Skip to main content

The TATA Family

Our world is no longer run on a friendly barter system.
All goods and services have been monetized, and have a numerical which decides their value - something we call money, cash, bucks, piggy bank, or any of the other million terms coined for it. 
This money runs the world economy, which is fueled by the enterprises that produce, sell, and export goods and services for the consumers. This series "Business Review" will capture some of the most well-known, little-known and inspiring businesses around the world. This series explores their work as an organization and several business aspects like marketing strategy, operations, their management of human capital and their position in the global market.

I have selected "Business Studies" as one of the subjects at my school. Our facilitator tasked our class with an interesting project: to create a presentation about the richest Parsi business families in India. 

Parsi, or Parsees, are part of a Zoroastrian community from Persia. They came to India to seek refuge, as their community was persecuted by marauders from the Middle East. Parsis are known to be philanthropic, and Parsi businesses support community well-being through charities. So, let's dive into the story of the Tata conglomerate, a billionaire family from India, who have made great strides in the steel, motor, electrical, and software industries.



Like the presentation mentioned, Tata has adopted an interesting strategy to expand their operations. They have delved into diverse industries and have been active in their mergers and acquisitions.  By excelling in each of these fields, Tata has brought immense credibility and profit to their conglomerate, making this company a world-class company.

In the recent past, the Tata group have shown interest in buying a substantial share in a cash-strapped airline company, Jet Airways. Jet Airways was founded by Naresh Goyal, who currently owns 51% of the company. UAE's Etihad also holds a 24% share in Jet Airways. Tata's N Chandrasekaran, the Goyal family, and Etihad will join hands to become a stronger company.

My Take

I have been following the news reports regarding the Tata company for the past few months. In my opinion, Tata would be helping consolidate individual players in the saturated Indian aviation market. This could have two effects, the positive being the synergy of the two players, and the negative being a hit to the cash pile to Tata. Jet Airways is USD $1.18 billion in debt, and are struggling to pay their employees. After the buy-in, Jet Airways might see a rise in their margins. However, there is a possibility that even the efforts of Tata can't save the airline from the abyss of debt. At least Tata might have an airline which they can call their own - something which they haven't had since Air India was nationalized. Overall, the positive could outweigh the negative, because of Tata's excellent track record of successful mergers, acquisitions, and joint ventures. The bigger question isn't the success of this move, but whether Goyal would be willing to abdicate his position in Jet Airways and share the place with two, largely successful companies.
Labels:

Comments

  1. M DalmiaDecember 29, 2018 at 9:29 AM

    Dear Siya,
    It was a pleasure to read your blog and I love the name 'Simply Siya' - even though there is nothing simple about Siya:) I did not know that Tata are stakeholders in so many companies. Good research and well written:) My father is an ardent fan of JRD Tata and he loved reading your perspective. Thank you
    Mona

    ReplyDelete

Post a Comment

Popular posts from this blog

Pattachitra: An Art of India, An Art of Patience

India has an incredibly wide array of art forms and a big pool of talented artisans. North, South, East, or West; they each have an art style unique to the anthropological roots. In the eastern region of India, lies a coastal state of Odisha, formerly called Orissa. Odisha has a vibrant culture, defined by the exquisite temple complexes, intricate woven patterns of Ikkat, and the world famous sand artists. The art form Pattachitra can be seen in the religious centers of Puri, Bhubaneshwar, and Konark. Pattachitra literally translates to cloth (Patta) and picture (Chitra) in Sanskrit. Over the weekend, I attended a workshop at IISER where an artisan from Odisha, whose family specializes in Pattachitra, guided the participants to create their own work of Pattachitra. This art form is simple, yet demands concentration and patience of the artist, due to its detailed illustrations. Here are a few things I learned about the art form, Pattachitra, and how it taught ...
Post a Comment
Read more

Heave, Sieve, Achieve!

From crisp mornings under the mango grove, to toiling in the afternoon heat, to engaging community meet practices - the past two weeks at DLRC's new sustainable campus have been a refreshing and wholesome experience.  When this initiative was brought up, I was apprehensive about how we were to occupy ourselves while learning and helping on the farm. However, as the work progressed at the Farm, I learnt and discovered some things that go beyond the textbook such as values, friendships, and the importance of pure hard work. Our week started with filling and leveling the high school classroom - a big plot allotted for the students to work on. We were told to pack up the area with as many rocks and loose soil that we could dig. Faced with a mammoth task ahead, we students couldn't seem to figure how to finish the task efficiently. Then, a bright idea struck all of us - let's form a chain! Students from middle and high school organized themselves into a line, which stretche...
6 comments
Read more

Q1) What is design?

What does this design depict? 5 Things About Design As an aspiring designer, I have my own outlook as to what design is. Each designer has their own style, their own brand of design work, which is derived from several influences around them. Here are a few of mine .... Design is to see beauty in everything.  Every line, curve, shape, and color - design is all around us. Whether it's a picturesque sunset with peachy hues, a fluffy cloud pattern which resembles a dog, the spiral whorls on the bark of a tall oak tree, or the jagged surface of the face of a mountain. If one cannot appreciate the designs in nature, how can they create a piece of their own? Design is to draw inspiration from what's around you.  Some of the most abstract thoughts and designs can be influenced by a simple object, person, or elements of nature. Salvador Dalli simply depicted melted clocks - an object we see so frequently and take for granted.  Design is to pay atte...
Post a Comment
Read more