in
our role as the leader in our segment. We believe
that building the India brand overseas is a part of
nation-building, and in the last 10 years we have
taken our footprint beyond our shores to key
source markets, the only Indian hotel company
to do so. We go to great lengths to ensure that
the Taj brand is synonymous with luxury,
excellence, quality and a great service tradition.
Future sense
To remain on top, we need to constantly track
the changing standards and benchmarks in
the hospitality industry. When the Taj shut its
doors after the 26/11 Mumbai terrorist attack in
November 2008, it was the first time the hotel
had stopped running since it opened in 1903.
The newer Tower wing was closed for three
weeks, but the older Taj Mahal Hotel building
took nearly two years to renovate. When we
rebuilt it brick by brick, we used the opportunity
to bring in contemporary standards of electrical
work, plumbing, interior design, technology, etc.
We wanted to ensure that it would maintain its
sense of place and history, and yet reflect India’s
position as a global centre of business.
20 Tata Review
n
January 2014
Today’s long-haul traveller is evolved,
tech-savvy and far more sophisticated than
ever before. Technology is a big part of the
hotel experience today, but it has to be simple,
user-friendly and unobtrusive. I am happy to
announce that in 2014 we will be the first Indian
hotel company to offer free WiFi to all our
guests at Taj hotels, Vivanta by Taj, Gateway and
Ginger. We are one of a handful in the world
offering this facility to guests.
Earlier, we used to cater to the baby-boomer
generation, many of whom had the disposable
income to travel. Today we need to consider the
‘millennial’ generation. It’s not just customers;
half of our staff are millennials. Their needs,
tastes and expectations are different and it’s a
whole new ball game to keep these stakeholders
satisfied and engaged. We need to be quick and
nimble, and that will give us an advantage in
setting the tone for the next 20 years. We need
to ensure that the Taj brand resonates with this
demographic, that it continues to emotionally
connect with new-generation customers.
What’s remarkable is that Jamsetji would
have participated in similar conversations
in 1901 as he set out to fashion his vision
for a sustainable hospitality enterprise. The
company has been blessed by having had his
patronage. The chairmen of the Tata group
have always had the Taj very close to their
heart. The Taj has always been a cornerstone of
not just the Tata group, but also the Tata brand.
It continues to stand today as a Tata symbol of
excellence and quality. ¨
cover story
Jamsetji’s answer to ‘We don’t allow Indians in here’ — the Taj
The stately carriage rolled up to one of the leading
hotels in Bombay. It was an impressive hansom
cab drawn by a pair of proud Hungarian horses,
with a liveried coachman perched high. It was the
first carriage in the city to be fitted with rubber
tyres and its noiseless passage drew amazed
crowds every time Jamsetji Tata drove past.
Of course, the simple, almost austerely
dressed man who stepped out was no stranger
to attention. He shunned the limelight but,
paradoxically, it followed him wherever he
went. He had just returned from America,
where a casual purchase of a pair of boots
sparked off a detailed newspaper report on the
Indian industrialist who was going to acquire a
monopoly of the American boot trade.
Now he was back home in Bombay, invited
by a foreign friend to dine at one of the city
hotels. Jamsetji Tata walked in with his host, only
to be rudely accosted by the supercilious English
hotel manager with that ignominious line, “We
don’t allow Indians in here.”
How would you reply to an insult like this
— an insult to you, to your country, to your
countrymen? Well, if you’re Jamsetji Tata, you
choose your answer carefully. You build one of
the finest hotels in the world. You choose a site
facing the magnificent ocean. You select one of
the world’s leading architects. And you equip it
with the best the world has to offer. Jamsetji Tata
spent more than £300,000 on the Taj Mahal hotel.
A hundred years ago that was an enormous
sum of money. But more than just money was
the care and attention he lavished on it. His sons,
his friends, his business associates — everyone
urged him not to go ahead with the project. It’s
going to lose money, they insisted. But Jamsetji
was obdurate. “Perhaps it will,” he said, “but that
makes no difference”. He wanted Indians to get
what they needed — a great hotel that would be
proud to serve them.
Under Jamsetji Tata’s watchful eye, the Taj
rose on the seafront, an impressive edifice that
dominated the landscape, predating Bombay’s
Gateway of India.
When the Taj opened its doors in Bombay
in 1903, it inspired delight and awe in every
Indian, and not just for its imposing exterior. To
many Indians who had never travelled abroad
before, this Taj was an incredible wonder of the
modern world, a tantalising glimpse into the
future. The Taj was the first building in Bombay
to be electrified. It had the first ice-making
machine. The first soda maker. The first lift. The
first generator. The first mechanised laundry. The
first polishing machine. Most important of all, it
was a hotel into which any Indian could walk with
his head held high, confident that he would be
treated with courtesy and respect.
One hundred years after it was opened, the
Taj has retained its position as one of the world’s
great hotels, often a destination in itself. It has
spun off an entire chain of hotels, the largest
in India. Today, the Taj is a chain of 62 luxury,
business and resort hotels in different parts of
the country and abroad. Each hotel built with the
same careful attention. But more than bricks and
mortar, it’s Indian courtesy that sets them apart.
Ultimately, as Jamsetji Tata well knew, this is
really our finest Indian heritage.
Source: JN Tata Centenary Diary, Tata Steel, 2004
The grand old Taj Mahal Hotel before the new tower was built
January 2014
n
Tata Review
21
cover story
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cover story
Steel in his soul
Jamsetji Tata defied naysayers, hostile regulations and failing
health to turn his dream of a steel enterprise into reality, says
TV Narendran, managing director, Tata Steel, and he inspired
generations of employees with his monumental deeds
I
joined Tata Steel as a management trainee
in 1988, fresh out of the Indian Institute of
Management, Calcutta, and looking forward
to my first job. At the time, about 15 of us
from the institute joined the company and most
of us continue to work at Tata Steel. Like the
others, the thought of leaving this company has
never occurred to me in all these years.
My first posting was in Jamshedpur.
Somehow, from the moment I arrived in
Jamshedpur, I knew I was in the right place.
Over the years I came to appreciate and define
that feeling and the source of that comfort — it
comes from the value systems and the larger
purpose with which the company operates.
One is able to sleep well at night, secure
in the knowledge that one is working for a
company that believes in giving back to society
generously. These are the founding set of values
that every Tata Steel employee tries to live every
day at work.
In many ways, I believe that Tata Steel is
the epitome of all the companies belonging to
the Tata family. The emotional bond and shared
stories that one finds in Tata Steel make it a
unique entity within the group. As the place
where it all began, Tata Steel in Jamshedpur
has a flavour and aura distinct from any other
Tata company, in any location. One just has to
witness the celebrations in Jamshedpur every
year on March 3, marked as Founder’s Day
within the Tata group, to understand just how
deep the bond is between the company and the
community. And this community includes not
just employees, but also the suppliers, traders,
shopkeepers and others in the city. Jamsetji Tata
and the business he set up are so much a part of
people’s lives in Jamshedpur.
The Community counts
In 2004, when we began talks with NatSteel for a
possible acquisition, we invited our Singaporean
counterparts in that company to attend the
Founder’s Day celebrations in Jamshedpur. And
that made all the difference, because they came
here, saw the emotional connect between the
company, its employees and the community.
They were convinced that Tata Steel believed
in building and nurturing relationships. They
went back having laid to rest any lingering
apprehension about our intentions and our
approach to people and partnerships.
At the Tata Steel archives in Jamshedpur,
one can see the plans Jamsetji had created for the
steel company he had dreamt of and relentlessly
pursued for years, defying naysayers, the hostile
January 2014
n
Tata Review
23
cover story
One is able to sleep well at night, secure in the
knowledge that one is working for a company that
believes in giving back to society generously.
TV Narendran, managing director, Tata Steel
investment environment of colonised India, and
his own failing health. The plans include minute
details of a bigger dream. The steel venture had
become an important piece of his vision of an
industrialised, independent India.
Although the Founder did not live to see
the steel venture take shape, every generation of
Tata Steel management and employees has lived
his dream each day and translated his ideals into
reality in everything they do, never forgetting
his commitment to the community and to the
nation.
Even before the steel plant was set up in
what was back then an obscure village called
Sakchi, the company set up a hospital to bring
much-needed medical care to the region. That
was in 1908; the first ingot of steel rolled out of
the Sakchi plant four years later, in 1912.
welfare at heart
There were several industry firsts in those
early years: an eight-hour working day for
labourers was introduced long before it became
the norm around the world; free medical aid
was introduced in 1915; the maternity benefit
scheme was launched in 1928; the retirement
gratuity scheme was introduced in 1937. All
these welfare measures were well ahead of their
times and implemented in the true spirit of
empowering our employees.
Tata Steel has almost always set the trend
for industry to follow. If I were to narrate
one incident from my 25-year career which
demonstrates this commitment to its people,
it would have to be the board meeting a few
years ago where the then Tata Sons Chairman,
Ratan Tata, decided that the families of contract
workers suffering accidents at Tata Steel
premises would be provided cover and benefits
through a scheme called ‘suraksha’. Seen in
24 Tata Review
n
January 2014
this context, it is hardly surprising that the last
workers’ strike we settled in the company was as
far back as 1929.
From being a harbinger and, later, a symbol
of Indian industrialisation and national pride,
Tata Steel has evolved into an enterprise that has
claimed its place in the global business space.
The journey wasn’t easy, but the company stayed
the course.
The turning point, clearly, came in the
late 1980s and the early 1990s, when India’s
economic liberalisation forced the company
to revisit its business processes, including its
approach to quality and customers. Tata Steel
took the challenge head on, emerging a smarter,
wiser and more agile entity.
Over the last decade, the company has
taken to the global stage with the same zeal
that once made it a national entity. A string of
acquisitions, starting with NatSteel in 2004 and
leading up to Corus in 2008, have seen Tata Steel
take not only itself but the larger Tata brand to
the fore in international business circles.
Whereas nation building at one point
meant building India, today our commitment
is to be involved in building every nation and
community that we are present in. Depending
on the context in each society, our focus areas
may change, but the essence of the Founder’s
thoughts is so timeless that we can adapt it to
our own times and context.
I can confidently assert that we have been,
and will continue to be, steered by the values
and principles espoused by our Founder in all
our endeavours. ¨
cover story
‘At last, I have found the man I’ve been looking for’
The door to a small, crowded office in New
York opened. At a table covered with books sat
Charles Page Perin, a geologist and metallurgist,
with knowledge of iron and steel that made him
sought after in countries right across the globe.
And here he was, poring over account books;
there was nothing he liked less. He looked up,
happy at the interruption, a little startled by the
apparition standing right there before him. Here
was a stranger in an even stranger garb — a man
in a simple white coat wearing a rather peculiar
headgear. He would later be able to identify the
outfit as the Parsi dugli and pagdi. Who was he?
Even as he wondered, Charles Perin knew
the answer. This was the person Julian Kennedy
had written to him about, the Parsi gentleman
from India whose dream was to build a steel plant
for his country. For a long moment, the two men
gazed at each other in silence, two men from
different continents, poles apart in every ways.
Then his visitor said in a deep voice, “Are you
Charles Perin?” The metallurgist nodded. And
Jamsetji Tata said, “At last, I have found the man
I’ve been looking for.” His communication was
precise and pithy. “I have spoken to Mr Kennedy.
He will build the steel plant — wherever you
advise. And I will foot the bill. Will you come to
India with me?” As Perin was to recall years later,
he was dumbfounded, struck by the character,
the force, and the kindliness that radiated from
Jamsetji Tata’s face. Perin’s answer was short,
“Yes,” he said, “yes, I will go with you.”
Soon Perin was to embark on one of the
most unusual adventures in his life. On his way, at
Aden, he received a telegram asking him whether
he could ride a bicycle. A bicycle? Mystified, he
replied in the affirmative. He reached the village
of Sakchi and discovered the reason for this
strange question. Miles of rutted road stretched
out before him, defying any conventional mode of
transport. Several strenuous hours later, he found
himself in the middle of the jungle, propping his
bicycle with one hand and holding the twisted
handlebar aloft with the other. Fortunately, a
passing bullock cart came to his rescue.
One of the main roads in Sakchi, Jamshedpur,
in the early 1900s
There would be many more hurdles ahead.
This was a harsh, demanding land, where the
temperature could climb to 125º (F) in the shade.
Heat waves made the land quiver as if with ague.
Man-eating tigers and road elephants were
treacherous adversaries, though on occasion a
friendly bear would cub under a table. Cholera
and malaria would sweep the hillside, causing
workers to flee overnight in panic. It was tough
going, but Perin and his team finally found more
than they even dared to hope for — perhaps
3 billion tons of ore, located just 45 miles away
from the railway station.
For 30 years of his life, Jamsetji Tata had
dreamed of this. And now, when the great
moment had arrived and a triumphant Perin was
getting his report together, the sad news reached
him. Jamsetji Tata had passed away in Germany.
Fortunately, men like Perin and Jamsetji’s son,
Dorab, would ensure that his dream lived on.
Tata Steel came into being in 1907 and quickly
became one of the flagship companies of the
Tata group. It was Asia’s first integrated steel
company, the largest Indian steel company in
the private sector. One day, it would be ranked
among the world’s top steel companies. It would
always be a company that reflected the grit, the
courage, and the determination of its founder.
Truly, a man of steel.
Source: JN Tata Centenary Diary, Tata Steel, 2004
January 2014
n
Tata Review
25
cover story
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cover story
Shaping a grand vision
More than a century ago, Jamsetji Tata pioneered an industrial
breakthrough for modern India, and Tata Power, says its
managing director, Anil Sardana, has followed in his path
M
ore than a century ago, a remarkable
man had a wonderful vision — to
provide pollution-free, clean power
to Mumbai, a city that was choking
on the fumes of the boilers of textile mills. That
visionary, Jamsetji Nusserwanji Tata, dreamed
of, and inspired, the setting up one of the first
hydroelectric power plants in the Western Ghats,
with a hydel dam that would harness the power
of flowing water to create electricity. The task
was nothing short of daunting, considering the
terrain of the Western Ghats.
The preliminary work had begun on
conceptualising his grand vision, but before the
new power company could be formed, Jamsetji
passed away. Though he could not personally
accomplish this tough task, Jamsetji’s sons Dorab
and Ratan subsequently laid the foundation for
affordable and clean power for the city of Bombay
(now Mumbai). The hydropower units near
Mumbai and the first grid connection around
Lower Parel are, a century later, still functional.
In the next few years, three hydroelectric
entities, Tata Hydro-Electric Power Supply
Company (in 1910), the Andhra Valley Power
Supply Company (in 1916) and the Tata
Power Company (in 1919), were incorporated
to give shape to the dream. Together these
three companies were referred to as the Tata
Electric Companies. The other two entities were
amalgamated into the Tata Power Company in
the year 2000.
Tata Power’s journey over the last 10 decades
has been a fascinating saga of pioneering initiatives
and responsible business with minimal impact
on the environment, and the socioeconomic
empowerment of the communities that it touches.
reliable and efficient
Tata Power is India’s largest integrated power
company, with 20-25 percent of its generation
sourced from clean energy sources. It has an
installed generation capacity of 8,521MW
in India, with 1.8 million customers across
the country and an effective presence in all
the segments of the power sector. Noted
for its reliability and efficiency, Tata Power
has provided Mumbai with dependable and
uninterrupted power supply for more than a 100
years, a convenience that no other part of the
country enjoys.
The company has to its credit the
installation of India’s first 500MW unit (in
Trombay, near Mumbai)), the first 150MW
pumped storage unit (in Bhira, Maharashtra),
the first flue gas de-sulphurisation facility
for pollution control at a power plant (also at
Trombay) and the first and most celebrated
January 2014
n
Tata Review
27
cover story
Over the last several decades, Tata Power has
participated in an extensive eco-restoration and
eco-development programme in the Western Ghats,
one of the most sensitive ecosystems in the world.
Anil Sardana, managing director, Tata Power
islanding system (to ensure uninterrupted
power supply to Mumbai). Tata Power was the
first to establish state-of-the-art technology
and infotech-based systems for distribution in
Delhi (resulting in a world record in reduction
in losses) and to bring in India’s first 800MW
super-critical unit for its power project in
Mundra, Gujarat.
Tata Power has successful public-private
partnerships in generation, transmission and
distribution and is one of the largest renewable
energy players in India. It has also implemented
the country’s first 4,000MW ultra mega power
project (in Mundra, Gujarat), which is based on
super-critical technology, fulfils 3 percent of the
country’s energy needs and supplies power to
several states.
Sustainability commitment
In its early days, Tata Electric Companies had
offered to buy old steam engines from mills to
encourage them to switch over to clean power.
Clean energy and sustainability are still the
bedrock of the company’s strategy for growth
and the expansion of its global footprint.
Tata Power’s international presence includes
strategic investments in Indonesia through a
geothermal project and a 30-percent stake in four
coal mines; in Singapore, through Trust Energy
Resources, for the supply and shipping of coal for
thermal power generation operations; in Africa,
through the joint venture Cennergi, to develop
projects in South Africa, Botswana and Namibia;
in Australia through investments in enhanced
geothermal and clean coal technologies; and in
Bhutan through a hydro project in partnership
with the Government of Bhutan.
Tata Power is also committed to lead
the reform process for clean and sustainable
business. Over the last several decades, it has
28 Tata Review
n
January 2014
participated in an extensive eco-restoration and
eco-development programme in the Western
Ghats, which is one of the most sensitive
ecosystems in the world. More than 7 million
saplings of 60 tree species have been planted
and flora and fauna in and around our lakes
have been restored and systematically enhanced.
Additionally, Some 600,000 trees have been
planted as a reforestation measure. In the
process, a large variety of wildlife has found a
habitat in the area.
The lakes have been part of a rehabilitation
programme for the endangered fish species
called Deccan Mahseer. Tata Power provides
millions of seedlings of this fish to agencies
across India.
The company has also pioneered initiatives
to increase public awareness about energy
conservation and climate change. The Tata
Power Club Enerji addresses these issues in an
interactive manner at the school level. It has
started an energy conservation programme
with schools in various Indian cities to sensitise
youngsters and equip them to become energy
champions and ambassadors.
The company has continued its focus on
corporate social responsibility activities that aim
to make a difference to communities in its areas
of operation. These include a number of training
programmes for developing self-employment
opportunities among the rural population.
Rooted in a century-old dream, Tata Power
continues to be a testament to Jamsetji’s vision
and commitment to India’s progress, a vision
that rests on the tenets of sustainability. ¨
cover story
‘Let’s go on a picnic...’
It had been a relentless monsoon. Grey skies,
torrential rain, flooding — yes, it had been a
typical Bombay monsoon. But now the skies had
cleared, the sun was out, the sea was calmer.
The days were promising. “Let’s go out on a
picnic tomorrow,” said Jamsetji to his good
friend, Nusserwanji Guzdar. He hired a launch
and decided to invite his senior executives to
join them. A disciplined man, he could be quite
spontaneous at times.
Nusserwanji relaxed. Jamsetji regaled him
with stories of his travels. Did he know that
Japan had this incredible industry that cultivated
silkworms? Had he seen the exquisite porcelain
Jamsetji had brought back from Europe? He had
imported peach trees from California and the fruit
was luscious and sweet. Nusserwanji must come
across and enjoy it, fresh from the orchard.
This stocky man with a gruff voice, who
people thought was dour and serious was full
of wit and humour. He loved reading and Mark
Twain, Dickens and Thackeray were among
his favourites. His library reflected his eclectic
tastes: literature, technology, philosophy, travel,
glassware, porcelain… there was no ceiling on
his interests. His knowledge was encyclopaedic.
Ideas flowed non-stop.
Norman Redford, the young Englishman
who often went on long drives with Jamsetji in
the evenings said he would talk about schemes,
schemes and schemes. His conversation was
never trivial; he never talked about other people
and their shortcomings. The energy people spent
gossiping or being critical, Jamsetji spent on
creative avenues.
They stood for a while with the wind blowing
through their hair, the salt air stinging their faces.
Jamsetji loved this coastline. Bombay. This was
the city he loved. He had come here as a boy
of 14 and it had really opened its arms to him;
opened his mind and nurtured him and grown
him into a man. He would never forget it. The
conversation carried on. Suddenly he asked the
pilot to take them to Roha creek. The launch
sputtered and sighed as the pilot changed
The Walwhan dam in Lonavala, Maharashtra
course and obeyed. The conversation carried
on. Jamsetji stopped mid sentence. His friend
looked in the direction of his gaze. This was the
Roha River.
The monsoon was just over. The river
was swollen with water. The water gushed
tumultuously. The banks were green. The earth
was fresh. They could smell it even out here…
or was it Nusserwanji’s imagination? Everyone
came around to marvel at the picturesque sight.
Watching the sun play on the water. The wind
play with the grass. The eye feasted on the scene.
Jamsetji’s mind had already raced ahead of the
pretty picture. “Nusserwanji” he said, “We must
harness this water. We must turn it into power.”
There was a shocked silence. Everyone
knew that power was an electrifying concept. But
power needed a waterfall. And while there was
water aplenty here, this was a river. How could
this water be harnessed? Jamsetji’s mind was
already working on the answer. Bombay would
have a power plant. He would find a way.
Source: JN Tata Centenary Diary, Tata Steel, 2004
January 2014
n
Tata Review
29
cover story
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cover story
Bastion of learning
Jamsetji Tata was a tireless votary for the setting up of the Indian
Institute of Science, a cradle for many of India’s greatest minds
G
reat men think ahead of their times.
When Jamsetji Nusserwanji Tata first
thought of establishing a university of
science in India, in the late 19th century,
his hope and belief was that it would benefit
generations to come and augment the country’s
growth and the competency of its people.
Jamsetji wanted India to have its own
university for higher learning and scientific
research, where great thinkers could incubate
and experiment with new ideas. His travels to
Europe and America had convinced him that
the application of science to industry was one of
India’s greatest needs. But his dream — which
eventually became the Indian Institute of Science
(IISc) in Bangalore (now Bengaluru) — took
tremendous effort and time, and it would come
into being much after Jamsetji had left this world.
In 1889, Jamsetji Tata attended a
convocation address where Lord Reay, Bombay’s
popular governor, said that education could no
longer develop if universities remained purely
examining bodies. He called for “real universities
which will give fresh impulse to learning,
to research, to criticism, which will inspire
reverence and impart strength and self-reliance
to future generations”.
Inspired by his words, Jamsetji started
lining up schemes to give shape to his vision
of setting up a higher university of science in
India, one that would match global standards
and contribute to the development of the
country and its citizens.
In 1898, Jamsetji’s generosity enabled
the IISc idea to move one big step closer to
realisation. In order to fund the institution, he
pledged almost half his wealth to the cause,
setting aside 14 buildings and four landed
properties in Bombay for the purpose.
scouting for help
After consulting several authorities in the
country, Jamsetji Tata constituted a provisional
committee to prepare a plan for the institute’s
establishment. The draft of the plan was
presented to Lord Curzon, the then viceroydesignate. Subsequently, Nobel laureate Sir
William Ramsay was asked for help. Sir William
made a quick tour of the country and found
Bangalore to be the most suitable place for such
an institution.
At the initiative of the dewan, Sir K
Sheshadri Iyer, the government of Krishnaraja
Wodeyar IV, the Maharaja of Mysore, came
forward with an offer of 371 acres of land in
Bangalore, a gift of `500,000 for construction
and a recurring grant of `50,000 a year.
However, the scale of the initiative was
such that it also needed support from the
government. But government funding took a
January 2014
n
Tata Review
31
cover story
lot of time to come, causing huge delays in the
project. With the grant from the government
in place, Jamsetji’s original scheme became a
tripartite venture. Unfortunately, by the time
the institute broke ground, Jamsetji had passed
away and the initiative was then driven by his
sons, Dorab and Ratan.
After a wait of more than a decade, IISc
was finally established in 1911. The Maharaja of
Mysore laid the foundation stone of the institute
and, in July of the same year, the first batch
of students was admitted in the departments
of general and applied chemistry, organic
chemistry and electro-technology.
Since those early days, IISc has grown into
a premier institution of research and advanced
instruction, with more than 2,000 active
researchers working in almost all the frontier
areas of science and technology. The institute
has also manned prestigious and nationally
IISc factfile
When it started operations, the institute was
run jointly by the Tatas, the Government of
India and the Government of Mysore (now
Karnataka), marking the first example of a
public-private partnership in the country.
The Institute of Science was earlier named
Imperial University of India.
Morris Travers was the first director of the
Institute.
The Clibborn-Masson report had selected
Roorkee as a suitable location for the institute.
The industrial genius M Visvesvaraya was
closely associated with the management of the
institute for three decades.
The institute enabled scientist CV Raman to
undertake research in light scattering, which
eventually won him the Nobel Prize in 1930.
vital missions and projects in different fields of
scientific endeavour.
Over the last century, IISc has expanded
its academic offerings to include masters
and PhD programmes in fields ranging from
biochemistry to aerospace engineering. Its
recent initiatives promote cutting-edge,
interdisciplinary research through a host of PhD
programmes in mathematical sciences, chemical
biology, earth system science, nanoscience and
nanotechnology, and nano-engineering for
integrated systems.
concentrating on research
The main emphasis of the institute now is on
research, and it expects its faculty to initiate and
carry out research programmes of a quality on
par with the best in the world.
IISc’s faculty has been led by eminent
names in the field of science in India. Among
them have been CV Raman, the institute’s
first Indian director, who initiated the physics
department in 1933; Satish Dhawan, whose
leadership was crucial in the establishment of
the Indian Space Research Organisation; and JC
Ghosh, founder of the first Indian Institute of
Technology (at Kharagpur in West Bengal).
It was here that Homi Bhabha visualised
the Tata Institute of Fundamental Research,
while working in the institute’s physics
department, along with an atomic energy
programme. IISc’s illustrious alumni includes
names such as GN Ramachandran, Harish
Chandra, S Ramaseshan, Vikram Sarabhai,
Brahm Prakash, A Ramachandran, CNR Rao
and R Narasimha, who have with their body of
work won honour for themselves, the institute
and the country.
IISc’s existence owes much to the passion
and perseverance of one man. Even though
Jamsetji did not live to see it take its final form,
he fought hard to make it a reality. Generations
of Indian students continue to enjoy the fruits
of his vision, of this shining Tata legacy that
epitomises the spirit of a titan who dared to
dream big. ¨
— Shilpa Sachdev
32 Tata Review
n
January 2014
cover story
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January 2014
n
Tata Review
33
cover story
The gift that
keeps on giving
One of the first educational scholarships in the world, the
JN Tata Endowment has helped smooth the path for several
meritorious Indians during a critical period of their academic lives
H
e travelled the world but India and
her welfare always remained the
core of Jamsetji Tata’s vision. This
was the motivation that inspired the
establishment, in 1892, of the JN Tata Endowment
for the higher education of Indians, on the
strength of a trust fund of `2.5 million.
Jamsetji wanted to enable young, meritorious
Indians to pursue higher studies at the best
universities in the world. Spurred on by the goal
of building the nation of his birth, he dreamed
of young Indians improving their prospects and
then returning to strengthen their country.
In those pre-independence days,
placements in key services such as the Indian
Civil Service (ICS), the Indian Educational
Service and the Indian Medical Service were
dominated by British citizens. Jamsetji realised
that it was the unavailability of funding, not
the lack of talent, that prevented Indians from
assuming an active role in the administration
and growth of the nation.
The endowment that he set up enabled
Indians to pursue professional courses. At
that time he said, “What advances a nation or
34 Tata Review
n
January 2014
the community is not so much to prop up its
weakest and most helpless members, as to lift up
the best and most gifted so as to make them of
the greatest service to the country.”
This was the first bequest offered by
the Founder, one that went a long way in
institutionalising the culture of selfless giving
in the Tata group. The first beneficiary of the
largesse was a woman, Freney K Cama, who
went to Edinburgh and Dublin in 1892 to study
gynaecology and midwifery.
More than 120 years later, the Endowment
is still going strong, having enhanced the lives
of more than 4,585 scholars. Many of them
have carved a niche for themselves and this list
of illustrious names includes Ardeshir Dalal, a
member of the British viceroy’s executive council;
KR Narayanan, the former President of India;
Raja Ramanna, director, Bhabha Atomic Research
Centre; Jayant Narlikar, renowned astrophysicist;
JJ Irani, former director, Tata Sons; and Rahul
Mehrotra, the renowned architect.
Nawaz Mody, advisor, JN Tata
Endowment, is happy to play her part in
building the future of talented and competent
cover story
We get more than 2,000 applicants each year, and
we sift through them to find around 120 deserving
candidates ... [We have made] the system stronger to
ensure that outstanding students are selected.
Nawaz Mody, advisor, JN Tata Endowment
youngsters. Since she took over in 2007,
Dr Mody has been working overtime to keep
the Endowment in touch with the times.
The goal is to advance loan scholarships to
meritorious Indians, regardless of caste, creed,
and financial status, for higher studies in a
range of subjects. The list of subjects has been
updated over the years to include more than 200
disciplines, among them newer and little-known
streams of sciences and engineering, as also the
arts, design, language and so on.
“On an average, we get more than 2,000
applicants from around the country each year,
and we sift through them to find around 120
deserving candidates,” says Dr Mody. Candidates
come through a stringent selection process.
Besides their academic performance, the
Endowment also assesses the course, the institute
they have been selected to, and the cost.
expert advice
Students have to be able to justify why they have
chosen that particular course and institute. Once
they are shortlisted, an expert from the students’
sphere of interest interviews them to gauge their
ability to apply their knowledge.
Dr Mody expends tremendous effort in her
attempts to find the right expert for each subject,
no matter how unique or esoteric the field. “Our
experts make a big difference,” she says. “They
are outstanding in their respective fields. We are
constantly trying to update ourselves and get the
best experts.”
The advisor herself sits in on all the
interviews. Her presence helps glean valuable
inputs on the student’s ethics and values, and
on their awareness of the world around them
and current affairs. This ensures an element
of standardisation, since the expert on the
panel would vary depending upon the chosen
discipline of the student. Students are also asked
about their career plans.
The selected scholars receive a loan
scholarship of up to `400,000, which they must
repay in seven years. The scholarships are given
as loans, not grants, because Jamsetji believed
this could instill valuable lessons in self-reliance.
The idea is to make the students feel a sense of
responsibility towards their own education, and to
ensure a degree of accountability. The repayment
of every loan helps ensure that another deserving
candidate is able to study abroad.
As part of their efforts to assist students,
many of whom may be undertaking their
first trip abroad, the Endowment introduced
orientation sessions a few years ago. These
sessions guide the scholars on matters related to
cultural differences, the dos and don’ts relating
to behaviour in particular countries, information
on studying, living and travelling in a country,
on cross-cultures and value systems, and on
giving back to the country.
“The orientation programme makes a lot
of difference,” says Dr Mody. “Repayments have
gone up as a result. People are now paying back
their loans within two years.” Dr Mody also feels
heartened by the steady increase in the number of
students returning to India. “I have seen a rise of
almost 20 percent,” she says. “A large number of
these people are returning voluntarily.”
The Endowment has come a long way and
it continues to reinvent itself, seeking to stay
informed about the latest trends in education
and the needs of the nation. It understands the
significance of the task it performs, and how the
act of committing to an individual’s future often
enhances the fate of a nation and the world.
The Founder would have been pleased. ¨
— Cynthia Rodrigues
January 2014
n
Tata Review
35
cover story
‘The initial
support was
significant’
Vikram Raut, a liver surgeon,
explains how his career and
his life changed thanks to
timely backing from the
JN Tata Endowment
W
hen I was doing my masters in
surgery at BYL Nair Charitable
Hospital, Mumbai, in 2009, I
learned about the pitiful condition
of patients suffering from liver diseases. More
than 200,000 people die in India every year from
end-stage liver disease, without any hope of
receiving a transplant. At the time there was no
specialised treatment available in India.
I was inspired to study liver transplantation
surgery, but there were no medical schools
teaching this specialisation in India. An internet
search for good training centres led to the
Graduate School of Medicine, Kyoto University,
Japan, a pioneering centre for liver transplantation
that had started in 1991. It was then the largest
centre for living donor transplants.
I received a one-year fellowship in liver
transplantation and hepato-pancreatico-biliary
surgery and began to look for options to finance
my education. Hailing from a middle-class
family, I was unable to fund my expenses.
Another internet search told me about
the JN Tata Endowment loan scholarship. I
submitted my application, with details about
the course I planned to do. I was interviewed
by Nawaz Mody, then director, JN Tata
Endowment. They studied my application,
appraised my career plans and granted me the
scholarship in 2009.
36 Tata Review
n
January 2014
The Endowment gave me about half of the
funds I required. With the loan scholarship in
hand, I secured a letter of recommendation and
applied for a visa. I left for Kyoto in September
2009 and remained there until November 2010.
My stint in Japan greatly enhanced my
career growth. I learned how to perform living
donor transplants and became aware of the
challenges in liver transplantation. Besides being
a technically demanding surgery, this is also an
effective procedure, given the scarcity of organ
donors. I also learned about transplantation
across blood groups. Usually transplants are
done only if the donor (whether living or
dead) and the recipient share the same blood
group. The fellowship enabled me to plan
towards creating an infrastructure for liver
transplantation at public hospitals in India.
Training in Paris
After I finished my studies in Kyoto, I
was selected as the International Liver
Transplantation Society’s ‘International Travel
Scholar 2010’. The society selects one student
each year from around the world for this
award. Keen to study diseased donor liver
transplantation, I trained for a year in liver
transplantation at Hospital Beujon, University of
Paris, France.
Later, I secured a fellowship in liver
transplantation at the Asan Medical Centre in
Seoul, South Korea, from November 2011 to
January 2012. During this period I published
articles related to liver regeneration, liver
carcinogenesis and improving safety during a
liver donation.
Thereafter, I received offers from France
and the United States, which would have given
me instant success and recognition. But I
declined both as I planned to return to India and
treat those suffering from liver disease.
My decision was strengthened by the words
of Prof Shinya Yamanaka, the 2012 Nobel Prize
winner for medicine. He said that medical
science consisted of medicine, which was
concerned with humanity, and science, which
dealt with discoveries. His words reminded me
of the pitiable health care situation in India. I
cover story
Dr Raut receiving the International Travel Scholar Award in 2010 in Hong Kong
chose humanity and the prospect of helping
poor people rather than the opportunity to make
a name for myself.
Armed with my knowledge and the will to
help people, I returned to India in January 2012
and joined the Medanta Hospital in Gurgaon as
an associate consultant in the department of liver
transplantation. I got an opportunity to work
as a committee member with the International
Liver Transplant Society and gave my inputs
on standardising various treatment protocols,
maintaining a database of liver transplantation
across the globe.
This 1,500-bed private hospital is the
biggest centre in India for liver transplantation.
Around 250 liver transplantation surgeries are
performed here each year.
Burgeoning need
This number, however, fails to fulfil the growing
need for liver transplantation surgeries. As of
now, the number of people suffering and dying
on account of liver diseases is very high. And yet
there are only three hospitals performing this
surgery in India today.
The most common causes of liver failure
are hepatitis B and hepatitis C, besides alcohol
abuse, obesity and diabetes. Currently, liver
transplantation is the only form of treatment.
The issue is compounded by the lack of organs
available for transplantation. Organ donation is
a huge issue, not only in India, but also across
Asia, where it is considered disrespectful to
tamper with the dead.
In such cases, living donor liver
transplantation can help save many lives. A
family member can offer to donate a liver. We
can take 70 percent part of the liver from a
normal, healthy person and transplant it into the
liver patient. The advantage of this procedure is
that the liver grows into normal tissue in both
the donor as well as the recipient. Meanwhile,
the donor can function well with 30 percent.
At Medanta, a liver transplantation costs
almost `2.3 million. So the treatment is available
only to those who can afford it. If the speciality
were to be percolated well, it would help
bring costs down. My challenge is to make the
treatment more affordable and accessible.
I think we can reduce the cost by 20-30
percent over the next five-six years. I hope that
my efforts can help many more patients with
liver failure gain access to life-saving treatment.
I am grateful to the JN Tata Endowment
for kick-starting my journey. Without them I
could not have realised my dreams of securing a
higher education. Over the years, I have received
scholarships from other places. But that initial
support from the Endowment was the most
significant in my life. ¨
— As told to Cynthia Rodrigues
January 2014
n
Tata Review
37
cover story
‘It means a
lot, and I’m
grateful’
Rashneh N Pardiwala, an
environmentalist, explains
how the JN Tata Endowment
scholarship contributed to her
professional blossoming
I
first came to know of the JN Tata Endowment
through a newspaper advertisement. My
college professors told me that it was an
extremely prestigious scholarship that
attracted the very best minds of the country. It
truly meant a lot to become a JN Tata scholar.
Once you get the scholarship, it is
an endorsement that opens many doors,
because other foundations know about the
rigorous selection procedures employed by
the Endowment. Even if a single shortlisted
applicant is studying a super-speciality field, it
makes the effort to find a subject expert.
The Endowment invests a lot of time,
energy and resources in its selection process. It
also publicises the scholarship across the expanse
of India. The scholarship provides substantial aid
when compared with other scholarships. More
importantly, the knowledge that the Endowment
believes in you and is willing to invest in your
future is most reassuring.
The scholarship and more
Armed with the JN Tata Endowment
scholarship, I went to the University of
Edinburgh, United Kingdom, for my masters in
ecology. I subsequently secured international
scholarships to complete my PhD before
returning to India. Over the years, I have been
awarded numerous scholarships and fellowships,
38 Tata Review
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January 2014
like the Ashoka Fellowship for Young Social
Entrepreneurs and, recently, the Ford Fellowship
to study at Columbia University, but the JN Tata
Endowment scholarship was the very first and,
hence, it holds a special place in my life.
Ecology was a relatively young subject
in India when I chose it as my field of
specialisation. I did my BSc in life sciences
at St Xavier’s College in Mumbai, where
environmental studies was offered only as an
optional paper. Not a single university in India
had a master’s programme in pure ecology then.
At Edinburgh, I specialised in the field of climate
change and global warming, studying carbon
management systems and the effect of climate
change on terrestrial ecosystems.
A turning point in my life was between
my masters and doctoral studies, when
the World Wildlife Fund (WWF), United
Kingdom, commissioned a project in India to
evaluate the terrestrial and marine biodiversity
along the coast of Dahanu in Maharashtra.
Dahanu was one of three areas in India to be
declared ecologically fragile by the Ministry of
Environment and Forests.
The region constantly faces threats from big
developmental projects and illegal constructions
due to its proximity to the ever-expanding
Mumbai city. The Supreme Court of India had
established a quasi-judicial ‘Dahanu Taluka
Environment Protection Authority’, headed by a
retired judge, to hear all environmental disputes,
but every violation turned out to be a longdrawn-out battle due to the lack of scientific data
to prove environmental degradation.
Working on the Dahanu project, I
understood the urgent need to provide a sound
scientific basis for environmental advocacy in
India, and the dearth of trained ecologists in
the country. I came to India to work on this
short-term WWF project, but slowly got totally
involved with the local movement. I deferred my
PhD by a year and then returned to the United
Kingdom. When I completed my PhD, I knew
I wanted to return to India and work at the
grassroots level.
At the turn of the century, most
environmental organisations and groups in India
cover story
The Endowment helped Dr Pardiwala complete her masters in ecology from the United Kingdom
focused on wildlife and habitat conservation,
which often resulted in direct conflict with largescale developmental projects and led to highprofile campaigns against mining, hydel and
thermal power plant projects in rural areas.
India has always prioritised development
over the environment, so when I returned to the
country in early 2002, most environmentalists
were perceived as ‘anti-development treehuggers’ and job prospects were bleak. I quickly
realised that if I wanted to pursue a career in
environmental sustainability, I would have to be
independent and start my own organisation.
Starting an organisation
In September 2002, under the invaluable tutelage
of my cofounder, Kitayun Rustom, I established
the Centre for Environmental Research and
Education (CERE). CERE is a Mumbai-based
nonprofit organisation that works to promote
environmental sustainability through formal
education, corporate partnerships and public
awareness campaigns.
CERE has been spearheading the
movement of environmental education for
11 years. We have published 27 titles in the
field of environment and produced a short
film on global warming. Our books are used
as prescribed textbooks by more than 50
prominent schools across India. We also
regularly conduct workshops and seminars for
teachers and students.
CERE is a pioneer in developing carbon
management and environmental sustainability
systems for corporate India under our ‘carbon
map and CapTM initiative’ with clients in the
manufacturing and service sectors. We help
corporate entities map their carbon footprint,
‘green’ their systems and processes, educate their
employee base and meet international reporting
standards. We have shown our clients that the
effective management of natural resources can
lead to substantial financial benefits.
CERE comprises highly skilled and
committed professionals and we work
towards improving the state of our country’s
environment in a collaborative and inclusive
manner, so as to ensure a better future for the
coming generations.
My work is rather challenging, and fraught
with many obstacles, but living as we do in
exciting times of great societal awakening, I see
this as an opportunity to drive positive change. I
am sincerely grateful to the JN Tata Endowment
for having contributed so early on to my own
professional journey. ¨
— As told to Cynthia Rodrigues
January 2014
n
Tata Review
39
cover story
‘It was an
honour and
a privilege’
JN Tata Endowment scholar
Nishant Radhakrishnan
believes the organisation’s
support for those in artistic
pursuits is heartening
I
first heard of the JN Tata Endowment when I
was looking out for ‘study abroad’ scholarships
in early 1999. At the time, I had hoped to
join the Film and Television Institute in
Pune, but didn’t clear the admission process. My
second option, the Satyajit Ray Film Institute in
Kolkata, did not work out either. Then I secured
admission to do a three-year masters course in
film and video at the American University School
of Communication in Washington, DC. And I
managed to get funding support for this from the
JN Tata Endowment.
I went to the United States in 2000. Two
years into the course, I took up a 20-hour-perweek unpaid internship at Merchant Ivory
Productions in New York. My day-to-day
work at the company was quite different from
what my eventual calling was to be. Most of it
was routine work that involved taking phone
calls, organising office correspondence and,
occasionally, film archives inventory work. But
the experience was an introduction to the film
distribution process and a window to the film
life in Hollywood.
During the evenings, I worked part-time
as an assistant editor for Rain Media, a prolific
production house that made series episodes for
PBS Frontline, a popular and respected television
programme. Then terror attacks of September
11, 2001, happened. The subject of American
40 Tata Review
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January 2014
foreign relations began to elicit tremendous
interest. A number of documentaries were
commissioned and I was thrilled to be a part
of some of them: Muslims; In Search of Al
Qaeda; Kim’s Nuclear Gamble; Truth, War and
Consequences; and The Choice 2004.
Sometimes it was possible for me to work
on more than one project at the same time.
I assisted on and edited several independent
documentaries and short films. I also had the
chance to work on popular shows. One of them,
Celebrity Poker Showdown, was a huge success.
Meanwhile, India was going through a
change. Two landmark films, Dil Chahta Hai
and Lagaan, had moved away from the popular
Indian film formula. I was strangely excited
by events here. A lot of different emotions
were going through my head. I loved living
and working in New York, but my cultural
foundation and artistic sensibility were bettersuited for Indian films. I sat down calmly and
realised that I had to accept one fact — it was
time for me to return.
India calling
America had cultivated a rigorous work ethic
and professionalism in me. Being a workaholic,
I’d felt at home in those environs. The
accountability, commitment and sense of how
to finish an assignment were qualities I rarely
found in my previous work experience in India.
When I returned to India, I brought that work
ethic back with me — with tragic and comic
consequences. But that’s a story for another day.
At first, I worked on a few American films
set in India. It wasn’t a very smooth transition,
but I ultimately adapted my newfangled tough
Western working style with the more genial
Indian work ethic. More and more challenging
Bollywood projects came my way: Ghajini,
Talaash, Dhobi Ghat, Connected, Hum Tum... My
experience in America had propelled me into a
brand new range of film projects.
All this has been possible thanks to the
JN Tata Endowment scholarship. It is indeed
an honour to be a JN Tata scholar. A higher
study programme abroad gives you a breadth of
exposure that stretches across so many spheres:
cover story
Nishant Radhakrishnan pursued a course in film and video in the United States
professional, cultural, social and political. The JN
Tata Endowment scholarship programme was
a significant catalyst in shifting me into a new
league of the cinema workforce in India.
Since returning to India, I’ve been happy
to be part of some of the Endowment’s work.
Speaking at the orientation programme is one
way of guiding aspiring scholars. I’ve also been
invited to be a subject expert for film on the JN
Tata Endowment panel every year since 2007.
Conversing with the scholarship applicants
revealed to me some of my own fears and
preconceptions as a student.
giving back
Many of these students believe that the loan
scholarship will provide a momentum to their
careers and dreams. Often they aren’t realistic
about what filmmaking involves. Even though
they know that failure is part of the game, they
believe that it won’t happen to them, or that
they will be able to take it in their stride. I try
to mentor these very determined and inspiring
students; it a small way of preparing them. Film
is a collaborative medium; one must develop
instincts — decisiveness and adaptability — that
are seemingly contradictory.
During my yearly panel sessions, my
interactions with Nawaz Mody, advisor, JN
Tata Endowment, are intensive. Dr Mody is
very warm and has a lot to share about the
current state of education around the world and
students’ aspirations.
I’ve been pleasantly surprised to see how
her work has sometimes widened the scope
of what students may expect to be funded for.
Some of the selected students have been able
to secure admission in unusual and unique
courses abroad.
When I learned that the JN Tata
Endowment was willing to consider
scholarships for these students, I was elated.
When I applied in 1999, there were only two
scholarships that considered funding ‘study
abroad’ programmes in cinema and TV. That
the Endowment has reached out to those
hoping to pursue their interest in unique
artistic forms is a remarkable contribution to
the cultural space in this country.
As a professional and a former JN Tata
scholar, I couldn’t ask for more. I’m privileged to
be part of the Endowment’s work. ¨
— As told to Cynthia Rodrigues
January 2014
n
Tata Review
41
cover story
The Tata samskar
Jamsetji Tata’s unique legacy prompts R Gopalakrishnan to compare the Tata
group to a mighty river that nurtures and
nourishes the many lives it touches
F
our years before Jamsetji Tata came into
this world, Andrew Carnegie was born in
Scotland. JP Morgan was two years older
than Jamsetji and John D Rockefeller
was born in 1839, the same year as the Founder
of the house of Tata. These three entrepreneurs
went on to become the business titans of
America in the late 1800s. In time, they earned
the unlovely label of robber barons, because in
building their empires and fortunes they adopted
tough postures with labour and rigged or broke
rules to favour their businesses.
After the American civil war, inventions
such as electricity and the telegraph buoyed
the country’s economic growth, allowing
entrepreneurs to redefine in their own minds
where future opportunities would unfold. For
example, by 1872 Andrew Carnegie had become
convinced that steel would “lie at the centre of
the world”. As a well-travelled person, Jamsetji
must have read and heard about these builders
of wealth (although not the tag of robber barons,
which was coined much later).
Until 1869 the Tatas had just trading
interests. It is said that writers of the period
considered the Tatas “backbenchers in the
Bombay business world”. It was Jamsetji who
decided to break the mould, by venturing into
42 Tata Review
n
January 2014
industry through textiles. This was not the only
evidence of his propensity for innovation. In
Empress Mills, his first big industrial initiative,
he introduced the ring spindle when the device
had yet to come into general use in the United
States, where it had been invented.
He also pioneered several labour welfare
measures that were yet to become common. And
he experimented with a new form of management
whereby he became a salaried managing director,
reporting to a functional board of directors. All
of this happened long before the term corporate
governance was conceived.
Jamsetji was fired by a fierce sense
of nationalism, a passion to advance the
economic status of India. Economists say that
all entrepreneurs must have some amount of
greed and optimism. If that be so, Jamsetji
must have had his fair share. The difference,
of course, lay in what he did with the fruits
of his entrepreneurship: he displayed a rare
compassion for the less privileged and he helped
build institutions for his people and his country.
A few of these came into existence in
Jamsetji’s lifetime, but there were other, more
important ones that found sustenance thanks
to his unique legacy. Jamsetji replicated the
wealth-creation characteristics of Carnegie,
cover story
Morgan and Rockefeller, but he did so as a
benign baron.
I recount these events for two reasons: first,
history creates romantic notions about the past;
second, it sheds some light on what I call the
samskar, or values, of any given business. Much
like individuals, business enterprises, too, have
a samskar. It is the mark of a successful business
that profits are earned competitively in the early
days. It is a mark of a great business that, in
addition, good samskar gets so deeply embedded
that it becomes part of its DNA.
Arie de Geus wrote in The Living Company
that an economic company is like a puddle of
rainwater: a collection of raindrops, gathered
together in a cavity. The other type of company
is organised around the purpose of perpetuating
itself as an ongoing community. This type of
company is like a river. It is turbulent, because
no drop of water remains in the same place for
long. This river finally flows into the sea, but it
lasts many times longer than the lifetime of the
individual drops of water which comprise it.
For 135 years the Tata ‘river’ has flowed
on, exhibiting the qualities of the great rivers of
the world: long traction, turbulence, growing
might, the ability to overcome obstacles, and the
tendency to share its power for the happiness
and prosperity of those on its banks.
In 1939, when the British government
published a report entitled ‘Indian Business and
Nationalist Politics’, the Tata group was listed
on top. In 1969, when the report of the Dutt
Industrial Licensing Policy Enquiry Committee
was published by the Indian Government, the
Tatas were again on top.
When the results of year ending March
2004 are analysed, the Tata group could well be
on top yet again. But it is not so valuable to be at
the top for business performance alone; it is far
more important to be listed on top in the hearts
of people, as a synonym for trust spread over
several generations.
After a long career in a single company,
when I contemplated joining the Tata group
in 1998, in the absence of my parents I sought
the blessings of my eldest sister. Not being well
versed in business matters, she said, “Go ahead
Empress Mills was Jamsetji Tata’s first big industrial initiative
and join them. They must have good people;
after all, they are always doing something for the
benefit of those around them.”
That view sprung from the samskar brought
to vibrant life by Jamsetji, and it is the same
samskar that drives our business today. The Tata
group’s shareholding patterns and profits are so
aligned that of the more than $1 billion of profit
after tax earned by it, approximately one-fourth
is attributable to the good causes that our trusts
espouse. It is to this tradition that all of us pay
homage when we begin work each day, and it
is this tradition which we will be saluting all
through 2004 and beyond. ¨
— Reproduced from Lasting Legacies, the special commemorative issue
of Tata Review, April-June 2004.
R Gopalakrishnan is director, Tata Sons, chairman of Tata AutoComp
Systems and Rallis India, and the vice chairman of Tata Chemicals.
January 2014
n
Tata Review
43
cover story
For company
and country
Dwijendra Tripathi explains why Jamsetji
Tata continues to occupy a unique position
in the annals of Indian business and industry
O
ne hundred years have passed since
Jamsetji Nusserwanji Tata left this
world. Much water has flown down
the business stream, and India has
produced a host of outstanding entrepreneurs
and industrial leaders during this long
interregnum. And, yet, Jamsetji continues to
occupy a unique, unrivalled position in the
annals of Indian business. There never has been
even a mild challenge to his supremacy. None is
in sight, either.
What is the secret here? I can think of three
reasons, all interlinked. First, Jamsetji conceived
business ideas and plans that seemed impossible
of accomplishment to his contemporaries. The
moving force behind his projects was the desire
to advance the industrial frontiers of India, not
to earn mere profits.
Second, in his choice of business structures
and strategies he demonstrated a remarkable
degree of originality that often ran counter
to the prevailing wisdom. Third, his concern
for values, ethics, and responsible corporate
citizenship was no less than for quantifiable
returns on investments.
It requires no great insight into the
industrial history of India to realise that to think
of launching steel production in India in the
44 Tata Review
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January 2014
late 19th century was, on the face of it, foolhardy.
Historical precedence, prevailing prospecting
laws, the state of technological competence in
the country, the colossal financial requirement,
and the indifferent, if not downright hostile,
attitude of the colonial government all militated
against the idea. And no one could have
imagined that steel manufacturing, even if
somehow mounted, would yield substantial
profits in the foreseeable future.
Despite all this, Jamsetji pursued his steel
goal with the determination of a man almost
possessed, driven by nothing but a long-term
vision for his country.
A similar vision led him to his
hydroelectric ventures. The constraints in
launching power generation were, admittedly,
much less daunting, but no one could have
visualised high or even quick returns accruing
from the undertaking when it was conceived.
Even in his textile projects, the favourite
with his contemporaries, Jamsetji exhibited
an uncommon sense of risk-taking when he
decided to set up his Empress Mills in Nagpur,
which had logistical advantages over Bombay,
the favoured location for cotton mills then.
Reacting to his Nagpur plans, a Marwari
financier likened the Empress Mills investment
cover story
to “taking out earth and putting gold in the
ground”. The results, however, disproved all
pessimists.
Jamsetji’s managerial style was equally
unconventional. At a time when practically
every industrial firm in India was organised
as a managing agency concern under tight
family control, he tried to introduce a more
liberal system of management in Empress Mills,
centred on a managing director and a board
(based on the British pattern).
That this proved too radical a move, forcing
him to fall back upon the prevailing Indian
structure, does not detract from the value of
his experimentation. In fact, through a wide
delegation of powers to his managers, Jamsetji
took much of the sting out of the regressive
features of the managing agency system.
Jamsetji also introduced a series of
employee-welfare measures in his companies,
much before such measures were made
statutory for all Indian enterprises. The concept
of human resource development was unheard
of then. His decision to introduce ring spindles
in place of mule — the spinning technology
preferred in general by British as well as
Indian cotton manufacturers — and charge
managing agency commission on profit instead
of production, rejecting the common practice,
were other innovations that must be considered
revolutionary for the time.
The last quarter of the 19th century, when
Jamsetji’s business career was at its prime, was
an era of mounting criticism against the misuse
of power and privilege by Indian managing
agents. A series of newspaper articles appeared
in Bombay and Ahmedabad bemoaning the
behaviour of the captains of Indian industry.
But not a single word of criticism was written or
spoken about the Tatas’ conduct or style.
As for Jamsetji’s corporate citizenship,
suffice to say that even though he contributed
to charity and religious causes, it was education
that he looked upon as the most deserving field
for corporate support.
Here, too, instead of tinkering at the
fringes of the system, he sought to strengthen
the infrastructure required for developing the
human resource that the material progress of
the country demanded. The Indian Institute
of Science, set up on his initiative and with his
substantial monetary contribution, will always
remain a lasting symbol of Jamsetji’s concern
for developing India’s technical resources.
The kind of industries he promoted required
technologists and scientists. His support for
scientific and technical education, thus, may be
seen as an exercise in what is today referred to
as ‘strategic philanthropy’.
Jamsetji’s approaches to business ideas,
strategies and ethics set the pattern for the
business behaviour of the house of Tata, and his
legacy has continued to influence subsequent
generations of its leaders.
Except during the brief interlude of the
First World War, when the Tatas, like most other
business groups in the country, were swayed
by short-term consideration of quick profits,
they have conceived and implemented gigantic
capital-intensive projects: air transport, heavy
chemicals, transport vehicles, etc. These were
necessary for India’s economic rejuvenation.
Developing passenger cars indigenously,
instead of through the soft collaborative route
preferred by other Indian car manufacturers,
is the latest example of the Tata group’s
unconventional response to business
opportunities.
As for managerial structure, the vast Tata
empire is so decentralised that a prominent Tata
executive once likened it to a commonwealth.
And, in terms of business ethics and values,
no business house has ever stood higher in the
popular imagination than the Tatas.
The Tata group, thus, continues to feel the
presence of Jamsetji Tata even today. It has been
said that giants like him are not easily duplicated.
It can be added that his kind never die. ¨
— Reproduced from Lasting Legacies, the special commemorative
issue of Tata Review, April-June 2004.
Dwijendra Tripathi is a former professor of the Indian Institute of
Management, Ahmedabad. He is an eminent business historian with
a large number of publications to his credit, including The Oxford
History of Indian Business.
January 2014
n
Tata Review
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cover story
Citizen Jamsetji
The Tata Founder contributed much to the development of India’s
commercial capital, from setting up key industrial ventures in the
city to supporting forums that nourished intellectual debate
P
erhaps the grandest and most recognised
of Jamsetji Tata’s tributes to his beloved
city of Bombay (now Mumbai) remains
the Taj Mahal Hotel. Standing tall and
proud, overlooking the majestic Gateway of India,
the hotel set up by the Founder of the Tata group
has been more than just a witness to the life and
times of this bustling city for some 110 years, its
own existence often intertwined with the story
and transformation of the metropolis itself.
When the hotel opened its opulent doors in
1903, it was a landmark on the Mumbai harbour
(the Gateway of India became its neighbour 21
years later). With its awe-inspiring exteriors
and luxurious interiors, including electric fans,
elevators, Turkish baths and more, the Taj was
every bit the dream that Jamsetji had set out to
achieve: a hotel that Bombay would be proud of
and which would attract tourists from across the
world, a place where Indians would be welcome,
in stark contrast to Watson’s Hotel, the city’s only
five-star hotel before the Taj opened, which had
46 Tata Review
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January 2014
an exclusive European clientele. Legend even has
it that Jamsetji’s decision to start a hotel as grand
as the Taj was on account of being denied entry
to Watson’s Hotel.
While the Taj remains, to this day,
unarguably the most well-known edifice
associated with Jamsetji, what is lesser
known is his contribution to several other
important projects and initiatives, among
them the reclamation of land from the sea, the
establishment of some of the city’s most famous
clubs and setting up key industrial ventures.
These had a far-reaching impact on the social,
political and economic development of Bombay.
Though not all his efforts were successful,
there was much thought and commitment
behind everything Jamsetji set out to do for the
city that he adopted as his home after moving
from Navsari, his place of birth.
Much before the Taj turned into reality,
Jamsetji had been associated with a venture to
reclaim land from the stretch of sea between the
cover story
present-day Colaba and Malabar Hill. The Back
Bay Reclamation Company was formed in 1863
with the grand idea of reclaiming around 1,500
acres of land; the driving force behind the plan
was Premchand Roychand, a partner of Jamsetji
and his father, Nusserwanji Tata.
After the initial excitement, the company
collapsed due to a mix of factors, including the
end of the American Civil War, the resurgence
of the cotton industry in that country and,
importantly, the lack of a sound financial plan to
back the venture. The failed effort left a lasting
impression on the young Jamsetji.
Frank Harris describes the episode in
Jamsetji Nusserwanji Tata: A Chronicle of His
Life: “It was a landmark in his life. He saw how
unsound finance could stifle a promising project;
but his thoughts were turned to the advantage of
reclaiming the swamps which fringed Bombay,
and his son, Dorabji, can remember, as a boy,
walking with his father round the abandoned
works. In later life Mr Tata interested himself in
various schemes for reclamation…”
investing in real estate
Jamsetji saw huge potential in the city’s real
estate. Recognising the need for suitable and
affordable accommodation for Englishmen
of modest means, he built a block of 16 flats,
called Gymkhana Chambers, in the Fort area
of Bombay. As his financial status improved, he
started buying significant portions of land in the
city, especially in its northern parts, which he was
particularly keen on developing. He wanted to
build houses that could be rented out at affordable
rates, so as to reduce the congestion in the city.
However, after a prolonged battle with the
prevailing administration over unreasonable
building fines in the area, Jamsetji abandoned
the plan and concentrated, instead, on the task
of reclaiming vast tracts of land from the Mahim
Creek, between the suburbs of Bandra and
Santacruz. “The chief advantage I am looking
forward to is the improvement in the health
of Bombay consequent on the reclamation
of drowned lands, the malarial exhalations
from which are at present carried to Bombay
island by the north wind,” he wrote in a letter
to the collector (from Frank Harris’s Jamsetji
Nusserwanji Tata: A Chronicle of His Life).
Yet again, a protracted battle with authorities
ensued, one that carried on well beyond
Jamsetji’s lifetime.
More successful than the reclamation
projects were some other tasks that Jamsetji
took up to enrich the political and cultural
landscape of Bombay. Along with his friend
Pherozeshah Mehta, he set up the Ripon Club
in Bombay in 1883, to create a platform for
political debate in the country. He was also
closely associated with the Bombay Presidency
Association, another leading political forum
(this was established in 1885).
Mr Harris, in his biography, recalls Sir
Pherozeshah Mehta’s 1912 tribute, where the
latter sought to dispel the notion that Jamsetji
was largely apolitical: “The current notion that
Mr Tata took no part in public life, and did not
help and assist in political movements, is a great
mistake. There was no man who held stronger
notions on political matters, and though he
could never be induced to appear and speak
on a public platform, the help, the advice and
the cooperation which he gave to political
movements never ceased except with his life.”
Jamsetji played a pivotal role in setting up,
in 1885, the Parsee Gymkhana, which offered
a space for the promotion of athletics, sports
and recreational activities. With its charming,
old-world aura, the Parsee Gymkhana remains a
landmark of modern-day Mumbai.
In the early years, a fleet of horse carriages often lined up
outside the Taj Mahal to ferry the hotel’s guests and others
January 2014
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cover story
The Founder also patronised a couple of
other nonpolitical clubs, including the Excelsior
and the Elphinstone, important addresses in
the social life of contemporary Bombay, and a
precursor to the club culture that would become
such an integral part of the city’s unique social
fabric. Here he would spend many an evening
playing a game of chowpator, engaging in lively
discussions with other members.
Mills for a cause
The year 1887 saw Jamsetji make yet another
important investment in the future of Bombay,
when he acquired the sick Dharamsi Mill in the
then suburb of Kurla and renamed it Svadeshi
Mills, in line with his nationalist belief that
to be politically independent India needed to
be economically self-reliant. The solution, he
was convinced, lay in the industrialisation of
the country. The next few years were full of
struggle as Jamsetji tried to turn the outdated
mill around, working relentlessly on upgrading
technology, even as an acute shortage of labour
made matters difficult.
A lesser individual would probably have
abandoned the venture, but Jamsetji made sure
that Svadeshi Mills lived up to the promise
he saw in it. Not only did he invest in new
machinery and the latest technology, but he
also introduced a slew of employee welfare
measures that he was already offering his staff
Jamsetji acquired the sick Dharamsi Mill, renamed it as
Svadeshi Mills and turned it into a profitable venture
48 Tata Review
n
January 2014
at Empress Mills. Thus, Bombay saw some of
the earliest efforts at creating a better deal for
its workers, including mills with improved light
and ventilation, accommodation with decent
sanitation, grains at cost price, medical facilities
as well as pension and provident funds. Svadeshi
Mills even introduced an apprenticeship
programme for graduates, offering them a
chance to enhance their knowledge of the cotton
industry, something unique for those times.
With a motivated workforce, better
production facilities and the wholehearted
commitment of Jamsetji, Svadeshi Mills lost
no time in becoming a profitable venture, well
known for the fine quality of its cotton yarn.
Jamsetji’s pioneering spirit, along with
his travels and experiences across the world,
ensured that Bombay had the opportunity to
see some of the latest inventions and practices
of the Western world. If he brought the finest
of European hospitality to the city, first at his
magnificent Esplanade House home and then
the Taj Mahal Hotel, he also delighted the people
of Bombay when his carriages were fitted with
rubber tyres (his were among the first carriages
to move around the city without creating a
racket). As early as 1901, he also brought one of
the first motorcars to Bombay.
“He loved an ingenious device,” Mr Harris
says in his book. “Though he cared little for
music, he bought an electric piano for his home.
When the cinematograph first appeared, he
acquired one at once. His purchases were made,
not so much for himself, as to let India know
what was new in the great world across the seas.”
Jamsetji took immense pride in his city,
constantly looking for ways to make Bombay
a better place for its residents and visitors.
His contribution to the city didn’t stop at just
creating some of the city’s most iconic structures;
it went much beyond into the many dreams he
had for the city. Some of these were realised,
some failed, but all of them were born of a great
love for the city he called home. In the words
of Mr Harris, “He died, as he lived, a citizen of
Bombay...” ¨
— Sangeeta Menon
cover story
The quotable Jamsetji Tata
There is one kind of charity common enough among us,
and which is certainly a good thing, though I do not think it
the best thing we can have. It is that patchwork philanthropy
which clothes the ragged, feeds the poor, and heals the
sick and halt. I am far from decrying the noble spirit which
seeks to help a poor or suffering fellow-being…
We do not claim to be more unselfish, more generous or more
philanthropic than other people. But we think we started on
sound and straightforward business principles, considering
the interests of the shareholders our own, and the health and
welfare of the employees, the sure foundation of our success.
Be sure to lay wide streets planted with shady trees,
every other of a quick growing variety. Be sure that there is
plenty of place for lawns and gardens. Reserve large areas
for football, hockey and parks. Earmark areas for Hindu
temples, Mohammedan mosques and Christian churches.
Source: Tata Central Archives
January 2014
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Tata Review
49
in conversation
‘It is a challenge, but I’m
learning every day’
Mukund Rajan wears not one
but three hats at Tata: he is the
group’s brand custodian and chief
ethics officer as well as chairman
of the Tata Council for Community
Initiatives (TCCI). Given the size
and spread of the Tata group, the
responsibilities that come with
Dr Rajan’s role are not only
substantial but remarkably diverse.
Many of the group’s concerns
revolve around communication,
says Dr Rajan, who brings to the
job broad-ranging experience from
his earlier leadership positions, at
Tata Capital and Tata Teleservices
(Maharashtra), and insights from his
work alongside former Tata Sons
Chairman Ratan Tata.
In this interview with Sangeeta
Menon, Dr Rajan talks about how the
three hats make sense together, and
why the evolution of the Tata brand
needs to remain sustainable.
50 Tata Review
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January 2014
in conversation
Brand custodian and chief ethics
officer for the Tata group, and
chairman of the Tata Council for
Community Initiatives — how
difficult is it to manage these
different responsibilities?
While these roles may seem different from
one another, they have been intrinsic to the
Tata brand for more than 140 years. There
is a common thread linked to the integrated
concept of a brand custodian. This concept
goes back to the way successive chairmen
have seen the Tata brand evolve; it is also the
direction in which the current Chairman
believes it needs to be taken forward.
The brand’s growth can be attributed as
much to the performance of our businesses
and the various efforts invested in building
the brand equity as to two other major pillars:
ethical conduct and community service.
Given that our group has a unique brand
that has grown and matured on the strength
of these pillars, integrating them under one
head makes a lot of sense. Our group will
continue to emphasise values, giving back to
the community and nation building. So I don’t
see any conflict in having these different roles
aligned under a brand custodian. In fact, it
is an advantage; wearing these multiple hats
allows one to see the opportunities that exist
across these spaces. The communications hat,
particularly, is a great advantage because the
success of what we do depends, to an extent,
on how we communicate the proposition and
inspire our people to do the right thing.
I have spent a lot of my time over the
past couple of quarters understanding the
dimensions of what I am handling. It is a
challenge, yes, but the fun part is that one is
learning every day.
You are also the group’s first
chief ethics officer. Does this new
position signal a whole new focus
on the area of ethics?
It’s not a new focus. What has become more
important is that, with changing times and the
changing scale of business, it is crucial that we
are not only compliant with the law in each
country, but that we also invest in educating
people about the manner in which our group
has evolved.
Some of our expansion in recent times
has been through acquisitions. With new
entities absorbed into the group, we need to be
able to communicate across continents about
who we are and why we do things in a certain
way. As the business becomes bigger and we
have a larger number of entities and people,
the risk of something going wrong increases.
Our companies will need to have a sharper
focus on measuring the impact of the systems
that have currently been deployed.
A bad egg or two can pose a threat to
our reputation. Therefore, it becomes more
important that we have some level of formality
around all that we do in this space. Take the
Tata Code of Conduct [TCoC], which was
created in 1998. It was not as if we did not
follow any code before that document was
published, but at that point of time it became
incumbent on us to create an easily accessible
document that would communicate to people
all that we believed in. Having a chief ethics
officer signifies that the time has come for us
to formalise the way we look at these issues
within the group. It’s not a departure from the
past; it’s a requirement of the present.
What does the Tata brand
custodian’s role entail? What are
your key priorities?
Tata is an extremely solid brand in India. We
are the top Indian corporate brand by a long
margin, as demonstrated by several third-party
studies, so there is relatively less investment
needed in strengthening our brand here. We
have a bigger challenge overseas because we
haven’t been around for long in many of those
markets. If we had to pick one challenge, it
would be how much we need to invest in order
to communicate adequately the propositions
around our brand outside of India.
There are three key brand messages
that we would like to send out globally. One,
that we are now an international group with
January 2014
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in conversation
Dr Rajan with the winning teams at the Brand and Corporate Communicators Meet in Mumbai
so much revenue generated from outside
India. Second, the idea of being trusted and
transparent, which is summed up by the
‘leadership with trust’ tagline we use along
with the Tata corporate mark. Third, corporate
social responsibility [CSR] and being a good
corporate citizen. We have already done some
work on this, but much more needs to be done.
Do you foresee any changes in
the Brand Equity and Business
Promotion (BEBP) document that
governs the relationship between
the Tata brand and the brands of
Tata companies?
Any legal construct can be reviewed from
time to time to make sure that it is in step
with changes in the environment and the
complexion of our group. The TCoC, an
integral part of the BEBP agreement, has
already been through one cycle of significant
change around half a decade back, when we
felt that there were parts in the document
that spoke more to our people in India
than to global audiences. Now we have
commissioned another relook because, with
some of the acquisitions we have made,
we are encountering challenges in certain
52 Tata Review
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January 2014
jurisdictions outside of India. There are tweaks
needed in the wording of the clauses so that
they cannot be misconstrued.
Even the BEBP document bears review
from time to time. Our brand architecture
follows a clear generational approach. Early flag
bearers who had the Tata name were allowed to
continue using it; second-generation companies
leverage the parent’s name; third-generation
companies present their names in a certain
manner; and new companies may or may not
be given the benefit of using the Tata name.
We are asking ourselves if we need to
revisit that architecture. For example, it has
been suggested to us that by not allowing new
businesses to use the Tata name we deny them
the opportunity to take advantage of our brand
equity. So there will be a reason to reconsider
some of these issues. We should never think of
our organisation as frozen in time.
Given this brand architecture and
the coexistence of more than 100
companies within the group, how
complicated is it to manage the
relationship between the Tata
brand and the companies’ brands?
Tata companies recognise the value they
in conversation
receive by virtue of being a part of the Tata
group: the positive attributes associated with
the Tata brand, as support with policies and
investments, and through initiatives such
as business excellence. From the group’s
perspective, we have to ensure that the brand
is deployed appropriately and that there is no
potential reputational hazard to it as a result of
inappropriate usage.
An issue that is sometimes brought up
is with Tata companies that don’t use the
Tata brand. My response is: ultimately, what
consumers want is a product or service they can
trust and appreciate. As long as that is ensured,
it doesn’t matter what the product or service is
actually called. Giving added reassurance would
be the proposition to the consumer that the
service or product is backed up by this group
that has a particular set of values.
How do you see TCCI evolving under
your chairmanship?
The first change we would like is to integrate
this whole idea of sustainability with CSR. I’ve
just taken over as the chairman of the group’s
steering committee on sustainability because
we believe these activities need to go together.
Second, we have embarked on a review of
the group CSR strategy; this becomes more
relevant in the context of the new Companies
Bill. As a group it is incumbent on us to
identify a good set of projects that can have a
significant national impact.
Unlike in the past, when TCCI provided
a forum for Tata companies to engage with one
another and share their experiences, it will now
take a more active interest in coordinating some
of these activities in a manner that the group is
able to create a national impact. We also have
new leadership coming on board at TCCI,
including Shankar Venkateswaran, one of the
pioneers of CSR work in India.
We can also have a more forceful impact
by ensuring that the work that our companies
do is coordinated with the excellent initiatives
that the Tata trusts have been funding for long
years. It would be tremendously meaningful
for our companies to engage with the trusts;
We have a huge opportunity to propel this
group to where no Indian corporation has
gone before. We have the size, the scale
and the talent to make that happen.
the body of knowledge that rests with the
trusts is of infinite value.
How has the Tata brand evolved
from the time you joined the group
18 years back?
The biggest change we have seen in the group is
around size, the scale at which we do business
and our operations around the globe. Much of
that happened over the last 20 years under the
leadership of Ratan Tata. I have been privileged
to see that at close quarters.
Many of the elements from the time when
Jamsetji Tata created this group have seen
translation during Mr Tata’s leadership. The
kind of words that one would use to describe
the group’s evolution under Mr Tata would be
similar to the words we would use to describe
the Founder’s vision: pioneering, fortitude,
ambition, foresight, determination.
Under Mr Tata’s leadership we saw a
conscious effort to bring this vast group
together as a single, powerful entity. Initiatives
such as crafting the group composite mark,
the creation of the quality movement, and the
formal enactment of the TCoC — all of this
created the platform on which we could aspire
to have global ambitions and compete with the
best in the world.
In some ways, I think all that has
happened has taken us back to the beginning,
when we were known as a pioneering group. It’s
a tremendous platform that all of us have the
privilege to be a part of. After the Founder, each
successive leader has taken the platform and
made it bigger. Today, under the chairmanship
of Cyrus Mistry, we have a huge opportunity
to propel this group to where no Indian
corporation has gone before. We have the size,
the scale and the talent to make that happen. ¨
January 2014
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BUSINESS
Refreshing the offering
The 150-year-old Eight O’Clock Coffee brand,
America’s top whole-bean coffee, reinvents
itself with a heady blend of new flavours, vibrant
packaging and an upscale identity
W
hat would you sacrifice
to get your cup of
coffee? That’s the
question the Eight
O’Clock Coffee brand, owned by
Tata Global Beverages (TGB), asked
in the United States. In September
2013, new Eight O’Clock Coffee
television commercials hit the
airwaves, showing people willing to
give up quite a bit to get their high
from this popular bean.
The commercials are a part of
the new buzz around TGB offices in
the United States as the coffee brand,
which has for years been the No1
54 Tata Review
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January 2014
whole bean brand in the country,
has got a complete facelift — a fresh
brand identity, new advertising, new
coffee flavours and spanking new
packaging and design.
“Consumers evolve constantly
and our brand was perceived as old
and dated,” says David Allen, senior
vice president, sales and marketing,
Tata Global Beverages. “It was clearly
time for the brand to be refreshed. We
decided to add style to the substance
that we have always offered.”
A brand with a 150-year-old
heritage, Eight O’Clock Coffee was
spun off as a separate company in
2003, before becoming part of the
Tata stable in 2006. Refreshing the
popular brand was no easy task. It
called for intensive market analysis,
consumer segmentation studies and
strategic brainstorming on a new and
viable positioning. The project started
back in 2011 and culminated with the
relaunch in August 2013.
The story behind...
“Today’s consumers are interested in
more than just coffee; they want the
story behind the coffee they drink,”
says Mr Allen. “That’s what we are
now offering them, along with the
core message that Eight O’Clock is
a gourmet coffee brand.” Mr Allen
likens the exercise to the way older
brands such as Levis and Converse
keep reinventing themselves to stay
in step with the customer.
To create the new positioning
business
We’ve added more products, flavours and
light and dark roasts, because that is what
today’s consumer is looking for from a
gourmet coffee brand.
David Allen, senior VP, sales and marketing, Tata Global Beverages
and communication strategy for the
brand, Eight O’Clock partnered John
Street, a Toronto-based advertising
agency that also created the new
television commercials. “This is the
first TV advertising for the brand
in six years,” says Mr Allen. “We’ve
received good anecdotal feedback
and consumer engagement is strong,
but it is still too early to evaluate the
in-market performance.”
The coffee packages that
line retail shelves also got a total
makeover, with Eight O’Clock
getting Amoeba Graphics to create
the new look. “Looking at the brand’s
original brand colours, we decided
to play up the red of the original
packs. We said, ‘Let’s own the red; it
stands out much more on the shelf ’,”
says Mr Allen. The new packs of
Eight O’Clock are eye-catching, to
say the least.
In an all-out exercise, more
agencies were pulled in to handle
the public relations, social media,
activation and digital strategy.
Facebook and Twitter became the
leading social media platforms for
the brand, with promotions and
contests to drive excitement. The
brand website was relaunched in
shades of red and a responsive
design made it device-friendly.
Eight O’Clock also started to
sell online through a few portals.
Says Mr Allen: “Online sales are
not a big deal for us. It’s there as a
convenience option for consumers
who cannot find a particular blend
on retail shelves. Having said that,
the new marketing drive has led to
online sales increasing perceptibly,
so that’s a space that we are going to
watch carefully.”
fashion initiative
In the activation and digital space,
Eight O’Clock participated in
the New York Fashion Week in
September 2013, where designers
showcased handbags inspired by the
red of Eight O’Clock Coffee’s original
package. The Red Bag initiative
supported Dress for Success, a
nonprofit. Consumers across the
country could share photos of red
bags and upload to Instagram with
the hashtag #SpotTheRedBag for an
exclusive prize.
Apart from the exciting
communication, consumers are
enjoying the new product variants
put out by Eight O’Clock Coffee. The
products have been clubbed into
three silos: beginnings, explorations
and expressions. The beginnings
portfolio holds the classic blends,
including The Original, Dark Italian,
French Roast and decaf roasts. For
those seeking single-origin roasts,
the explorations line offers light and
dark roasts of coffee from Africa
(African Plains), Central America
(Central Highlands) and the awardwinning Colombian Peaks.
The more adventurous get
expressions: flavoured coffee with
blends of vanilla, hazelnut, cinnamon,
etc. “We’ve added more products,
flavours, and light and dark roasts,
because that is what today’s consumer
is looking for from a gourmet coffee
brand,” says Mr Allen.
One of the biggest successes,
however, has been the launch of the
single-serve coffee pods that are
used in specially designed machines.
For this, Eight O’Clock tied up in
2012 with Green Mountain Coffee
Roasters, the largest single-serve
manufacturer in the United States,
to create Eight O’Clock single-serve
coffee pods (called K Cups). “It’s
notched up a 6-percent market share
and we are happy with the popularity
of the product,” says Mr Allen.
The success of the K Cup and
the brand refresh has reinvigorated
the Eight O’Clock brand. Mr Allen
says, “We are excited about the
space we’re in and the journey we’ve
begun.” Being a century-and-a-half
of age seems not to have prevented
Eight O’Clock from getting into a
youthful groove. ¨
— Gayatri Kamath
January 2014
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BUSINESS
Back in cruise control
A commitment to investing in new products,
research and development, and engineering
expertise has seen Jaguar Land Rover record
strong growth in profits, and become one of the
biggest exporters in the United Kingdom
A
nyone wanting to
understand the
contribution of luxury
carmaker Jaguar Land
Rover (JLR) to the United Kingdom
economy — and the recovery of the
country’s manufacturing sector — in
the past few years just needs to look
at the numbers.
Pretax profits for the year to
March 2013 rose 11 percent to £1.68
billion on revenues that increased
by 17 percent to £15.8 billion
Export sales, spread over about 170
countries, jumped to £11 billion in
2011-12. In the past two years, JLR
56 Tata Review
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January 2014
has created 9,000 new jobs in Britain
and generated a further 24,000 in
the supply chain. The company
invested £2 billion in new products
and infrastructure, R&D and skills
development in 2012-13, and is
spending a further £2.75 billion this
financial year.
It’s no wonder politicians
from all three major British parties,
including Prime Minister David
Cameron, lined up to praise JLR’s
economic impact during the recent
party conference season. Four years
back, however, it was a different
story. Like its competitors in the
automotive industry, the company
was hit hard by plummeting demand
in the wake of the financial crisis,
recording a pretax loss of £280
million in the 10 months to March
2009.
So how did JLR turn things
around? The company had to take
a series of tough decisions during
the global downturn, including
production shutdowns, laying off
temporary workers and voluntary
redundancies. Crucially, it continued
to invest in new products and
research and development, meaning
that it had new vehicles to offer
when confidence began to return.
Mike Wright, executive director
at JLR, was part of the management
team during the Ford era and helped
lead the initial stages of Tata Motors’
acquisition of the company in 2008.
He believes three factors have driven
the company’s resurgence.
business
New launches from the Land Rover (left) and Jaguar stables have garnered a lot of interest
“The first is an absolute focus
on generating new products for
both brands,” he says. “The second
has been a real drive to expand
our global revenues, maximising
the opportunities not only in our
mature markets but also in emerging
and emerged economies, most
notably China. Third, we have really
concentrated on ensuring we have
the right level of investment in
R&D and product creation to allow
our conveyor belt of products to
continue to roll over time.”
New models sell well
That conveyor belt saw JLR sell more
than 374,000 vehicles in 2012-13
(up 23 percent year-on-year). New
models such as the award-winning
Range Rover Evoque — of which
more than 220,000 have been sold
since its 2011 launch — and this
year’s Jaguar F-Type have garnered
the lion’s share of the headlines.
The company has also focused
on replacing its existing range with
the launch of a new Range Rover
and Range Rover Sport. Improved
engines, offering lower CO2 emissions
and greater fuel economy, have
enabled JLR to enter new subsegments in a number of markets.
The addition of an all-wheel drive
to the Jaguar XJ and XF has made
the models more competitive in the
snowbound North American market.
The backing of Tata Motors,
which acquired JLR from Ford for
$2.3 billion in June 2008, has been
crucial in the company’s success
over the past few years. Mr Wright
says, “They have really challenged
us to make these businesses perform
and grow, encouraging us to take
a long-term perspective without
letting up on delivery in the short
term. They have given us the
opportunity to fulfil the potential of
the Jaguar and Land Rover brands,
and they have encouraged us to
focus our resources and the money
we make on product investment.”
As part of that investment
programme, JLR is building a £500million facility at Wolverhampton
to manufacture its own engines
(currently supplied by Ford). This
will generate a further 1,400 jobs.
And it has recently announced
a £1.5-billion investment in a
technically advanced, lightweight
and high-strength aluminium
vehicle architecture, creating
1,700 new jobs at its advanced
manufacturing facility in Solihull.
This fuel-efficient technology
will allow JLR to enter new markets
and segments and provide a
platform for a significant expansion
of product ranges of both the brands,
One of the things that distinguishes us
in the global marketplace is the unique
characteristic of British design and
engineering.
Mike Wright, executive director, Jaguar Land Rover
January 2014
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57
BUSINESS
Meeting the skills challenge
Finding the right engineering and technical skills isn’t always
easy — particularly in the United Kingdom, where Jaguar
Land Rover (JLR) employs about 95 percent of its 26,000
workers globally. The company is encouraging youngsters
to join the automotive industry and has recruited nearly 300
graduates (mostly in engineering) in each of the past three
years and visited schools and universities to engage young
people and get them to consider careers in the sector. JLR is
also backing a university technical college in Warwick. This is
a new type of school for 14-19 year-olds, teaching technical
skills alongside the regular academic fare.
JLR has made a significant investment in its
apprenticeship programmes: currently more than 500 people
are enrolled in its advanced and higher apprenticeship
schemes. “We’ve also put in a syndicated programme with
a number of universities that allows our apprentices to take
modules from different academic institutions and come out
with an accredited engineering degree,” says Mike Wright,
executive director, JLR.
beginning with a new mid-sized
sports sedan from Jaguar in 2015.
JLR’s investment in production
capacity and capability has been
supported by a strong focus on
developing the skills of its staff and
deepening its engineering and R&D
expertise (see box: Meeting the skills
challenge). It has also contributed
£50 million to a £100-million project
to create the National Automotive
Innovation Campus, a new research
facility at Warwick University that
58 Tata Review
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January 2014
will bring together researchers and
engineers from JLR (and its supply
chain) and academics from leading
British universities.
Mr Wright says that JLR has
benefited from the resurgence of
the British automotive industry
and the country’s reputation as a
manufacturer of luxury vehicles.
“One of the things that distinguishes
us in the global marketplace is the
unique characteristic of British
design and engineering,” he says.
“That’s a powerful force in making
JLR a strong brand.”
While the heart of JLR is in
the United Kingdom, it is firmly
committed to expanding its
international footprint as it seeks to
become globally competitive and
gain access to new markets. That has
seen it invest in its dealer networks,
training and behind-the-scenes
infrastructure to market its brands
worldwide and provide high-quality
after-sales service.
The china expansion
In China — where sales rose 48
percent in 2012-13 — JLR has opened
‘Land Rover Experience’ centres to
familiarise consumers with the brand.
It has also invested £500 million in a
joint venture with Chinese carmaker
Chery that will give it better access
to the market. And a new plant near
Shanghai will manufacture Jaguar
and Land Rover vehicles as well as
joint-branded vehicles.
Additionally, the company
has an assembly facility in Pune,
India, for the Land Rover Freelander
and Jaguar XF, and is currently
considering whether to open plants
in Brazil and Saudi Arabia.
These initiatives are part of
JLR’s ambitious, long-term plans
to achieve sustainable growth and
achieve a balance of sales across its
six global regions. Mr Wright says
that the company’s future strategy
is “more of the same”, focusing
on product development driven
by increased investment in R&D,
engineering, modernised facilities
and skills. “There are plenty of
actions in place to drive growth,”
he points out. “But we can’t be
complacent — there’s a lot to do.” ¨
— Peter Curtis
business
Digital tide shows the
fast way forward
Infotech has been the key for Tata Consultancy
Services in its effort to help transform the delivery
of public services in the United Kingdom
W
hen Tata Consultancy
Services (TCS) won a
multimillion pound
contract from the
United Kingdom’s Home Office in
October 2012, to provide technology
and operations support for the newly
formed Disclosure and Barring
Service (DBS), it was a landmark
moment for the company’s British
public sector business.
Under the deal, which will last
for an initial period of five years,
TCS will implement a programme
to transform DBS, a core and highly
sensitive British government service
that processes requests for criminal
record checks on people seeking
new jobs or voluntary positions.
To do so, it will replace the current
paper-based system with a new
online application.
According to Damien
Venkatasamy, director of public
sector for UK and Ireland at TCS, it
was the company’s ability to meet the
demands of the British government’s
‘digital by default’ agenda that helped
it beat incumbent supplier Capita
to the contract. The government’s
aim is to achieve cost savings of
up to £1.2 billion by 2015 and £1.7
billion a year after that (according
to www.gov.uk) by making everyday
government transactions digital.
“We are digitising the service,
bringing the lessons we’ve learned
from working in sectors such as
financial services and retail to
develop that new online application,”
says Mr Venkatasamy. “It will
authenticate that people are who
they say they are via the creditchecking agency, Experian.”
To fulfil the contract, TCS has
set up a new secure delivery centre
in Liverpool. When the system goes
live in summer 2014, information
will be routed directly into the DBS
customer management relationship
system and workflow, meaning
that checks can be processed far
more quickly than with the current
system, which involves a significant
amount of manual processing.
“Our belief is that it will reduce
the current average time of six weeks
for a standard criminal-record check
to two days,” Mr Venkatasamy says.
“It will also remove the need for
people to go via a registered body or
employer: they can apply online and
We understand how [the government] can
deploy technology to radically transform
the service, both from an efficiency and
end-user perspective.
Damien Venkatasamy, director of public sector, UK and Ireland, TCS
January 2014
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There are significant opportunities for IT services
companies to help improve service delivery as well
as provide cost savings in the public sector domain.
TCS is well equipped to deliver such benefits.
then give the relevant organisation
access to a digital certificate.” He
adds that “removing the paper from
the process” should also improve the
audit trail and flow of information
around the DBS, enabling more
efficient use of resources.
The British government
handles more than a billion different
transactions each year through 650
different services. But even though
the public increasingly expects to be
able to perform such transactions
online, many still lack digital options.
As a result, there are significant
opportunities for infotech services
companies to help improve service
delivery, as well as provide cost
savings and greater value for money.
Mr Venkatasamy believes that
TCS is well equipped to deliver
such benefits. “I think that’s at the
core of our value proposition to
the government: we understand
how you can deploy technology to
radically transform the service, both
from an efficiency and end-user
perspective,” he says.
packing in plenty
One example is TCS’s work with
Nest Corporation, the trustee
body that runs the National
Employment Savings Trust pension
scheme, introduced as part of the
government’s auto-enrolment
legislation. Under a 10-year contract,
TCS is providing the infotech
infrastructure, business applications
and customer-facing online channel
for Nest. And it is also running a
customer services centre.
A lack of interest in pensions is
one of the major reasons that people
fail to make adequate provision for
their retirement. To tackle the issue,
Mr Venkatasamy says that TCS has
created “a really compelling digital
journey”, one which allows people to
interact with their pension schemes.
“We made sure it was backed up by
processing capability that allows
people to get information about how
their pensions are performing and
move money around in real time,
just as if they were switching money
between online bank accounts.”
Mr Venkatasamy adds that
using a digital channel has enabled
Nest’s costs to be driven to “an
industry-leading low”, a key priority
given that the scheme targets low-
The Tata Consultancy Services delivery centre in Peterborough in the United Kingdom
60 Tata Review
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business
and middle-income earners. “I
think the average price of policy
administration is something like 1.5
percent of the policy value in any
given year; Nest is currently at 0.3
percent,” he explains.
TCS is using expertise
developed in other industry
verticals and global markets to
serve its public-sector clients
in Britain. For example, its own
banking platform forms the core
of the Nest solution, as well as a
new business application for the
Child Maintenance Group, a British
government agency that processes
child maintenance payments.
From india to britain
It is also deploying the ‘DigiGov’
platform — originally developed
for the Indian government market
— as part of a 15-year contract
signed in 2009 to act as strategic
infotech partner to Cardiff City
Council. Initially this focused
on back-office improvements to
human resources processes in areas
such as recruitment, expenses and
appraisals, and the provision of
better management information,
which has enabled the council to
plan resources more effectively.
TCS has recently signed a new
contract with the Security Industry
Authority to develop an online
licensing application for the private
security industry. Mr Venkatasamy
is optimistic about the future.
“The scope for further digitisation
of services is enormous,” he says.
“There’s no shortage of potential, but
we have to be judicious and pursue
opportunities where we can use
technology to achieve something
transformational.” ¨
France ambitions get a fillip
Tata Consultancy Services’ acquisition of French IT services
firm Alti in July 2013 has helped accelerate the company’s
growth momentum in France, and is a significant boost to
its plans to become one of the country’s top 10 information
technology enterprises. Kumar Narayanan, country manager
for TCS France (extreme left in the picture), believes that
the acquisition of privately held Alti, which had revenues of
€126 million and 1,200 employees in 2012, offers significant
benefits, given TCS’s global capabilities, innovation and
investment strength and Alti’s local expertise, talent pool and
customer base.
Alti is the fourth-largest integrator of SAP software in
France and specialises in business intelligence, testing and
general applications development and maintenance. These
are all business lines that TCS is keen to expand in France, a
long-term strategic market for the company.
The deal has increased TCS’s headcount in France by
500 percent and seen it enter the ranks of the country’s top
30 infotech services companies, according to Pierre Audoin
Consultants. Among its clients are banks like BNP and
Société Générale, as well as leading companies in the energy,
transport and pharmaceutical sectors. Mr Narayanan believes
that the public-sector market will also offer opportunities in
the longer term.
TCS France has recently won several significant projects,
including a multi-year contract to help a utility realise efficiency
gains through the use of SAP modules. “We are also winning
projects on the digital side, where Alti had a strong local
team specialising in user experience,” adds Mr Narayanan.
“Combine that with our digital labs in India and Santa Clara in
the United States and we can bring in a lot more solutions.”
— Peter Curtis
January 2014
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TCS North America team members with educators and government officials at a
computer science executive round table held in September 2013 in Washington, DC
Learning to STEM the tide
Tata Consultancy Services is leading a pan-Tata
effort in North America to provide a much-needed
push for education that equips students for
careers in information technology businesses
G
ive a man a fish and you
feed him for a day; teach a
man to fish and you feed
him for a lifetime. It’s a
potent proverb, but what happens
if no one is interested in learning
how to fish? That’s the state of affairs
confronting the United States and,
to a lesser extent, Canada in the
matter of finding competent college
graduate candidates to fill positions in
information technology businesses.
While the demand in North
America for IT workers has increased
over the last decade, the number of
students graduating with computer
62 Tata Review
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science degrees has decreased
significantly, and university-level
enrolment in infotech-relevant
fields has decreased by 60 percent.
This has forced companies to invest
increasing resources in hiring
qualified candidates, rather than fresh
graduates, for critical jobs in their
organisations. It’s a situation that has
educators and government officials,
as much as corporate entities, worried
— and more than open to accepting
help to rectify the situation.
That’s where the Tata group,
primarily through Tata Consultancy
Services (TCS), comes into the
picture. The aim here is to support
the cause of what is known as STEM
education in the United States.
This quite appropriate acronym
represents fields of study in science,
technology, engineering and
mathematics, and is most commonly
attached to education policy and
choice of syllabi (from school to
college) that influence a country’s
competitiveness in technology
development.
The seeding of workforce skills,
national security concerns and
immigration policy are all affected
by the quality of STEM education
a country can deliver to its youth.
The Obama administration has
committed $3.1 billion to improve
STEM education across America,
and several companies, foundations
and nonprofits are partnering
schools and communities to provide
business
more opportunities in targeted study
fields for students. The endeavours
of TCS and other Tata companies are
of a piece with this national drive for
STEM education rejuvenation.
Through nationwide
collaborations, key programmes and
thought leadership, TCS is tapping
into its core consulting and infotech
competencies to help increase the
visibility of, and accessibility to,
STEM careers. There is necessity
and altruism at work here. For
some years now, TCS and similar
companies have understood the
reality that computer science as a
career has declined in popularity in
the United States and Canada. “We
feel the pinch because we are losing
out on potential future employees,”
says Balaji Ganapathy, head of
workforce effectiveness, TCS North
America.
TCS has 22,000 employees in
North America and hires close to
2,000 people from the continent
annually. In 2013 only about 175
of these were campus recruits. This
year TCS has set a target of hiring
500 new graduates from college
campuses across the United States
and Canada. It has its work cut out
as competition is high and recruits
are limited.
The American infotech industry
currently needs some 130,000
graduates every year. The country
produces only 65,000, a significant
portion of them international
students, making the actual number
of American graduates quite low.
Why so?
In the United States, 36 of
50 states do not even recognise
computer science as an ‘advanced
placement’ course. “Computer
science is not even offered in high
schools and just 17 percent of 12th
graders say they are interested in
STEM subjects,” explains
Mr Ganapathy. “Of this number,
nearly half drop STEM subjects in
college. How are we going to train
skilled employees? We have an
abundance of jobs being created
and an incredibly concerning lack
of primary skills required to execute
these jobs.”
To address this situation, TCS
is using a multi-pronged approach
that aims to drive significant interest
among schoolchildren and college
incumbents in exploring STEM
fields and computer science.
Partnership approach
TCS has three national partnerships:
STEMconnector, Npower and
US2020. STEMconnector is a
kind of clearing house that drives
collaboration between stakeholders
in STEM education. Its task force
brings together professionals and
leaders from across the industry to
pool resources and work towards
creating a solution.
One example of the thought
leadership TCS brings to this
task is a publication it recently
sponsored. Called ‘100 CEO leaders
in STEM,’ it highlighted the views of
corporate leaders who are the biggest
consumers of STEM talent in the
United States. TCS used its analytics
expertise in this pro-bono project
to publish a white paper on the
subject, and hosted the findings on
a microsite that provided a unified
voice for corporate America on
STEM education.
Another significant effort
was a computer science executive
round table that TCS convened.
This brought together 30 different
organisations, representatives
from the White House, the United
States Chamber of Commerce,
policymakers, educators, writers and
statisticians on STEM subjects. The
idea was to develop clarity on issues
such as state and federal policy,
curriculum development, school
resources and teacher training.
“Thought leadership is a key
arena where we are ramping up
engagement, which is why Surya
Kant, our president of the geography,
represents us in these forums,” says
Mr Ganapathy. “There are other
leaders from TCS who participate in
these forums to add the corporate
social responsibility, human
resources and talent points of view.”
Another key TCS partner is
NPower, a New York-based group
that helps new organisations access
technology services. TCS is the
top supplier of skilled employee
volunteers for this programme. In
turn, NPower has enabled skilled
volunteers from TCS to engage
local community organisations with
technology services and education.
One such community is
women. TCS is a founding sponsor
of Million Women Mentors
(MWM), an initiative led by
STEMconnector in partnership with
We have an abundance of jobs being
created and an incredibly concerning
lack of the primary skills required to
execute these jobs.
Balaji Ganapathy, head, workforce effectiveness, TCS North America
January 2014
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BUSINESS
the National Girls Collaborative
Project, NPower and MentorNet.
The idea is to enhance interest in
STEM education and careers for
girls and women. “The focus is
on promoting the interest of girls
Building the pipeline
US2020 is another national
initiative in which TCS is a partner.
This initiative encourages corporate
volunteerism for high-impact
STEM mentoring. The goal is to
have 20 percent of TCS’s American
workforce volunteer for at least 20
hours a year as mentors for students
interested in STEM education and
careers, providing the expertise
and real-world perspective to
participants. “I often get asked in
forums about how we encourage
volunteering,” says Ms Olson. “I
tell them that it’s a relatively easy
process, because we are a part of the
Tata group and volunteering is part
of our value system.”
STEMconnector®, a leading organisation for STEM education
and careers, released a first-of-its-kind publication, ‘100
CEO Leaders in STEM’. The report, published in June 2013,
presented 100 chief executive profiles and their thoughtprovoking views on the need for a STEM workforce.
Here are the top five focus areas emphasised by the CEOs:
Technology: The general assessment among CEOs is that
the technology development of the United States will suffer
if there is a shortage of STEM talent.
Women and diversity: Women and minorities represent
28 percent of the US workforce, but only 7 percent of
the STEM workforce. These groups present a significant
opportunity for CEOs to source the needed STEM skills.
Innovation: The CEOs agree that creativity and innovation
are the keys to future job creation and economic growth.
Creativity and innovation will be driven by STEM talent.
Economy: The CEOs say STEM jobs are, and always will
be, readily available. Over the next 10 years an estimated
80 percent of jobs in the US will require technology skills,
and by 2018 the US will have more than 1.2 million new
STEM-related occupations. More employees with STEM
skills equates to a lower unemployment rate.
Competitiveness: STEM education will be a win-win for
the nation’s economic competitiveness. A technologysavvy workforce is the key to driving innovation,
production, profitability and economic growth.
technology factor
As a technology partner, TCS is
leading the development efforts
to build the US2020 and MWM
platforms. These are examples of the
way the company uses its technology
expertise to create an impact. “By
using technology you create this
platform which, in the next five
years, is going to connect 2 million
people from the corporate sector
with students and others from the
stakeholder groups who are being
mentored,” says Mr Ganapathy.
TCS has also been a more than
enthusiastic participant in a variety
of events aimed at promoting STEM
education in the United States.
“These events give us different
insights,” says Mr Ganapathy.
“There is the skills gap viewpoint
that employers see. Then there is
the education gap, which is what
administrators and nonprofits see.”
Apart from national platforms
and advocacy initiatives, TCS is
expending energy on local-level
programmes. The company has
established campus relationships
64 Tata Review
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January 2014
who are choosing STEM careers,”
says Caitlin Olson, STEM program
manager, TCS North America.
“Right now it is at 12-17 percent [of
total enrolment]; we want to push it
to at least 20 percent, if not further.”
business
with 42 universities and higher
education institutions in the United
States to improve employability
by developing industry-liaison
programmes that connect employers
with promising students.
Another interesting programme
that has proved successful is the goIT
programme, where TCS conducts
workshops on coding and robotics
in schools throughout the year,
culminating in regional summer
camps. Aimed at children from
grades 8 to 12, goIT was launched
in 2009 in Cincinnati, Ohio. It has
since grown to include Columbus,
Ohio, Midland, Michigan, and is
expanding to seven other cities
across the United States and Canada.
“One of the challenges in
expanding this programme,” says
Ms Olson, “is to standardise our
approach, and to think about
an engagement matrix that we
can capture and follow. We are
expanding goIT around the country,
using a regional approach to a
national crisis.”
The focus is on promoting the interest
of girls who are choosing STEM careers.
Right now it is at 12-17 percent; we want
to push it to at least 20 percent.
Caitlin Olson, STEM program manager, TCS North America
The goIT programme works
closely at the national level with
the United States Chamber of
Commerce, which provides outreach
support in each goIT location.
One of the criteria for this support
is that the schools which want to
incorporate goIT should have a
higher percentage of poor students
and ethnic minorities.
The single thread that binds
TCS’s multiple efforts in the
STEM space is commitment. “We
are trying to make an impact at
different levels on this issue,” says
Mr Ganapathy. “At a national level
this means bringing attention to
the problem and providing forums
where solutions can be addressed.
Second is using technology, which
is the greatest enabler for scale and
collaboration. The third is leading by
example with our own volunteering
efforts and local-level work.”
TCS is not the only Tata
enterprise doing its part to boost
STEM education in North America.
Tata Technologies, Jaguar Land
Rover and Tata Interactive Systems
have joined the effort, but it is TCS
that leads the way. The company’s
many initiatives are helping people
achieve careers they might not
otherwise have access to, and
making a vital contribution in
addressing a national need. Teaching
people to fish, though, is not on the
agenda as of now. ¨
— Christabelle Noronha
Former American president Bill Clinton (centre) at a June 2013 event to push high-quality STEM education and careers
January 2014
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‘We want to be a
global benchmark’
to `16.4 billion in 2012-13 on the
back of unrelenting customer focus,
innovative processes and a driving
ambition to get better all the time.
In this interview with Christabelle
Noronha, TSPDL’s managing director,
Sandipan Chakravortty, talks about
the organisation’s evolution, the
reinvention that has enabled it to stay
ahead of the competition, and how it
is gearing up for a brighter future.
The name has changed and so has
the game, and with it the growth
trajectory of Tata Steel Processing
and Distribution (TSPDL), India’s
largest steel service centre. A wholly
owned subsidiary of Tata Steel,
TSPDL’s turnover has jumped from
`18 million in 1997-98 — when it
came into being as Tata Ryerson —
66 Tata Review
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January 2014
Tell us about TSPDL and the part it
plays in the life cycle of the steel
that is delivered to customers?
TSPDL’s role is to cut and process the 30-tonne
steel coils made by Tata Steel to the shape and
size that customers need. We are the largest
steel-processing company in India, maybe
even in Asia. For Tata Steel alone we process
1.3 million tonnes of the metal per annum. We
have eight processing centres and a national
network of distribution centres across India.
Earlier, steel producers in India supplied
steel only as coils, a form that is not used today
by most customers. Take the auto industry.
In the old days, Tata Motors, Hindustan
business
Motors, Ashok Leyland, etc had to put up
their own processing facilities to convert the
coils into sized blanks that could be used for
manufacturing components: chassis frames,
long members, pressed parts, etc. This was
extremely inefficient because it was not their
core activity and equipment utilisation was low.
The concept of a steel service centre did
not exist in India prior to 1997. This was when
Tata Steel felt that the market was ready for a
change. Although it was able to meet standards,
the opening up of the Indian economy
meant that the company had to compete
with international players. For Tata Steel the
challenge was to differentiate its products in the
market; we had to offer processing and just-intime (JIT) distribution to add value.
In 1997, Tata Ryerson was set up — as a
50:50 joint venture between Tata Steel and an
American company, Ryerson Tull — to bring
steel service centre solutions to industrial
customers in India. The American partner
sold its equity stake to Tata Steel in 2009 and
the company was renamed TSPDL in January
2010. That’s how we have evolved to become
the last-mile connect for Tata Steel.
What exactly is the value addition
that TSPDL provides?
For a steel mill, any order less than a thousand
tonnes is not interesting; for a service centre,
even a 100kg order is eminently serviceable.
We have more than 1,000 customers, we hold
stocks for them, cut and process the steel, and
supply whenever they want. The value addition
that we provide is enormous. Customers like
Toyota Motors can be assured of quality when
they use our products because of our process
and our quality systems.
Another aspect is inventory management.
Maruti works on a one-day inventory because
we maintain a JIT system for them. We are
able to offer these services because we can
garner economies of scale by aggregating the
requirements of several customers. We cater
to the entire auto industry and not just Tata
Motors, so capacity utilisation is much higher.
In fact, we can claim that there is a little bit of
our steel in every two- three- and four-wheeler
in India today.
Could you spell out the vision of
the company?
When we started in 1997 our vision was to
supply everything — steel, aluminium, stainless
steel and plastics — but we soon realised that
we had to limit ourselves to steel. Our turnover
then was `18 million, but we set a target of
`5 billion. We got there quickly and then we
decided that, rather than chase a rupee target,
we ought to aim to be the leader in India.
In 2012 we revisited the vision, through
a company-wide exercise that included
all employees and even inputs from key
Size does matter to TSPDL, which has been able to bank on economies of scale
January 2014
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BUSINESS
customers such as Tata Motors, Maruti
and Ashok Leyland. Our vision now is to
be a global benchmark in the industry for
excellence in service.
What about your growth plans?
Our growth is, in many ways, aligned to
that of Tata Steel. For instance, Tata Steel
has recently put up a thin-slab caster with a
capacity of 2.4 million tonnes a year. The new
Kalinganagar plant will produce 3 million
tonnes of steel in 2015, at least half of which
will need processing. So we need to have
capacities in place.
We are continually opening up new
centres and supplying new products. Currently
it is zinc-coated or colour-coated steel blanks
and strips, which we have geared up to supply.
We try to take care of the entire spectrum
of customers’ needs, even when it comes to
non-Tata Steel products. Take the construction
machinery sector — Caterpillar, Komatsu,
John Deere, etc — which requires heavy steel
plates, a product that Tata Steel does not
make. We source the raw material from Steel
Authority of India, Essar, imports, etc. We do
not just cut and shape; we bend and we weld.
At times, I feel we are just one stage away from
making the entire thing.
How do you stay ahead of the
competition?
Our big strength is our distribution network;
it is well established across India, which
makes our service capabilities superior to that
of others. We try to ensure that we have the
best technology. We get the latest equipment
from Spain, Japan and Germany. Our newest
centre at Chennai will be the first in India to
handle high-tensile products. We are the only
service centre in Asia that has patented two
processes, one for length measurement and
Our big strength is our distribution network;
it is well established across India, which
makes our service capabilities superior...
68 Tata Review
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January 2014
the other for automatic segregation of sheets.
We have also developed extremely accurate
laser-based equipment.
Our contribution to the Tata Nano
project illustrates the point. Ratan Tata (former
Chairman, Tata Sons and Tata Motors) threw us
a huge challenge: develop the undercarriage of
the Nano at half the weight and at a lower cost,
but with no compromise in strength. We went
to Detroit and Pittsburgh in the United States
and to Canada to look at various technologies.
We even spoke to people at NASA (the
American space agency) to look at metals used
in rockets and forming technologies. We then
used a new technology called roll forming and
stretch bending, and developed special purpose
machines for this project. Mr Tata has now
asked us to look at developing this process for
the Tata Indica, too.
We want to focus not just on customer
satisfaction and engagement, but on customer
experience. Our customers should feel that they
are in a place where people are prepared to go
the extra mile for them. We try to exceed the
expectations of our customers and understand
their future needs. When you have international
players like Posco in town, customer experience
is going to be the key differentiator. We are
working with Accenture, McKinsey and other
consultants on this front. We will require a lot
of people training and cultural training.
How does your innovative vendor
service model work?
Our vendor service model is innovative for
sure and this has been discussed as a case
study at Harvard. Allow me to explain. There
are a few key players in the steel value chain as
it applies to any industry. In automotive, for
example, these would be Tata Steel, TSPDL,
the vendor who supplies parts or components,
and the automaker.
Earlier, the steel mill could reasonably
handle transactions with the automaker, but it
was near impossible to provide good service
to individual vendors, whose requirements
were small and fragmented. This is where
TSPDL stepped in, to provide the last-mile
business
connect between Tata Steel and the vendor.
Again, if steel prices changed, vendors would
wait for the automaker to revise the prices of
the final component, delaying production and
deliveries.
Now all of us sit at a table and negotiate so
that the final vendor price is linked to the base
steel price. In essence, the automaker is fixing
the price with Tata Steel and the component
price can go up or down based on steel prices.
TSPDL’s role is to work out numbers — how
many cars will be made and what is the amount
of material needed — and guarantee the
supplies and the service levels.
Other service centres are trying to craft a
similar arrangement but so far no one has been
successful. We have the first-mover advantage.
On a different tack, how is the
company going about grooming
future leaders?
Our employee strategy is critically important
and motivating people is one of my tasks.
At TSPDL we don’t have clerks; we have
only officers. Our non-managerial staff are
called associates. We have created a process
of identifying star managers: employees
with consistently superior performance over
a two-year period are shortlisted and then
interviewed by a team that includes two
outsiders, (a psychologist and a professor),
and our top managers. These star managers
are then groomed as potential leaders. We
have a team of 23 such ‘star managers’. Their
training is my personal responsibility. We
have a training module for them, planned
in collaboration with the Indian Institute of
Management, Calcutta. Many Tata companies
have taken note of this process.
Tell us about some of your skillbuilding initiatives.
When it comes to building skills in the
community, we give preference to scheduled
caste and scheduled tribe candidates. We have
adopted industrial training institutes (ITIs),
where we design the programme and some
of our people are also on the faculty. We are
A metal makeover happens as steel coils are processed
supporting skill-training centres with funding
from the National Bank for Agriculture and
Rural Development, and we are working
with the ITIs to develop these centres. The
uniqueness of the programme is that we give
recruits a job first, followed by training. We pay
each candidate `5,000 a month, of which `1,000
is recovered as repayment for the loan towards
the training, which is not free. We insist that the
candidates pass on `500 to their parents. After
the training, they are absorbed in TSPDL or in
other companies, Tata and non-Tata.
You are known as a ‘steel man’...
I have been in steel all my life. Tata Steel has
given me several opportunities, especially
to work for the community. Currently I am
the chairman of the Confederation of Indian
Industry’s development council. My role is to
help work out ways to improve the quality of
life of the poor in India. I believe the solution
does not lie in handing out money; you have to
be able and willing to go door to door, to work
with your hands if need be. After retirement
I would like to be involved to a greater extent
with social development causes.
Education is my other interest. I am on
the board of governors of the Indian Institute
of Technology, Kharagpur, and I am also
associated with a few management schools.
I do not want to teach professionally, but
interacting with students and children gives
me immense satisfaction. ¨
January 2014
n
Tata Review
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BUSINESS
Custodians
of history
The Tata group has always
valued its heritage and
its traditions, adorned as
they are by the sterling
contributions of the pioneers
who established the
institution and those who
built on their legacy. The Tata
Central Archives in Pune and
the Centre for Excellence
in Jamshedpur provide two
standout examples of how this
past is preserved.
The Centre for Excellence in Jamshedpur
70 Tata Review n January 2014
business
Centre for Excellence, Jamshedpur
T
he Centre for Excellence (CFE)
was born of the vision of JRD
Tata, the late chairman of the
Tata group. This august institution
is the first in the country to bring
diverse disciplines under one roof.
Its archives — the first of its kind to
be established by a private Indian
organisation — is a significant part
of its value proposition, and helps to
disseminate information about the
ethos and achievements of Tata Steel,
the company it is primarily focused
on, and the group.
“The founder’s gallery, the
Jamshedpur gallery and the
technology gallery are the raisons
d’être of the centre,” says Jenny
Shah, head of the Centre and of
public relations at Tata Steel. “These
galleries were built to offer visitors
an understanding of Tata Steel’s
ethos and values, and its milestones.
There is also a gallery dedicated to
the life and times of JRD Tata.”
exhibitions and more
The material available in the
archives is used to organise thematic
exhibitions on JRD Tata, Dorabji
Tata, PN Bose and Meherbai Tata.
It is also the main source for the
‘founder’s day’ exhibition, which
showcases the life and achievements
of Jamsetji Tata. The information
thus displayed serves to give newly
recruited Tata Steel employees at
the Jamshedpur facility — as well
as those recruited into Tata Steel’s
European operations, NatSteel and
Tata Steel Thailand — a sense of the
culture of the group, its rich history
and heritage.
Ms Shah says the Centre
also undertakes special tours
for “stakeholders from our
Chhattisgarh and Kalinganagar
projects” as well as for children
from around 60 local schools, some
of which are supported by Tata
Steel under its corporate social
responsibility umbrella.
The Centre has more than
70,000 documents, including
letters, books, maps, charts
and photographs of historical
importance. These documents are
categorised and stored in three large
repositories where temperature and
humidity are controlled.
Material relating to the
founding of Tata Steel is a veritable
treasure trove. It includes the
prospecting licence issued to the
company (an eight-and-a-half feet
long document); the first public
prospectus (valued at `23.2 million
and floated in 1934 to set up the
company, it was oversubscribed
in 21 days); the personal diary of
Charles Page Perin, the renowned
consultant of the company; and a
booklet written by a construction
engineer, describing early camp
life at Kalimati, the site of the steel
manufacturing facility.
Jamsetji Tata’s personal
documents available at the
Centre include his vision for a
planned industrial city and his
communications with Swami
Vivekananda; the colonial secretary
of state, drawing up his plan for
an industrialised India; and with
HA Crump, secretary, revenue
department, Central Provinces, to
undertake the cutting down and
replanting of trees in certain forest
areas to be allotted to the company
by the British government.
a rich spread
Other items include early townplanning schemes for Jamshedpur,
a genealogy tree that traces the Tata
family ancestry back to 800 years,
and the personal letters and records
of Jamsetji Tata, Dorabji Tata, RD
Tata, Mr Perin, RG Wells and others
whose efforts helped India establish
a manufacturing base long before the
country’s independence.
The Tata Steel archives also
contain the company’s first in-house
journal, Tisco Review, published in
1932 in both English and Hindi.
In 1954, the journal was renamed
Tisco News, with an accompanying
Hindi edition, Tisco Samachar.
These journals offer a fascinating
glimpse into the development of the
company over the decades.
The other publications that
grace the shelves are the Tisco
Technical journals and Tata
Tech, both relating to the steel
manufacturing process, besides the
Tata Steel supervisor’s newsletter,
Will to Win and Tata Search.
Besides monitoring systems and the
procedures used to maintain the archives,
we source and access material [and]
restore and preserve old documents...
Jenny Shah, head, CFE and public relations, Tata Steel
January 2014
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BUSINESS
Copies of the company’s annual
reports from 1907-08 are part of
the collection. The Centre is also
the custodian of Tata Steel’s rich art
collection, consisting of more than
1,500 paintings, which adorn its
premises all over India.
The benefits that accrue from
the maintenance of the archives
are tremendous, and the efforts to
maintain it are intensive. “Besides
monitoring systems and the
procedures used to maintain the
archives, we source and access
material, restore and preserve old
documents through fumigation and
encapsulation, index the material to
enable easy retrieval of information,
and disseminate the information to
our stakeholders,” says Ms Shah.
The protection and preservation
of valuable documents is not a task
to be undertaken lightly. “We sift
through documents from old offices
and departments to find those that
are of archival value. Documents
and vintage photographs are also
received from private donors.
Careful attention is then paid to
archival procedures like accession,
fumigation, de-acidification and
lamination of valuable documents,”
explains Ms Shah.
digitisation push
The Centre is now striving to
digitise the documents to ensure
preservation and easy retrieval,
and to successfully convert some
of the available material for display
on its website. The digitisation is
being done by CMC, a subsidiary of
Tata Consultancy Services. “We are
also working with the Tata Central
Archives, Pune,” says Ms Shah.
“They have given us rare documents
and photographs to enable us to
create a special section on Meherbai
Tata, as part of the thematic
exhibition on Dorabji Tata.”
The two organisations are,
additionally, collaborating on a
‘disaster recovery’ system, which
entails the storing of scanned
images at physically separate
geographical facilities.
As the custodian of Tata Steel’s
history, the Centre for Excellence
is sparing no efforts in its aim to
preserve this precious legacy. ¨
Tata Central Archives, Pune
T
ata Central Archives (TCA)
offers rare glimpses into the
history of a group that has
played a pivotal role in the industrial
and social development of India.
These impressions from a time-worn
past are preserved using modern
techniques to enhance their longevity.
Located in the picturesquely
beautiful premises of the Tata
Management Training Centre, Pune,
TCA curates and preserves the
records of all Tata companies.
Freny J Shroff looks after
the photographs while Rajendra
Prasad Narla takes care of the
documents that form part of the
collection. “TCA’s goal is to provide
opportunities to know the history
of the Tata group from its inception,
to understand its ethos and growth
and to appreciate the quality of the
people who shaped it,” says
Mr Narla, a trained archivist.
The primary objective of the
archives is to collect and preserve
records that are of evidential value to
Tata companies and institutions. The
secondary objective is to make that
information available to researchers.
TCA’s goal is to provide opportunities to
know the history of the Tata group, to
understand its ethos ... and to appreciate
the quality of the people who shaped it.
Rajendra Narla, archivist (documents), Tata Central Archives
72 Tata Review
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January 2014
While the documents and artefacts
are important in themselves for the
companies, the value is enhanced
when seen in the context of the era
in which those momentous events
played out.
pride of place
The material that TCA feels proud
to have in its collection includes
letters from the pioneers in the
Tata family to one another, their
speeches and copies of their last
wills and testaments, clippings
from newspapers of the time, the
Tata family photo albums, the
album of Esplanade House, Jamsetji
Tata’s portrait photographs, a
commemorative postal stamp, his
chair from the Empress Mills office,
his chair from his office at Victoria
Buildings and different items from
his clothing collection.
business
One of the highlights of the
archives is the successful recreation
of JRD Tata’s office in Bombay
House, the Tata headquarters in
Mumbai. The recreation is extremely
accurate in the dimensions and the
placement of artefacts and objects.
Looking after such precious
material brings its own challenges.
“In India, we do not have access
to archival-grade material for
conservation and preservation,” says
Mr Narla. “The material that we have
is not certified for quality.”
In order to improve its
services, TCA continually measures
its own achievements against those
of other archives in India and
abroad. “We are satisfied with our
performance on important criteria,”
adds Mr Narla. “We have our
own premises and allow research
scholars and the general public alike
to come in and view and access
our photographs and documents.
Currently, we are in the process of
digitising all our important records
and documents.”
In addition, TCA is also home
to a conservation cell. The training
of the archives’ personnel and crosssectoral working are also regular
features. In a world in which a surfeit
of information is available at the
click of a mouse, it is still important
to have the right information easily
accessible and available whenever
required. In this context, the use of
information and communication
technology for digitisation and the
development of retrieval tools has
greatly helped TCA.
“Access and dissemination
of information to meet the
needs of Tata companies and the
general public is essential to the
archives,” Mr Narla says. “The use
of technology helps us share the
The photographs are digitally
enhanced before they are used in
exhibitions. We also preserve them
in a controlled environment.
Freny J Shroff, archivist (photographs), Tata Central Archives
required material with the user faster
and to the extent required. Once the
scanned images are converted into
text or PDF format, the text becomes
available for search once it is entered
into our ‘archive management
system’ software. This enables us to
protect sensitive records.”
Photographs are also treated in
order to enhance their quality.
Says Ms Shroff: “The photographs
are digitally enhanced before they
are used in exhibitions. We also
preserve them in a controlled
environment.”
keeping in touch
TCA subscribes to periodicals like
Business Archives — Principles and
Practice, The Society of American
Archivists, and the Association of
Commonwealth Archivists and
Records Managers, which enables it
to remain in touch with the latest
developments in archiving and
related fields. Additionally, TCA is a
member of the International Council
of Archives, which is headquartered
in Paris, France.
TCA invites experts from
institutes such as the National
Archives of India and the Indian
National Trust for Art and Cultural
Heritage to conduct seminars and
workshops. Employees attend
courses on the management of
records and archival administration,
which are on par with established
international standards. They are
then encouraged to share their
learnings with their colleagues
and to work towards applying that
knowledge in TCA. Furthermore,
employees are given opportunities to
enhance their skills in their fields of
specialisation.
Just as no organisation can
afford to feel complacent on the
strength of past successes, TCA too
keeps striving to better itself. “We
keep ourselves informed about Tata
companies that are commemorating
their milestones,” says Mr Narla.
“TCA approaches them for their
records. We know that we can add
value to their records by digitising
them and conserving them. We can
also help them organise exhibitions
to create public awareness.”
The archives also cooperates
and collaborates with other archives
for the sharing of best practices. The
Centre for Excellence, Tata Steel, is
a valued collaborator. In addition,
TCA has an association with the
archives of the Reserve Bank of
India, the State Bank of India and
the Godrej group.
In documenting the milestones
of the Tata group, TCA has
performed a vital role. This central
repository of the Tata group’s history
and evolution has helped Tata
companies recall their origins and
early years with pride, while also
helping them realise that the legacy
of the group demands no less of
them in the years to come. ¨
— Cynthia Rodrigues
January 2014
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Tata Review
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special report
Business Excellence Convention 2013
For future’s sake
The latest edition of one of the most important events in the Tata
calendar brought together leaders and executives from across
the group and eminent personalities from various spheres of
endeavour. The objective: to explore ways for companies to look
past short-term profits and consider the horizon beyond.
By Sangeeta Menon
74 Tata Review
n
January 2014
special report
C
reating long-term value was the theme
of the 18th annual ‘Business Excellence
Convention’ (BEC) of the Tata group,
held in Chennai, India, in December
2013. It was attended by 325 delegates from 65
Tata companies spread across nine countries
and experts from various fields.
The participants spent two days discussing
how, in a changing business environment,
companies could look beyond short-term profits
and preoccupations to focus on strategies that
would help build their business and brands.
The convention had an impressive lineup
of speakers and panellists from a range of fields
that went beyond business and economics to
cover history, environment, sports and the
performing arts. Adding depth and breadth
to the debate were historian Ramchandra
Guha; Jean-Philippe Deschamps of IMD in
Lausanne, Switzerland; Arvind Subramanian
from the Washington-based Peterson Institute
for International Economics; environment and
social activist Shekhar Singh; Bharatanatyam
dancer Malavika Sarukkai and badminton
ace Prakash Padukone, who contributed to
the deliberations by sharing their ideas and
experiences.
The delegates listened attentively to
Unilever chief executive Paul Polman, who
addressed the convention via tele-presence.
Mr Polman talked about the three key trends
that are making the business environment more
challenging than ever for modern companies.
The first is the emergence of the “new Asian
hemisphere”, marked by shifts in wealth to the
East and, to some extent, to the South. “The GDP
of China will soon surpass that of the United
States,” remarked Mr Polman as he detailed the
greater role that countries like India and China
will play in international debates.
trends to think about
The second global trend is the change in
consumers today in the context of increased
digitisation. “Connectivity of consumers and
citizens can throw irresponsible companies out
of office in nanoseconds,” said Mr Polman. The
third trend is “the end of the era of abundance”,
where shrinking natural resources puts
increased pressure on corporate entities to use
resources more responsibly.
Mr Polman cautioned that given the rapidly
changing context, “The business community
needs to understand that it cannot just be a
bystander... If the issues are not solved by the
political community, then it is the responsibility
of business to do something about it.” According
to him, in a world where poverty and inequity
Tata Sons Chairman Cyrus Mistry interacts with Group Executive Council member Nirmalya Kumar
January 2014
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Tata Review
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special report
are still at unacceptable levels, much more is
expected from businesses, which will need to
look at reworking their models to become part
of the solution.
Mr Polman’s responsible business pitch
was underscored by both Dr Singh and Shankar
Venkateswaran, director of sustainability at
PricewaterhouseCoopers [now chief, Tata
Sustainability Group], who echoed the need for
business to become more socially responsible.
The clear message was that with consumers and
citizens increasingly expecting companies to
follow sustainable business models, the need to
adopt greater transparency and accountability is
no longer a matter of choice or compliance.
The rise and rise of China as a global
economic power, and the implications thereof
The winning teams
The convention recognised Tata
companies for the progress
achieved in their journey towards
excellence:
For crossing the 450-points band
through basic assessment:
— Tata Capital
— Tata Business Support Services
— Tata Pigments
For serious adoption (companies
that broke into the 450-points
score band through rigorous
assessment):
— mjunction Services
— The Indian Steel and Wire Products
— Tata Toyo Radiator
For active promotion (companies
that broke into the 500+ band
for the first time in standard
assessment):
— Tata Housing Development Company
— CMC
— Jamipol
76 Tata Review
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January 2014
for India, was a topic of much interest and
debate at the conclave. Mr Subramanian, in his
overview of emerging global economic trends,
argued that the China story was poised for more
interesting developments. “The Chinese currency
will become a very important international
reserve currency, challenging the American
dollar over the next 10 to 15 years,” he said.
“This is something all of us in India should be
aware of. It’s not just the Chinese economy that
will be robust and dynamic... The days of dollar
supremacy are increasingly numbered.”
In his speech, Prof Deschamps pointed out
the silver lining for India: the country’s huge
intellectual potential: “I’m amazed to see how
many brilliant Indian engineers are working
for companies in the United States and the
number of Indian-origin professors in American
universities. I find there’s an intellectual
potential here.” There is a caveat, though:
“The challenge before India is that it could be
out-innovated by China. India has to marshal
the potential of its human contingent towards
projects and companies that could compete and
create the next Lenovo.”
india’s early advantage
Dr Guha provided historical context and
some important leadership lessons from the
past during his hour-long talk on the past,
present and future of political leadership in
India. According to him, one of the main
reasons why a country so divided by caste,
class, language and religion has emerged as a
united nation is because of the quality of the
first two generations of political leaders and the
institutions they built and nurtured, which gave
rise to a democratic and plural India.
Visionary leaders, Dr Guha added, are
known for their willingness to go against the
current and dominant trends in society. “But
once a leader has decided to challenge the
established and dominant trends, he must show
a commitment to build consensus and be openminded,” said the historian.
Taking a different tack, Mr Padukone
spoke about the challenges he faced in the
initial days of his career, including the general
special report
lack of encouragement for sport in India and
the absence of infrastructure in the country for
training in a sport like badminton. He spoke
about making the best of what we have and not
complaining about what is not there. Focus and
determination are the key, he emphasised.
For an artist, the challenge is to maintain
a balance between tradition and relevance, and
yet remain creative. “One needs to keep pushing
one’s boundaries,” said Ms Sarukkai.
Along with the thought-provoking
discussions, the BEC convention also took
out time to recognise the current status and
achievements of the business excellence
initiative in the Tata group, which is driven
through an assessment framework called the
Tata Business Excellence Model (TBEM).
In recent years the group’s business
excellence engagement has grown more
intense in depth and scope, with the number of
companies being assessed annually increasingly
dramatically (it was up from 30 last year to
38 this year). As many as 343 assessors from
65 Tata companies were involved in the last
assessment cycle. The assessment process itself
has become more entrenched and intricate,
a fact that was noted by Tata Sons Chairman
Cyrus P Mistry, who stated that he would like to
see TBEM go even deeper into the organisation
in time to come.
Prasad Menon, chairman of Tata Quality
Management Services, attributed much of
the new energy and direction in the group’s
excellence movement to the Chairman’s
commitment to TBEM. Looking ahead, Sunil
Sinha, chief, Group Quality Management
Services, said that TBEM would see new
initiatives being rolled out over the next 6-12
months, including an increased focus on
operational excellence and the sharing and
harvesting of best practices.
Programmes such as the BEC highlight the
fact that what keeps the excellence journey at
Tata enlivening and rewarding is the constant
effort that goes into ensuring that the excellence
initiatives are not locked in time. The endeavour
is to ensure that they evolve and are in sync with
business, economic and social needs. ¨
Assessors from Tata companies along with TQMS’s Prasad
Menon (second from right) and Sunil Sinha (extreme right)
A panel discussion involving (from left) PK Ghose of Tata
Chemicals, Warren Harris of Tata Technologies, Harish Bhat of
Tata Global Beverages and Ajit Joshi of Infiniti Retail
R Gopalakrishnan of Tata Sons (left) with Bharatnatyam exponent
Malavika Sarukkai and badminton ace Prakash Padukone
January 2014
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Tata Review
77
Community
More than by the book
Based in Washington, DC,
First Book is a nonprofit enterprise
that works with corporations,
book publishers and community
organisations to deliver access to
books for children in need.
The Tata group has been a
staunch and steady supporter of
First Book’s efforts in the United
States and Canada since 2007. As a
result of the group’s support, more
than 290,000 books valued at about
$1.5 million have been provided to
programmes targeted at children in
The United States leads the world
need. About 180 employees from 12
in many respects, but not so in
Tata companies have been involved
education. Surveys show that in
in this ongoing endeavour, reaching
terms of student literacy and ability
out to beneficiaries in nine American
in mathematics, the country has
states and two Canadian provinces.
started lagging behind its first-world
78 Tata Review
n
A prime mover and one of
peers. Worse, it appears that the
the leading lights of First Book is
current generation of Americans is
Kyle Zimmer, who cofounded the
receiving education of a lesser quality
organisation in 1992 and is currently
than the previous one. But solutions
its president. In this interview with
are in plain sight and this is where
Christabelle Noronha, she speaks
organisations such as First Book are
about the organisation and its
making a difference.
partnership with the Tata group.
January 2014
Community
Illiteracy is not a typical problem
that comes to mind in first world
countries. What are the factors that
have made this a significant social
issue in the United States of today?
I am a lawyer by profession and have worked
with some big names in the corporate and
social sector. It was during this time that I
began mentoring a child at a local shelter
in Washington, DC, and I became aware of
how children from low-income backgrounds
have almost no access to books. I had started
engaging with local volunteers who were
committed to improving opportunities for
low-income youth when I learned about this
dramatic need.
These children grow up in homes
without books, go to preschools without
books, to schools with no libraries, and live
in neighbourhoods with no access to libraries
or bookstores. So it is not surprising that
they grow into adults deprived and forever
limited in their journey towards learning
and employment. Irrespective of culture and
economics, studies have shown a profound
difference between children who grow up in
a literacy-rich environment and children who
do not.
The malaise is so widespread that
illiteracy is a significant social problem today,
even in a developed economy like that of
the United States. A recent report ranked
the country behind 16 other economies,
including Poland, Estonia and South Korea,
in terms of student literacy, which is the
ability to read, integrate and evaluate texts.
While the reasons for this are complex, the
issue is partly because the United States did
not invest in early-childhood education at the
rate at which it was needed. Also, books are
very expensive in the country. Worst hit are
low-income families; millions of children in
need spend hours in community programmes
and classrooms with little or no resources.
What role do you see First Book
playing to fill this void?
We started First Book in 1992 as a social
enterprise to support the entire educational
system — formal and informal — by
distributing free and low-cost books to
schools and community organisations that
serve children from low-income families.
Since 1995, when I took over as president of
the organisation, First Book has distributed
more than 100 million books to children in
thousands of communities across the United
States and in Canada.
We have come this far because of the
committed support we have received from
our partners, of which the Tata group has
been a significant one. We have worked with
many publishers, corporates and nonprofit
groups to bring books to the communities
that need them. With schools facing drastic
cuts in funding, the critical factor in making
books available in classrooms and homes is
pricing. Retail prices were simply too high for
most schools to afford. Children’s publishers,
used to absorbing the cost of unsold books,
have to hike prices in order to be profitable.
Unsold books ended up being destroyed or
sent to landfills, which was a whole other
problem in itself. It was a vicious cycle and
one that First Book needed to address.
We offered to be the conduit between
the publishers and communities in need,
and we got started by creating two new
Giving children access to books is First Book’s objective
January 2014
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Tata Review
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Community
First Book snapshot
What: First Book is an award-winning social
enterprise that brings books to children from
low-income families. It is a partnership-based
organisation that works with corporations, nonprofit
groups and publishers to achieve its mission. First
Book has an international spread and reaches more
than 25,000 registered organisations and schools,
benefitting children of all ages.
Where: First Book is based in Washington, DC,
USA. It has distributed more than 100 million books
to schools and community organisations serving
children from low-income families in thousands of
communities in the United States and Canada.
Why: Kids need books. Research confirms that
lack of access to books is a debilitating obstacle
to literacy development. However, most children
from low-income families grow up without books.
One US-focused study found that although middleincome neighbourhoods have an average of 13
age-appropriate books per child, low-income
neighbourhoods average one book for every 300
children. Millions of children in need across North
America spend hours every day in resource-poor
classrooms and community programmes. To address
the disparity, First Book created highly innovative and
efficient models to improve the quality of education
these children receive.
models. We set up a subsidiary called First
Book National Book Bank, with a centralised
database of teachers, mentors and community
organisations. We checked credentials and
borrowed warehouses where publishers could
drop off books. This addressed two important
issues: it got millions of books out off the
landfills and city dumps every year, and it
brought new resources to programmes that
would otherwise have had no access to them.
Publishers were more than happy to respond.
This was the first step; the second was to
be able to control the inventory. While First
Book managed excess inventory contributed
by the top 90 imprints in the United States
and Canada, books came and went through
the system depending on what the publishers
dropped off. So we had to go to the publishers
with a concrete business offer: if the publishers
would lower the retail prices of the books,
First Book would buy at a high volume on a
non-returnable basis, removing their risk. That
was the beginning of First Book Marketplace,
a website that now offers 5,200 different titles,
including, fiction, nonfiction, engineering,
math, poetry and college preparation guides.
First Book’s efforts have helped increase
diversity in publishing. With a push from
First Book, publishers are producing more
books that are bilingual and multicultural,
increasing their reach. Publishers see that
there is a new culturally diverse market out
there that they can tap through First Book
Marketplace. Moreover, since the books go
to children mostly through schools, it has
enabled these schools to do new things from
a curriculum standpoint.
Who are your biggest partners
and where does the Tata group
come in?
First Book’s success has always come from its
work with the private sector and, as we scale
our work to a global level, we are reaching
out to corporate leaders now more than ever
before. That is how the Tata companies in
North America became part of a partnership
with First Book, back in 2007.
80 Tata Review
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January 2014
Community
Support from Tata has enabled events such as this First Book reading in San Francisco, USA
The cause of education being of prime
importance to the Tata group, this is a perfect
partnership. There is financial support, which
is incredibly important to grabbing the next
rung of the ladder, so we can reach out to
more kids, but our work with Tata has been
bigger than that.
For Tata in North America, the First
Book partnership has grown into a groupwide community initiative, much larger in
scope than just funding the programme.
Tata employees get involved in reading
programmes, which are organised at select
preschools in the communities in which they
operate. It is a wonderful, inspiring thing for
children to have someone sit down and read
with them. The Tatas have come in with such
joy and personal commitment. It’s unusual and
heartwarming and it says a lot about who they
are and what they do.
The Tata involvement did not stop there.
Group companies also came on board to help
First Book design its technology platforms so
that the organisation can focus its resources
on reaching the next child. The Tata group
may not be First Book’s largest partner,
but the connections are inherently strong.
Our relationship with the Tata group has
transformed the way we do things at First Book.
Does First Book operate in
countries outside North America?
In India, First Book has reached out to
Pratham, a nonprofit organisation that works
at educating underprivileged children. We are
building First Book-India with an emphasis
on Indian stories for Indian children. We
are simultaneously reaching out to children,
teachers and tutors in other countries —
including Kenya, Nigeria, Haiti and South
Africa — but we need good partners to make
all of this a reality.
Over these last two decades, our
organisation has made much progress; in
fact, we expect to have provided more than
$1 billion in books and resources by this time
next year. But it is a long and hard struggle
and there is much more to be done. I think
we have come far enough to see the potential
of where we can actually go. I would welcome
the wonderfully committed employees and
leaders of the Tata group around the world to
help us build our systems to elevate education
worldwide. ¨
January 2014
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81
Community
Lessons of change,
from school to life
A learning initiative backed by the Sir Ratan
Tata Trust and the Navajbai Ratan Tata Trust is
transforming the lives of poor children in rural
Karnataka through innovative teaching methods
Y
adgir, one of the most
backward districts of the
Indian state of Karnataka, is
home to tens of thousands of
impoverished residents with meagre
land holdings. During the scorching
summer months, many people from
this hardscrabble district migrate to
cities like Bengaluru, Hyderabad,
Pune and Mumbai, leaving behind
their tiny, withered farms to seek
construction jobs.
This seasonal migration
takes a heavy toll, particularly on
the thousands of youngsters who
are forced to give up on a regular
education, pushing school dropout
rates in the district to as high as
40 percent. Prolonged absence
from classrooms results in these
children — many of whom are
undernourished — becoming slow
learners, unable to grasp language
82 Tata Review
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January 2014
and other skills. Consequently,
the literacy rate in Yadgir is 52.36
percent, which compares poorly with
the state average of 75.36 percent.
Take, for instance, Sabayya
Thimayya, a typical teenager
from Yadgir. His performance
was way below average and he
had temporarily dropped out
of the government school at
Kanchagarahalli village, about 35km
from Yadgir. His fate would have
been no different from several other
children in his district but for the
intervention of Kalike Samruddhi
Upakram (KSU), a learning
enhancement initiative of the Sir
Ratan Tata Trust and the Navajbai
Ratan Tata Trust in Karnataka.
KSU, with its nodal agency
Kalike (which means learning in
Kannada), picked up Sabayya for
special training under its ‘Kalike
Chethana’, or learning improvement
programme (LIP). Within two
years of undergoing special classes,
Sabayya’s performance improved
dramatically. In a remarkable
turnaround, the lad was recently
selected for admission to Std V at
the Morarji Desai Navodaya Model
residential school at Shahpur, also
in Yadgir district (the school is
based on the central government’s
Navodaya Vidyalaya system for
talented rural children from poor
backgrounds). “It is a competitive
examination and he came first in
the district,” says S Premalatha,
the proud headmistress of the
Kanchagarahalli school, where
Sabayya studied.
customised training
Kalike launched its direct
implementation of select
programmes in two blocks of the
district in 2009, with the objective
of identifying slow learners like
Sabayya and providing them extra
training.
The challenge was huge; a
baseline study in 2008 indicated
Community
The learning programmes introduced by Kalike in Yadgir’s government schools have had a positive impact
that more than half of all children
in Std V were at least three grade
levels behind. The percentage of
children unable to read Std II text
increased from 49 percent in 2010
to 58 percent two years later. The
dismal scenario was compounded by
the rampant absenteeism of teachers,
dysfunctional school development
and monitoring committees
(SDMCs), low community
participation in government schools,
and issues such as child labour.
KSU has been implementing
LIP in 40 schools, covering more
than a thousand students from Stds
III to V who are having difficulties
in reading and writing. Says
Shivakumar D, executive director,
Kalike: “An external consultant
recently reviewed LIP and the
findings revealed that 95 percent
of the students are able to acquire
reading and writing skills after
undergoing the programme.”
Kalike recruits village-level
‘animators’ who conduct these
special classes in the government
schools after regular hours. Local
villagers and members of SDMCs,
which are local-level institutions, are
involved in selecting the animators.
Ms Sabamma is a typical
animator. Hailing from Wadnalli
village, she was a head cook at the
school, involved in the midday meal
scheme. Though she always wanted
to be a teacher, she could not pursue
her education. Ms Sabamma was
selected as an animator because of
her natural talent in interacting with
children and for the lively manner in
which she communicates with them.
On a typical day Ms Sabamma
gathers a class of about 25 students
at the government higher primary
school in Wadnalli, and recites a
beautiful Kannada poem, enacting
it through a lively dance. “Do not
deprive your children of education
by deploying them in the farms,”
sings Sabamma. “Do not pluck a
budding flower, but ensure that the
girl child gets an education.” The
curious children, who usually sit
through normal classes not being
able to grasp the lessons, exuberantly
dance and sing along with her.
“Animators like her visit the
homes of students who fail to
turn up for school,” says Ramesh
Gongadi, project director, Kalike.
“They then convince their parents
to ensure that their children attend
school and also the special classes.”
Mr Gongadi points out that most
of these children, who were unable
to write the Kannada alphabets
just three months earlier, are now
January 2014
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83
Community
Gadgets as game-changers
Schoolchildren in India’s big and not-so-big cities are familiar
with computers, laptops, smartphones and DVD players, but
in India’s rural hinterland — of which the district of Yadgir
in Karnataka is representative — gadgets and gizmos are
still rare. Kalike’s ‘Spoorthi’ programme, one of the key
interventions undertaken in Yadgir’s government schools,
aims to integrate information and communication technology
in secondary education and also improve teacher education.
At the government higher secondary school at Madhawar
village, about 50km from Yadgir, about 20 boys and girls,
preparing to appear for the Std X board exams, are sitting in
class in groups of three, poring over compact DVD players.
The multimedia experience has enabled the children to grasp
complicated theories in science and mathematics, while also
preparing them for the board exams.
Before Kalike’s intervention, computer labs in these
government schools were in a pathetic state. A baseline study
conducted by IT for Change (ITfC), a nonprofit associated
with Kalike, revealed that out of the 14 schools surveyed
in the district, just one had working computers. Technical
teams from Kalike and ITfC have been visiting government
schools, restarting the dysfunctional computers, repairing
inverters and providing other support to the computer labs.
Importantly, the intervention has also motivated headmasters
and teachers to buy laptops for their personal use.
84 Tata Review
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January 2014
eager learners. “As the performance
of these children improves
dramatically, many other parents
want to send their children to these
special classes,” says Ms Sabamma.
Educating children is the
priority, but KSU is involved in
other developmental activities too.
A majority of schools in Yadgir
are run by the government, but
opportunities for higher education
are bleak. There is just one science
college here and no medical or
engineering colleges. The district
also does not have any industries.
Mr Shivakumar explains:
“Yadgir is backward, not just
in terms of education, but also
on socioeconomic and all other
parameters. Our strategy is not
to build a parallel system, but to
influence the existing system. We
thought it is better to work with the
system and tackle the numerous
challenges by implementing
innovative ideas.
working together
KSU’s strategy from the beginning
has been to engage with the
government and district officials.
Mr Shivakumar adds, “We also
work with the local community and
politicians to exert pressure on the
administration.” In addition, it works
with nonprofit organisations in the
district, and involves other nonprofits
from different parts of India.
While education is its core area
of focus, Kalike looks at child health
and nutrition, public health and
hygiene. Its key interventions are in
early childhood care and education,
primary and high school education,
and strengthening government
education institutions in the district.
‘Chiguru’ is KSU’s early
childhood care and education
Community
intervention, undertaken across
63 anganwadis (child-care and
mother-care centres) in the district.
P Rajeshwari, a government official
who is in-charge of the anganwadi at
Wadnalli, along with T Malamma,
the helper, are enthusiastic as they
describe the changes that have
occurred at the centre after the Kalike
intervention. “Earlier, it was difficult
to get parents to leave their children
here,” says Ms Rajeshwari. “We had
to cajole them to bring their children.
But now, with the improvements that
have been done, they are eager to
leave their kids in our care.”
Mr Shivakumar notes that
before the introduction of Chiguru,
the anganwadi at Wadnalli used
to get just about five children.
But now there are more than 25
children spending time at the centre.
“We organise a lot of activities,
including storytelling and singing
and dancing,” he says. “The children,
who are below the age of five, are
exposed to new things daily.”
One major change is that
fathers, unusually for these
parts, bring their children to the
anganwadis and take them home in
the evenings. “We encourage them
to spend time with their kids, talk to
them to ensure early stimulation of
the brain,” says Mr Shivakumar.
Kalike has also initiated
‘Aarogya Chethana,’ a health
and sanitation programme, in
several schools. One of the most
noteworthy improvements has
occurred at the government school
at Kanchagarahalli, where, thanks
to the intervention of the Tata trust,
an elaborate rainwater harvesting
system has been put in place.
“This is a harsh area and
there is virtually no groundwater
in the vicinity of the village,” says
Our strategy is not to build a parallel
system ... it is better to work with the
system and tackle the numerous challenges
by implementing innovative ideas.
Shivakumar D, executive director, Kalike Samruddhi Upakram
T Yenkoba, a local resident and
member of the SDMC. According
to Ms Premalatha, the headmistress,
in the past about half the children
would not attend classes because
of lack of drinking water. “But
now attendance has gone up
significantly,” she says. Kalike,
with the help of village volunteers,
developed the rainwater harvesting
system, which ensures potable water
for much of the year.
Similarly, separate toilets
for boys and girls have been
built in the school. The SDMC
in Kanchagarahalli is one of the
most active ones in the district.
Kalike has been strengthening
community participation through its
‘Jagruti Sindhu’ programme, which
encourages villagers to raise issues
relating to teacher absenteeism with
district-level officials.
Boost for English
Another major intervention is the
‘proficiency in English’ programme.
Teachers are given training and
educational material to improve
their proficiency in the language,
and special classes are held for
students to improve their English.
The results can be striking.
A class of young and
enthusiastic students at the
government higher primary school
at Ashanal near Yadgir can be seen
discussing their English lessons with
their teacher. None of their parents
can communicate in English, but
these children have improved their
skills dramatically after sitting
through the special sessions.
Ms Premalatha observes that
it is difficult for the village children
to learn English: Many of them are
scared and are reluctant to speak
in the language. But thanks to the
efforts of teachers trained specially
by Kalike representatives, many of
these students can now discuss a
variety of subjects in English.
Looking at the successful
interventions in 40 schools in Yadgir,
many headmasters and teachers
from other schools, besides senior
district officials, plead with Kalike
for similar interventions.
Mr Shivakumar says, “We are
now looking at expanding our work
to areas such as skills development
and livelihood programmes,” “But
ultimately we want to be facilitators,
working in close association with
government officials and other
nonprofits.” Importantly, even
though there is pressure on Kalike to
expand its activities, Mr Shivakumar
says its focus will remain on quality.
While quality is intrinsic to
this unique initiative, there is no
doubt that Kalike goes far beyond its
stated aim. While working towards
enhancing the levels of children’s
education in Yadgir, it is also playing
another vital role — transforming
their lives, and those of their
families, in fundamental ways. ¨
— Nithin Rao
January 2014
n
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85
strategy
Divinity in the detail
can deliver benefits
Micro-planning helps companies map growth opportunities at the
micro-market level, says Pankaj Gupta, while also enabling them
to gain incremental market share through well-tailored solutions
M
ost leading organisations have
been known to use the classical
approach to develop strategy for
their markets. Underpinning this
approach, which uses traditionally available data
on markets, customers and competition, is the
assumption that target customer segments are
homogeneously dispersed across geographies
and, hence, amenable to common marketing and
route-to-market solutions.
This classical methodology has reached its
limit in several product and service categories
when it comes to making incremental gains in
market share. Further gains in share requires
disproportionate resources, which may not be a
viable option in many a scenario.
Micro-planning is a process that helps an
organisation map growth opportunities at a
Pankaj Gupta has over 16 years experience in
consulting. He joined Tata Strategic Management
Group in 2001. Currently he is the practice head,
consumer and retail at the company. He is also a
director with Infiniti Retail.
86 Tata Review
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micro-market level and also identify the levers
that enable it to gain incremental market share.
It does this by deploying tailored marketing and
route-to-market solutions for each micro-market.
In most businesses, product portfolio and
product features are not amenable to significant
changes in the near term, and pricing is
dependent on competitiveness and relative brand
positioning. This applies to most industries, from
branded consumer goods (FMCG products and
durables) to B2B products and commodities.
Consequently, product and price changes are
not available as levers to target opportunities to
gain market share in the medium term. Microplanning can be adopted in such a context.
bottom-up start
The first step is to develop a bottom-up view
of the market. This analysis can deliver richer
insights into the current status of the market
and help pinpoint if the micro-market presents a
market development avenue or an opportunity to
gain market share.
In the building products industry, for
instance, demand arising from home renovation
strategy
A tailored approach to gain market share
1
2
Develop
granular market
understanding
Analyse data at
micro-market level to
identify opportunities
and new construction can be mapped separately
using housing statistics, household income
indicators and renovation cycle patterns. In the
next step, a deeper analysis of the information
is done to help identify the focus products in
each micro-market and the levers that can be
deployed to gain market share. Next, the size of
the market opportunity that can be targeted is
assessed.
For each micro-market, a customised set
of marketing interventions and route-to-market
solutions are then tailor-developed for the task
at hand: market development or gain in market
share. The marketing interventions would be
aimed at creating awareness or trials with new
consumers, while seeking to lock in and upsell to
existing consumers. Similarly, route-to-market
solutions aim at driving network expansion to
improve availability, coupled with appropriate
channel programmes to motivate the trade.
Such a tailored approach ensures that the
resources required to gain incremental market
share are optimised. At each stage, all the
stakeholders are involved so that a common view
of opportunity is developed across the company.
CASE STUDY
The India business of a global farm-products
company had grown rapidly over the last several
years. The client was apprehensive that the
market had matured in several states and that,
going ahead, growth would plateau out. In such
a slow-growth scenario, market share gain would
be extremely expensive as competition would be
intense.
Using the micro-panning approach, the
market was subdivided into smaller micromarkets at the outset. Data was then collected
from various public and company-specific
3
Identify levers to
unlock opportunities
in each micro-market
sources to bring a strong outside-in perspective
to the existing sales data.
Qualitative and quantitative data were
collected to improve market understanding.
This included information on land ownership
patterns, crops grown, irrigated land area and
groundwater availability. All this information
was used to arrive at a bottom-up assessment of
the potential market opportunity for the client’s
products in each micro-market.
The strategic direction for the client’s sales
team in each micro-market was identified and
detailed action plans were prepared to include
marketing interventions, sales force and dealernetwork augmentation. This empowered the
client team with the resources to secure the plan.
The bottom-up market assessment and
planning was co-created after several workshops
and one-on-one sessions with the client team
in each state. The final output was a threeyear micro-market plan owned by the client
team, aimed at growing market share faster
than envisaged by them. The client was able
to increase its market share between 2 and 7
percent in the micro-markets, also exceeding the
year one goals as outlined in the micro-plan.
Organisations usually grapple with the
problems of identifying and unlocking growth
opportunities. This is accentuated when
an industry is at a maturity stage, or when
the overall demand cycle is weak. In such
instances they would like to maximise the
revenue impact of their investments. Microplanning is an effective approach that can
help organisations identify demand pockets
and opportunities to gain market share, and
prioritise accordingly. Such opportunities are
usually missed out in traditional strategydevelopment approaches. ¨
January 2014
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PERSPECTIVE
Potent can be the
power of patents
Developing, maintaining and protecting intellectual property are
challenging but essential steps, says Subramaniam Vutha, who
argues the case for making this a part of corporate strategy
W
hat are the best ways to build
intellectual property (IP) asset
portfolios that support the
attainment of business goals?
What return on investments can one expect
from IP assets? Who should be involved in
formulating IP strategy? Who determines
the ways to use the IP asset portfolio of a
company as a component of business strategy?
What are the special features and needs of IP
strategy in India? These are some of the issues
facing business leaders and managers in India.
These questions should be answered by
those who have the knowledge and experience
of establishing and running businesses, and
by those who formulate and implement
business strategies. Specialists in intellectual
property rights (IPR) could also help in such
Subramaniam Vutha is an advocate and a consultant
with the Tata group. He chairs the Intellectual
Property Strategy Committee at the Licensing
Executives Society International.
88 Tata Review
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January 2014
endeavours. This article seeks to provide some
thoughts, questions and insights that could
prove useful for managers who wish to thread
IPR into their business plans and strategies.
What is competitive strategy?
According to a renowned strategy guru,
competitive strategy is about being different.
It involves deliberately choosing a different set
of activities to deliver a unique mix of value.
What are the ways in which IP assets
can be used to help deliver such a mix? The
answer highlights the value of IPR to business
strategy. Can any business offering (products
or services) remain distinctive without the
help of IP protection and an underlying IP
strategy? The probable answer: “Not for long.”
Any business offering that provides
a singular mix of value will probably be
emulated by business rivals before long.
So IP practitioners have developed a slew
of mechanisms and tools that can help
business managers in their operations. These
mechanisms help business managers leverage
their IP asset portfolios for business benefit.
PERSPECTIVE
To facilitate this, it is important for
business managers to think of IP strategy as a
part of their business strategy.
However, IP specialists should not be
the only ones formulating IP strategy. It is
important that business leaders and managers
understand the value and uses of IPR in
strengthening and sharpening their business
strategies.
Here are a few ways this can be done:
IP securitisation — dealing with the ways
in which IP assets could be treated as
collateral for borrowings or funding.
IP litigation strategy — defensive and
offensive; the latter shows ways of
asserting IP rights to thwart competitors
in the marketplace and to impose costs on
them.
IP filing strategy — dealing, for example,
with decisions as to the territories in
which IP protection should be sought, so
as to protect market share or to defend or
enter markets or business domains.
Defensive IP aggregation — dealing,
generally, with the planned and structured
augmentation of patent portfolios to
counter potential threats of patent
assertion by business rivals.
IP licensing models and strategies —
seeking, among other things, to maximise
and sustain revenues from the licensing of
IP assets.
IP insurance.
IP brokering, IP sales and IP auctions —
some ways to facilitate the manner in
which IP assets can be sold, licensed or
acquired.
IP audits — these highlight, among other
things, the gaps in IP management or IP
strategy and point to ways in which these
can be optimised.
IP due diligence — measures used to assess
IP assets before their acquisition, either as
IP assets per se, or as part of a larger deal
such as a merger or acquisition.
IP valuation — the valuation of IP assets
for deal making, licensing or corporate
transactions.
Business strategists might consider some
or all of these as tactical issues or mechanisms
because they do not address a critical
component of business strategy, which helps
to answer the question: “What are we trying
to accomplish?” On the other hand, the tools
and mechanisms mentioned here answer,
partly at least, the question: “How are we
going to accomplish our business goals?”
Framework for action
What, then, should IP strategy address?
Should there be a national strategy on IPR as
is the case in Japan? And as is being discussed
in other countries such as China and India?
As regards India, a national IP strategy
should help us achieve goals such as the ones
listed below:
a. Step up exports.
b. Reduce outflow on account of imports.
c. Increase export of value-added products.
d. Offset outflows on account of technology
and brand fees, which have risen to over
`350 billion in recent years.
e. Counter the brain drain.
However, while the country can outline
a broad strategy or approach to IPR based on
policy considerations and national interests,
both of which are of paramount importance,
it is the collective impact of IP strategies and
plans of businesses that will drive the success
of a country in harvesting, protecting and
utilising IP assets.
Let us take a look at how companies can
use IPR policies and strategies to enhance
their business prospects:
a. Several Indian businesses do invest
substantially in innovation programmes.
To market Indian innovations abroad
we will necessarily have to seek and
enforce IP protection in the chosen
markets. An investment in IP strategies
and plans will, accordingly, be vital for
sustained benefits from export of Indian
innovations. How else will we protect
the key differentiators of our products
and services and retain competitive
advantages?
January 2014
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PERSPECTIVE
b. IP assets are a handy way to offset
the costs of acquisition of foreign
technologies. Cross-licensing of Indian
technologies protected by IP rights
could help reduce the outflow of money
on account of imports. Moreover,
with a choice of IP-protected Indian
technologies and brands, consumers and
businesses in India could restrict imports
by opting for the Indian offerings.
c. Exhortations to step up export of valueadded products and services would be
futile without IP strategies and plans.
In the absence of appropriate branding
(read ‘trademarks’) and patented product
features, it would be difficult, if not
impossible, to move up the value chain.
d. With restrictions on royalty outflows
being relaxed, Indian companies or
subsidiaries of foreign companies are
paying huge sums in foreign currencies
for technical services and brand usage.
The development and establishment of
global ‘Indian’ brands and the stepping
up of patenting by Indian companies
in foreign markets could counter some
of such outflows. A reduction in net
outflows on these accounts would require
a sound IPR strategy both at the national
level and at the level of individual
businesses.
e. A look at the patent portfolios of
global technology and market leaders
reveals that a significant number of the
inventors or co-inventors of the patented
technologies are either Indians or of
Indian origin. It is high time we think
of ways in which Indians can invent
and claim patent protection, not only
in our own country, but also in foreign
Industry experts have called this a
period of hyper competition. In such
circumstances, it is wise to augment IP
assets... especially intellectual property.
90 Tata Review
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countries. That may help stem the brain
drain in some measure.
Internal roadmap
At the company level, there are three criteria
that determine whether a proposed strategy
for intellectual property supports the
attainment of business goals.
Does it help provide a competitive
advantage to our business? Today we have
a glut of choices in India. Some industry
experts have called this a period of hyper
competition. In such circumstances, it is
wise to augment IP assets and to optimise
the use of all resources, especially intellectual
property assets.
Indian companies file less than 20
percent of the patent applications in India.
Foreign companies file over 80 percent. It
does not require much analysis to foresee the
outcome of this trend in the future, when the
patent applications of foreign applicants are
granted and these are used to differentiate
foreign product offerings in India.
For Indian companies it is imperative
that they protect their market share in India
with appropriate support from strategically
structured patent and trademark portfolios.
Does our IP asset portfolio help us in
mitigating risks? Given the trend I highlighted
above, it should be clear to Indian businesses
that their ‘freedom to operate’ within their
most important markets (namely Indian
markets) could be in serious jeopardy when
the foreign applicants for patents in India are
granted such patents.
What then prevents them from asserting
their Indian patents against Indian companies
and either thwarting the business plans of
their Indian rivals, or imposing costs (by
way of royalties or fees) on them? Perhaps
the damages may not be as severe as they are
in the United States, but the impediments
looming ahead are significant enough to merit
serious attention.
We have already witnessed legal action
between Indian competitors with regard to
patents for motorcycle and water purifier
PERSPECTIVE
technology. It would be fair to presume that
business leaders who pay some attention to
their IP plans, and to the alignment of IP
plans with business goals, will benefit in terms
of risk mitigation.
IP asset portfolios can result in ‘value
creation’ for business in two principal ways.
Strategically structured IP asset portfolios
open up new revenue options from licensing
of IP protected brands and technologies. For
example, franchising, which is one form of
licensing, is a fast-growing business and a
means for rapid expansion with shared risks.
Nonlinear growth options
Franchising is based primarily on licensing
a popular trademark or brand. Without a
strong trademark, there would be no sound
basis for franchising as a business. Licensing
strategies can also open up new opportunities
and revenue options for many businesses.
For example, for India’s much admired
IT services businesses, IP asset portfolios
will provide a basis for ‘nonlinear’ growth
options. IT companies could augment their
revenues and profits by licensing patent and
copyright-protected software products and
tools (quite apart from IT frameworks and
methodologies).
Strategically structured IP asset
portfolios also help attract better teaming
partners, vendors, value-added resellers,
collaborators and joint venture partners.
Thus, IP assets open up new options
for a business. This merits appropriate
attention from business leaders in an era
where outsourcing, ‘original equipment
manufacturing’ deals, franchising, complex
supply chains, collaborations, joint ventures,
teaming, open innovation, crowd-sourcing
and other business models provide new or
augmented options for business growth and
risk-sharing.
In the light of what I have stated in
this article, it must be fairly clear that the
formulation and implementation of IP
strategy should involve the following key
personnel:
The CEO.
The CFO and his team.
The CTO and CIO, and their teams.
The Business Development team.
Research heads.
Marketing and sales heads.
Product development heads.
Business strategists.
This presupposes a fair degree of
knowledge among such key personnel as to
the basics of IPR, and the uses and limitations
of different types of IP elements, such as
trade secrets, patents, copyright, trademarks,
service marks and industrial designs.
Will the formulation of an IP strategy
guarantee returns and enhance business
performance? Not always. But the failure
to augment and leverage IP assets based
on a sound IP strategy will certainly limit
competitive advantages, raise risk levels, and
curtail business and revenue options.
A famous advertising guru is reputed to
have said that about 50 percent of advertising
is a waste. The problem, he went on to say, was
that we don’t know which 50 percent is wasted.
That could hold equally true of IPR assets.
Without a strategic basis, IP assets
could prove to be non-performing assets. An
additional effort to formulate an IPR strategy
that ties in with the business strategy will
enhance the value of the IP asset portfolio. ¨
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PERSPECTIVE
Prepaid solution
The challenge of financial exclusion can be met by introducing
prepaid cards, which are safer than cash and allow an element
of control over spending, writes Govind Sankaranarayanan
A
large part of the debate around
financial inclusion has focused on
the provision of credit to the underserved. Although such microfinance
is without doubt an aspect of the inclusion
story, it remains but a part of it. Inclusion
needs to be more widely understood as
encompassing financial literacy, the provision of
investment opportunities, assuring security and
identification to payment systems.
The financial inclusion story in India over
the last two decades indicates that even public
sector banks have struggled with the challenge
of meaningfully providing services to the poor,
and that the pace of inclusion has been glacial.
With the advent of the right technology and
ecosystems, alternate mechanisms for financial
inclusion have appeared on the horizon.
Prepaid cards provide one of the most
exciting shortcuts to inclusion. They are safer
than cash, allow an element of control over
spending and can be used to make purchases,
Govind Sankaranarayanan has been with the Tata
group since 1993, when he joined the group as a TAS
manager. He has held positions at Tata Tea, Tetley
and VSNL International, and is currently the chief
financial officer and chief operating officer, corporate
affairs at Tata Capital.
92 Tata Review
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pay wages and transfer funds without the need
for a bank account.
The role of prepaid cards in servicing
under-banked groups has been recognised in
the past decade. Even in developed economies
such as those in Western Europe, it is believed
that as many as 93 million people are ‘unbanked’ or ‘under-banked’. International
consultancy Deloitte has in a report concluded
that in the post-financial crisis world, banks are
reacting to increased cost pressures by reducing
services to unprofitable customers, thereby
discouraging them from holding accounts.
Missing out
This lack of banking access means that
payments such as direct debit, withdrawals
and other transfers are denied to them. These
individuals potentially miss out on discounts,
and special offers, and even find it difficult to
make mobile payments.
Prepaid cards are seen to be advantageous
in more nuanced ways. Financial exclusion
is much more than just the inability to access
credit; it means missing out on the opportunity
to enjoy many other conveniences. In recent
times the prepaid concept has found powerful
sponsors. The Centre for Financial Services
Innovation (CFSI), an independent organisation
PERSPECTIVE
supported by the Ford Foundation, is a
thought leader in assisting the financial
services industry to find new ways of
delivering services to the under-banked. CFSI
has via protocols made it easier for prepaid
to gain popular acceptance. Recognising that
prepaid can work only in conjunction with an
ecosystem, CFSI has worked with a number of
prepaid issuers, including American Express,
Visa, Wal-Mart, Western Union, Master Card
and nonprofit organisations to create what are
called the ‘compass principles’.
These are a set of practices which ensure
that innovation and execution in financial
services are beneficial to consumers. The
embracing of financial inclusion and the
creation of options having upward mobility are
two essential elements of these principles. Other
protocols of CFSI suggest it should be possible
for prepaid accounts to be safe and insured, that
users need to have many convenient locations
for adding and using funds, ensuring clarity of
fees, good customer services and easy visibility
of balance and transaction history. Issuers also
need to provide additional benefits such as
proactive use of their product, which banks
typically may not do for less remunerative
accounts. They could over time create a credit
history and facilitate budgeting as well.
There has been a dramatic increase in
the usage of prepaid cards across different
sectors of the economy. An estimate by Ernst
and Young indicates the size of the prepaid
market in India was about `700 billion in
2013, and growing at close to 50 percent. The
government has encouraged the provision of
financial aid to the poor through such cards to
prevent the misuse and diversion of money. It
is now possible to channel payments under the
Mahatma Gandhi National Rural Employment
Guarantee Act (MNREGA) scheme through
prepaid cards.
money made simple
The Delhi Government recently launched the
‘Saral Money’ prepaid card to provide banking
services to the un-banked. The American
state of Virginia found that 20 percent of all
households were under-banked or un-banked
and could not receive direct deposits from the
government; the state’s treasury issued half-amillion electronic prepaid cards, saving several
million dollars per year.
Government payments are only one of
the several ways the prepaid cards business
assists inclusion. A large proportion of the
Indian workforce is casually employed and
paid in cash. For such employees a prepaid
card can provide the convenience of tracking
payments combined with security. The ‘I Cash
Card’ is one which is widely used and accepted
at the Indian Railways website, a large number
of other travel portals, e-commerce portals,
bill payments, etc. In Britain, parents of
The Indian government has encouraged the provision of financial aid through prepaid cards
January 2014
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PERSPECTIVE
An estimate by Ernst and Young indicates
the size of the prepaid market in India
was about `700 billion in 2013, and
growing at close to 50 percent.
teenagers have found the so-called Load and
Go card very useful as a means of transferring
cash to their children in boarding schools.
This card can be prevented from being used at
unsuitable internet sites or liquor stores, and
enables the parents to trace expenditures.
For such a hugely under-banked nation,
one would have expected greater reach of
prepaid across India. Yet notwithstanding
the conceptual support from different forms
of prepaid cards, a lucrative business model
continues to elude managers. In large part
this is due to the challenge of managing
operational complexity for customers who are
also price sensitive.
The first challenge that managers face
relates to the high levels of attrition among
prepaid customers. Even in the United States,
where there has been a culture of using cards
for payment, the Federal Reserve Bank of
Philadelphia has concluded that the average
lifespan of a prepaid card is about six months.
Therefore, costs associated with establishing
the card infrastructure have to be amortised
over a relatively short time span.
To add to this complexity, the use of (and
returns from) prepaid varies substantially
based on circumstances — namely, whether it
is for payroll, lunch or internet usage — and
the charges that can be levied also vary. As a
product that is likely to be marketed to the
under-served, there are inherent limitations on
the amount that can be charged. In the Indian
context, it is unlikely that people will load
more than a few thousand rupees on such a
card and charges cannot realistically be more
than 1-2 percent of this amount.
Making all this work entails a complex
association between retailers, banks,
telecommunication companies and issuers.
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January 2014
Not surprisingly, the jury is still out on
whether retail cards can be profitable. Most
business cases conclude with the argument
that issuers of cards need to find some revenue
streams beyond just fees and charges, at least
until this business scales up. And often they
cannot figure out what those are.
One would believe that the answer to this
should come from the richness of data that any
form of card usage would generate. Managers
in this space then need to dig deeper into how
knowledge of customer spending habits, the
ability to induce customers to purchase from
particular retailers and the inducement of
greater loyalty can make this product more
viable. Fortunately for them, the use of big
data is coming of age at just the right time.
The data capture angle
The challenge earlier had been to analyse
enough data with just the right nuances at the
right time and use this to one’s advantage. The
greater usage of cards addresses this challenge
as payment histories, patterns of topping up
and of use would be captured and immediately
available to issuers.
There are a number of players, including
small companies supported by venture
capitalists, independent retailers and telecom
companies, who are trying to target this
market. It remains to be seen whether any one
of them will take the plunge necessary to drive
everyday usage over the hump.
The Tata group is well placed to be in this
space, with companies in telecommunications,
financial services and retail. The group also
has an ecosystem of customers, vendors and
dealers who could use such a card for a variety
of payments. In addition, parts of the group
clearly cater to semi-urban or rural areas,
where large numbers of financially excluded
or under-banked groups are present. This
extended ecosystem represents an opportunity
to create a large universe of prepaid card users
and of ensuring that they get the benefits
that this product can bring — security,
convenience, and a significant measure of
financial inclusion. ¨
book review
Meek and weak? You
can beat the odds
I
wisdom. David & Goliath is no different. The
n battles where small takes on big, poor goes
book is an easy-to-devour collection of stories,
up against rich, or slow paces itself against
anecdotes and research on a surprisingly wide
fast, there are plenty of occasions when the
range of subjects with a common theme: why
underdog surprises everyone and wins. The
success is not necessarily the purview of the big
apocryphal tale of David vs Goliath, where the
and the powerful.
giant Philistine warrior Goliath is defeated by the
Gladwell starts with two famous examples.
much smaller Israeli shepherd boy David is one
The tale of David felling the well-armoured
such story.
Goliath with a blow to the head from a single
This arena where underdogs overcome huge
stone fired from a slingshot is retold along with
challenges to win success is the front opened up
an explanation of why a projectile
by author Malcolm Gladwell in
weapon (the slingshot) is superior
his latest book: David & Goliath:
to infantry weapons (spears).
Underdogs, Misfits and the Art of
Another well-known hero Gladwell
Battling Giants.
employs to drive home his point
There’s a reason why Gladwell
is TE Lawrence, famously known
has been called a detective of fads
as Lawrence of Arabia, who with
by ted.com. The English-Canadian
his small band of men fought the
journalist and New Yorker
mighty Turkish army by using
columnist has written several
guerrilla tactics.
well-critiqued books — Tipping
In his introduction Gladwell
Point, Blink, Outliers, What the
explains his intent: “Through these
Dog Saw, among others — on pop
Title: David & Goliath:
stories, I want to explore two ideas.
psychology and human behaviour
Underdogs, Misfits and the
Art of Battling Giants
The first is that much of what we
that have topped best-selling lists
consider valuable in our world
for years.
Author: Malcolm Gladwell
arises out of these kinds of lopsided
In each of these, Gladwell
Publisher: Allen Lane /
Penguin, 2013
conflicts, because the act of facing
drives home viewpoints that are
overwhelming odds produces
best described as counterintuitive,
Pages: 306
greatness and beauty. And second,
shedding light on perspectives
Price: `599
that we consistently get these
that deviate from conventional
January 2014
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book review
kinds of conflicts wrong. We misread them. We
misinterpret them.
“Giants are not what we think they are. The
same qualities that appear to give them strength
are often sources of great weakness. And the
fact of being an underdog can change people in
ways that we often fail to appreciate: it can open
doors and create opportunities and educate
and enlighten and make possible what might
otherwise have seemed unthinkable.”
Gladwell argues that one of the reasons why
heroes like David and Lawrence surprise us is that
society remains hung up on obvious advantages
such as size or power. It is taken for granted that
‘big’ equals success. What we typically do not
foresee is the potential or the leverage that can be
derived from strategy or well-planned tactics, and
that the underdog is often driven by desperation.
The writer even points out the corollary:
that too much of a good thing — wealth, size,
power — can be a strong disadvantage. He uses
the anecdote of a Hollywood film producer who
discovers that he cannot actually pass on to his
children the one thing that propelled his own
success: the desperation to ‘make it’ that comes
from having no money.
Gladwell has split the book into three
sections, each dealing with a particular aspect
of how the balance of power between the small
and big can change. In the first section — which
has the self-explanatory though really long title
‘The Advantages of Disadvantages (and the
Disadvantages of Advantages)’ — he explores
how the meek can overcome long odds.
One of the stories covers the tactics used
by a small, inexperienced, girls’ basketball team
coached by an Indian immigrant who had never
played basketball in his life. The team managed
to face seasoned players and league favourites
and eventually rose to the national championship
level. How? By using superior strategy against
opponents rather than relying on its clearly lower
levels of skill and power.
The second section talks about the ‘Theory
of Desirable Difficulty’, where Gladwell writes
about people who have been forced by their
inherent disadvantages to discover a lesstraversed path to success. One such story covers
the career of David Boies, one of America’s top
trial lawyers, who overcame severe dyslexia
to become a terror in the courts because he
had developed the mental ability to assimilate
information by listening, memorising and
analysing what was said by people around him.
The third section is on ‘The Limits of Power’,
where Gladwell writes about the negativity
that sometimes comes with too much power, a
potential minefield where power or size or force
can backfire. The anecdotes here range from the
British action in Northern Ireland to the Nazis in
prewar Germany.
David & Goliath is a book of stories about
people and their lives, but there are lessons here
for the corporate world as well. Most companies
are aware of the dangers associated with
becoming too big: lesser agility, slower decisionmaking, distance from the customer, etc. All too
often, the competitor in the market is not just
another established company, but also a bunch of
small start-ups that have carved out a substantial
niche. A dive into this book will provide the
frustrated manager with enough seeds for
thought.
A seasoned writer, Gladwell uses a formula
of two parts human interest mixed with one
part research and analysis to lead his readers
into rethinking the norm. David & Goliath is a
pleasant read, one that opens up a new window to
the world around us. ¨
— Gayatri Kamath
96 Tata Review
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book review
‘I wouldn’t be where I am today without my dyslexia’
An excerpt from David & Goliath: Underdogs,
Misfits and the Art of Battling Giants:
Gary Cohn grew up in a suburb of Cleveland, in
northeast Ohio. His family was in the electrical
contracting business. This was in the 1970s, at
a time before dyslexia was routinely diagnosed.
He was held back a year in elementary school
because he couldn’t read. He had a discipline
problem. “I sort of got expelled from elementary
school,” he explained. “I think when you hit the
teacher, you get expelled. It was one of those
disruptive incidents…”
He called that period “the ugly years”. “It
wasn’t that I wasn’t trying. I was working really,
really hard, and no one understood that part
of the equation. They literally thought that I
was conscientiously making decisions to be
a disruptive kid, to not learn, to hold the class
back…” His parents took him from school to
school, trying to find something that worked. “All
my mother wanted me to do was graduate high
school,” Cohn said.
When Gary Cohn was 22, he got a job selling
aluminium siding and window frames for US
Steel in Cleveland. He had just graduated from
American University after a middling academic
career. One day just before Thanksgiving, while
visiting the company’s sales office on Long
Island, he persuaded his manager to give him
the day off and ventured down to Wall Street. A
few summers earlier, he had been an intern at a
local brokerage firm and had become interested
in trading.
He headed to the commodities exchange,
which was part of the old World Trade Center
complex. “I think I’m going to get a job,” he said.
“But there’s nowhere to go. It’s all secure. I walk
down to the floor with the security gate and stand
at the security gate, like someone’s going to let
me in. Of course no one is. And then literally right
after the market’s closed, I see this pretty welldressed guy running off the floor, yelling to his
clerk, ‘I’ve got to go, I’m running to LaGuardia, I’m
late, I’ll call you when I get to the airport.’ I jump
in the elevator and I say, ‘I hear you’re going to
LaGuardia.’ He says, ‘Yeah.’ I say, ‘Can we share
a cab?’ He says, ‘Sure.’ I think this is awesome.
With Friday afternoon traffic, I can spend the next
hour in the taxi getting a job.” The stranger Cohn
had jumped into the cab with happened to be high
up at one of Wall Street’s big brokerage firms. And
just that week, the firm had opened a business
buying and selling options.
“The guy was running the options business
but did not know what an option was,” Cohn
went on. “I lied to him all the way to the airport.
When he said, ‘Do you know what an option is?’
I said, ‘Of course I do, I know everything, I can
do anything for you.’ Basically by the time we got
out of the taxi I had his number. He said, ‘Call me
Monday.’ I called him Monday, flew back to New
York Tuesday or Wednesday, had an interview,
and started working the next Monday. In that
period of time, I read McMillan’s Options as a
Strategic Investment book. It’s like the Bible of
options trading.”
It wasn’t easy, of course, since Cohn
estimates that on a good day, it takes him six
hours to read 22 pages. He buried himself in the
book, working his way through one word at a
time, repeating sentences until he was sure he
understood them. When he started at work, he
was ready. “I literally stood behind him and said,
‘Buy those, sell those, sell those,” Cohn said. “I
never owned up to him what I did. Or maybe he
figured it out, but he didn’t care. I made him tons
of money.”
…“The one trait in a lot of dyslexic people I
know is that by the time we got out of college,
our ability to deal with failure was very highly
developed. And so we look at most situations
and see much more of the upside than the
downside. It doesn’t faze us. I’ve thought about
it many times, I really have, because it defined
who I am. I wouldn’t be where I am today without
my dyslexia. I never would have taken that first
chance.”
...Today Gary Cohn is the president of
Goldman Sachs.
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