Today we will talk about one of the rich men in the world who started to build a strong foundation for his future business. He is named Mr.Jamsetji, and he was born on the 3rd of march 1839 in Navsari, now in Gujarat. Jamsetji Tata was a great pioneer and revolutionary industrialist who came from a backward family and reached the people’s heart. Tata’s strategy made the turning point of tata group a successful company in Indian society. From his story, how he turned the tata group into a successful group, and also his business strategy used in his business are seen below.
Cotton Demand :
Now, we have to go before the date of 1858, were the textile revolution was taking place during the period when cotton was in high demand. Americans produced low-cost cotton using slaves. Because of high demand, the British also searches for India, and India supplies about 31% of the British cotton demand. In 1861, the inside country war took place in America, and cotton production stopped in America. British importers turned to India because of its good fertile soil, good harbor, and enormous labor support. In 1862, the British cotton demand was satisfied by about 90% from India. It was the cotton revolution taking place in India. The American cotton supply would begin after the war, but the British purchased about 67% of cotton from India.
Mr.Jamsetji Family :
Jamsetji Tata’s father was Mr.Nusarvanji, who was a cotton trader. He helped his father’s business and started with the basics of the cotton business. In 1869, He started the pilot method to buy a chinchpokli oil mill, which was bankrupt, which was transformed into a cotton mill and turned the mill into a profitable mill. After 2years, he sold the mill at a good profit. From the business, he started the beginner lesson in cotton industries.
Trip to England :
So he took a trip to England to study the cotton market. The western region was 100 years ahead of the east. He visited many important business places like Egypt, Syria, Palestine, Turkey, and Russia. Later,he realizes that India has the best region for the cotton industry. India has good fertile soil, coal energy, labor power, and tragic ports.
In 1869, the Suez canal was built and opened. Before that, the travel between Europe and Asia starts from Mumbai, halts in Capetown, and then parks in London. French and Egyptians collaborated and built a canal by cutting land and connecting the Mediterranean and the red sea. The distance is reduces up to 7000km, and travel days were reduces to 23days for each travel. The only missing in India is an organized enterprise to process the cotton mills.
Cotton Mill Idea in Nagpur :
In Bombay, only 15 mills have established, and the machinery in primitive methods, unadopted buildings, unskilled labor, and the factory had no proper fire safety measures. After 6years, Tata decided to start the mill in India with a different plan, apart from other mills. He has an idea to construct a cotton mill near the cultivable lands. So he planned to establish a mill at a mobile distance of 800km from Bombay, identified as Nagpur. When everyone knows his idea and laugh, said as a stupid idea. Even investors and banks have refused to give a loan. The idea of Tata was to carry raw materials through railways. He calculated the power of railways for traders, who was easy to connect the remote area from Nagpur.
In India, Nagpur has also been named a high cotton production area, and the Baroda coal supply mine was at a reachable distance from Nagpur. It was uses for energy production. In 1874 central India’s spinning weaving and manufacturing company were founded by Jamsetji Tata with an investment of about 1.5lakhs.He invested the money in the best machinery in the world and was transported for four months from Europe to Asia. Bullocks are uses for transportation at the time. Finally, the mill has started on his hard work.
Labour Demand :
In the starting stage, all companies faced the labor problem. Labor in the Nagpur area is not related to the people in Bombay, and not going to work continuously. The people of Nagpur are adapted to work in cultivable lands, so the company has worked with only 80% attendance every day. He analyzed the reason for irregular attendance. People say about the fear of fire accidents, where the British company does not claim any fire accidents for the workers.
Solving Labour Problem :
In that 13thcentury, slavery was unofficial in India. In British office, retired Indian people are not allowed, with the board like dogs, and Indians are not allowed. The retired person can not lead a comfortable life after retirement. He analyses the problem and solves it by giving a retired pension scheme to retired persons. He gives a medical cost to labor if he gets injured. Inaugural functions are conduct like family day, sports day, etc. In this function, the top 1000 labor families were selected and given rewards like gold chains, wrist watches, cash rewards, etc. It may develop a bond between the labor and the company. On the consistent effort, the company was working with 100% attendance. Women’s in the family also helped in the company work due to a bond between labor and company.
New Research and Strategy :
After that, the competition was heavy from America to Europe, almost- all over the world. He makes research and innovation on the advancement strategy. For his advanced method, he has spent a week and a month traveling to other countries to research the advancement. He makes studies the European market and travels to European countries. On the 1883 trip to Europe, technical expert James Brookup say about the ring frame method. He says that most American mills use this strategy at the bit level because it’s impossible to do it at a large scale. After that, he returns to Nagpur and trialed the ring frame strategy.
This strategy makes the untired strategy for today’s world. In this fun fact, American companies do not make this method on a large scale. But, he makes this experiment for the entire mill. This experiment makes his business a profitable company in India. In the formal method, the production was about 6000 revolutions. But in this ring frame, production was 9000-12000revolution which was double the production. The company’s value reached Rs 30lakhs, which was about Rs 100crore in today’s world. Tata group’s richest man did not stop his business.
Bought New Cotton Mills :
The head office of the Tata group is locate in Bombay. After that, the Tata group started three mills the Swadeshi Mills in Bombay, the Tata Mills in Bombay, and the advanced Ahamadabad mill. The product produced from the mill is named Tata Textile. At first, Central India’s spinning weaving and manufacturing company started in Nagpur and was renamed Empress mills which were started in 1874 and renamed in 1877. After that, he bought a falling Dharamsi mill at Kurla and renamed it a Swadeshi mill. Later, they started the Tata mill and Ahamadabad advanced mill in 1903. It made tata an iconic brand in India. The four mills of Tata produced about 150 million meters of cotton from 32500 spindles with 6845 looms and exported to china, japan, and Korea until 1980. The Tata textile company was slowly exiting the cotton industry. The cotton industry of Tata has made a foundation for other businesses.
Tajmahal Hotel :
The Taj hotel was the first Taj property in the hotel business. The story behind to build of Tata refused entry into the Watson’s hotel in Mumbai. Europeans were only allowed inside the hotel. It may provide racial discrimination against Tata. Also, his friend has an idea to build a hotel and attract foreigners to India, and improve Bombay. So that he bought the wood and piece of art from London, Paris, and other countries. In 1903, on the 16th of December, the Jamsetji opened the Tajmahal hotel or Taj hotel. The Taj hotel provided a panoramic view of the Arabian Sea. After that bought five deluxe beach resorts, including the fort Aguada beach resort in Goa in 1970.
1974 – Taj coromandel in Chennai;
Savoy hotel in Ooty;
Taj west in Bangalore;
1977 – business Hotel in Mumbai;
1978 – Taj hotel in Delhi;
1980 – Sheba Hotel in Yeman. It was the first Indian hotel that was started outside India.
1989 – Taj Bengal hotel in Kolkata.
Taj hotel is the only hotel was build in major cities like Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, and Chennai.
Tata Steel :
In 1907, Tata iron and steel company was setup in Jamshedpur, Jharkhand, and its headquarters in Mumbai. It was among the top Indian steel companies that produced about 34 million tonnes. It was the second-largest steel-producing company in the world.
Tata Power :
In 1910, Tata hydropower supply was started, after it was named Tata power. It was India’s largest power generation of 12770MW, with 30% from green and clean sources.
Indian Institute of Science :
In 1911, the Indian institute of science was setup in Bangalore.
Tata Aviation :
In 1932, Tata aviation were started by JRD Tata. Tata group becomes the first pioneer of Aviation service in India. In 2014, Tata group had 23 aircraft all over the world. In 2019, Tata group had 31 aircraft, which takes more than 630 journey every week.
Tata Chemicals :
In 1939, tata chemicals were founded by JRD Tata. At first, it was an Okhamandal salt work setup in 1929. It was a takeover by JRD Tata in 1939 and changes to Tata chemicals. Tata chemicals produced the world’s second-largest producer of soda ash.
Tata motors is a multinational automotive manufacturing company that produces cars, trucks, coach vans, carrier vehicles, etc. The company collaborated with Daimler Benz and started production in 1952 and ends in 1969. In 1991, tata motors launched Tatamobile, Tatasierra becoming the first Indian indigenous manufacturer to develop its product. In 2006, Tata Motors acquired a truck manufacturing company in South Korea. Tata motors became the parent company of Jaguar and Land rover because it may acquired the stakes from Ford in 2008. The Tata Motor manufacturing plant was located in Lucknow, Sanand, Dharwad, Pune, Argentina, South Africa, the United Kingdom, Thailand, etc.
: In 1963, Tata tea makes a joint venture with James Finlay and the company which was started. James Finlay is a Scottish-based company established first in 1897 in south India. In 1982, James Finlay and the company divested their holding in Tata, and a new company, Tata Tea was born, and the company produces tea, coffee, and spices – all over the world.
Tata Consultancy Services :
Tata Consultancy Service was founded by J.R.D Tata and F.C.Kohli, to provide online consultancy services through 600000 trained consultants in more than 46 countries. The company earns a consolidated revenue of more than Rs 22Billion in one financial year. The company became the first Indian IT company to reach a market capitalization of 100 billion dollars in 2018.
Titan Industries :
Titan industries were founded in 1984 by Xerxes Desai and manufacture watches, jewelry, and other fashion-related products. Titan manufactured the youth-attraction watch named Fastrack in 2004. In 2019, the company became the fifth-largest watch manufacturer in the world.