From the editor
R
emembering Mahatma Gandhi on October 2 every year has become more
and more of a ritual as memories of the man and his message fade from
the collective conscience of a nation and a world that appear to have time
only for the here and now, the material and the individualistic. It need not be that
way, as shown by our cover story on Tata Engage, a remarkable volunteering
endeavour that is cut from pure Gandhian cloth.
Tata Engage brings together tens of thousands of Tata employees who
devote time and effort to help realise the objective of an extensive range
of social-uplift projects. “Be the change you wish to see in the world,” said
Gandhi — and that’s the philosophy at the core of many Tata initiatives. With
4ATAÒ%NGAGEÒTHISÒTHINKINGÒTAKESÒONÒAÒSEL¹ESSÒQUALITYÒTHATÒRE¹ECTSÒAÒWORLDVIEWÒINÒ
which the community is central to business.
Tata Engage has translated into Tata people working with the elderly and
the underprivileged, the sick and the needy, in schools and orphanages, in oldage homes and shelters for the poor. They have cleaned streets and beaches,
provided succour to animals in distress, and planted trees and hope. Noteworthy
here is the use that Tata Engage has made of technology as an enabler, most
prominently in connecting Good Samaritans to worthwhile causes.
Skills development is another substantial Tata programme aimed at
BENEµTINGÒTHEÒCOMMUNITYÒASÒAÒWHOLEÒ/URÒSPECIALÒREPORTÒINÒTHISÒEDITIONÒFOCUSESÒ
on Tata Strive, a collaborative and replicable global skills development initiative
THATÒATTEMPTSÒTOÒENHANCEÒANDÒµNETUNEÒTHEÒCAPABILITIESÒOFÒJOBÒASPIRANTSÒTHROUGHÒ
TRAININGÒANDÒTHROUGHÒPARTNERSHIPSÒWITHÒNONPROµTSÒSCHOOLSÒANDÒCOLLEGESÒ4HEÒ
need for such interventions is immediate in an environment, especially in India,
WHEREÒMANYÒOFÒTHOSEÒLOOKINGÒTOÒENTERÒTHEÒWORKFORCEÒHAVEÒINADEQUATEÒSKILLSÒANDÒ
WHEREÒEMPLOYERSÒAREÒINCREASINGLYÒEXPRESSINGÒCONCERNÒABOUTÒTHEÒQUALITYÒOFÒTALENTÒ
available for hire.
The ‘change for the better’ theme also shines through in our featured story
on Vistara, the Tata-Singapore Airlines venture that is ready to take off, and in
the article on how Tata companies are making their interaction with consumers
more meaningful by employing digital media. Additionally, this issue provides
you, dear reader, with a technological perspective on the big data business of
4ATAÒ#ONSULTANCYÒ3ERVICESÒANDÒ4ATAÒ$OCOMOgSÒWIµÒVENTUREÒ!NDÒTHEREgSÒMOREÒTOÒ
savour within these covers, including a look at what the Tata Trusts are achieving
in the community space.
With Diwali all set to light up our lives, we do hope this edition of
Tata Review complements the festive cheer.
Warm regards,
Christabelle Noronha
Contents
VOL 52 | ISSUE 3 OCTOBER 2014
Cover story
ENGAGE TO EMPOWER
Tata Engage, a pan-Tata global
initiative, draws together employees
from across the world onto a
common platform to volunteer for
social causes
— Cynthia Rodrigues
Business
40 TATA PROJECTS:
Special report
POWERING AHEAD
13 TATA TELESERVICES:
— Nithin Rao
‘WI-FI IS A STORM WAITING
TO HAPPEN’
44 TATA COMMUNICATIONS:
Sunil Tandon speaks to
‘WE MUST INNOVATE FOR
Shalini Menon
SURVIVAL AND GROWTH’
Vinod Kumar speaks to
16 TATA CONSULTANCY
Shubha Madhukar
SERVICES: BETTING BIG
ON DIGITAL
By invitation
— Shilpa Sachdev
48 COLLABORATING FOR
19 VISTARA: A STAR IS BORN
— Sangeeta Menon
GROWTH
— Dr Liu Youfa
SUSTAINABLE FUTURE
A severe shortage of talent is
threatening businesses worldwide,
24 JAGUAR XE: A COMPELLING
SPORTS SALOON
56 SKILLS FOR A
Photofeature
causing concern to companies and
governments looking for sustainable
26 TATA BUSINESS SUPPORT
SERVICES: TRANSFORMING
50 TATA STEEL EUROPE:
IN VIEW
models of growth. To meet this
challenge, the Tata group has
CUSTOMER EXPERIENCE
launched a slew of skilling initiatives,
— Nithin Rao
some of which we feature in this
special report.
30 TATA ADVANCED SYSTEMS:
BATTING FOR DEFENCE
57 HOW TO CATCH A FISH
— Nithin Rao
36 TATA CONSULTING
ENGINEERS: ENGINEERING
A SUSTAINABLE FUTURE
— Cynthia Rodrigues
58 STRIVING TO EMPOWER
61 LIFE SKILLS FOR INDIA
64 STEM TALENT FOR AMERICA
67 GROOMING YOUNG TALENT
Marketing
IN CHINA
72 THE CHANGING FACE
69 SKILLING UP IN SINGAPORE
OF MARKETING IN TATA
COMPANIES
70 IT’S RAINING SKILLS
— Gayatri Kamath
IN AFRICA
EDITOR
Christabelle Noronha
Email: chris@tata.com
EDITORIAL TEAM
Anjali Mathur
Cynthia Rodrigues
Gayatri Kamath
Jai Madan
Philip Chacko
Sangeeta Menon
Photofeature
Shilpa Sachdev
Shubha Madhukar
78 WESTSIDE: SYNERGY OF STYLE
— Shilpa Sachdev
CONTRIBUTORS
Debjani Ray
Nithin Rao
Shalini Menon
DESIGN
Abraham K John
Shilpa Naresh
PRODUCTION
Mukund Moghe
EDITED AND CREATED BY
in association with
The Information Company.
Community
IN THE WORLD? THE STORY
OF TATA
82 TATA TRUSTS: HOPE AND
A HELPING HAND
Q
Email: grouppublications@tata.com
Website: www.tata.com
CK PRAHALAD, THE MIND
OF THE FUTURIST
CONTACT
Tata Sons
— Jai Madan
Bombay House
24, Homi Mody Street
86 TATA POWER DELHI
DISTRIBUTION: GRANDMA
Mumbai 400 001
LEARNS THE LETTERS
Phone: 91-22-6665 8282
— Shalini Menon
DISCLAIMER
All matter in Tata Review is
Perspective
90 PLAYING IT SAFE
— Morgen Witzel
Books
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COVER STORY
Engage to empower
Taking time out from the daily grind to volunteer for social causes
is not just worthy behaviour, it has a positive all-round impact
— and that is what Tata Engage is driving through its incredible
volunteering engine
October 2014
6 Tata Review „
COVER STORY
W
hen over 40,000 employees sign
up for a volunteer programme,
it sheds light on a basic aspect of
human nature — there’s an energy
that flows from simple acts of goodness. That’s
the energy that is being tapped by the Tata
Engage programme, a pan-Tata global initiative
that draws together employees from across the
world onto a common platform — volunteering
for social causes.
Tata Engage is a volunteering programme,
organised by the Tata Sustainability Group
(TSG), that aims to encourage Tata employees to
get involved in the community at large, mainly
by contributing their time and skills for social
causes. It was launched earlier this year on
March 3, 2014, on the occasion of the 175th birth
anniversary of the Founder Jamsetji Tata — a
fitting tribute to the man whose values were
based on principles of corporate citizenship,
social welfare and patriotic pioneering.
What makes Tata Engage a unique
platform is the way it acts as a multiplier force to
create win-win solutions that positively impact
all the participants — the volunteers who
get to meet new people and learn about new
community projects, the companies which are
able to focus resources and share best practices,
and the partner nonprofits that are able to
achieve greater impact. ‘Be the change’ is what
Tata Engage encourages, even as it helps connect
Tata employees and companies with worthy
causes that need support.
MANY HANDS
Tata Engage has a multi-pronged approach to
community engagement. One of its biggest
programmes is the biannual Tata Volunteering
Week. The first week of volunteering was held
in March 2014 and employees — partly inspired
by the true life story of the Founder — signed
up in large numbers. In a truly remarkable show
of spirit, over 20,000 volunteers from across the
world registered on the newly launched Tata
Engage website. The second volunteering week
was held in September 2014, and the number of
keen and willing participants has now crossed
40,000 Tata employees worldwide. And if one
October 2014 „
Tata Review
7
COVER STORY
“The objective of Tata
Volunteering Week is to build
enthusiasm around volunteering.”
Shankar Venkateswaran, chief, Tata Sustainability Group
considers the total to be only those people
with Tata email IDs and ready access to the
internet, this percentage is actually much higher.
Although the Tata group is happy that so many
people are expressing the desire to reach out to
others, the numbers are only a starting point.
Shankar Venkateswaran, chief, Tata
Sustainability Group, says, “The objective of
Tata Volunteering Week is to build enthusiasm
around volunteering, and to get people who have
never volunteered before to try their hand at
volunteering, and to understand first-hand how
good it feels. We believe that it is important that
we do as much as we can.”
In order to help more people to do more,
Tata Volunteering Week has been structured
such that it provides opportunities for Tata
companies to collaborate on various initiatives.
Employees can not only choose the activity in
which they wish to be involved, they can also
upload their experiences for others to learn
from. Tata companies do their bit by helping
create awareness and interest among employees.
The end goal is a steadily growing pool of
volunteers which can make a great difference to
CSR initiatives — group level or company driven
— that depend on people power.
ARMY OF HELPERS
The strength of Tata Volunteering Week lies
in the ease with which it has inspired an
army of first-time volunteers, employees who
have willingly set aside their busy schedules
and routines and taken time off from family
commitments and work deadlines to do
something worthy for others. The returns they
get is a value-add for their own lives, as they
gain insights into the world of nonprofits and
community development, and realise how each
individual can make a difference. ‘Your addition
can change the equation’ is the message that Tata
Engage uses to drive home the point.
Tata group Chairman Cyrus P Mistry,
speaking at the launch of Tata Engage in March
2014, had said, “I believe that the volunteering
programme that has been launched will be
critical to the experience of every Tata employee.
I think the potential for us to add value to
society by bringing managerial experience
to problems and finding solutions would be
immense. I believe the fulfillment that each
employee will achieve will be even better.”
PRACTICAL SUPPORT
The support of the Chairman gave the
movement an added fillip, encouraging many
to sign up to be of service to others. But the
weight of the message lies in the intent to bring
‘managerial expertise’ to alleviate community
problems. And that is the role crafted for Tata
Engage. On a higher level, the goal of Tata
Engage is to unite employees across businesses,
time zones and geographies, and based entirely
Employees in China assist at various medical camps
October 2014
8 Tata Review „
COVER STORY
on their commitment to devote time and skills to
social causes. TSG will bolster the Volunteering
Week by organising centralised campaigns
and offering cross-company support. It will
also support group companies in their efforts
to develop their own volunteering policy and
programmes.
NS Rajan, group chief human resources
officer and member, Group Executive
Council, believes that Tata Engage “creates
a fantastic opportunity for an employee to
find opportunities both in terms of time and
accommodation to go and do something for the
sheer joy of doing it.”
Other senior leaders of the group are
equally enthused. Dr Mukund Rajan, member,
Group Executive Council and brand custodian
and chief ethics officer, Tata Sons, explains
the potential of Tata Engage to drive change:
“When you think of the power of half-a-million
employees trying to do their best to give back
to society and serve the community, you realise
that this group has an enormous power to do
good. So what we want from this programme is
to ensure that every person in this group sees fit
to contribute in whatever way they can and with
whatever organisation they wish to associate.
This will help us to realise that we have a larger
purpose than just looking for individual fame
and glory.”
In a group in which 66 percent of the
shareholding of the parent company, Tata Sons,
is held by the philanthropic Tata Trusts, it is
hardly surprising that the Tata ecosystem takes
responsibility towards the community and the
Many hands make light work
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October 2014 „
Tata Review
9
COVER STORY
environment seriously. In many ways, Tata
Engage is an expression of the group philosophy,
which has always sought to give back to society
and the community.
HEART AND CORE
This philosophy is an intrinsic part of the
group ethos and is effectively distilled in the
actions and decisions of every Tata company.
Long before sustainability became a buzzword
in boardrooms around the world, it was an
integral value of the Tata culture. For example,
the idea of employee volunteering is not only
encouraged, it is written down in Clause
10 of the Tata Code of Conduct, the ethical
framework that lies at the heart of the group’s
way of functioning. As a result, Tata people
take serious pride in the depth and scale of the
group’s extensive CSR engagement.
For many employees, Tata Engage has
In the US, sharing the joy of the written word
October 2014
10 Tata Review „
been a natural progression in the scheme
of things. And for first timers, it has been
a fantastic opportunity to connect with the
community on deeper levels. Across the world,
volunteers contributed in myriad different
ways — they reached out to orphanages and
old age homes, gave generously to charities and
relief funds, spent time in class rooms and sick
rooms, worked to clean up public areas and
civic spaces, planted trees and shrubs for green
cover, conducted events and competitions,
supported artisans and craftspeople, spent time
with the aged, underprivileged and differently
abled and, in short, opened out their hearts to
those that needed help (see box: Many hands
make light work).
The most interesting aspect of the Tata
Engage programme is that it is not a programme
that has been thrust upon people. “The
programme has been co-created by everyone.
We have only facilitated the programme, and
provided the catalyst that was required to take
it forward. We will continue to create such
opportunities, but it is up to members of the
Tata family everywhere to make use of that
opportunity,” says Mr Venkateswaran.
TSG is going all out in its attempts to
make it easy for employees to volunteer. Based
on feedback from volunteers and the first
volunteering week experience, the second recent
volunteering week was thrown open to families of
employees, as well as retired Tata employees. This
step has helped expand the volunteer family.
DEEPER IMPACT
TSG is also prepared to take the volunteering
journey several steps ahead. The Tata Engage
website recently began displaying on-demand
volunteering opportunities across group
companies. In such cases, the website merely
hosts the opportunity and it is up to those
interested in volunteering to get in touch with
the contact person.
Mr Venkateswaran explains, “There will
be limitations to the kind of opportunities
that a single company can provide its people.
Knowing about the activities that other Tata
companies are involved in could expand the
COVER STORY
opportunities available for volunteering.”
TSG also intends to provide employees
opportunities to get more intensively involved
with worthy causes and nonprofits, primarily
through two longer duration programmes
called the Competency Enhancement
Programme (CEP) and the Leadership
Exchange Action Programme (LEAP).
The CEP is about allowing individuals
to use their skills and talents on a part-time
basis for 1 to 6 months to support nonprofit
organisations that need professional expertise
to execute projects. TSG intends to create a
centralised platform which maps volunteer skills
with projects that have high societal impact and
have a close connect with Tata companies.
A number of factors play a critical role in
making CEP a success. These include proper
skill-set mapping of employees (and even
family members), and managing timelines and
objectives. At the end of the activity, volunteer
employees will be certified and recognised for
their efforts.
LEAP is a unique programme in which
Tata companies will support employees who
wish to take a sabbatical with full pay and work
for a nonprofit for six months to a year. This
opportunity is open to those who have been with
the group for over five years. TSG will identify
projects based on their criticality and potential
impact. One of the key factors in making LEAP
successful will be making sure that companies
see true value in the programme, not just as a
Volunteer speak
It was a wonderful experience
working with schoolchildren far from
the mainstream. The glint in their eyes
reflected ambition, aspiration and love.
May the spirit of volunteering continue to
be a part of our everyday fabric.”
Dhiraj Chadha, Voltas
The initiative is a great platform
to interact with brave children and
learn how to survive the battle called life
— even with limited physical and mental
abilities. When we interact with such
children, we realise how blessed we are.”
Mayuri Kolte, Tata International
I had heard a lot about the first
wave and was determined to
participate in the next wave. What I
experienced was beyond words. The
enthusiasm of the kids was contagious.
I am eagerly waiting for wave three!”
Denver Rodrigues, Tata Advanced Systems
Teaching children a new skill at a craft making workshop in India
October 2014 „
Tata Review
11
COVER STORY
Enthusiastic
volunteers learn
self defence,
clean beaches
and spend time
with mentally
challenged
children in India
In Africa,
employee power
raises funds for
worthy causes
and builds a
shelter for
the needy
social exercise but also an investment in
people development. Another aspect will be
ensuring that participating employees receive
reassurance of their career progression, safe
return and re-fitment.
The CEP and LEAP programmes will
require a mapping of the skill sets of employees
to match them with the right projects. Only
those projects will be selected that have the
October 2014
12 Tata Review „
potential to create a lasting and positive
impact on society and have a clear action
plan with objectives and timelines.
As the Tata Engage volunteering
movement continues to accelerate and build
itself up, person by person, it has the potential
to create an enormous impact on the
community, the nation and, indeed, the world.
Mr Venkateswaran says, “Volunteering helps
people to feel proud to belong to a group that
actively encourages its people to contribute to
society. This is a very important culture to build
within an organisation. The Tata group already
has this culture in ample measure. It is now our
goal to deepen it.”
The cumulative impact of Tata Engage
and its army of volunteers will become evident
only over time. Right now, it is in the initial
phase where the platform has to grow stronger,
with more people learning to appreciate the
joy of giving selflessly and doing more for the
community. Tata Engage is a movement that
gives ordinary people an opportunity to become
extraordinary, and to make a difference in the
world around them.
— Cynthia Rodrigues
BUSINESS
‘Wi-fi is a storm
waiting to happen’
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Shalini Menon on the growth of
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TTSL launched the wi-fi business last
year. How has it taken off?
We have been positively surprised by the success
of the wi-fi business. In the last 12 months, we
have been able to make wi-fi available in about
1,200 hotspots and we are adding new hotspots
every day in airports, hotels, malls, retail chains,
fast food chains and cafes, and so on. With the
positive response, we have more aggressive plans
going forward.
With customers expecting
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Sunil Tandon,IFBEOPOWPJDF
Events seem to be big business.
What is TTSL’s presence here?
TTSL’s records in the events business have been
acknowledged. We received two mentions in the
Limca Book of Records 2014: one for creating
the largest indoor wi-fi hotspot in India, which
was at the Auto Expo in Delhi, and the other for
creating the largest outdoor wi-fi hotspot, which
was at a stadium used for Indian Premier League
cricket matches.
Such events provide us with significant
opportunities as there is a large footfall in a
October 2014 „
Tata Review
13
BUSINESS
small geography and we have a large number of
customers adopting our wi-fi. We do everything
possible to create awareness about the services
available to customers before and during the
event. We also endeavour to provide consistent,
good quality data throughput to our customers.
These events are largely short-term and
one-off instances. Having said that, many events
happen at venues which get booked through the
year for trade, furniture, household appliances
shows, etc. The same is true of large banquet
halls. That is why events result in new avenues
of business. Our intent is to provide services for
these short-term events and, over a period of
time, make the business more structured and
‘calendarised’.
How has the consumption pattern of
the wi-fi user changed over time?
There are many drivers for wi-fi data
consumption. Smart phones are becoming more
affordable in India — you can buy a good smart
phone for about `5,000. People are discovering
relevant and easy-to-use applications online. A
large percentage of India’s population is young
and tech-savvy. And lastly, many Indians are
discovering the use of the internet for the first
time through mobile phones. You also have
faster data networks available, which improve
the overall experience for customers. Add
these factors and you have a recipe for a data
explosion.
At TTSL, we make the internet accessible
more easily and affordably. And in line with
that, we are finding tremendous data growth at
our wi-fi hotspots. In the last 12 months, our
traffic has grown threefold, and over the next
year, we expect to see bigger multiples. It is a
clear growth story.
How does the company promote the
wi-fi business?
Our wi-fi and mobile network businesses go
hand-in-hand. TTSL today has 3G networks
in nine circles out of 22. We see wi-fi as a
nice complement to our high-speed data
service offering, and we intend to leverage it
significantly. Research has shown that a lot of
data consumption happens when people are
not necessarily on the move, but sitting in one
place, such as in an airport, mall, cafe or hotel
— what we refer to as nomadic users. And that’s
where wi-fi fits in as an apt complement to our
cellular strategy. Wi-fi is a nice way of offering
fast and consistent data at hotspots. Given
where we are in our lifecycle, we are focusing
on the top eight cities in India currently
— Delhi, Mumbai, Bengaluru, Hyderabad,
Chennai, Kolkata, Pune and Ahmedabad,
which account for almost 70 percent of data
consumption. We want to focus our efforts and
get our strategy right in these eight cities first,
instead of spreading ourselves thin over many
cities. Once we get this right, then we gain
significant competitive advantage. Currently,
we have about 1,200 hotspots.
The world of netizens
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October 2014
14 Tata Review „
Events: TTSL
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BUSINESS
How do you plan to build up
revenues?
I would say the revenue model is still being
discovered. Currently, we have a combination
of fixed rentals from some of the properties.
We see monetisation opportunities such as
advertising and value-added services through
use of customer locations. Increasingly, we will
see more of what we call mobile offload. If you
are on a 2G or 3G network, the moment you
get into a hotspot, you will seamlessly move on
to the high-speed data network of the hotspot.
And when you leave the hotspot, you will
seamlessly come back to your cellular network.
Over a period of time, mobile offload is going to
become quite significant.
Could you tell us about some of your
innovative products, especially wi-fi
on the move?
Wi-fi on the move came from the consumer
insight that in large metros and cities, people
spend a fair amount of time commuting from
place A to place B. They needed a fast wi-fi
data network when on the move. The idea is
to provide our customers with such a seamless
connected environment. For instance, for our
broadband users who use wireline broadband,
we are putting into place plans which will allow
seamless movement from broadband onto wi-fi
whenever a consumer enters a hotspot, for the
same data plan. Our intent is to provide seamless
migration from one service to another, even
one technology to another, and most important,
ensure good, consistent data throughput. Given
the geographical spread of our network and the
way it is expanding, we expect this segment to
grow exponentially.
What are the challenges in the wi-fi
business?
There are two kinds of challenges. One is that
different segments of customers have different
requirements. For example, in the hospitality
segment, customers want the capability to
integrate the wi-fi hotspot with their hotel
billing. They also want the facility to be available
only to residents of their hotels. In comparison,
public hotspots or educational institutions ask
for content filtering, so that a certain kind of
content cannot be accessed from these spots.
Therefore, providing appropriate technology to
serve requirements is one of the nuances of this
business. Then there is the last mile issue. For
any project, you need clearances from a number
of government agencies, which takes time.
Therefore, to make sure that the whole project
moves at the expected pace, a fair amount of
work is required from our side.
How do you deal with the
competition in the market?
It is early days to talk of competition. The whole
wi-fi business in this country is in its nascency.
Currently, the competition is more from what
we refer to as system integrators — localised,
smaller companies which operate in particular
geographies. We are also seeing the emergence
of a few telcos. We welcome competition
because it will help grow the awareness of the
customer faster, grow the market faster, and it
will result in a good value proposition for the
end customer.
With India increasingly getting
hooked on the internet, what is
the future potential of the wi-fi
business?
The wi-fi business offers an exciting
opportunity to grow multifold. Wi-fi traffic
accounts for almost 50 percent of the total
traffic in many parts of the world. We are
far from that figure. China Mobile alone is
planning more than 1 million hotspots, while
India has only 3,000-3,500 hotspots, of which
TTSL accounts for 1,200. If China can do it,
why not India?
A large number of Indians are just
beginning to use the internet and data
consumption is going to increase. Wi-fi renders
itself well to offer that fat pipe into the internet
world. We have all the ingredients in the
ecosystem falling into place at the right time.
I think it is time for a perfect storm in the
telecommunication sector and perhaps wi-fi is
that storm waiting to happen.
October 2014 „
Tata Review
15
BUSINESS
Betting big on digital
Tata Consultancy Services is helping clients unlock
disruptive business opportunities by leveraging the
power of big data and other digital technologies
T
here is a tremendous
explosion of data happening
around the world and
this data presents big
opportunities. Companies can gain
important and timely insights about
customers, competitors, products
and new product opportunities
from the huge volumes of external,
unstructured data that is streaming
in from different sources, especially
social media.
Big data technologies have
become essential to handling the
volume, velocity and variety of data
that enterprises now have at their
disposal.
Businesses that embrace
big data concepts and adopt new
adaptive intelligence approaches
will break data limitations, improve
the use of data and analytics
October 2014
16 Tata Review „
for better business outcomes,
and create disruptive business
innovations. Tata Consultancy
Services (TCS) is helping clients
unlock disruptive business
opportunities using the ‘Digital
Five Forces’, says Satya Ramaswamy,
vice president and global head, TCS
digital enterprises. These include
mobility and pervasive computing,
big data and analytics, cloud
computing, social media, and AI
and robotics.
He further explains, “Digital
reimagination takes place when one
uses a combination of these digital
five forces to create something
‘transformationally’ new for the
company in the areas of business
models, products and services,
customer segments, channels,
business processes and workplaces.”
REENGINEERING
RESPONSIVENESS
Big data and analytics, in
combination with the other four
digital forces, are helping companies
across industries to reimagine
critical business processes and boost
efficiency. Says Mr Ramaswamy, “One
common impact of business process
reimagination is the migration from
physical artefact-driven business
processes to digital processes.
Mobile applications on the cloud
can leverage big data analytics and
enable companies to reimagine
paper and pencil-based business
processes into highly accurate, speedy
and responsive ones. For example,
aeroplane cockpit instrumentation is
being converted to tablet applications
on the cloud; insurance claim
verification processes are being
converted from paper-pencil-camera
business processes to tablet-based
applications.”
The real-time availability of
data and the constant connectivity
BUSINESS
from digital devices can even lead to
elimination of certain workflows that
require multiple levels of approvals.
For example, when an employee
needs to purchase an item for a
manufacturing operation, it will
significantly speed up the process
if the validation is performed using
artificial intelligence systems as soon
as the employee raises the request
instead of having two or three layers
of checks by human supervisors that
could take days or weeks, adds
Mr Ramaswamy.
This integration of data across
different channels also allows greater
insights into customer relationships.
Nearly two billion people around
the world today use social media to
share their thoughts. Social media
is not only a very effective businessto-consumer marketing medium,
it has also become an invaluable
medium which companies can tap
into for consumer-to-consumer
communications without invoking
the observer effect that can taint
consumer research. Since big data
analytics can handle comments of
hundreds of millions of consumers
over long periods of time with ease,
companies can now exhaustively
analyse consumer sentiment rather
than superficially assessing it on
the basis of limited samples. The
accuracy of the models increase
exponentially when run against the
entire breadth and depth of data
instead of just a sample.
With technological advances
in computer hardware and new
technologies such as Hadoop,
MapReduce, and in-memory
databases and text analytics for
processing big data, it is now
feasible to collect, analyse and mine
massive amounts of structured
and unstructured data using both
“There is a desire to seek, understand
and dig deeper into big data that is
driven mainly by the next generation
of consumers.”
Satya Ramaswamy, VP and global head, TCS digital enterprises
regression and machine learning
approaches for new insights, which
are more reliable, self-healing and
self-learning, and can be re-run as
needed. Other benefits include lower
financial, operational and business
risk profiles; better product and
service offerings; new innovations;
better investment decisions and
better customer relationships.
QUANTUM LEAP
The challenge in leveraging big
data is finding the right return on
investment (ROI). One of the key
drivers for the adoption of big data
is advanced analytics. It holds the
promise of finding optimisation
insights for operations, finding new
business models and more. This
requires businesses to take a quantum
leap in terms of rationalising their
use cases, unifying their data
sources into a new platform (data
lake) and investing in new analytics
development. Many organisations are
still working out the right ROI before
they make these investments.
Companies that are flooded
with massive amounts of data are
advised to adopt big data sooner
rather than later. Big data adoption is
critical to advanced analytics, which
creates a competitive differentiator
for any company. A slow adopter
might be left behind by its more
nimble competitors who are able
to generate better insights and act
and react faster in any given market
condition. A good example of a
company that reimagined its business
model, products and services, and
customer segments is Netflix, who
went from a distributor of content
The big five
Companies are investing heavily in the digital five forces, with big data and
analytics taking the lion’s share
Spend allocation across digital five forces:
Big data and analytics
13%
Social media and online
communities
28%
19%
20%
20%
Mobile computing and miniature
digital devices
Cloud computing services
Artifical intelligence machine
learning and robotics
Source: TCS Global Trend Study 2014
October 2014 „
Tata Review
17
BUSINESS
to additionally becoming a producer
of content with the very popular
“House of Cards” series, using
consumer data analytics. Big data
analytics is at the heart of the digital
five forces, and those who invest in
innovation using a combination of
these technologies to reimagine key
areas of their businesses will emerge
as the winners.
PARTNER OF CHOICE
TCS has executed over 200 big data
customer engagements addressing
specific business problems of more
than 130 customers. Its focus and
investments in intellectual property
development has resulted in nine
patents filed with 14 more in
progress, over 50 contributions to
open source Apache Hadoop, and
five innovative, low-cost products
for big data and analytics. TCS has
also created big data products such
as TCS Active Archive (archival
on Hadoop), PeriVista (customer
360 view) and big data migration
tools. Products like Active Archive
have been certified by leading
big data platform vendors. The
company has over 40 partnerships
that span across products and
platforms, and it actively collaborates
with TCS research labs and
academic institutions for research.
Infrastructure created in the space
includes 10 big data clusters (Hadoop
and NoSql) that are available to run
client proof-of-concepts and do
performance benchmarking, and
eight delivery centres.
TCS also has the largest number
“The race is on for companies to
reimagine their businesses”
N Chandrasekaran, CEO and MD, Tata Consultancy Services
talks on the growth in digital investments across the globe
“We are in the middle of a tectonic shift,
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of industry-certified associates in
the field of big data technologies.
To build the talent pool, TCS has
instituted a strong learning and
competency programme. It recruits
associates who are experts in
programming, databases or analytics,
and puts them through a rigorous
competency programme based on
their skill levels and proficiency.
There is a clear competency map
defined for proficiency progression
from developer to designer to
technical architect to solution
architect. For the big data business
consulting space, competencies
include business solutioning and data
science competency. In addition, TCS
utilises technology partner alliances
for technology certifications such as
MapR, Cloudera and others.
The company has witnessed an
increased adoption of big data across
its client base. “There is a desire to
seek, understand and dig deeper into
big data that is driven mainly by the
next generation of consumers —
Gen-Y, the Millennials, the Digital
Natives and Generation Edge. It is
imperative that companies see the
value of big data not as a standalone
technology or ‘siloed’ solution, but
rather one that can be powerfully
leveraged in combination with
mobility, cloud, social media, and AI
and robotics,” notes Mr Ramaswamy.
TCS’s goal is to be a trusted
advisor to its clients on their digital
reimagination journey, making it
easy and seamless for them to adapt
to the digital consumer economy,
by providing them with skilled
professionals who can ideate,
conceptualise, innovate, analyse,
plan and execute end-to-end
engagements in big data.
— Shilpa Sachdev
October 2014
18 Tata Review „
BUSINESS
A star is born
*UmTOFXJUmT5BUBBOEJUmTÚZJOHIJHIc8JUIUIF
QSPNJTFPGGVMMTFSWJDFBOEIJHIIPTQJUBMJUZ
standards, India’s newest airline Vistara promises
*OEJBOUSBWFMMFSTBNBHJDBMFYQFSJFODFJOUIFBJS
A
new star is rising in the
Indian skies, one that
promises to put the sparkle
back into the domestic
air travel experience. Aptly named
Vistara — derived from the Sanskrit
word ‘vistaar’, or limitless expanse
— the country’s newest airline may
open up fresh possibilities for Indian
travellers.
Born out of a 51:49 joint venture
between Tata Sons and Singapore
Airlines (SIA), Vistara announced
its arrival on the country’s aviation
scene in early August 2014, with a
much-anticipated brand launch in
New Delhi, the airline’s hub. Along
with the new brand, aircraft livery
and crew uniform, the Tata SIA
Airlines (TSAL) management team
also revealed Vistara’s ambition: to
offer a seamless flying experience by
creating a truly full service carrier
proposition.
Prasad Menon, chairman,
TSAL, describes the Vistara dream:
“Vistara will redefine the way we
travel in India. I can confidently
say that Tata’s and SIA’s legendary
hospitality standards and service
excellence will make Vistara a natural
choice for passengers.”
A TIME FOR CHANGE
Experience is how Vistara aims to
define and differentiate itself, in
skies that are already populated with
brands but where travellers have
limited choices. Vistara CEO Phee
Teik Yeoh is convinced that Indian
air travellers deserve a lot more
than they are getting in the current
scenario, where the domestic market
is largely dominated by low-cost
carriers (LCCs) offering aggressive
fares and where the idea of a fullservice carrier (FSC) itself has been
significantly eroded over the years.
The concept of fine service has taken
a backseat and the magic has slowly
gone out of air travel. “Our market
research shows that air travel has
become stressful and impersonal,
reducing passengers to mere seat
numbers and leaving them with a
sense of helplessness,” he says.
If domestic passengers haven’t
had the best of air travel experiences
in recent times, the airlines haven’t
exactly had the happiest of times
either. The odds have been heavily
stacked against domestic airlines
struggling to cope with challenges of
“Tata’s and SIA’s legendary hospitality
standards and service excellence
will make Vistara a natural choice for
passengers.”
Prasad Menon, chairman, TSAL
October 2014 „
Tata Review
19
BUSINESS
“There’s clearly a place for a
differentiated offering such as what
Vistara aims to provide.”
'IAMMINGŸ4OHŸCHIEFŸCOMMERCIALŸOFÛCERŸ6ISTARA
various kinds — tough regulations,
high costs, high fuel prices, low
yields, the narrowing gap between
FSC and LCC fares, to name a
few. Save a couple of LCCs, most
airlines in the country are bleeding
Creating a star
The name Vistara is derived from the Sanskrit word vistaar,
which means ‘limitless expanse’. The logo is derived from
a yantraØ@ØODQEDBSØL@SGDL@SHB@KØENQLØSG@SØQDÛDBSRØSGDØ
TMANTMCDCØTMHUDQRDØ(SRØÛTHCØHMSDQBNMMDBSHMFØKHMDRØQDÛDBSØSGDØ
seamless experience the airline wants to offer its customers.
3GDØDHFGSONHMSDCØRS@QØ@SØSGDØBDMSQDØNEØSGDØKNFNØQDÛDBSRØSGDØ
high standards Vistara is committed to.
Vistara’s brand name and logo are the result of an
exhaustive design and creative process undertaken by India’s
premier brand consulting and design company Brand Union
Ray+Keshavan. The brand personality exudes an elegant and
QDÚMDCØROHQHSDCMDRRØQDÛDBSHUDØNEØ@ØRDQUHBDØDWODQHDMBDØSG@SØVHKKØ
be tech savvy, meticulous and authentic.
The uniforms of Vistara crew and staff have been designed
by the renowned fashion house Abraham & Thakore. The
colours, cuts and motifs of the uniforms capture the spirit of
Vistara — elegant, practical and rooted in Indian tradition.
Contemporary and stylish, the uniforms reference Indian
tradition in a completely modern way.
To download the app
scan the QR code
with your phone
Scan the image
using the app to
watch the video
Atithi devo bhava: Phee Teik Yeoh, CEO, Vistara on the
brand promise of the new airline
October 2014
20 Tata Review „
financially with no respite in sight.
But it’s not all gloom up there in
the Indian skies, reminds Giamming
Toh, chief commercial officer at
Vistara. “The Indian air travel market
is still in its infancy and the potential
for growth is immense. The overall
economy is also looking up and I
think there’s clearly a place for a
differentiated offering such as what
Vistara aims to provide,” says
Mr Toh, formerly SIA’s general
manager for India.
SERVICE WITH THE
VISTARA TOUCH
The team at Vistara is confident
that the airline can create a
clear differentiation with the
“intuitively thoughtful” service
and experience that it has carefully
designed for its passengers. “With
differentiation, we don’t mean just
operational parameters like on-time
performance or clean aircraft — we
see these as purely hygiene factors;
the Vistara proposition is a warm,
personalised service which Indian
air travellers have forgotten,” says
Mr Yeoh.
The emphasis will be on
providing this personalised service
to every passenger, whether they
sit at the front of the aircraft or the
rear. On board Vistara, passengers
can look forward to unique service
features designed to delight.
Careful planning, attention
to detail and training will go into
ensuring that customers have a
seamless experience at all touch
points, on the ground and in the air.
“It’s primarily about forging the right
‘customer-first’ mind set and service
culture, not just amongst frontline
staff but also across the whole
company,” says Mr Toh.
Fully aware of the fact that
BUSINESS
the delivery of the Vistara brand
promise finally rests in the hands
of the people who will interact with
customers, the airline sent its first
few batches of cabin crew recruits
to train at SIA’s training facilities
in Singapore to imbibe SIA’s famed
hospitality. These employees will
then train the new recruits in India.
“We have maintained a huge
focus on training our people so that
they are fully aligned with our goal
of delivering impeccable service
to customers,” says S Varadarajan,
the airline’s chief human resources
officer (CHRO) and head of
corporate affairs. Much of the
CHRO’s focus has also been on
hiring the right kind of talent,
characterised not just by the right
skills but also by the right attitude.
Little wonder, then, that he tapped
into the hospitality industry to find
some of his customer-facing staff.
PERSONALISED SERVICE
With the Vistara team pulling out
all stops to create a flying experience
beyond compare, naturally there are
concerns about the costs involved
and plenty of comparisons with
airlines that have made similar
attempts with not-so-happy endings.
Mr Yeoh is not overly worried
with such talk. According to him,
the differentiated product and
service is what will give Vistara an
edge over competitors in terms of
commanding a slight price premium.
“Without a doubt we want to
clearly differentiate ourselves from
the pack. At the same time, we are
keenly aware of the reasons why
so many airlines struggle to keep
themselves afloat,” says the CEO,
pointing out that there are two main
causes why airlines have been unable
to achieve much success: high-cost
“All of us... are extremely pleased to have
witnessed the coming together of all the
elements that have led to the realisation
of Vistara.”
$RŸ-UKUNDŸ2AJANŸMEMBERŸ'%#Ÿ4ATAŸ3ONSŸANDŸDIRECTORŸ43!,ŸBOARD
operations on the one hand and
the inability to charge a premium
on price in a highly price-sensitive
market.
This is why he has closely
watched all costs at the airline, right
from the time the start-up team
set out to create the Vistara plan
at a hotel room at Vivanta by Taj,
Gurgaon. “We knew that if we had
to survive, cost leadership would be
important — we have to benchmark
that to the low cost carrier; if a
low-cost carrier is able to do it, we
should be able to come close. So
our philosophy is to be no-frills on
the cost front, but premium on the
service and experience front,” he says.
A LONG JOURNEY
For senior Tata and SIA officials,
the Vistara launch has been
the realisation of a dream long
cherished, the fulfilment of a
Former Chairman JRD Tata, known for his passion
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October 2014 „
Tata Review
21
BUSINESS
promise made years ago. The two
partners go back more than 20 years
when they made the first attempt at
launching an airline in India; that
and subsequent efforts remained
unsuccessful due to prevailing
policies related to foreign investment
in the sector; it wasn’t until October
2013 that the joint venture finally
received approval from the Foreign
Investment Promotion Board.
Swee Wah Mak, director at
TSAL and executive vice-president
— commercial, SIA, recalls how, for
most of the 30 years he has worked
with the airline, the venture with
the Tatas was much anticipated.
“Generations of people have come
and gone, but the quest remained.
Today, it just goes to show that what
is destined to happen, will happen.
If there is one organisation in
India that we wanted to partner for
this venture, it is the Tata group, for
Preparing for take-off, in record time
For the Tata Singapore
Airlines (TSAL) team,
the journey up to
the brand reveal in
August 2014 was
hectic, to say the
least. The company
was incorporated in
November 2013, and
the start-up team had
all of ten months from
October 2013, when
the company received
the nod from the
Foreign Investment
Promotion Board, to
Members of the management along with the crew at the unveiling of Vistara
the brand reveal in
August this year. Phee
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a hotel room at the Vivanta by Taj, Gurgaon.
The days and weeks that followed were full of frenzied activity for the team. Former SIA
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of the new airline, followed by S Varadarajan, former HR honcho at Tata Teleservices, as chief
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in the business of setting up a full service carrier: NOCs were applied for and earned; various
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were held with the civil aviation ministry; safety manuals were created and several rounds of
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done by a small team which was encouraged to multitask from the beginning.
“Right from the start, I knew that I did not want a culture where each senior employee would
have a team of people to do their work; I am very hands-on and I expect my colleagues to be
hands-on, multitasking as much as possible,” says Mr Yeoh, who promises to keep a strict eye on
the airline’s costs.
October 2014
22 Tata Review „
BUSINESS
reasons of shared values, a shared
vision and a common commitment
to service and quality.”
With the launch of Vistara,
life has come a full circle for the
Tata group, which is credited with
pioneering Indian civil aviation.
Former Chairman JRD Tata, known
for his passion for flying, created
history when he flew a Puss Moth from
Karachi to Mumbai in 1932 — that first
flight in the history of Indian aviation
paved the way for the creation of Tata
Airlines, which was later renamed
Air India. JRD continued to steer
Air India for several years after it was
nationalised in 1953. And aviation has
been a dream close to the group’s
heart all along.
As Dr Mukund Rajan, member,
Group Executive Council, Tata Sons,
and director on the TSAL board, said
at the unveiling of the Vistara brand,
“All of us at Tata are extremely
pleased to have witnessed the
coming together of all the elements
that have led to the realisation of
Vistara, a long cherished dream
for the group that pioneered civil
aviation in the country.”
Vistara’s fleet, including six
leased aircraft that will arrive by
March 2015, will comprise 20
aircraft, including 13 A320s and
seven A320 neos, by the fifth year of
operations.
When the first Vistara flight
takes to the skies, it will, without
a doubt, be an emotional moment
for many at the Tata group. It will
also mark an important step for the
group in establishing a marker in a
business that is bound to get bigger
in India. That would be deserving for
the Tatas and for the memory of the
trailblazing JRD.
Smiles in the skies
Vistara has a team of dynamic, professional,
outgoing and thoughtful people who are proud
to be associated with the brand. As the airline
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experiences on putting it all together and their
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team that are pioneers of the
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Neha Sharma, in-charge, cabin crew
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— Sangeeta Menon
October 2014 „
Tata Review
23
BUSINESS
A compelling
sports saloon
The new Jaguar XE is packed with cutting edge technology — aerodynamic
EFTJHOGVFMFGÙDJFOU*OHFOJVNFOHJOFFMFDUSJDQPXFSTUFFSJOHBMMTVSGBDF
QSPHSFTTDPOUSPMXJÙIPUTQPU.FSJEJBOBVEJPUFDIOPMPHZBNCJFOUMJHIUJOH
and more — that makes for a riveting driving experience
Ian Callum,
director of design,
Jaguar
Kevin Stride,
vehicle line director,
Jaguar XE
Our mission was to create an
exciting and dynamic design clearly
reflecting the XE’s positioning as a serious
driver’s car. The cab-rearward proportions
and tight packaging achieve that and give
the XE the appearance of movement even
when it’s standing still. It bears a strong
family resemblance to the F-Type and will
stand apart in the crowd.”
Jaguar’s position as the leading
premium manufacturer of aluminium
vehicles allowed us to develop a light,
stiff body structure that is groundbreaking in its class. It enables the XE’s
advanced chassis technologies to deliver
an unprecedented balance of agility and
levels of refinement previously found only
in vehicles from the segments above.”
October 2014
24 Tata Review „
BUSINESS
Dr Mark White,
Jaguar’s chief
technical specialist,
body complete
The XE is as strong and light
as it could possibly be thanks to
exhaustive analysis and by
bringing the latest engineering
techniques to bear on its design. It
has been challenging to
accomplish but the XE’s structure
is absolutely at the cutting edge of
what is achievable today.”
JAGUAR XE: TECHNICAL SPECIFICATIONS
ENGINE & TRANSMISSION
Engine capacity (cc)
Cylinders
Valves per cylinder
Bore/ stroke (mm)
Cylinder block
Cylinder heads
Fuel injection equipment
Boosting system
Transmission
2,995
6
4
84.5 / 89.0
Aluminium alloy
Aluminium alloy
150 bar spray-guided direct injection
Twin-Vortex supercharger
ZF 8HP45 8-speed automatic
PERFORMANCE
0-60mph (sec)
4.9
0-100km/h (sec)
5.1
Top speed mph (km/h)
155 (250)
Power PS (kW)
340 (250) @ 6,500rpm
Torque Nm (lb ft)
450 (332) @ 4,500rpm
Fuel consumption mpg (litres/100km) 33.9 (8.3)
EU combined cycle
CO2 emissions (g/km)
EU combined cycle
194
DIMENSIONS
Length (mm)
4,672
Width excl. mirrors (mm)
1,850
Height (mm)
1,416
Wheelbase (mm)
2,835
Kerbweight (kg)
From 1,474
October 2014 „
Tata Review
25
BUSINESS
Transforming customer
experience
Tata Business Support Services, one of the most
QSPÙUBCMFDPNQBOJFTJOUIF#10TFHNFOUJO*OEJB
JTSFQPTJUJPOJOHJUTFMGUPNFFUUIFOFXDIBMMFOHFT
of corporates in this ‘era of impatience’
O
ne of the biggest challenges
confronting corporates
today is how to deal with
the ‘digital native’, an
individual born in the digital age,
comfortable with and well-versed
in handling smart phones and
tablets, and active on social media.
These digital natives, also known as
Millennials, or Generation Y-ers, live
in ‘an era of impatience’, where they
want everyone, including corporates,
to respond to their problems in
minutes, not hours or days.
If the digital native consumer is
unhappy with a product or service,
all she has to do is to dash off a tweet
or post a comment on her Facebook
page through her smartphone.
Within minutes, her universe
of friends is made aware of the
perceived defects of the product or
deficiency in service. Re-tweets, likes
and forwards ensure that negative
comments go viral on social media
in minutes.
How does a company respond
to such complaints? Traditionally,
the grievance would be channelled
through a call centre, and the
company would promise to resolve
the problem in ‘seven working days’
“The era of lift and shift BPO strategy is
truly over… there is increasing demand for
experiential services.”
Sarajit Jha, COO, TBSS
October 2014
26 Tata Review „
or, in a best-case scenario, in about
48 hours. Today, this is just not
enough.
Tata Business Support Services
Ltd (TBSS), a wholly-owned
subsidiary of Tata Sons, is grappling
with such challenges on behalf of its
clients, many of whom are clueless
about how to tackle the new-age
consumer. “Social media is likely to
disrupt the way business is done,”
explains Srinivas Koppolu, CEO
and managing director, TBSS. “The
tradition of the customer calling
you on the phone with a complaint
is changing rapidly. The speed and
agility of the response needed in
the digital era is extremely high
as compared to the traditional
response time.”
According to Mr Koppolu, just
a few negative comments on social
media by the end-customer about a
company’s products or services can
have a cascading effect. “The way a
company is perceived by a consumer
can change very rapidly. Today,
when a consumer responds on
Facebook, the rest of the world gets
to know of it immediately.”
The dramatic changes in the
BUSINESS
business environment, especially
in the area of customer experience
management, are forcing firms to
look for partners who can help them
protect their brand reputation. TBSS,
which has traditionally been seen
as a business process outsourcing
(BPO) firm, is transforming itself,
focusing increasingly on customer
care service, which has been growing
at double digits over the past five
years, and currently accounts for
more than a third of revenues in the
BPO business.
Mr Koppolu remarks, “The
biggest slice of the pie is in customer
care. Some of the fastest growing
areas in this include analytics
and social media-based digital
marketing services.” The company
is getting into the social media
space in a big way and is investing
in acquiring specific tools that will
help its clients in the digital world.
It offers digital audit services to its
clients, evaluating their social media
presence. On behalf of its clients,
TBSS will also offer customer service
to the end-users on social media.
“We have a new team comprising
young people in their 20s, who will
drive the social media strategy,” says
Mr Koppolu.
CUSTOMER EXPERIENCE
One of the major challenges
confronting companies today is
that there is virtually no product
differentiation among various
brands. The only way a brand can
stand out is in terms of customer
experience. Sarajit Jha, COO,
notes that customer-centricity and
customer experience management
have emerged as strategic choices
for companies and will be the
only differentiators in this highly
competitive world.
TBSS, which has traditionally been seen as a BPO firm, is transforming
itself, focusing increasingly on customer care service
According to him, the plain
vanilla BPO services will stagnate,
and companies will be forced to
offer value-added and outcomebased services. “The era of lift and
shift BPO strategy is truly over,” he
says. “The entire business process
management construct, which
started with voice services, is under
challenge and data services are
coming up. As hygiene services go
down, there is increasing demand
for experiential services.”
Customers will want better and
more value-added services at lower
prices. “The only way to ensure this
is to re-imagine the delivery, rather
than re-engineer the past,” he adds.
Raguram Gopalan, senior
vice-president, observes that TBSS
is positioning itself, not as a call
centre, a BPO or a KPO (knowledge
process outsourcing), but as a
customer experience management
company. “We do customer lifecycle
management and interaction
management, focusing on how a
customer goes through the product
or service experience,” he points
out. “A negative comment on social
media can cause huge damage to a
brand.”
TBSS now offers organisational
reputation management (ORM) to
its clients. It has deployed tools that
enable it to trawl social media and
capture comments by consumers
about a specific brand. “We are
able to capture, target and close the
issue in short span of time,” he adds.
The consumer with a grievance,
articulated on social media, is
October 2014 „
Tata Review
27
BUSINESS
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Srinivas Koppolu, CEO and managing director, TBSS on
global ruralisation as the next growth wave
approached immediately and the
matter is resolved at the earliest.
How quick is the response
time? Anirban Chatterjee, chief
customer experience officer,
says TBSS is able to respond to a
comment about a product of its
clients on Facebook in just 7.5
minutes from the time the comment
is posted. In comparison, the next
fastest response from a corporate in
India is 30 minutes.
“Our value proposition to our
customers is that we protect their
brand,” says Mr Chatterjee. “The best
practice in such matters is to take
the conversation off-line as soon as
possible. The idea is to resolve the
issue over the phone, not have a long
conversation on social media.”
TBSS began operations in
2004 as a typical BPO, but has in 10
years, transformed the industry in
India. With revenues of about `5
billion, it ranks among the top-three
BPOs in the country, catering to
the domestic market. The company
has 46 clients, half of them are Tata
group companies. Mr Koppolu says
that the group’s top management
has set an ambitious target for TBSS.
“Our aspiration is to be the fastestgrowing company in the group and
October 2014
28 Tata Review „
emerge as a $1 billion company
in about five to seven years. We
will grow both organically and
inorganically.”
While international operations
account for just 10 percent of
revenues, Mr Koppolu expects
this to rise to 30 percent in less
than two years. “We are looking at
overseas acquisitions over the next
12 months,” he says. The company,
which once had a presence in the
US, is again planning to establish a
base there.
“We will set up a proximity
centre in the US close to our client’s
offices, but these will be in smaller
cities,” notes Mr Koppolu. There
is growing pressure in the US for
foreign companies to set up local
operations and do onshoring,
instead of sending work abroad. “I
met some state governors in the US
recently and they were more than
happy to help by providing subsidies
and other incentives if we were to
create new jobs,” he adds.
Rajesh Hegde, vice-president,
international business, says the
company has three international
clients — two in the US and one
in the UK. They are currently
being serviced from two centres in
Hyderabad and Chennai. “Besides
English, we also offer customers
support in French, German and
Spanish,” he says.
While the focus has been on
the retail and telecommunications
sector in the US, the company plans
to cater to the needs of the small and
medium enterprises segment there.
“We also plan to focus on analytics
in the international market,” adds
Mr Hegde.
There is also a lot of scope for
analytics in the domestic market.
Amlan Biswas, head, business
intelligence and analytics, points
out that usually customer analytics
covers the four ‘A’s — acquisition,
affinity, assessment and attrition.
“But we have added another —
affordability,” he notes. Customer
response has been good as they
find value in business intelligence
and analytics. “We will also provide
operational analytics, marketing and
sales analytics,” says Mr Biswas.
RURAL MODEL
TBSS developed a sustainable
business strategy by adopting a rural
delivery model with an affirmative
action programme as drivers for
expansion, and also to reduce costs.
It made forays into semi-urban
and rural areas in India, setting
up BPOs in Munnar (Kerala),
Ethakota (Andhra Pradesh),
Mithapur (Gujarat) and Khopoli
(Maharashtra).
“We have created a third of the
employment in rural BPOs in India,”
says Mr Koppolu. “In terms of our
contribution to affirmative action,
we have about 20 percent of our
employees under this programme.
Our aim is to ensure that this figure
touches 50 percent over the next two
to three years.”
BUSINESS
Manish Kohli, vice-president,
operations looks after the telecom
and media verticals and says that the
performance of employees under
the affirmative action programme is
‘top-notch’. An internal performance
rating of employees showed that
those from the affirmative action
category scored above the ‘three’
mark (the ratings were on a scale
of one to five, where five was good,
three average, and one poor).
“Their retention levels are also
very high,” he says. “One of the
biggest challenges in our sector is
to ensure high retention.” While
average attrition level in the Indian
BPO sector is as high as 15 to 20
percent a month, at TBSS it is eight
percent. “For the affirmative action
category it is less than four percent,”
says Mr Kohli.
Anamika Sarma, associate vicepresident, sustainability initiatives,
points out that the company has
trained 8,000 people under its
affirmative action programme.
“This is one company that is able
to show that it is a new-age Tata
company, featuring an innovation
engine and an HR engine as well,”
she observes. Women also account
“We do customer lifecycle management
and interaction management, focusing on
how a customer goes through the product
or service experience.”
Raguram Gopalan, senior vice-president, TBSS
for a third of the total workforce.
Mr Koppolu says the company is
focusing on education, employability
and employment and its business
and CSR initiatives cover all three
aspects. The company plans to adopt
government schools, encouraging
families to allow their children
to study till at least class X. “We
motivate them by telling them that
once they finish school, we will train
them and make them eligible for a
BPO job,” he says.
The next wave of growth,
predicts Mr Koppolu, will be in
rural India. He recalls meeting the
top executive of a non-Tata group
telecom firm, who disclosed that
his strategy was to set up only rural
centres. The main concern was
costs and the high attrition rates
in urban areas. “We were the most
successful bidder, offering 80 percent
solutions from rural BPOs,” notes
Mr Koppolu. “We won the deal,
which envisages setting up a 1,000seat centre.”
TBSS, says its CEO and
managing director, will continue to
pursue a unique model for growth,
one which he describes as ‘global
ruralisation’. Globalisation and
ruralisation will be its thrust areas
and even in its forays overseas, it
will look at establishing a presence
in rural areas in countries such as
the US.
Having worked for 20 years
both in India and abroad,
Mr Koppolu, a veteran of the BPO
industry asserts that TBSS is one
of the best managed and profitable
outfits. He says, “We have a good
domestic footprint and we are now
adding international operations.
We have the momentum for growth
and the appetite to invest. We will
take a few risks and make some
acquisitions.”
Mr Gopalan points out that
six of the top 10 BPOs in India have
publicly said they want to monetise
their business by selling off their
operations as it is not a profitable
segment to be in. “But we have been
profitable consistently for seven
years,” he notes. “The perception in
the market is that we have a stable
management, customers see the Tata
brand assurance (which means there
is full compliance to regulations) and
we have scale.”
A Tata Business Support Services data centre in Pune
— Nithin Rao
October 2014 „
Tata Review
29
BUSINESS
Batting for defence
With India’s defence market thrown open to
private players, Tata Sons subsidiary Tata
Advanced Systems, the leading aerostructures
and defence systems contractor, seeks to
leverage its experience of working with top
international OEMs
T
he S-92 is a state-of-theart helicopter, deployed
around the globe for VIP
transportation (including
for heads of states and governments
such as the US President). So when
Sikorsky Aircraft, a subsidiary of
American major United Technologies
Corporation — and the producer of
the versatile chopper — selected Tata
October 2014
30 Tata Review „
Advanced Systems (TASL), as its joint
venture partner for the manufacture
of fuselage for its S-92 helicopters
about five years ago, it was a major
endorsement of the manufacturing
capabilities and technical skills of this
100 percent subsidiary of Tata Sons.
A Japanese firm had been
supplying the fuselage since 1992,
but Sikorsky decided to relocate
the facility to India. TASL set up a
greenfield project in Hyderabad,
which was ready for production in
2012, about a year from the start
date. Says Sukaran Singh, vicepresident, Chairman’s office — who
is responsible for TASL and for
developing opportunities in the newly
liberalising Indian defence sector:
“We built world-class capabilities.
Today, we are the global single source
for assembly of helicopter fuselage
for the Sikorsky S-92 helicopters and
have delivered more than 75 cabins.”
Another facility, the Hyderabadbased TASL-Sikorsky JV, which is a
subsidiary of TASL, is an integrated
fabrication facility where 4,000
unique parts for the S-92 fuselage
BUSINESS
The Sikorsky S-92 facility at TASL’s Hyderabad unit
are produced, and is the only one
of its kind in the Indian private
sector. Masood Hussainy, head,
aerostructures division of TASL, says
that the feedback from the client has
been excellent. “The quality of the
product we make in Hyderabad is in
many ways better than the products
they were getting from Japan,” he
explains. “This is a testament to the
kind of talent we have in India.”
The Hyderabad unit of TASL will
supply approximately 47 cabins this
year, much higher than that supplied
from Japan. “The tolerances are very
small, just the breadth of a human
hair,” notes Mr Hussainy. “We have
implemented the Six Sigma quality
strategy in our factory. We are now at
4.8 Sigma and the errors are in mere
decimals.” This has been achieved in
just three years, a feat unheard of in
the aerospace industry. “We have been
recognised not just by the customer,
but even by the American Helicopter
Society, the premier society for
vertical aircraft. We were given
the international fellowship award
in recognition of our quality and
performance,” he adds.
GLOBAL SINGLE SOURCE
Today TASL is one of the largest
private sector aerospace and defence
systems companies in India, with
partnerships and joint ventures
with — besides Sikorsky Aircraft
Corporation, Lockheed Martin
Aeronautics and a few other leading
aircraft, missile, radar and other
defence manufacturers. It has stateof-the-art factories in Hyderabad
and Delhi and plans to set up more
to cater to the growing needs from
OEMs. A profitable company, its
current order book is worth about
`40 billion.
In August, TASL signed an
agreement with Pilatus Aircraft of
Switzerland for the manufacture and
supply of its PC-12 ‘green aircraft’
aerostructures for export from
its Hyderabad facility. It includes
assembly of complete airframe for
the aircraft including integrated
fuselage, wing, cockpit, ailerons,
fins and rudders. The Pilatus PC12 NG has gained a reputation for
outstanding versatility, performance,
reliability, and operational flexibility
and is one of the most popular
turbine-powered business aircrafts
with over 1,300 units already
sold worldwide. TASL also won
contracts from RUAG Aviation for
the manufacture and assembly of
the fuselage and wing of its Dornier
228-212 NG and from UK-based
Cobham mission equipment for
air-to-air refuelling pods. TASL is
the global single source designated
for assembly of empennage (tail
assembly) for Lockheed’s C130 J
Aircraft and assembly of centre wing
box structures.
Within a short span of five
years, TASL has become a significant
player in the global aerospace market,
making Hyderabad a premier
manufacturing destination for global
OEMs. It has developed capabilities
through the entire aerospace value
chain from design to full aircraft
assembly. Aerospace is only one of
the three major verticals within the
company, the others being defence
October 2014 „
Tata Review
31
BUSINESS
To download the app
scan the QR code
with your phone
Scan the image
using the app to
watch the video
3UKARANŸ3INGHŸVICEPRESIDENTŸCHAIRMANSŸOFÚCEŸFORŸ4!3,ŸONŸ
the liberalisation of the defence sector for private players
systems and homeland security.
Mr Singh says, “We have on hand
more than a dozen projects in
different areas. “Our objective is
to use our capabilities, both in
aerostructures and defence systems,
sub-systems and integration, to
be able to supply full platforms. In
the long run we hope to be able to
combine our expertise and put up the
final assembly line for full platforms
such as an aircraft.”
EXPORT FOCUS
Mr Singh points out that the
company’s strategy from the
beginning has been to supply to
aerospace and defence companies in
Europe and the US, through longterm contracts with foreign defence
OEMs. Consequently, 90 percent of
its production is exported; TASL is
not involved in sales to governments
abroad, restricting itself — for the
time being — to manufacturing,
while selectively addressing requests
for proposal (RFPs) for the Indian
market. The aerostructures vertical
includes two joint ventures and
has three plants in operation; and
two more are being constructed. In
the defence systems vertical, there
are about half a dozen projects, all
directly under TASL’s operations,
October 2014
32 Tata Review „
which focus on missiles, optronics,
unmanned aerial vehicles (UAVs),
radars, command and control
systems and homeland security.
Notes SK Mehta, head, defence
systems division of TASL: “After
tendering, we won a major order
for the design and manufacture of
combat management systems for the
medium-range surface-to-air missile
programme (MRSAM) from the
Defence Research and Development
Organisation (DRDO), beating our
rival, a public sector undertaking.”
TASL is also involved in the
design and manufacture of mission
control centres for the missile defence
programme, and is also working on
missile systems for the long-range
surface-to-air missile programme.
According to Mr Mehta, for
the MRSAM contract, it won the
crucial command and control system,
which is the decision-making system.
“The command and control system
senses the threat, the radar tracks the
aircraft or the missile, measures the
distance, decides whether it is ‘friend’
or ‘foe’, and then sends a command
to the launcher,” he explains. When
TASL realised that there were many
components that could be produced
internally instead of importing them,
it set up an R&D centre in Delhi with
a group of engineers, and is working
on indigenising different parts, both
for cost and strategic reasons.
In another highly-confidential
weapons-integration project, which
cannot be identified, TASL has been
able to negotiate the source code
from the international partner. “With
this source code, we have already
begun to develop products for Indian
customers,” explains Mr Singh. “We
trained our engineers at our partner’s
overseas facility and are now jumpstarting innovation.”
TASL is positioning itself as a
‘prime’ player — as against a subprime or a component-maker — a
company that takes the entire project
risk. “In the aerostructures vertical,
we have literally transplanted (or
transitioned) plants from Japan, the
US and UK to India,” says Mr Singh.
While cost reduction is a key factor
for the international OEMs who shift
their production to TASL’s factories,
they are very demanding when it
comes to quality and processes.
The capital-to-labour ratio
in all aerostructure projects in
the developed world is skewed
towards capital, whereas in India the
relatively lower labour costs gives
it a competitive edge on this front.
Aerospace majors around the world
usually focus only on design and
the final assembly of the aircraft,
depending on the global supplychain for parts and components.
They source these from the US,
Europe, Japan, and now increasingly
from TASL. “Our aim is to become
a supplier of choice for these global
OEMs,” remarks Mr Hussainy. The
company lays great emphasis on
systems and procedures. “We have
consciously chosen to recruit a
young workforce and train them to
international standards. There is not
BUSINESS
much talent in the aerospace sector
in India and we have to develop
our own pool of talent.” TASL set
up a training centre in Hyderabad
and hired expatriates who had rich
experience in working with global
OEMs. “The average age of our
employees is 24,” says Mr Hussainy.
“They are fresh out of college and the
foreign aerospace experts train them
in Hyderabad.”
According to Mr Singh, TASL’s
DNA is grounded in partnerships
with international OEMs. “We
are finely attuned to working in
partnerships with foreign companies,
which is very essential in the defence
sector,” he notes. “India is many
generations behind in defence
technology and the OEMs are
providing us esoteric technologies.
Unless you create processes and
win their trust, they are not going
to share their expertise with us.”
The company also operates with a
start-up mentality. “Effectively, TASL
and all our subsidiaries are start-ups
in the area of aerospace and defence
within the Tata group,” he observes.
“The ability to think like a start-up
pervades the organisation.”
While TASL does engage in
innovation and some development
work, Mr Singh admits that doing
pure R&D in defence is very difficult
for a private company, which
cannot invest large sums into R&D
independent of the needs of the
user. R&D is closely linked to the
specific requirements of the enduser — the armed forces. “No one
can spend billions of dollars in R&D
in an industry where you are not
sure whether the end-user will buy
the product. Even in the US and
Europe, the governments support
the R&D initiatives of the private
sector to a large extent.” Another
side of the business that TASL
has participated minimally, is in
tendering for projects, either in India
or abroad. While its products are
destined for the defence forces in the
US and Europe, the bidding is done
by the OEMs, who win the contracts.
“Of course, we are looking at the
domestic market in India, which is
huge, but it will take a long time for
large tenders to materialise,” Mr
Singh adds.
OPPORTUNITIES GALORE
With the expected opening up of
the defence sector in India — the
government wants to encourage the
Indian private sector to take up more
projects — TASL is keen to take up
work for the armed forces. “There are
opportunities in all the verticals that
we operate in,” says Mr Singh. “We
have been able to show our capabilities
and have received a combination of
TASL recently signed an agreement with Pilatus Aircraft of Switzerland
for the manufacture and supply of its PC-12 ‘green aircraft’
export-based and domestic work in
all the targeted sectors.”
TASL has a facility in Noida
for the assembly of third generation
image intensifier based night vision
devices (NVD) in partnership
with ITT Exelis, the largest NVD
manufacturer in the US. TASL
assembles NVDs for the US
Army but its facility is open to the
domestic market as well. Similarly,
it assembles electro-optic pods for
UAVs, for supply both domestically
and for export. Transmit-receive
modules, which are critical parts of
modern radars, are also assembled
by one of TASL’s subsidiaries for the
export market. It is keen to supply
them to the Indian forces, including
the Navy.
Mr Singh says the company
has already started answering
RFP tenders and if it wins some
of these, it would be in position to
produce a full platform (an aircraft
or a radar system) for the Indian
defence ministry. The main problem
confronting the private sector in India
is the uncertainty relating to these
orders and length of the procurement
cycle. “We have to take a call whether
to put our resources into a specific
project that has no certain end date.
The longer the procurement cycle, the
more delays occur,” he notes.
Other Tata group companies
are also expanding their presence
in the defence sector. TASL works
in cooperation with many of them,
across both aerostructure and
defence systems verticals. With the
company gearing itself to produce a
full platform — possibly an aircraft
ready to take-off from its plant —
this cooperation will surely increase
in the coming days.
— Nithin Rao
October 2014 „
Tata Review
33
BUSINESS
Aerostructures: Smooth take-off
When Tata Advanced Systems
(TASL) made a foray into
the aerostructures business
in 2009, it decided to hire a
few international industry
veterans, each having 2535 years of experience
under their belt. These top
expatriate executives had
worked for virtually all the
global aerospace majors
including Boeing, Airbus,
Lockheed Martin, Bombardier,
Dassault and Sikorsky. Their
areas of expertise included
manufacturing, engineering,
operations management,
quality systems (including Six
Sigma), lean manufacturing
and tooling management.
Their job was to mentor
and train young Indian
engineers and technicians,
who had zero exposure to the
aerospace sector. The foreign
experts took up the ambitious
project and within a span of
a few months trained about
450 employees. Today, the
aerostructures division has
October 2014
34 Tata Review „
600 highly trained personnel,
whose average age is 24
years. These today constitute
the young workforce of TASL’s
aerostructures business,
located in Hyderabad.
Within a short span of
time, TASL has developed
into a leading player with
established capabilities.
With three programmes in
operation, and more than
a thousand highly trained
resources, TASL is on its
way towards becoming the
global supplier of choice of
aerospace OEMs.
The vertical includes
two joint ventures — Tata
Lockheed JV and Tata
Sikorsky JV and a fully-owned
operating unit for helicopter
fuselage assembly. Both
these US-based aerospace
giants entrusted the
critical task of assembling
helicopter fuselage (for the
Sikorsky S-92 helicopters),
integrating the detailed part
manufacturing facility for
aircraft and helicopters and
assembly of the empennage
(for Lockheed Martin’s C130J
aircraft) to TASL.
Sikorsky, for instance,
had a partner in Japan,
where the assembling of the
fuselage of the helicopter
was being done from 1992.
Following the establishment
of the Tata Sikorsky JV, there
was a successful ‘transition’
of the plant and facility from
Japan to India. In the case of
Lockheed Martin’s C-130J,
there was a successful
transition from a plant in
the US to India. Both the
transitions have been smooth.
3 2+ØG@RØHCDMSHÚDCØ
aerostructures as an area of
strategic importance for the
Tata group. And the company
has been established as the
lead entity for aerostructures.
It is today the global single
source for assembly of
helicopters and fuselage for the
Sikorsky S-92 helicopters and
wire harness installations, for
the assembly of empennage
for the C-130J and for the
manufacture and assembly of
Dornier 228NG aircraft body.
TASL today has
capabilities across the valuechain — design, engineering,
detailed part manufacture and
major structural assembly.
And considering the excellent
work that it has been doing
for international OEMs, the
aerostructures division is
all set to take-off on a new
trajectory, ultimately producing
a complete aircraft.
BUSINESS
Defence: Hi-tech infrastructure
The defence systems division
of Tata Advanced Systems
focuses on half-a-dozen
areas of operation. They
include aerospace, missiles,
optronics, umanned aerial
vehicles (UAVs), radars
and command and control
systems.
TASL and its subsidiaries
are currently participating
in three major Indian missile
programmes for the defence
forces and have created a
Development Centre in Delhi
to support missile systems
among others. These missile
projects include the design
and manufacture of Combat
Management Systems
(CMS) for the Medium
Range Surface to Air Missile
(MRSAM) programme; the
design and manufacture of
mission control centres for
the Ballistic Missile Defence
programme; and precision
parts manufacturing such as
rocket motor casing, control
ÚMRØ@MCØSGQTRSØUDBSNQØBNMSQNKØ
systems for another Indian
missile project.
The optronics unit has
state-of-the-art infrastructure
for assembly and testing
of complex electro-optic
payloads for UAVs. It also has
a facility for assembly and
testing for third generation
night vision devices in
partnership with American
major ITT Exelis.
The radars unit is also
an important vertical for
TASL, which was created
with a mandate to create the
necessary infrastructure and
technology base for radar
systems with technology.
TASL has bid to build full
radar systems with foreign
technology collaborations.
The company also has a
14,000 sq ft manufacturing
facility in Hyderabad, and
some of the modules and subsystems produced there are
supplied to the Indian defence
forces. TASL has entered
into strategic partnerships
with world renowned radar
manufacturers.
TASL has also built a
state-of-the-art Command
and Control centre in
collaboration with partners
that will bid to undertake
systems integration of
weapon systems onto naval
warships for the Indian Navy.
Nations around the world
are realising the importance
of homeland security to
protect critical assets,
infrastructure and people. For
TASL, homeland security is a
strategic focus area.
In 2010, it set up a joint
venture, TAS-AGT, which
offers innovative technology
solutions in areas of critical
infrastructure and border
protection, urban security and
surveillance, transportation,
law enforcement and
for ensuring adequate
preparedness for natural
disasters.
October 2014 „
Tata Review
35
BUSINESS
Engineering a
sustainable future
'PSPWFSÙWFEFDBEFT5$&IBTCFFODSBGUJOH
TVTUBJOBCMFTPMVUJPOTGPSJUTDMJFOUTCBDLFECZJUT
JOOPWBUJWFTQJSJUBOEFOHJOFFSJOHFYQFSUJTF
T
ata Consulting Engineers
(TCE) has built a
reputation for providing
best-in-class integrated
engineering consultancy solutions.
With over five decades of experience
covering almost all key industry
segments and capabilities to handle
multi-dimensional, large scale
assignments in any part of the
globe, the company has developed
the ability to provide holistic,
sustainable solutions to its clients.
As JP Haran, managing director
of TCE, explains, “Today more and
more businesses are realising the
need to adopt sustainable practices;
and those that don’t are being forced
to by governments and laws that are
becoming more and more stringent.
There is a pressing need to think
sustainability.” It is this critical
need to safeguard the future of our
businesses, and, indeed, of our planet
October 2014
36 Tata Review „
and people, that has prompted TCE
to focus on devising engineering
solutions that help its customers to
reduce their carbon footprint and
meet their sustainability goals.
BUILDING FOR GENERATIONS
The impact of this futuristic
thinking is most clearly seen in the
company’s infrastructure business,
because of the size and scope of the
projects it handles. Vikram Bapat,
head of infrastructure, explains,
“We operate in sectors like water,
urban development, manufacturing
facilities, IT parks, special economic
zones, townships and hospitals,
which touch a substantial part of
the spectrum of infrastructure
development within the Indian
context. Since these are all structures
that have an impact on the economic
development of the country and
affect society at large, we strive to
ensure that our solutions are stateof-the-art in terms of engineering
expertise and sustainability.”
In this context, TCE has
extended the tenets of the LEED
[Leadership in Energy and
Environmental Design] rating, meant
for buildings, to its other projects,
particularly manufacturing facilities.
Among its high-impact projects is
the urban renewal project for the
Rajasthan Urban Infrastructure
Development, which involves
working within socio-political
and infrastructural constraints to
introduce sustainability elements into
the water distribution and sanitation
systems of existing towns. TCE was
successful in doubling the water
supply in some cities while reducing
the specific energy consumption to
half the existing level.
Often problems are specific
to sectors and locales. The water
management and distribution
vertical, for instance, had to tackle
the problem of water going waste
because of leakages, pipe bursts and
water pilferage. TCE came up with
several innovative solutions, one
BUSINESS
TCE took up the execution of the World Bank-funded project to clean the river Ganga at Allahabad and Kanpur
of which was ‘tanker technology’,
which was effectively deployed
in Hyderabad, Chennai and
Kathmandu. It involved isolating
the affected area from the supply
network to inhibit the flow of the
water, and then pumping a tanker of
water into the distribution network
to create pressure in the system and
thus detect the leakage.
TCE’s project on the air
pollution management system for
Tata Steel in Jamshedpur helped
monitor pollution levels and
minimise the extent of gaseous
emissions. Over a century old, the
plant, built as per the norms existing
then, did not meet the revised
compliance requirements and needed
upgradation. The challenge lay in
doing this without disrupting the
running plant. Thinking innovatively,
TCE suggested implementation
methodologies which not only solved
the problem but also reduced the
total suspended particulate matter by
close to 40 percent.
The World Bank-funded
project to clean the river Ganga at
Allahabad and Kanpur afforded TCE
yet another opportunity to find a
solution that reduced environmental
damage. Apart from sewage, the
industrial pollution of the river was
a major concern, particularly lead
and cadmium discharges from these
locations. Given the responsibility
of creating a purification system and
diverting the pollution load, TCE
built in arrests at various points to
prevent the sewage from entering
the river. It also provided sewage
treatment plants in both cities, which
ensured cost-effectiveness while
addressing the pollution management
guidelines. This solution now serves
as a blueprint for the entire clean-up
programme.
TCE’s infrastructure business
has been accredited by the National
Accreditation Board for Education
and Training (a part of the Quality
Council of India), for conducting
environmental impact assessment
studies for environmental clearance,
due diligence and statutory
compliance in more than 18 sectors
within India. Mr Bapat says, “We
have a diversified business, which has
yielded us domain knowledge in a
range of sectors. Our knowledge base
enables us to customise technologies
to suit the engineering needs of clients
and the specific needs of each sector.”
PROVING THEIR METTLE
The steel, metals and mining
business of TCE, in keeping with
the company’s commitment to
finding sustainable solutions,
factors in the conservation of
energy and resources, and the
protection of the environment in
all its projects. Confirming this, Dr
Tapan Choudhury, head of the steel,
metals and mining business, says,
“We make sure that the projects we
undertake are sustainable from a
long-term perspective.”
This requires all operations
to meet environmental needs for
managing ecological disruption,
emissions, and waste, and ensuring
the optimal use of water. Due
consideration is given to natural
elements at the planning stage,
and high-end IT applications are
employed to optimise the use of
natural resources, especially in mine
planning.
Project teams carry out
impact assessment studies and
recommend risk mitigation
measures, at the beginning of every
project. At Tata Steel’s ferrochrome
project in Gopalpur, Odisha, for
instance, the environmental impact
October 2014 „
Tata Review
37
BUSINESS
assessment study ensured that the
local community was protected.
Such preventive measures, prior to
commissioning of new projects, help
companies to mitigate risks and
implement sustainable and effective
solutions.
Among its many businesses,
TCE’s mining business shoulders
the highest degree of environmental
responsibility. The safety of mine
workers and the community, besides
the need to achieve commercial
success to ensure sustainability,
makes it necessary to optimise the
process of the extraction of mineral
resources. The lifecycle of the mining
business, spanning the spectrum
from prospecting, to exploration,
mine closure and reclamation of the
land, demands that utmost care be
taken to ensure that environment and
community interests are sustained. To
ensure this, TCE’s solutions address
the optimum utilisation of land for
the management of waste and the
reclamation of external dumping
sites, maximisation of the mine life,
ore and waste rock haulage, and
water management. Conservation
of the raw material and recycling to
ensure zero waste optimises material
usage. With a view to promoting the
longevity of the mine and ensuring
sustainability, the company also
ensures that once the mine is closed,
the remaining reserve is sterilised,
enabling future use if conditions
become favourable again.
Dr Choudhury says,
“Traditionally, mines were
abandoned, after excavations were
no longer possible. Planning the
closure of the mines and recharging
the aquifers are two new phenomena
that are helping to ensure the
Ecofirst, a TCE subsidiary, helped Bombay House, the Tata group
headquarters in Mumbai, to get a gold rating in LEED certification
October 2014
38 Tata Review „
preservation of the natural
ecosystem. TCE has proposed
innovative solutions in minevoid filling to optimise resource
utilisation.
POWER-PACKED
PERFORMANCE
While uninterrupted supply of
power is the assurance that fuels
industrial development, it demands
responsibility on the part of industry
to ward off environmental concerns.
Clean technologies, cost-efficient
processes in ultra super critical
thermal plants and a move towards
renewable and alternative sources
of power generation will ensure
that development is sustained and
environment-friendly.
TCE’s power business unit has
come up with an innovative process
in flue gas desulphurisation (FGD)
systems, which reduces emissions
of sulphur dioxide from the exhaust
flue gas of coal-fired thermal power
plants by almost 90 to 95 percent.
Mohan Murthy, head of the power
business, says, “TCE successfully
retrofitted an FGD system to a
completed coastal thermal power
plant within 24 month, “without
disturbing the topography of the
plant site, and by curtailing project
cost escalations. This innovative
process has applications in greenfield
and brownfield coal-fired power
plants.” TCE has filed an application
for a patent for this process, and
was also honoured at Tata Innovista
2014 with the award for Promising
Innovation — Core Process.
CLEANER CHEMICALS
The chemical business of the
company works with the chemical,
petrochemical, oil and gas,
fertiliser, paper and pulp, and
BUSINESS
related industries, and follows
innovative solutions in its pursuit
of sustainability. TCE is working
on a project to find a use for red
mud, the waste from the bauxite
industry, which is usually dumped
in landfills. World over, about 130
million tonnes of red mud are
generated annually, leading to the
accumulation of about 2.7 billion
tonnes of this waste product. TCE
is working on a technology that
aims to re-use red mud to recover
valuable metals like aluminium,
titanium and iron. The possibilities
of this project are immense.
Another interesting project
that TCE is working on for Tata Steel
involves studying the feasibility of
a plant with two processes. As BM
Nichat, vice president of the chemical
business, says, “India has the fifth
highest coal reserves in the world,
with coal containing 35 percent of
ash, rendering it less efficient. This
project includes a coal washery,
meant to make the coal more
efficient. If this pilot process proves
effective, it will reduce the incidence
of ash to 4-12 percent.” TCE is trying
its best to make this happen.
ENVIRONMENT FIRST
Ecofirst, a 100 percent subsidiary
of TCE, is a sustainable design
consulting firm for the built
environment. Through an array
of integrated services for master
planning, water, energy, solid waste,
infrastructure through a “water
and energy centric” approach to
projects, Ecofirst designs innovative
and affordable solutions. Chitranjan
Kaushik, chief operating officer,
affirms this: “Our goal is to balance
sustainability with affordability,
integrate traditional solutions
with modern techniques, create
“At TCE we believe that every engineer
loves to innovate. This...helps us to
measure and track the sustainable value
we create.”
JP Haran, managing director, Tata Consulting Engineers
self-sufficient communities and
spread awareness on sustainability.”
Ecofirst seeks to help clients reduce
their operational and maintenance
costs by adopting energy and water
management strategies and getting
buildings certified as green buildings.
The company also works with TCE’s
other business units to bolster their
sustainability offerings.
One of Ecofirst’s most recent
achievements was helping Bombay
House, the Tata group’s historic
headquarters in Mumbai, become the
first heritage building in India to get
a Gold rating in LEED certification.
TECHNOLOGY AS A TOOL
Technology has put a higher
standard of living within our reach
while requiring companies and
individuals to adopt sustainable
methods of living and working to
ensure that man does not take the
generosity of the earth for granted.
At TCE, everyone understands
the value of technology in making
sustainable development a reality.
The technology vertical, with
chief technology officer Mahesh
Marve at the helm, works with
all other verticals and units in
the organisation. It evaluates
new technologies and helps in
incorporating them in TCE’s various
projects. For the purpose of aligning
this process very closely to the
work, each business unit has a head
of technology who is responsible
for keeping abreast of technology
advancements in their area and
integrating them with the solutions
they devise. Amit Sharma, ED and
COO, says, “Technology helps us
to enhance our techniques while
keeping abreast with trends. The
technology team will contribute to
R&D within TCE.” The knowledge
will then be disseminated across the
organisation.
Explaining the importance of
sharing the knowledge acquired by
the technology group, Mr Marve says,
“Communication is the key factor.
The standard design documents and
guides are continually updated with
the latest advancements in design
practices, to ensure uniformity
across the organisation. Knowledge
sharing and training sessions have
been planned to ensure that changes
in design tools and technologies are
shared with everyone.”
With several innovations over
the last five decades, TCE is not
about to slow down. “At TCE we
believe that every engineer loves
to innovate,” says Mr Haran, “This
enabler, coupled with the customer’s
demand for greater value in terms
of quality of systems as well as cost
savings, helps us to measure and
track the sustainable value we create.
This encourages us to improve.”
With the backing of its
engineering expertise and spirit of
innovation, TCE is firmly on the
road to a sustainable future.
— Cynthia Rodrigues
October 2014 „
Tata Review
39
BUSINESS
Powering ahead
After executing the prestigious Krishnapatnam
super-critical thermal power project in Andhra
Pradesh, Tata Projects is geared to take up other
challenging EPC and BoP assignments in the
power generation sector
K
rishnapatnam, a port town
in Nellore district of Andhra
Pradesh, is emerging as a
major electricity hub, with
a few power plants under various
stages of development. But “the pride
of Andhra,” as it has been dubbed,
is the Krishnapatnam super-critical
thermal power project comprising
two units of 800MW each. Tata
Projects (TPL), one of the fastestgrowing infrastructure companies in
India, had a key role in executing the
mega power plant project.
In February 2009, the company
October 2014
40 Tata Review „
was awarded India’s largest balanceof-plant (BoP) contract in the power
sector by the Andhra Pradesh
Power Development Company
(APPDCL) for the 2x800MW, supercritical, coal-fired Sri Damodaram
Sanjeevaiah thermal power plant at
Krishnapatnam.
The first 800MW unit was
‘synchronised’ on March 31and
it generated 810MW of power on
August 28. The second unit is in
the process of synchronisation and
both units will generate power at full
capacity before the end of the year.
“Executing the Krishnapatnam
super-critical thermal power plant
is an important milestone for Tata
Projects,” says Vinayak Deshpande,
managing director, TPL. “This
project delivery has propelled us into
the league of select players in India
with ‘super-critical’ engineering,
procurement and construction
(EPC) capability.
It was a challenging project
because of the difficult sandy terrain
and its proximity to the coast, but
the team handled it effectively. The
project shall help bridge the power
shortage faced by the people of
Andhra Pradesh.”
Super-critical technology
ensures that a power plant is efficient,
the cost of production lower and
emissions reduced. But such plants
need superior quality of coal of at
least 4,800 kcal. Much of the coal
BUSINESS
The Krishnapatnam power plant located in
Nellore district, Andhra Pradesh
for the Krishnapatnam project is
brought from eastern India. It has to
be washed, which reduces its calorific
value to 4,200kcal. APPDCL blends
this coal with imported coal, which
has a higher value of 6,000kcal.
OVERCOMING CHALLENGES
The EPC contract involved detailed
design, engineering, manufacture,
procurement, supply, construction,
erection, testing and commissioning
of complete BoP systems and
equipment.
BV Ramesh Krishna, vicepresident and head, power
generation, TPL, points out that this
is the first super-critical, 800MW
power project in the public sector
in India — the first super-critical,
800 MW private sector project in
India was commissioned in Mundra,
Gujarat, by Tata Power, comprising
five units of 800MW each.
For TPL, the Krishnapatnam
power project has been a prestigious
affair, and executing it smoothly
is a major achievement for the
Hyderabad-based company.
The company’s expertise in
coal and gas-based super and subcritical technologies and extensive
experience in total EPC and BoP
coal-based power plants and gasbased combined cycle power plants
were invaluable assets in the smooth
execution of the project.
The Krishnapatnam project was
also one of the most challenging.
“Being a coastal power plant, the soil
did not have load bearing capacity,”
explains Mr Krishna. “We had to
do piling, which went down to a
depth of 50m.” Handling large pieces
of equipment on the site posed
problems that the TPL team had to
overcome.
The use of seawater was another
major challenge. The natural draft
cooling tower (NDCT), constructed
by TPL, which soars to a height of
176m, is one of the tallest in India.
It uses treated seawater and has a
“The Krishnapatnam project has propelled
us into the league of select players with
‘super-critical’ EPC capability.”
Vinayak Deshpande, managing director, Tata Projects
October 2014 „
Tata Review
41
BUSINESS
capacity of 100,000 cubic metres
an hour per unit. Referring to the
numerous challenges that were
encountered over the last five years,
As Bhattacharyya, assistant vice
president, power generation, TPL
— who has been closely involved
in executing the project — says the
NDCT construction was the most
critical aspect.
Pointing out that the original
contractor faced financial problems
and could not construct the NDCT,
Mr Bhattacharyya explains, “We had
to take up the work even though we
had never built an NDCT in the past.
We imported the scaffolding material
for the towers and used vertical piles
as against conventional ones.”
INTEGRATING SYSTEMS
The power project had two key
parts — installing the BTG (Boiler,
Turbine and Generator) and the BoP.
TPL, as the EPC contractor and in
charge of the BoP, had to integrate all
the systems — including the NDCT,
the coal-handling units, the bunker
and the fire protection system.
It also had to ensure the smooth
running of the power plant. Says
CH Vivekananda, officer on special
duty, APPDCL (who was also the
project manager for five years and
was closely involved with the project
from inception): “TPL has done a
wonderful job. It was a challenging
assignment, but they have done
a great job in executing this `120
billion project.”
One of the reasons for the
smooth execution of the project
was the coordination between the
various suppliers and contractors,
explains J Raghavendra Rao, project
manager, APPDCL. Since the BTG
was split into two components —
one for the boiler and the other for
the generator — it was essential to
integrate the two. And TPL did the
coordination well, he adds, ensuring
smooth roll-out of the project.
APPDCL plans to add a third
800 MW unit at Krishnapatnam,
which will then emerge as a
2,400MW mega power project. Bids
will be called for the third unit and
the tenders awarded in due course.
Safety was also a major
consideration. From training of
The unit 2 generator transformer at the Krishnapatnam plant
October 2014
42 Tata Review „
all manpower and laying down
stringent processes, to conducting
regular safety audits, the company
ensured adherence to stringent
safety norms. “We tried to inculcate
a rigorous culture of safety at the
project site,” says Mr Bhattacharyya.
“You will never see anyone without a
hard hat at the site.”
One of the major factors
contributing to accidents and
fatalities in such projects is objects
falling from a great height. The
Krishnapatnam power plant has a
double flue chimney that soars to
275m.
“Even if a nut falls from such a
height, it can go through a person’s
skull,” points out Mr Bhattacharyya.
“Wearing helmets is essential for the
safety of all people at the site.”
Many workers had to operate
on platforms at heights of 90m. “We
conducted psychological training
for the workers before sending them
up. We monitored their heartbeat
and ensured they were comfortable,”
he adds. “All workers going up on
to platforms were also hooked to
lifelines and safety harnesses.”
BUSINESS
LEVERAGING EXPERIENCE
Each successfully executed project
added to the TPL team’s expertise
and confidence. Way back in
2007, TPL had been contracted by
Mahagenco, the state-owned power
generation company in Maharashtra,
to put up two 500MW units in
Bhusawal, which added to the
team’s experience. Execution of the
challenging Krishnapatnam supercritical thermal power project has
given confidence to the TPL team
that it can take up any project in the
power sector. “India is now heading
towards ultra-super-critical thermal
projects with 1,000MW units,” says
Mr Krishna. “And we are confident
of handling such projects.”
As part of a strategic initiative,
TPL has also entered the ‘packages
market’ by offering individual
packages like ‘Coal Handling.’
BoP, for instance, comprises 20
different packages including
building the coal-handling plant,
the ash-handling plant, the water
system, NDCT, etc. Some customers
award jobs that relate to individual
packages, whereas others give it
on EPC or BoP basis. Recently,
TPL emerged as the lowest bidder
in a tender for a `3.3 billion coalhandling plant (with a capacity of
2,400 tonnes an hour) for a National
Thermal Power Corporation project.
Mr Krishna sees huge potential
for power projects all over India.
“We are also looking at renewable
energy and see good opportunities in
solar and wind energy,” he adds. “But
coal would continue to dominate
the Indian power sector at least for
the next 10 years.” The company is
also exploring entry into projects in
the Middle East and Southeast Asia
(for a combined-cycle and opencycle, gas-fired power plant). With
‘One of the most complex projects
executed by us’
Tata Projects (TPL) has executed (on a balance-of-plant basis)
the super-critical thermal power project, at Krishnapatnam (two
units of 800 MW each), for APGENCO in Andhra Pradesh, India.
The project is one of the largest power projects in the state and
is vital to the government in addressing electricity shortage
faced by the people of Andhra Pradesh.
Elaborating on the project, Vinayak Deshpande, managing
director, Tata Projects says, “This has been one of the most
BNLOKDWØOQNIDBSRØDWDBTSDCØAXØ3@S@Ø/QNIDBSRØ3GDØÚQRSØTMHSØG@RØ
been completed, tested and is in production. At present the unit
is providing a power yield of close to 800 MW. The overall power
plant would be operational by end of 2014.”
Some of the unique features of the project include:
.MDØNEØSGDØLNRSØDEÚBHDMSØONVDQØOQNIDBSRØHMØSGDØRS@SD
One of the largest BoP projects in the state executed by
Tata Projects.
Ø.MDØNEØSGDØLNRSØCHEÚBTKSØSNØATHKCØ@RØHSØHRØBKNRDØSNØSGDØBN@RSØ
and has sandy soil, with land features similar to beaches.
Has one of the highest natural draft cooling towers in
India, which uses treated sea water (the NDCT has been
constructed by TPL).
TPL has supported schools for local communities / workers
children in the vicinity.
ØØ#QHMJHMFØV@SDQØOTQHÚDQRØG@UDØADDMØHMRS@KKDCØENQØUHKK@FDQRØHMØSGDØ
vicinity, improving quality of life for all.
India’s electricity generation capacity
expected to surge over the coming
years, TPL’s power vertical is poised
to leverage its strengths and capture a
significant share of the new business
that will emerge.
— Nithin Rao
October 2014 „
Tata Review
43
BUSINESS
‘We must innovate for
survival and growth’
Tata Communications is in the
middle of a transformational
journey that is taking it from
being a service provider to a
solutions provider. The past
investments are sweating
harder, the company has been
positioned in the leaders’
quadrant of the Gartner Magic
Quadrant for Global Network
Service Providers, which is
opening new vistas of business
and the market is responding
to the change. Spearheading
the journey is MD and CEO
Vinod Kumar who speaks
to Shubha Madhukar about
the shift in investments, the
challenges ahead and ways
in which the company is
preparing to handle new ways
of communication.
October 2014
44 Tata Review „
BUSINESS
In April 2014, Tata Communications
earned a position in the leaders’
quadrant of the Gartner Magic
Quadrant for Global Network Service
providers. What does the recognition
mean for the company?
It is a great milestone for a 12-year-old company.
The recognition puts Tata Communications in a
position to serve global multinationals for their
global networking needs and moves us away
from a niche positioning to a global positioning.
We can now stand shoulder-to-shoulder with
companies who have been in the industry for
three, four and five decades.
It is not just an accolade on the shelf,
it is being translated into business. A lot
of multinationals use the Gartner Magic
Quadrant to choose companies to bid for
various opportunities. By virtue of being in the
quadrant, we are being invited to the table now
where earlier it was a struggle to find ourselves
in the consideration set. It is good to be in the
Gartner leadership quadrant, and we want to
continue to strive to keep evolving and move to
the north east within the quadrant.
You have talked about the company’s
investments now slowly beginning to
pay off. Can you elaborate?
If you look at the financial performance over the
last eight to 12 quarters, the numbers speak for
themselves. We are growing the top line and we
have an improved and stronger EBITDA, our
cash flow has increased in a sustained manner
and we believe this will continue.
For several years we focused on building
a solid foundation. We invested in capital as
well as operating expenses to develop tangible
(infrastructure) and intangible (teams, brand,
communication) capabilities. This was essential
to pivot ourselves from a voice-focused, Indiabased, wholesale business to a data-oriented
global business that sells to multinationals
directly. To make these transitions, we needed
capabilities that answer competition and service
level platforms that meet the expectations of
customers. The investment is finally paying
off. The foundation we have built will be
able to sustain business as it grows without
linear investments in capital expenditure
or operational expenditure. The market is
responding well to this and the board and the
shareholders are happy with the growth path.
We are trying to concentrate on investments
that have worked well for us. What we free
up will go to bolster the bottom line and also
fuel and fund new business. The nature of our
business mandates that we keep setting up new
avenues for growth.
Tell us about your plans to invest
$200 million to double your data
centre capabilities in India over
the next three years? What other
investments are in the pipeline?
Over the next couple of years we will be
investing in building data centres and managed
services within those data centres. As the IT
industry (both hardware and software) grows
and moves to cloud-based solutions, there is a
huge demand for data centres from all around
the world. We have chosen to focus our activities
in India, and in South East Asia.
In India, we are the only company with a
nationwide footprint of data centres. We would
like to take the experience we’ve had in India
to other geographies, especially a few South
East Asian markets. Some of our large existing
customers will move into those new places
with us, both for operating comfort and for the
solutions we build for them if they operate from
multiple data centres across two countries.
We are exploring other industry verticals
in the Indian market where we can leverage our
relationship with large Indian businesses, the
Tata brand name and our network backbone in
providing industry solutions. We are beginning
with the healthcare industry, making services
such as telemedicine and radiology much
more available than they currently are. They
might not be capex intensive, but they are new
domains that will unfold in lots of interesting
ways in the coming years.
Innovation and generating new big
business ideas seems to be a focus
October 2014 „
Tata Review
45
BUSINESS
area. What are the new business
opportunities that have been
identified by the company?
We have to constantly invent and innovate
for survival and growth. As an industry, we
have a lot of demand. We are constantly being
threatened by new ways of communication from
start-ups and next generation companies. We
believe the process of innovation begins with
curiosity and a desire to learn. Therefore, we
are trying to make people curious, make people
want to learn. We have more than tripled our
number of learning days in the organisation,
people are being trained in a variety of different
things — not just the basic managerial skills and
self improvement.
We run a programme called Moonwalks
(see box: The call of the unknown), which is all
about exploring completely new industries and
new subjects. We have five Moonwalks currently
underway. The whole idea is to get people to be
comfortable with something they know nothing
about. Shape the Future is another programme
to identify business opportunities that will add
to the top line in the future. We invite our people
to submit ideas that have the potential to become
a $200-million business within 10 years and
touch billions of people; we select the best ones,
and then coach the teams set up to implement
them. In the first round we had about 100 odd
ideas of which six were selected by an internal
team. The implementation teams underwent
a grooming-coaching programme which
culminated with a week in Silicon Valley where
they met many entrepreneurs and immersed in
the whole start-up environment.
These six teams made a final pitch to a
panel of internal and external judges from which
we chose to fund two ideas. These two teams
will incubate the ideas, run them like a small
company with complete autonomy and get
funding based on pre-decided milestones. It’s
their business but with the safety net that if all
goes awry, we will take them back.
My goal is to have 10 different incubations
going on within two years. We have $10 million
of capex and $7.5 million opex earmarked for
the programme.
What are the initiatives you are
planning to boost productivity?
Last year we launched Saumill (stands for 100
million; sau means 100 in Hindi), a programme
to cut $100 million from our costs. We
positioned it as a productivity initiative to fund
growth and improve the bottom line.
We let the idea surface very democratically
from various functions in the organisation
Tata Communications: Powering the internet economy
October 2014
46 Tata Review „
BUSINESS
and clarified the principles we would use
upfront. We crowd sourced cost optimisation
and then created a platform where we could
apply the same lens to assess the ideas and
opportunities that were presented. I have to say
that the Saumill meetings were like melas (fairs);
never had anyone seen so much festivity and
celebration around a cost-cutting programme.
We enabled the implementation and
celebrated the success of this cost-cutting
venture by recognising the teamwork and
the people who were involved. We are now
working on how to make productivity an
ongoing exercise, something that everybody
owns and not something driven just by the top
management. It will take us probably another
year or so, but based on the success we had last
year with the first wave of Saumill, I really am
confident that we are well on our way to make
this a part of our DNA.
Tata Communications is in an
industry where the external
business environment is changing
at supersonic speed. How does the
company maintain its agility and
respond to challenges?
We continue to find ourselves at various points
in the learning curve across our business, but
our ingenuity comes from three things, of which
the structure of the organisation is one. By
nature, we are a distributed organisation with
no centre of power anywhere. The structure is
global and this definitely helps.
Two, the leadership team spends a lot of
time with our customers and vendors. We invest
in scanning the environment for opportunities
and watching out for threats. Three, we try and
set up self-directed teams as much as possible.
We let the mission and vision of the organisation
drive behaviour rather than what the boss says
or what the key result area dictates. We are
not there yet, but as compared to an average
organisation we are quite evolved.
These are the three things we will continue
to sharpen to make us more agile. In our
industry, you can never rest in your quest for
staying ahead of the competition.
The call of the unknown
In early 2014, Tata Communications launched
a unique initiative for fostering innovation and
futuristic thinking called Moonwalk. Five teams were
@RRHFMDCØÚUDØCHEEDQDMSØRTAIDBSRØTMQDK@SDCØSNØSGDØ
company) and asked to explore each of them. “The
idea,” according to Vinod Kumar, MD and CEO, “is
to make people curious, make people want to learn
@KKØNUDQØ@F@HMØ6DØADKHDUDØSGDØOQNBDRRØNEØHMMNU@SHNMØ
ADFHMRØVHSGØBTQHNRHSXØ@MCØ@ØCDRHQDØSNØKD@QMnØ
Ø(MØSGDØÚQRSØDCHSHNMØNEØ,NNMV@KJØSGDØÚUDØ
SD@LRØD@BGØKDCØAXØ@ØRDMHNQØKD@CDQØ@QDØDWOKNQHMFØ
ÚUDØHMSDQDRSHMFØSNOHBRØqØ@QSHÚBH@KØHMSDKKHFDMBDØ@MCØ
machine learning, 3D printing and its impact on
manufacturing, intelligent networks, alternative
energy sources and healthcare.
3GDØAQHDEØSNØSGDØSD@LRØHRØBKD@QØHMUDRSØENTQØ
LNMSGRØHMØDWOKNQHMFØSGDØRTAIDBSØqØBNMCTBSØ
extensive research, meet industry experts, talk to
@B@CDLHBH@MRØqØ@MCØBNLDØA@BJØVHSGØ@ØQDONQSØXNTØ
can share with the rest of the 8,000 employees in
SGDØBNLO@MXØm6DØVHKKØ@KKØKD@QMØ@ANTSØSGDØSQDMCRØ
the competition, the future, the threats and the key
players in the space. It will help us in conversations
we have with our customers, it will help us with
conceiving new services for the future; it may
even help us in deciding what careers we want our
children to have,” explains Mr Kumar.
Moonwalk is on a roll and the mood in
SGDØBNLO@MXØHRØTOAD@SØ3GDØMDWSØRSDORØG@UDØ
@KQD@CXØADDMØHCDMSHÚDCØm6DØVHKKØK@TMBGØÚUDØLNQDØ
,NNMV@KJRØNMBDØSGDØÚQRSØQNTMCØHRØNUDQØ3GDØSNOHBRØ
are exciting… in the second round we intend to
explore areas like the future of water, the future of
cities and the future of food,” informs Mr Kumar.
.UDQØSHLDØ@RØSGDØBNLO@MXØKD@QMRØ@ANTSØNSGDQØ
HMCTRSQHDRØ@MCØNSGDQØSDBGMNKNFHDRØGNODETKKXØATSØMNSØ
MDBDRR@QHKXØSGDQDØVHKKØADØRNLDØNOONQSTMHSHDRØENQØ3@S@Ø
"NLLTMHB@SHNMRØ@RØ@ØATRHMDRRØHSØL@XØBQD@SDØMDVØ
revenue streams and new product and services from
the shared learning. But for now, Mr Kumar is happy
that with each Moonwalk, small groups of people
ADFHMØSNØFDSØBNLENQS@AKDØVHSGØ@LAHFTHSXØ@MCØKD@QMØ
@ANTSØ@ØMDVØHMCTRSQXØSG@SØSGDXØJMDVØMNSGHMFØ@ANTSØ
October 2014 „
Tata Review
47
BY INVITATION
Collaborating for growth
The Tata group can play a key role in providing
an impetus to the bilateral relations between
India and China, says Mumbai-based Consul
General of China Dr Liu Youfa
B
ilateral relations between
China and India are moving
in a new direction. From the
historical perspective, the
relations between the two countries
trace back more than two millennia.
Both countries have
contributed greatly to modern
civilisation. The forefathers of India
invented the Indo-Arabic number
system, without which all modern
sciences would be groundless and
also the IT industry. Meanwhile,
the forefathers of China gave the
world four inventions (gunpowder,
paper, printing and the compass),
which are still the basis of many
modern sciences and technologies.
History says that China and India
jointly invented the technology for
producing sugar, without which the
modern day would be utterly dull
and monotonous.
Currently, both countries
have been contributing to the
global economic growth either in
manufacturing or in IT industry.
October 2014
48 Tata Review „
From the geographical perspective,
China and India share more than
the same border — both are at a
critical stage of economic structural
readjustment faced with the
daunting task of maintaining the
momentum of economic growth
and both are bending backwards in
realising their national rejuvenation.
There is a saying that countries are
free to choose their friends, but
not their neighbours. China and
India are such large neighbours that
neither can afford to ignore the other
side indefinitely.
Against the backdrop of
globalisation and low-carbon
economy, China and India have
to join hands, take stock of their
industrial advantages and the huge
market potentials, and promote
common development, which will,
in turn, contribute to world peace
and development. As the saying
goes: United, we stand; divided, we
fall. From the political perspective,
bilateral relations have entered
a new historical period with the
recent state visit by President Xi
Jingping to India. Also, it is likely
that Prime Minister Narendra Modi
will tour China in November at the
invitation of President Xi Jinping,
in conjunction with the upcoming
Asia-Pacific Economic Cooperation
Summit scheduled to take place
in Beijing. In conclusion, both
countries have elected new leaders
and have new governments driving
the leadership.
OLD TIES, NEW MISSION
Leaders and governments of both
countries have demonstrated the
willingness to further promote
bilateral relations while addressing
the standing issues constructively.
The road map is drawn and political
decisions have been made. Now, it
is up to the various industries and
social sectors from both countries to
work closely, in order to transform
the political decisions into concrete
results. Based on the above analysis,
the Tata group, which has long been
the vanguard of the Indian business
community in China, can explore a
new mission — to give impetus to
bilateral relations, both in terms of
trade and investment. The corporate
relationship between the Tata group
BY INVITATION
and China dates back to about 150
years ago, when the Founder JN
Tata ventured into Hong Kong and
Shanghai respectively. Since then,
the Tata group has remained the
flagship of the Indian economic and
commercial presence in China.
The Tata group opened an office
in Shanghai in 1996, taking advantage
of China’s opening up of the economy
in an effort to develop trade in steel
and relevant commodities. To help its
group companies to better navigate
their business ventures in China, the
Tata group opened an office in Beijing
in August 2006, with the mission
to further explore the potential of
the China market as a procurement
source and as a place to manufacture
for export.
Currently, the Tata business in
China is impressive both in terms
of trade and investment with more
than 20 subsidiaries in operation,
employing about 4,000 people
across the country. In 2013, Tata
subsidiaries in China realised sales
totaling $11 billion, and purchased
goods and services from China
worth over $1 billion. The Tata
conglomerate is poised for more
businesses opportunities in China,
taking advantage of the second
round of opening up by the Chinese
government. The Jaguar and Land
Rover production lines are about
to be fully operational in Jiangsu
province.
The economic structure
readjustment and opening up of the
two economies will provide new
steam for business communities to
further expand trade and investment
into other countries. The new
momentum of the bilateral relations
will soothe market access for foreign
direct investment flow from one side
to the other, and vice versa.
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Dr Liu Youfa, the Consul General of the People’s Republic of
China in Mumbai, speaks on Indo-China trade relations
From my own perspective, the
following would be tangible areas
for the Tata group to take a closer
look:
High-end manufacturing,
where the Tata group has a clear
comparative advantage in the field
of auto, IT, steel, chemistry, etc. The
joint production in India, China or
third-world countries would help to
immediately reduce the trade deficit
between India and China.
Infrastructure, where the
Tata group could team up with
Chinese companies to seek largescale project engineering contracts
in China, India or third-world
countries. This joint effort would
help both governments in their
efforts to provide a decent hardware
infrastructure for sustainable
economic development.
Service sector, where the Tata
group could select competent
Chinese enterprises in expanding
their market shares in both
countries. The combined strength
would help to provide more jobs
to people in both countries, and
to further expand economic
boundaries, which would not only
benefit the people, but also those in
the region at large.
A joint effort by the Tata group
and relevant Chinese companies
in the construction of the economic
corridor for Bangladesh, China,
India and Myanmar (BCIM). The
above sub-regional economic
cooperation would allow the Tata
group and Chinese entrepreneurs
to carry out major projects, such
as themed industrial parks, smart
cities, township construction, etc.
This would help both governments
to expedite the process of
poverty reduction and economic
development, in line with the
Millennium Development Goals set
by the United Nations.
Tourism, an area which would
allow the Tata group to play an
exemplary role in attracting tourists
from one side to the other. This
would provide ready media to
further promote the friendship
between people of both countries.
Education, as both countries
are poised for closer cooperation.
There is a huge demand for
managerial and engineering talent
and skilled labour for companies
from both sides. To meet this need,
English and basic skills training
could be the focus areas for joint
efforts.
October 2014 „
Tata Review
49
PHOTOFEATURE
A stove in Port Talbot’s new blast furnace number 4 supplies air at
temperatures of above 900°C
A family business: Jack Bamforth (an engineering apprentice) and
his father, Mark Bamforth (sales manager, strategic accounts), work
together at Tata Steel Speciality Steels in Stocksbridge
IN VIEW
Photography Samuel Ashfield, John de Koning
If we told you that just one of Tata Steel Europe’s
duties is to provide 95 percent of the steel used by
8.ÀUP1HWZRUN5DLOSHUKDSVWKDWZRXOGJRWRVKRZ
how massive the total operation is. In the high-tech
environment that the company has fostered, that kind
of output needs the attention of an army of highly
dedicated workers — currently totalling 80,000 people
across four continents.
,QGHHGVRPHIDPLOLHVKDYHEHHQDWWDFKHGWRWKHÀUP·V
Stocksbridge plant in South Yorkshire, for several
generations. Offering mentoring and apprenticeship
schemes for younger workers, Tata Steel welds the
best of company traditions onto modern perspectives
WKDWZLOOGULYHWKHÀUPLQWRWKHIXWXUH
This feature was originally published in Tata Europe’s
Perspective magazine, Issue 1 2014.
October 2014
50 Tata Review „
A view of the gas storage facility at Tata Steel
Europe’s plant in Port Talbot, Wales. Gases created
during the steel-making process are captured
and used as a source of energy for the plant,
substantially reducing its environmental footprint
PHOTOFEATURE
October 2014 „
Tata Review
51
PHOTOFEATURE
The basic oxygen steel plant
LQ,MPXLGHQ1HWKHUODQGV
converts iron into sheets of
steel. The Ijmuiden Works has
been instrumental in
Tata Steel Europe’s efforts
to reduce its environmental
impact. For example,
the site is helping to
trial an innovative iron-making
process called Hisarna, which
has the potential to cut carbon
emissions by 20 percent
October 2014
52 Tata Review „
PHOTOFEATURE
October 2014 „
Tata Review
53
PHOTOFEATURE
Martin Gibbs is among the
employees at Stocksbridge,
crafting high-tech steels for use
in jet engines, landing gears, and
other safety-critical equipment
In the hot seat: Chris
Stockdale, a mill
operator, sits in
the Stocksbridge
plant’s new ‘super
pulpit’, which
replaced 13 separate
pulpits in 2013. The
new arrangement
allows control
of the mill to
be centralised,
increasing safety
and productivity
Steel runs in the
family for Emma
Goddard (technical
metallurgy
apprentice),
who works at
Stocksbridge with
her father, Tony
Goddard (east
coast lead
training adviser)
Middle: A lab technician works outside on
test panels of steel with coloured coatings,
used to clad industrial buildings. He is taking
wind-speed measurements, monitoring the
effects of weather on the cladding. This shot
was taken at the laboratory in
Shotton, Flintshire, UK
Left: The Workington engineering workshop produces
essential equipment for industry
October 2014
54 Tata Review „
PHOTOFEATURE
5LJKW$SSUHQWLFHWUDLQLQJLQVWUXFWRU6WHYH6SUD\OHIWZRUNVZLWK0LFKDHO*UDQWDPHFKDQLFDODSSUHQWLFHLQWKH
apprentice training centre at Stocksbridge. Michael is one of hundreds of apprentices working with Tata Steel Europe
across the UK
October 2014 „
Tata Review
55
SPECIAL REPORT
Skills for a
sustainable future
Across the world, a severe shortage of talent is threatening businesses
causing concern to companies and governments looking for sustainable
models of growth. The ManpowerGroup’s Annual Talent Shortage Survey
for 2014 found that one-third or 36 percent of the 37,000 employers
DPWFSFEXPSMEXJEFBSFTUSVHHMJOHUPÙOEDBOEJEBUFTXJUITVJUBCMFTLJMMTUP
ÙMMUIFJSWBDBODJFT5PNFFUUIJTDIBMMFOHFUIF5BUBHSPVQIBTMBVODIFEB
slew of skilling initiatives, some of which we feature in this special report.
By Cynthia Rodrigues, Debjani Ray, Jai Madan and Shilpa Sachdev
October 2014
56 Tata Review „
SPECIAL REPORT
How to catch a fish
A global skilling initiative from the Tata group aims to help
youngsters around the world become employable through training
E
mployability is a growing challenge around
the world. The great skilling divide is
particularly wide in India. Two-thirds of
India’s population is under 35 years of age,
with a large percentage either unskilled or underskilled. In the coming decade, about 140 million
young people, completely bereft of any vocational
skills, are expected to join the industry. On the
other side, Indian industry is grappling with the
problem of lack of talent and inadequately skilled
manpower, which impacts negatively on growth.
The Government of India, aware of the
impending crisis, intends to empower 500
million people with the required skills by 2022.
“Skills development is one of the highest national
priorities...,” says S Ramadorai, former vice
chairman of Tata Consultancy Services, who is
also chairman of the National Skills Development
Corporation, and an advisor to the prime
minister on skills development. It is clear that a
structured and comprehensive skills development
programme has the potential to empower this vast
demographic of people and make a substantial
difference to the lives of thousands over the next
few decades. The Tata group is doing its bit to
bridge the divide by enabling a global skilling
initiative to empower the youth.
Tata Strive is a group-wide, centrallycoordinated programme that aims to develop
employability, entrepreneurship and enterprise
capabilities in youth through training. The Tata
Trusts are also in a unique position to contribute
to this endeavour, given their presence across
India, their decades of experience in partnering
with non-government organisations to build
livelihoods and the ecosystem that they have built
and sustained.
The Tata skills building initiative spans
nations. The group is leveraging the wealth of its
intellectual capital and resource base to make an
impactful contribution in skill development in
North America, Europe, China, Africa and the
Asean (Association of South East Asian Nations)
region. In each region, Tata is responding with
initiatives that are targeted to meet local needs. In
India, Tata companies train over 60,000 students
every year in trades related to their core business,
either through internal training facilities, or
through tie-ups with nonprofits and governmentrun industrial training institutes (ITI). In United
States of America, Tata companies are active in
the STEM (science, technology, engineering and
math) initiative that aims to encourage interest
in science and technology fields. The TCS China
University is partnering 25 universities to make
students workplace-ready.
In Europe, Tata companies have funded
125,000 training courses, more than 100 degrees
and over 400 university scholarships. Companies
also offered 150 apprenticeships and over 750
internships to young people across the UK.
Dr Mukund Rajan, brand custodian and
chief ethics officer, Tata Sons and member of the
Group Executive Council, explains the group’s
collaborative approach: “We must try and create a
sustainable impact. The scale that the companies
can create if they work together is larger than
what any single industrial house can achieve.”
The following pages indicate the range of
work being done in the area of skills development
by Tata companies around the world. The
companies showcased here are but a few of
the many that are working to build skills in
communities and make youngsters employable.
October 2014 „
Tata Review
57
SPECIAL REPORT
Striving
to empower
Tata Strive, the group-wide,
group-led skilling initiative,
aims to set up a replicable
model for training and skill
development
T
housands of candles can be lit from
a single candle, and the life of the
candle will not be shortened’ is a
saying attributed to the Buddha, and
one that suits the Tata philosophy just as well
— for decades, Tata companies have invested
Tata Steel imparts skills training in the area of housekeeping
to potential candidates
October 2014
58 Tata Review „
in activities related to skill development in
communities around which they operate.
Tata companies train over 60,000 students
in India every year in trades relating to their core
businesses. Now, under a formal programme,
aptly called Tata Strive, the group has set itself a
larger goal: to spread its skill building activities
across the globe. As its mission spells out, Tata
Strive seeks “to develop the required capacity to
train youth for employment, entrepreneurship
and community enterprise”.
Anita Rajan, chief operating officer at Tata
Strive, says there is a strong business case for
the skill building initiative: “Companies need
skilled labour and spend considerable money on
skilling them. A group-wide skilling initiative
will allow companies to share these costs.”
Tata Strive is backed by both the group
and the individual Tata companies. Companies
can either work on their own, while following
the guidelines set by Tata Strive, or work with
the group. Tata companies can also set aside a
portion of their mandatory 2 percent corporate
social responsibility (CSR) spend for group CSR
programmes such as Strive.
Explaining the basic idea of Tata Strive,
Sudhakar Gudipati, general manager, Tata
Sustainability Group, says, “The aim was to
leverage the strengths of Tata companies and to
create courses that would help build and supply
trained manpower to companies.”
Tata Strive is built around certain guiding
principles. For example, the programme aims to
reach out to the underprivileged and those who
have traditionally been denied access to such
training, on account of gender, disabilities or
ethnicity. The model is scalable, and designed to
need decreasing financial support from the Tata
group.
The quality standard for the programme has
been set high — to ensure that Tata Strive will
be recognised as a byword for quality skilling
education in the future. Sustainability is key to
the exercise — trades or skills to be taught at
a particular centre are based on the demand
and the need in that region, thus ensuring that
beneficiaries can benefit from a choice of job
opportunities.
SPECIAL REPORT
ENGAGING WITH STRIVE
Tata companies can participate in Strive in
many ways. They can fund the programme,
become a Strive partner, encourage employee
volunteering, or send people out on
secondment. Volunteering is a critical part of
Tata Strive. Mr Gudipati explains: Tata Engage
(the group level volunteering programme) and
Tata Strive are “a great combination”. Under
Tata Engage initiatives such as the Competency
Enhancement Programme or the Leadership
Exchange Action Programme, employees can,
based on their skills, teach or help to build the
curriculum.
The availability of the army of helpful
hands — all volunteers under Tata Engage —
could be put to good use. In fact, the concept
of the group CSR programmes is based on
scaling up social intervention by involving the
thousands of volunteers who have signed up for
Tata Engage.
The standards for Strive will draw from
the best of what Tata companies have to offer,
besides those coming from national and
international partnerships, so as to make the
programme globally competitive. Strive will
address both the organised and unorganised
sectors, and have hygiene and quality standards
in place. It will be continually monitored by
master trainers, who will uphold the quality
structure of Strive. The partners will be equally
responsible for ensuring consistency in quality.
Tata Strive will train the trainers to teach
and to carry out assessments. It will bring in
expertise, set standards and identify and share
best practices. It will also develop curricula,
assess the trainers, provide certification and
facilitate placements. The partners will be
responsible for providing the infrastructure,
handling the operating expenses and day-today functioning.
PARTNERING FOR PROGRESS
Under the partnership model, Tata Strive will
get into partnerships with Tata companies
and nonprofits, and non-Tata companies,
government agencies, foundations, trusts and
banks. Mr Gudipati says that the realisation
that the Tata group is engaged in a skill
building effort of this magnitude could attract
other corporates and organisations to partner
with the group.
India’s industrial technical institutes (ITI)
are a big component of the partnership model.
The state of Punjab has been the first one to sign
Combining resources
The genesis of Tata Strive lay in a Tata group decision
to consider the work achieved through group corporate
social responsibility (CSR) programmes as a combined
effort. For this the Tata Sustainability Group (TSG)
was formed on January 1, 2014. Sudhakar Gudipati,
general manager, TSG, says, “Up till now, most of the
CSR activities were undertaken by Tata companies.
The formation of TSG will help drive Group CSR
programmes and expand the scope of their delivery to
relevant causes.”
In the beginning, a working group was
constituted for Tata Strive, comprising most of the
CSR heads of Tata companies, and representatives
from Tata Strategic Management Group (TSMG)
and the Tata Council for Community Initiatives.
The chairman was HN Shrinivas, former HR chief
of Indian Hotels Company. TSMG pitched in by
studying similar models elsewhere and helping TSG
to map them to the needs of nations like India.
When TSG studied the impact of the
community-driven programmes undertaken by
individual Tata companies across 16 areas in
2013, it realised the scale of the work undertaken,
and the social impact of that intervention. That
realisation fuelled the belief that if the group were
to consolidate and coordinate its activities on the
strength of a well thought-out strategy, the effect
would be tremendous. The thinking was further
honed by critical inputs from S Ramadorai, vice
chairman of Tata Consultancy Services, who served
as part of the prime minister’s advisory group on
skilling. As several Tata companies were already
working in the area of skill development, this gave
the skilling initiative the potential to make a massive
difference in the lives of tens of thousands of people
across India. This set the context for Tata Strive.
October 2014 „
Tata Review
59
SPECIAL REPORT
ITIs and nonprofits to not only expand their
offerings but also make them market relevant
as these programmes would be developed by
companies based on their needs — for instance,
an auto mechanic course designed by Tata
Motors or a refrigeration mechanic course
designed by Voltas. In the partnership model,
banks will play an important role. A partnership
with a bank will enable students who wish to
set up as entrepreneurs to receive loans. The
bank will undertake the due diligence required
to ensure that the best candidates have access to
necessary funds.
Tata Motors has partnered with ITIs and nonprofits to help with
need-based training programmes
a memorandum of understanding (MoU) with
Tata Sons. The Strive team is working to build
the Amritsar ITI into a model institute and
identify the issues, ranging from infrastructure,
equipment, capacity of the teachers, needs of
community and industry, and governance and
systems, that hold it back.
Tata Strive is discussing opportunities
to partner with nonprofits across India and
overseas. Partnering with Strive will enable
October 2014
60 Tata Review „
CENTRED THINKING
The captive centre model will be completely
driven by the Tata group. To start with, four
centres will be set up in four regions of India.
The centres will be set up in buildings owned
or leased by Tata companies, thus leveraging
existing infrastructure. This model will give
Strive the on-ground experience of running
the centres.
Mr Gudipati says, “This experience will
help us to understand how the whole system
works. Having our own centres will also give us
the freedom to experiment and evolve faster.”
The first three years are intended to be
a pilot, allowing the model to be accepted,
to evolve and to begin making a difference.
Within Tata companies, the mood towards this
programme is extremely positive. There is a
perception that, given the scale of the group
and the resources and the wealth of knowledge
and intellectual capital it holds within itself,
a programme such as this could change the
face of India and many other countries. Mr
Gudipati says, “Companies are happy that this
programme will open up a large number of
trades and partnerships, enabling the group to
take advantage of all its resources.”
There are many expectations riding
upon the programme and the Tata group is
determined to make Tata Strive a success. The
vision for the programme can be expressed in
another saying attributed to the Buddha: “If
you light a lamp for someone else, it will also
brighten your path.”
SPECIAL REPORT
Life skills
for India
Tata companies are training
thousands of youth across India
in skill sets that make them
employable and productive
I
n India, the Tata skilling initiative is powered
by the efforts of individual companies
working to support thousands of youngsters
and the community at large. While the scale
and size of the skill-building projects differ,
each company is making quality training and
industry-relevant vocational skills available to
those who need it most.
HOSPITALITY SERVICES
In 2009, Indian Hotels Company (IHCL) set
up its first hospitality skills training centre in
Khulthabad, Maharashtra, in association with
the nonprofit Pratham. The centre offers basic
training in hotel industry processes, including
food production, housekeeping, and food and
beverage services.
IHCL currently runs 36 such centres in less
developed regions of India, such as Kalimpong
in the northeast and Chhattisgarh in central
India. About 9,000 youth have passed through
these programmes, and about 97 percent of
them have found jobs in the hospitality industry.
The company has also joined hands with Tata
Steel to set up similar centres at Kolabera near
Jamshedpur and at Behrampur, Odisha, and
with Tata Chemicals for a centre at Mithapur
in Gujarat. It has also roped in Jiva Spa to
offer a three-month course in spa services in
partnership with the Don Bosco Centres in
Nagaland and Assam. Apart from skill training,
the company engages in the revival of indigenous
art and culture forms and supports over 1,000
artisans and cultural troupes in India.
AEROSPACE SKILLS
Tata Advanced Systems (TASL) requires fairly
specialised skill sets, for which the company has
set up its own internal training centre, which
is benchmarked against the global best. The
training is meant for graduates of industrial
training institutes. By the end of the ninemonth course, they are skilled mechanics,
capable of handling aerostructures assembly and
aerospace programming. The centre has trained
600 people so far.
RURAL LIVELIHOODS
Tata Chemicals has set up a number of skill
building initiatives in all its locations. At
Babrala in Uttar Pradesh, it has a full-fledged
training centre offering courses that range from
mobile repairing and accounting to sewing and
hospitality services. More than 5,400 youth have
been trained at this centre. In addition, nearly
185 youth have been trained for rural BPOs
operated by the Uday Foundation in Mithapur
and Babrala.
At Babrala, the Tata Chemicals Society
for Rural Development (TCSRD) has tied up
with Larsen & Toubro to train youth from
neighbouring villages to work towards the
plant expansion. Training is offered in trades
such as masonry, fitting, welding, carpentry,
mobile repairing, accounting, basic computers,
desktop publishing and garment making. For
this, TCSRD partners Rishi Weld Tech and
Mini ITI, Rajkot. For hotel management and
catering services, it has tied up with IHCL
and the Navjeevan Trust. It has also tied up
with the Dalit Shakti Kendra to train girls in
IHCL trains youth in hospitality skills
October 2014 „
Tata Review
61
SPECIAL REPORT
makeup and hair styling, videography and
photography and stitching. The centre at
Haldia in West Bengal has courses in mobile
repairing, electrical repair and fitting, computer
hardware, and repairs of ACs, refrigerators and
two-wheelers, in association with Jan Shiksha
Sansthan and Webcon Consulting — more
than 7,600 people have been trained here. An
additional 6,000 people have benefited from
farm-based training programmes such as pond
management, agricultural development services,
seed production, dairy farming, food processing,
etc. Through its Okhai initiative, TCL supports
about 450 traditional artisans at Okhamandal,
Gujarat, in design, marketing and enterprise
management support.
BUSINESS PROCESSES
Tata Consultancy Services (TCS) trains
unemployed graduates to work in Business
Process Services (BPS). This programme,
offering training in English communication,
Sharpening aerospace skills — at TASL’s Advanced
Craftsmanship Centre in Hyderabad
Young students receiving skills training in motor mechanics
October 2014
62 Tata Review „
corporate etiquette and IT competency, reaches
out to deserving candidates across India. Since
2010, the company has trained over 37,000
youth, about 15,000 of whom are from scheduled
castes and tribes (SC / ST). More than 2,700
of the trainees are employed with TCS-BPS
today. The success of the BPS Employability
programme led TCS to start a new initiative in
FY14. Students studying in the 5th semester of
four engineering colleges in Andhra Pradesh,
Karnataka, Madhya Pradesh and Maharashtra
received training through a specially designed
200-hour module to promote IT skills.
TCS was the first company to sign an MoU
with National Skills Development Corporation
(NSDC) under project Udaan in 2011. Udaan
offers Kashmiri youth a 14-week training
programme to improve employability. So far,
nearly 400 youngsters have benefited from
this. TCS has also set up a faculty development
programme to enhance the capability of the
faculty in ITIs and ensure that quality and course
delivery is in line with industry practices. About
100 teachers from ITIs in eight states have been
trained and certified by TCS. Another TCS
programme, InsighT, promotes team building,
leadership, communication and presentation
skills in Class 12 students. It has impacted about
3,000 students in three years.
AUTOMOBILE TRADES
Tata Motors (TML) has partnered with 137
ITIs across the country. Of these, 33 ITIs are
part of the Institute Management Committee
model, under which a TML representative is the
chairman of the ITI. These ITIs have the potential
to train 10,000 students annually in required
automobile trades. The company trains another
3,000 students every year through its in-house
industrial training facility. It has also partnered
with Confederation of Indian Industry to provide
soft skill training to 1,000 ITI graduates. The
company recently launched the Learn and Earn
programme for youth, which provides on-the-job
training in motor mechanics. TML has started
14 driving schools in order to meet the projected
need for nearly 5 million commercial vehicle
drivers by 2022. The company trains about 1,000
SPECIAL REPORT
novice drivers annually and provides refresher
training to over 4,000 drivers. TML has also
developed non-automotive training programmes
in areas such as retail, construction, ITES trades,
dairy, pisciculture and poultry.
VOCATIONAL TRAINING
Tata Power’s tie-ups with ITIs in Maharashtra,
Gujarat, Odisha and Jharkhand promote skillbuilding in nursing and call centre management.
Women self-help groups are trained in making
jute bags, traditional handicrafts and incense
sticks. The training, which includes soft skills in
communication and teamwork, has benefited over
4,000 people over the last five years. Tata Power
and Tata Business Support Services set up a rural
BPO in Khopoli, Maharashtra, where more than
2,300 youth have trained as call centre executives
in the last five years. Another skill-building
initiative with Tata Steel in Tiruldih, Jharkhand,
focuses on vocational training for projectaffected youth. The Tata Power Skill Development
Institute is a new initiative expected to benefit
over 600 power sector workers in FY15 through
programmes designed to train, test, certify and
accredit workers. The institute will initially focus
on Tata Power’s associate workforce and will
later include other power companies.
TECHNICAL SKILLS
Tata Projects has initiated tie-ups with ITIs,
nonprofits, training partners and other Tata
companies to offer short term residential / nonresidential courses in trades such as welding,
bar bending, form carpentry, tower erection and
reverse osmosis plant training. At least 25 percent
of the candidates hail from SC / ST groups. The
programme offers on-the-job training with
a stipend, and minimum employment of six
months after the training. So far, the programme
has placed more than 1,000 people. The company
also offers vocational training in mobile repairing,
Tally software, computer hardware, plumbing
and basic computer skills. It partners with ITIs
in Andhra Pradesh to enhance skills in welding
and fitter trades. The company plans to train
about 6,000 people every year in skills required
for tower erection and stringing, through the
Tata Power’s career development centre in Maithon, Jharkhand
Students at a training programme organised by Titan in Hosur
Ustadi programme, a collaborative initiative with
training partners and contractors at Jamshedpur,
Nagpur and Hyderabad.
PRECIOUS KNOWLEDGE
Titan Company’s first skilling initiative dates back
to 2005, when it organised a three-year course at
its watch division in Hosur, Tamil Nadu. Here,
local students, a quarter of whom belonged to SC
/ ST groups, are taught fitting. About 200 students
have completed the course so far. Titan also offers
underprivileged school dropouts a one-year
course in jewellery making and precious metal
work, conducted at the Hosur unit. Over 170
candidates have been trained so far. The company
sponsors a Chennai-based vocational training
centre to train underprivileged youth in skills
such as retailing, data entry and watch repair.
Recently, the company entered into a similar
engagement with another organisation for skilling
youth affected by the Uttarakhand floods in 2013.
Across India, Tata companies are going the
extra mile to set up training that is relevant and
much needed.
October 2014 „
Tata Review
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SPECIAL REPORT
STEM talent
for America
Tata companies are addressing
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technology, engineering and
math skills in America to build
a much-needed talent pool
I
t seems counterintuitive, but America,
the land of technology advances, is facing
an acute shortage in talent from science,
technology, engineering and mathematics
(STEM) fields of study. There is a huge demand
from the industry for such personnel, but the
number of Americans entering the workforce
with STEM skills is not keeping pace.
The data shows a clear picture — there will
be 8 million STEM jobs in the US by 2018. Of
these, there will be more than 1.4 million jobs
(by 2020) that require computer science and
programming skills, but only 400,000 graduates
Children at an IT skills workshop organised by TCS in Atlanta
October 2014
64 Tata Review „
to fill those jobs. With figures like these, it’s
clear why STEM has become a cause of concern
for both the government and industry. The
increasingly knowledge-driven economy of
America stands particularly at risk of losing its
technology edge in the global market.
Building up the talent pool in the area is a
critical need and that is where Tata companies
such as Tata Consultancy Services (TCS), Tata
Technologies, Jaguar Land Rover and Tata
Interactive Systems in North America are doing
their bit for skill development in STEM. TCS
has opened up multiple fronts and is working
in collaboration with industry bodies, not-forprofit organisations, communities, universities
and local schools. For TCS, the STEM initiative
meets a critical business imperative by ultimately
increasing the size of the skilled talent pool in
computer science and IT.
TCS’s STEM initiative actually brings
together the company’s capabilities in
technology, volunteering and philanthropy to
create for students a pathway from education to
a career. In FY14, over 440 TCS employees in
the US volunteered for the STEM initiative to
teach computer science lessons, train teachers
and mentor students. Last year alone, TCS’s pro
bono, skilled-based volunteering — through
their partner Npower — resulted in $620,000 of
social good for education non profits.
Says Balaji Ganapathy, head of workforce
effectiveness, TCS North America. “We are
engaging at different levels on this issue. At a
national level this means bringing attention
to the problem and providing forums for
solutions on education policy, state funding
and local industry engagement. Second is using
technology, which is the greatest enabler for
providing a national infrastructure. Third is
leading cross-sector partnerships to collaborate
and scale successful programmes. Finally, skilled
technology professionals from our company are
mentoring and inspiring young students to be
future STEM leaders.”
SPOTLIGHT ON SKILLING
TCS is ramping up its engagement with
STEM on several fronts. It has partnered
SPECIAL REPORT
with STEMconnector to bring out several
publications such as the ‘100 CEO leaders in
STEM’ report. STEMconnector is a consortium
of companies, nonprofit associations and
professional societies, STEM-related research
and policy organisations, government entities,
universities and academic institutions
concerned with STEM education and the future
of human capital in the United States.
TCS also convenes the Computer Science
Executive Round Table which brings together
executives, government officials and thought
leaders to identify strategies for fueling
interest and participation of students in STEM
careers. Mr Ganapathy says: “These events
give us different insights. There is the skills
gap viewpoint that employers see. There is the
education gap, which is what administrators
and nonprofits see. In the six months between
the two roundtables, six states moved to
recognise computer science as a math or
science credit; signalling that the winds of
change are blowing.”
MENTORING SKILLS
Another feature of the STEM initiative is
the emphasis on building a network of two
million mentors across the country to work
with traditionally disadvantaged communities
including women, minorities, low income
groups and war veterans. For this, the company
has been a founding partner of two national
mentoring initiatives, US2020 and Million
Women Mentors (MWM).
US2020 is a national initiative that
encourages corporate volunteerism and
includes industry leaders such as CISCO,
Chevron, SanDisk, Raytheon and Cognizant.
The partnership aims to engage one million
STEM professionals in high impact mentorship
opportunities by the year 2020. Within TCS, the
goal is to have 20 percent of TCS’s American
workforce volunteer for at least 20 hours a year
as mentors, providing them with expertise and
real-world perspective.
TCS is also building the US2020
technology platform to help cities scale
their STEM mentoring for minorities and
“Skilled technology professionals
from our company are mentoring
and inspiring young students to
be future STEM leaders.”
Balaji Ganapathy, head, workforce effectiveness, TCS NA
underserved groups. Already, through US2020’s
City Competition, nine of the ten largest cities
in the country and 29 different US states have
begun to craft their five-year STEM plans.
The number of women pursuing STEM
education and careers is dismal. Million Women
Mentors have built a network of 42 nonprofit
partners, representing over 18 million girls to
change this equation. TCS has pledged 15,000
mentors by the year 2018, resulting in 300,000
hours of mentorship for women and girls. More
than 170,725 mentors have already signed up on
the MWM mentoring portal created by TCS and
Children dabble in technology at a workshop in Chicago
October 2014 „
Tata Review
65
SPECIAL REPORT
Alma matters
For the last six years, Tata Consultancy Services
has worked with local schools in three cities
in the United States to build more interest in
schoolchildren for careers in science, technology,
engineering and mathematics (STEM) streams.
TCS’s goIT programme is a stellar example of a
skilling initiative at the local school level. Launched
in 2009 in Cincinnati, Ohio, and led by TCS
volunteers, the goIT programme is TCS’s signature
capacity building educational platform. The
programme teaches students how to collaborate in
team activities, participate in technical workshops
with IT professionals, discover career opportunities
and compete in robot challenges. Each TCS
volunteer completes extensive training, covering
youth psychology, US education systems and goIT
corporate sustainability programming, to aid their
preparation as a mentor to students.
2014 has been a banner year for TCS goIT.
The programme expanded from three to 11 cities
across North America and 200 new employees
volunteered. This resulted in more than 6,500 hours
of high-impact skill building and computer science
programming. What’s remarkable is the impact —
over 7,500 students have been engaged, of which
70 percent reported an increased interest in STEM
disciplines, and there has been a marked increase
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college.
In America, over 7,500 students have been engaged through
the goIT initiative led by Tata Consultancy Services
October 2014
66 Tata Review „
launched in January 2014.
TCS is a partner for the National Center
for Women & Information Technology
(NCWIT)’s Clinton Global Initiative
Commitment to Action to scale the AspireIT
programme and engage 10,000 middle school
girls in learning computing concepts, along
with Intel Foundation, Google, Northrop
Grumman, Microsoft Sphero, and UC Irvine.
“The focus is on promoting the interest
of girls who are choosing STEM careers,” says
Caitlin Olson, STEM programme 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.”
INDUSTRY ENGAGEMENT
In order to improve employability, TCS has also
instituted several industry-liaison programmes
that directly connect employers with promising
students. For example, the company has
established campus relationships with over 90
universities and higher education institutions
in the United States.
In the next leg of advancement, TCS is
leading STEM 2.0, a public-private partnership
initiative of STEMconnector and its STEM
Innovation Task Force. STEM 2.0 will focus
on identifying, defining and inculcating new
capability platforms, or skill sets, in future
STEM professionals, such as employability
skills, innovation excellence, digital fluency and
hard skills. While STEM 1.0 is the education
system’s current output, STEM 2.0 provides
a pathway for industry to actively engage
in creating career readiness for the next
generation workforce.
Though TCS is leading the way, other
Tata companies such as Tata Technologies,
Jaguar Land Rover and Tata Interactive Systems
are also part of the effort to boost STEM
education in North America. By opening
up new opportunities and awareness in the
field of STEM education, Tata companies are
surely driving a vital change, which is bound
to improve the performance barometer of the
IT industry in America and give the country a
competitive advantage.
SPECIAL REPORT
Grooming
young talent
in China
The TCS China University
steps up to offer soft skills
training in partnership with 25
universities across the country
W
hile in-depth knowledge and
industry expertise is essential,
proficiency in English, interpersonal skills as well as problem
solving and other managerial skills that enable
people to work with colleagues across the globe
and manage all kinds of diverse situations are
important too. Graduates and young adults all
over the world face such challenges when they
leave the campus.
Over the years, Tata Consultancy Services
(TCS) has found that helping young adults
to shape the future direction of their careers
is a crucial and critical aspect of their talent
development. In China, TCS has addressed this
issue by conceptualising and starting the TCS
China University (TCSCU) in 2011.
The core function of the TCSCU is to ensure
that young adults in China receive training
and are groomed to become world citizens and
‘corporate ready’, before they officially enter
the TCS China workplace. The course teaches
skills such as how to work closely with a team of
colleagues that they have never met before; how
to meet a pressing deadline; how to navigate a job
interview; how to put newly-honed technical skills
to practice; how to create a great first impression;
how to interact with and influence a colleague
who is half way across the world, through virtual
media; amongst other things.
GROOMING FOR SUCCESS
The grooming or training is done through
extremely close collaboration with 25 identified
partner universities in China and is present in
several cities including Shanghai, Hangzhou,
Nanjing, Wuhan, Chengdu and Ha’erbin.
The technical curriculum of these
universities is carefully scrutinised by the TCS
China team, which works closely with partner
universities to ensure that course materials
are continuously updated to reflect changing
technological and client requirements. These
collaborations take the form of campus
presentations, lectures and training courses for
professors and university students alike. Training
sessions are held at the partner universities.
Technical and soft skills training, internships
and on-the-job mentoring are also provided to
university students, to develop skillsets required
for success at the workplace. Some of these skills
are taught even prior to graduation. This has been
The core function of TCSCU is to ensure that young adults in China receive training and are
groomed to be ‘corporate ready’. Till date TCSCU has successfully worked with 1,135 students
October 2014 „
Tata Review
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SPECIAL REPORT
a very successful intervention, with university
students and fresh graduates alike rating the
soft skills and technical training, and mentoring
extremely well, with a close to 100 percent
satisfaction rating.
“The faculty (at TCSCU) is excellent and all
of them are outstanding people and we should
Skills that students picked up
during the Go for IT initiative
Motivation for personal goals: Initiative,
engagement, willingness to try new things,
persistence, work ethics, commitment and a drive to
pursue interests and personal development.
Executive functioning skills: Planning ahead,
organisation, execution and completion of projects,
informed decision making, judgment, concentration
and self-monitoring.
Glimpses into life at work: Job experience,
interviewing, working hard, accepting criticism
and following directions. Students were given
opportunities to interview candidates applying to
TCS, and were matched with mentors — they had to
learn how to accept feedback and follow directions.
Academic skills: Intellectual curiosity, study habits
and value of learning.
%MOTIONALŸAWARENESSŸREÛECTIONŸREGULATION A
big emphasis of the programme was on
introspection. Students were expected to introspect
on their performance and relationships with their
team(s) and mentors at the start and end of every
day. They were also asked to set goals every day.
Social skills: Through team projects and their
interactions with different corporate functions within the
company, students had to hone their ability to size up
interpersonal situations. They also learnt the following
lessons: cooperation with others, communication
RJHKKRØBNMÛHBSØQDRNKTSHNMØRJHKKRØF@HMHMFØODQRODBSHUDØ@MCØ
accurate self-appraisal in groups.
October 2014
68 Tata Review „
learn from them,” says Li Feifei, a fresh graduate
from Shuren University. Weng Kaibo, a graduate
from the University of the Ceramic Institute of
Jingdezhen, says, “I learnt how to apply theoretical
knowledge in practice, and the interpersonal
effectiveness course is really interesting. I learnt
a lot!” Till date TCSCU has successfully worked
with 1,135 students and has conducted training
sessions for 150 professors and teachers.
YOUNGER MINDS
Aside from TCSCU, which looks at developing
university students in preparation for the
workforce, TCS China has also initiated a
programme for younger talent that is aimed
at teenagers from local schools. This is done
through their ‘Go for IT’ initiative which they
have started in collaboration with the Jianping
High School in Shanghai.
As part of the inititative, the TCS
Shanghai office along with Jianping High
School conducted an intensive nine day onsite
programme for 15 bright and promising
teenagers. For nine days, all 15 students
embarked upon a rigorous, intensive learning
journey. Among other things, they picked up
basic office software applications and learnt
how to apply these skills at work, interacted
with top business leaders within TCS China,
shadowed different corporate functions, applied
newly learnt skills in work assignments, and
worked closely with team mates and TCS
China leaders who were assigned as mentors.
Students worked on a designated theme and
were expected to research, plan and develop a
presentation deck by the end of the programme.
They also practiced public speaking and
presentation skills.
All participating students who participated
appreciated the programme and were extremely
satisfied with the training. “I learnt to be
confident and passionate, more meticulous
and so on. I can see my progress thanks to
TCS China,” says Gong Jiaying, a participant.
Another student, Wang Junkun, says, “I really
enjoyed the knowledge shared by the mentors.
Their international perspective, inputs and
advice on our appearance, etiquette and the
SPECIAL REPORT
way we carry ourselves was very useful.”
The mentors who trained the students were
equally happy with the progress shown by
the candidates. One of them explains, “I was
pleasantly surprised by the maturity and level
of thinking during the presentations. They gave
me a lot of food for thought and I found myself
learning from their perspectives.”
FUTURE TALENT
The Go for IT programme was so wellreceived that Jianping High School suggested
establishing a long term alliance with TCS
China; a contract between the high school
and TCS China has been signed. Due to the
overwhelmingly positive feedback, there are
plans to extend this programme to other cities
where TCS China has a presence.
Lumin W, the TCS point of contact for this
initiative, adds, “I find that the students get a lot
from the mentoring experience and it is exciting
for the mentor to watch the changes that occur
in the students during the process. For some
students the mentoring process can be a life
changing one. Above all, everyone has a great
deal of fun.”
TCS China strongly believes in investing
for the long-run and is deeply committed to
developing China’s young talent (teenagers and
graduates alike) and growing along with them.
Reiterating this belief, Sujit Chatterjee, president,
TCS China, concludes, “We are deeply invested
in China’s future and we believe that we need
to start developing tomorrow’s leaders today.
While we prepare these extremely talented
young people for an ever-changing, dynamic
future, they bring fresh insights, thoughts and
perspectives and we too, learn from them.”
Skilling up
in Singapore
NatSteel’s upskilling initiatives
are tied to the Singapore
government’s aim of building a
more competitive workforce
I
n a challenging economy, one way to stay
ahead of the curve is to invest in developing
the capabilities of people. And that’s what
Singapore-based steel maker NatSteel
Holdings (NSH) is doing.
NatSteel, a subsidiary of Tata Steel and part
of the $100 billion Tata group, understands that
giving its employees the knowledge and skills
needed to work in a high-tech environment is
critical — it makes employees feel valued, pushes
them to aim higher and boosts the company’s
profitability. Upskilling and training is also a key
differentiator in attracting and retaining the best
staff. In NatSteel’s case, upskilling enhances safety
NatSteel has set up an academy to train its workforce
with the latest learning required in a competitive market
and saves costs, since workers can be trained to
do the work of foreigners who used to be hired
for steel making.
The company’s talent development
initiatives are helmed by a Centre of Expertise
(COE) and the NatSteel Academy (NSA), both
set up by the human resources department. The
academy has already been recognised for its good
work — earning a certification as an ‘on-thejob training’ (OJT) provider from Singapore’s
premier skilling institute, ITE. “As part of our
OJT, we have senior, experienced workers taking
October 2014 „
Tata Review
69
SPECIAL REPORT
juniors under their wings, consulting them
regularly and guiding them in their work,” says
Lucy Tan, chief HR officer, NatSteel.
NatSteel’s upskilling initiative is also
part of a bigger picture, aligned as it is to the
Singapore government’s thrust on skill building
across industries. A report in 2010 by the
Economic Strategies Committee (which advises
the government on building capabilities for
growth), had recommended a national effort to
raise the skills and productivity of workers as
the only viable way to enhance competitiveness.
In line with this objective, the Singapore
government identified certain industries such
as manufacturing, construction, health care
and finance as key to supporting the growth of
important economic sectors.
NatSteel arranges to deliver training in
a number of ways. Apart from the in-house
NSA, workers get an opportunity to earn the
best of national qualifications through the
company’s tie-ups with the Singapore Workforce
Development Agency (WDA), the Employment
& Employability Institute (e2i), the Institute of
Adult Learning (IAL), NTUC Learning Hub, and
the ITE. The NatSteel Academy also achieved a
major milestone — accreditation as an approved
training organisation (ATO) to conduct in-house
training under the Workforce Development
Agency’s precision engineering Workforce Skill
Qualification (WSQ) framework. The framework
will provide a comprehensive skills upgrading
platform for most of NatSteel’s employees —
from the rank and file to supervisors.
Palani Baskar, a machine operator who
has benefited from the in-house training says:
“The OJT modules I completed have taught me
a lot about the machines I am operating. Now, I
can do my work more effectively.” NatSteel has
been recognised for the quality of its upskilling
programmes, but it is not resting on its laurels.
To make sure that academy trainers are abreast of
the latest developments in the industry, NatSteel
is having them attend the WDA’s Workplace
Trainer Programmes. According to Joseph Yong,
NSA’s project sponsor and chief operating officer,
sending trainers for training makes a lot of sense:
“This helps us establish our talent base and
knowledge management core, and places us in a
stronger position to meet future challenges.”
IT’s raining
skills in Africa
Varun Kapur, vice president and head of
Middle East and Africa at TCS explains: “We
have introduced several skills development
programmes for the benefit of youth in
South Africa. These skills will enhance their
competencies and enable them to strive for a
better career.” The training covers a wide range
of relevant modules such as Java EE, Mainframe,
C++ Imot, .Net, BIPM, Bizskill, V&B, Testing,
EIS and Oracle DB.
In South Africa, TCS is
empowering local talent by
training students in a wide
range of IT skills
S
ince skilling is a sustainable path to
empowerment, this is the route that Tata
Consultancy Services (TCS) has chosen
to meet the aspirations of youth in South
Africa. The company’s skills development training
programme, dating back to 2011, focuses on
building strong employable skills.
October 2014
70 Tata Review „
CENTRES FOR LEARNING
TCS has invested significant resources in
setting up two IT learning centres to support
the education needs of adults and children.
The IT training centre, set up at Diepsloot in
collaboration with nonprofit Change the World,
seeks to train underprivileged youth and the
unemployed. The company has also partnered
with the Department of Public Enterprise to
SPECIAL REPORT
Along with training in IT skills, TCS is also offering on-the job training to youth in South Africa
establish an IT learning centre at Eastern Cape.
This centre is named after the late Oliver Tambo,
a South African anti-apartheid politician and a
central figure in the African National Congress.
Another TCS initiative, aimed at schoolchildren
in rural areas, seeks to create IT awareness.
The target is to touch about 100 children a year
through training.
Also on the agenda are plans to organise the
TCS IT Wiz, a quiz which has gained immense
popularity in India where it was first initiated. The
quiz is now conducted in several international
venues. This animation-based quiz initiative
will engage young children in South Africa to
encourage strategic and lateral thinking and take
learning beyond school walls.
REACHING OUT TO YOUNGSTERS
The emphasis on skills development is core to
the TCS philosophy on giving back to society.
Mr Kapur says, “TCS has made a commitment
to South Africa, and we are passionate about
empowering the local talent. We have, therefore,
made training a core focus of our plan to
develop internal capability.”
The company has taken great pains to build
its graduate development programme. This is
a 50-day intensive course that covers software
engineering concepts, quality management
systems, software tools and communication skills.
TCS also offers specialised training to its
customers on niche skills. This initiative involves
on-the-job practical training with assigned
mentors who are subject matter experts. In
the past few years, TCS has worked to ensure
knowledge transition for more than 2,000 South
African customer employees, who have been
trained in a wide range of IT skills, including
applications and tools from Oracle, Microsoft,
Solaris, PeopleSoft and Siebel. The subjects
covered include mobile applications, business
analysis, system architecture, system design and
project management, among others. The training
has already covered more than 8,000 hours.
TRUE COMMITMENT
Going local is another of the company’s
sustainability pillars, and one of its goals is to
localise 80 percent of global deliveries. TCS has
established service delivery and resource centres
in Johannesburg to serve local customers; these
will be managed and staffed by South African
citizens. Going forward, the operations at the
delivery centre will be expanded to service
international customers.
The local focus is one of the ways that
TCS demonstrates its commitment to inclusive
development. TCS is proud of being recognised
as a level 2 contributor to the Broad Based Black
Economic Empowerment (BBBEE), a South
African initiative to uplift underprivileged
members of society. The goal of BBBEE is to
distribute wealth across a broad spectrum of
previously disadvantaged South African society.
TCS, one of the world’s biggest
brand names in the IT sector, is taking its
competencies and domain knowledge to a
new level by using IT to enable and empower
local youth in South Africa and bring about a
transformation in their lives.
October 2014 „
Tata Review
71
MARKETING
The brave new
world of marketing
Big data, mobility, social media, e-commerce,
reputation management — the language of
marketing has changed, and companies are now
connecting with customers in unique ways
W
hat does tea have to do
with politics? Nothing.
And yet, one of Tata
Tea’s biggest marketing
efforts this year was to encourage
India’s 49 percent voter base of
women to step up and cast their
vote. The Power of 49 campaign’s
ambitious goal was to touch 100
million women voters. The impact of
the campaign was such that just one
of the initiatives racked up as many
as 50,000 calls per day from women,
with the campaign registering about
one and a half million women, who
spoke about women’s issues.
The Power of 49 campaign
does not stand alone — it is one
of a series of social and civil
governance campaigns that Tata
Tea has been promoting through its
social platform Jaago Re (meaning
‘awaken’). And it is a powerful
example of how, somewhere in that
October 2014
72 Tata Review „
socio-economic-psychographic space
where companies interface with their
consumers, the relationship between
the two has changed, and therefore,
so has the marketing function.
There is, in fact, a dramatic
difference in the way companies
interact with their customers today
— they are not just talking to their
customers, they are listening to
them, and even enlisting their active
participation in the creation of new
products. This shift in the marketing
paradigm has been powered by
the digital medium that allows
consumers and customers to do
research on companies and products,
source relevant information to make
purchase decisions, and voice their
opinions and choices across social
media channels. Sushant Dash,
global brand director at Tata Global
Beverages (TGB), says that marketers
like him now acknowledge that “in
many ways, the true custodian of
the brand is the consumer”. Deepa
Harris, senior vice president, global
sales and marketing at Taj Hotels
Resorts and Palaces, concurs,
“Marketing has moved from being a
broadcast medium to an interactive
one. Consumers are engaging and
co-creating brands and products.”
In sync with the changing
customer connection, Tata
companies — including service
companies such as IT giant Tata
Consultancy Services (TCS)
and hospitality major Taj Hotels
Resorts and Palaces (Taj Group),
FMCG behemoths such as Tata
Global Beverages (TGB), and even
consumer durables companies
such as Titan and Tanishq — have
changed their marketing gameplan.
CONTENT IS KING
Over at TCS, the name of the game
is content marketing. Global head
of marketing John Lenzen says
that they work on the premise that
decision makers and potential
customers will use the power of the
web to research and understand the
company. “The digital medium has
MARKETING
changed the dynamics of marketing.
The burden is on us to make sure that
not only do we convey information
on our product and services, but
also our corporate identity and our
differentiators. We need to make
sure our customers know that we are
thinking about the problems they
have or they might have, and that
we are coming up with ways to solve
those problems,” says Mr Lenzen.
The TCS marketing team
works hand in hand with teams
from various business units, HR,
communications and CSR, to
create content that talks to targeted
stakeholders. Social media is a
big driver of this content and
Facebook, Twitter, LinkedIn,
Google+ and SlideShare form the
primary channels. TCS also drives
its branding through blogs. “We
create blogs on several topics that
help enhance our thought leadership
platform. These also attract people
who are interested in these topics to
our site,” says Mr Lenzen.
Content marketing is an
important initiative at the Taj Group
as well, as it creates the connect
between the brand and its relevance
to the consumer. Says Ms Harris,
“Content reigns supreme with
visuals becoming the new language
of marketing. The Taj is investing in
creating immersive experiences to
perfect the art of storytelling.”
Some of the storytelling is via
rich media content — for example,
videos of real-time customers on
their varied journeys with the Taj.
“Such video content can be used
across various touch points to bring
alive the brand experience in the
virtual world,” says Ms Harris. Taj has
also used the blog space efficiently.
For the Taj Falaknuma launch, there
were several bloggers among the
media personnel who were flown
down to Hyderabad from different
How Tata Global Beverages connects
the tea drinker with the tea grower
As part of its sustainability messaging,
Tata Global Beverages launched Tetley
Farmer First Hand, a channel that connects
tea drinkers with the people who grow
tea in Malawi, Kenya and Munnar in India.
Says global brand director Sushant Dash,
“We’ve given mobile phones with cameras
to farmers in Malawi and Kenya. The farmers upload what’s
happening in their lives – pruning, harvesting, seasons, etc.
We’ve also commissioned a blogger who writes articles.
Visitors can experience the lives of the farmers, and can
chat with them. They can wish them and send them e-cards.
We also run photo contests around tea on Pinterest and
Instagram.” The farmer initiative is being taken to Munnar this
year, and, what’s interesting is that the Facebook site in India
is Hindi enabled.
parts of the world. The bloggers
played their role in creating and
sharing live content first-hand, across
their respective markets.
The impact of digital has
grown so strong that companies are
investing larger sums in creating
digital and mobile campaigns that
either stand alone or are part of
360-degree campaigns across the
brand space. At watch and accessory
company Titan, Rajan Amba,
marketing and product head for
India and international markets, says
that in the very near future, Titan’s
digital and social investments will
grow to more than 20 percent of
the overall brand communication
budget. “Currently we are in the
process of reworking our digital
strategy to engage with the consumer
in a more proactive manner. Digital
allows us to have a continuous
evolving engagement with the
consumer,” says Mr Amba.
Across the road at Tanishq, head
of marketing Deepika Tewari agrees
October 2014 „
Tata Review
73
MARKETING
Divas of Rock: A cultural platform created by the Taj Group
that digital and mobile marketing
have risen to become an integral part
of marketing strategies in the last five
years. “Digital marketing has a wide
reach and provides an opportunity
of two-way communication, which
benefits the consumer as well as the
marketer,” she says. One example is
how Tanishq makes it a point to run
a social media campaign for every
new jewellery collection. “Recently,
for our fine fashion jewellery line
Iva, we introduced the ‘Ivalicious’
contest where customers could win
prizes by uploading a creative picture
of themselves in a piece of jewellery
from the collection,” says Ms Tewari.
Digital marketing is a key tool
for TCS and an interesting route that
the company has taken is to offer
Why the Taj is going ‘mobile’ friendly
3GDØ3@IØHRØL@JHMFØ@ØRHFMHÚB@MSØHMUDRSLDMSØ
in digital re-platforming of its business, and
this includes the mobility strategy. The idea,
says Deepa Harris, senior vice president,
global sales and marketing, is to ensure
the business is future proofed. “Mobility is
already here. The next billion consumers
VHKKØADØTRHMFØkLNAHKDØÚQRSlØ(MCTRSQXØENQDB@RSRØR@XØSG@SØTOSNØ
50 percent of direct online bookings will be made via mobile
devices by 2017.”
The Taj Group is strengthening its mobile footprint with
relevant sites and apps. Its luxury and Vivanta by Taj sites
are already responsive and the launch of the Gateway mobile
responsive site is due soon. Even more interesting is the way
mobiles can be leveraged to convert real-time customers —
for example, taking a decision on where to dine is an “onthe-go” decision. “To leverage this we are currently piloting
online F&B reservations (desktop and mobile) across a select
number of restaurants,” shares Ms Harris.
Other mobile tech initiatives are also under consideration.
October 2014
74 Tata Review „
its customers insights into the very
same digital world that it straddles.
One of the biggest sources of content
is the TCS Global Trends Study that
surveys 600-800 companies across
geographies and provides findings
on how companies and consumers
operate and behave in the digital
world. The study comes out twice
a year and covers topics such as
social media, big data, mobility,
convergence, etc.
“The study is a comprehensive
80-page report that throws up a lot of
interesting and relevant insights on
business and technology issues faced
by our clients. We slice it, dice it, and
package it with infographics and
interactive media. We use the info in
all our marketing channels — across
media, across geographies, across
businesses. Our sales teams use the
info to talk to potential customers.
Our businesses use the data to
market to their clients. They even
hold webinars and other customised
events around it,” says Mr Lenzen.
SOCIAL CONNECT
TCS is one of those companies that
has worked hard to create a comfort
zone in the digital space. From a
time about five years ago, when
the company was unsure of how to
market itself in social media, TCS
has arrived at a place where there is
a coordinated stream of messages
that populate popular platforms and
drive the brand marketing (see box:
Why TCS talks differently on social
media, Pg 75).
Digital marketing makes a lot of
sense for TCS because, as Mr Lenzen
explains, “We’re not an FMCG
company that has to address millions
of customers; our audience of current
and potential customer contacts can
be measured in the tens of thousands.
MARKETING
Our marketing is geared towards our
customers as well as our potential
recruits.” Youth and potential
employees are a big audience for
TCS and Twitter, FB and LinkedIn
are the prime channels for branding.
TCS has over 715,700 followers on
its LinkedIn page, making it one of
LinkedIn’s top content marketers in
India. Its FB page has 345,000 likes.
So successful is the social media
engine that at a recent TCS IT Wiz
(a quiz event organised by TCS for
school students across India), the
company recorded nearly 11,000 live
tweets in an hour at the auditorium,
with #TCSITWiz trending over
other popular news that day.
The most significant aspect of
social media is connecting with the
audience in the most appropriate way.
At Tetley in UK, the company has
revived an old and highly popular
campaign called Tetley Tea Folk and
these iconic cartoon characters are
now the Tetley brand ambassadors.
Tetley does not even have an official
FB page, instead it is the Tetley Tea
Folk who engage with visitors.
There is an implicit rider
to leveraging social media for
marketing: the content has to be
interesting and engaging. TGB’s
American coffee brand Eight O’
Clock Coffee, for instance, ran an
interesting contest on Pinterest
recently. Visitors had to put up posts
of what they would like as a gift and
the most creative posts would get a
$1,000 prize.
The contest was integrated
with Eight O’ Clock’s other social
media campaigns, and gathered
about 10,000 entries and likes. Good
Earth is another TGB brand that uses
social media extensively to promote
itself. “All of our brands have a
space on social media. Overall the
TCS talks differently on social media
TCS tailors its content marketing to suit
the channel and the audience. “In social
LDCH@ØVDØG@UDØLNUHMFØS@QFDSRØ@MCØRODBHÚBØ
strategies for each channel. We try to not
use the same content in the same way for
all channels,” global head of marketing John
Lenzen explains. TCS says that Facebook is a
channel where potential and current employees and customers
are present, yet it is not an appropriate channel for driving
business messages. “That’s not why people go to FB. That is
why FB is where we would talk about our CSR activities, etc.
The content is more about building the employer brand through
messages around sustainability and excitement.”
Twitter for TCS is a very dynamic platform. “Our business
customers are not yet using Twitter so much. So our messaging
GDQDØHRØLNQDØMDVRNQHDMSDCØ@MCØ@HLDCØ@SØHMÛTDMBDQRnØR@XRØ
Mr Lenzen. LinkedIn is where the business community resides.
“Business messages are acceptable and appropriate on
LinkedIn. The content is very business and thought leadership
oriented. It is also a great recruiting environment so HR has a
strong role to play in creating the content.”
biggest budgets are still in mass
media, but social media spends have
increased 5-10 percentage points
over the years,” says Mr Dash. TGB’s
experience over the last 5-6 years in
digital media is that though mass
marketing gives the highest return
on investment, digital is king when it
comes to engagement and advocacy.
This engagement is why social
platforms like Tata Tea’s Jaago Re are
using digital media to connect with
customers in spaces distant from
the marketplace. The Taj Group has
created platforms like Divas of Rock
and Urban Folk for the Vivanta by
Taj brand to create new connections
with consumers. Divas of Rock is a
platform to promote Indian female
rock artists and events are held
across four-five key Indian cities
that are hubs of art and culture.
Then there are active communities
which are fostered by the brand,
for example Taj Safari supports
communities for wildlife enthusiasts
which are curated by the company’s
naturalists on an ongoing basis.
If digital media has been a game
changer for marketers, it has been
followed very quickly by mobility.
Mobile marketing has become as
much of a mantra as social media,
especially in India where internet
penetration is not very high but
mobile telephony is. Mr Dash of
TGB says, “We are doing a lot of
work in e-commerce and mobile
phone apps, mainly in India. This is
not limited to smartphones because
even a SMS campaign gives you a
lot of reach. For the Jaago Re anticorruption campaign, we had tied
up with Airtel, which sent out more
October 2014 „
Tata Review
75
MARKETING
media…and we want to make sure
that our brand is seen as current and
relevant. Our mobile apps reflect
our capabilities and drive the brand
impression — that TCS has cool
capabilities and does cool things.
These apps also help drive our social
media engagement,” says Mr Lenzen.
than a million SMSes. People could
pledge to not give a bribe — this
was a two-way process with a call
to action that excited people. There
are intelligent ways of using mobiles
beyond smartphones.”
Titan too uses mobile marketing
as a strategic tool. “There are a
variety of platforms and tie-ups that
allow us to target mobile consumers
based on specific target profiles or
even within the geographic areas
around our stores, that automatically
send notifications and updates of
what is happening on the Titan
brand,” says Mr Amba.
The Taj Group has been
investing significantly over the last
few months in the development of
its mobile platform (see box: Why
the Taj is going ‘mobile’ friendly, Pg
74). Over at TCS, mobile apps are a
part of the marketing mix but in an
indirect manner. TCS has developed
mobile apps for the Indian elections,
the World Cup, the Rajasthan Royals
cricket team and various major
marathons including the TCS New
York City Marathon, and so on.
“We have a high interest in digital
and mobile applications, big data
analytics, apps that leverage social
October 2014
76 Tata Review „
DATA MINING
Another big trend that is driving
companies is big data and analytics.
Titan is sitting on one of India’s
largest customer databases (see box:
Why big data excites Titan Company,
Pg 76). Tanishq too uses big data
analytics as a part of its research.
“Tanishq as a brand has a very
wide reach. Our presence in more
than 160 cities definitely requires
us to take the big data analytics
route. It helps us with consumer
information and to understand the
market patterns. It also helps identify
the data that is most important to
the business and future business
decisions,” explains Ms Tewari.
TGB has been collecting data
across 20 geographies on a daily
basis. In India alone, they collect
data across 25-30 markets. The
data is collated every four weeks
and analysed for market activities,
customer satisfaction, advertising
efficacy, where the brands stand vis a
vis the competition, etc.
“There’s a lot of data mining that
happens and this helps us create new
marketing programmes and even
new brands. For example, customer
feedback told us that there was a
market need for a tea with extra
aroma and long leaves. This helped
us create the Tata Tea Gold brand,”
says Mr Dash.
VIRTUAL WORLD
A related market trend that also has
a huge impact on marketing is the
boom in e-commerce. As Mr Amba
of Titan puts it, “Retail players like
us are going to have to try even
Why big data excites Titan Company
Titan recently merged its customer
databases from across its businesses —
watches, eyewear, jewellery, bags, etc
— creating a single database of 11 million
customers from Titan, Tanishq, Eye+ and
Fastrack. “We are proud to have one of the
largest customer databases in the country.
With the merger of the consumer database across the Titan
Company, its size and potency has increased even further,”
says Rajan Amba, marketing and product head for India and
international markets. Titan’s database of customers is used
for focused marketing efforts, insighting, trends review, result
evaluation, surveys, feedback, and so on. And the company
says that there is tremendous scope for using this database
as a very powerful tool for furthering business. At the very
least, Mr Amba says, it could even become a revenue stream
by itself!
MARKETING
harder to match the conveniences
and benefits that e-commerce has
to offer. Over the next five years
we are going to see a much more
experimentative Indian, which
means that traditional brick and
mortar retailers like us will have to
be on our toes.”
But perhaps the most significant
change is that companies are
investing in not just talking to
and persuading consumers, but
also in active listening. For many
companies, listening leads to
engagement. Tanishq for example
uses social media as a tool for crowd
sourcing and co-creation (see box:
How Tanishq co-creates excitement
along with new products, Pg 77).
“Connect, collaborate and co-create
is becoming the ‘new normal’ to
engage with customers,” says Ms
Harris of the Taj Group, where the
marketing team uses listening not
just as a means of online reputation
management but also for co-creation.
The Taj has invested in listening
tools to monitor online chatter,
which derives insights that impact
both the marketing communication
and product and service offering.
And it’s a given that active listening
on sites like TripAdvisor are critical
for the business’s reputation. “There
is a lot of focus on ensuring that the
customer reviews are responded
to across various review sites and
other social platforms. This also
becomes an opportunity to cross sell
/ upsell the destination, hotel and its
services,” says Ms Harris.
With so much happening in
the digital universe, the marketing
paradigm has shifted into a new
space, one that Aldous Huxley would
perhaps call a ‘brand’ new world.
How Tanishq co-creates excitement
When Tanishq launched the Mia line of
jewellery for working women, one of the
unique campaigns that connected well with
customers was Mia ‘My Expression’, the
ÚQRSDUDQØBNBQD@SHNMØ@BSHUHSXØGNRSDCØAXØ
Tanishq. It was an open contest that aimed
to identify and reward the best creative
minds across the country. Participants had to submit an idea
for Mia jewellery. Tanishq received more than 10,000 entries
for the contest and the top 10 winning designs became a part
of the next Mia collection. The campaign is a win-win-win
solution, says head of marketing Deepika Tewari: customers
are engaged with the brand, Tanishq gets ideas for new
products, and the exercise gives the company deep insights
into what customers would like to see on the shelves.
— Gayatri Kamath
October 2014 „
Tata Review
77
PHOTOFEATURE
SYNERGY OF STYLE
Retail is much more than mere shopping. Many elements come together
in a retail store to tell the story of the brand, and to transform shopping into
an experience that is measured by customer delight. Sprawling floor plans,
well-designed interiors, the right kind of music and lighting, unique sets of
products, all make a huge difference.
The role of visual merchandising thus becomes very critical to the whole
journey, which helps to create the desired environment for the brand
through which it engages with the end consumer. At Westside stores, visual
merchandising has gained an international flavour in the last few years with
more trendy and energetic brands hitting the shelves.
Text: Shilpa Sachdev
Photographs: Westside
October 2014
78 Tata Review „
PHOTOFEATURE
STRIKING DISPLAYS
Westside follows a quarterly calendar
for its visual merchandising exercise
with display changes scheduled
for every month. Within the chosen
theme for the quarter, the collections
displayed in the windows, tables
and mannequins change once every
fortnight.
Window displays require a lot of
thought because they grab the
H\HEDOOVÀUVW7KHGLVSOD\VKDYH
October 2014 „
Tata Review
79
PHOTOFEATURE
to be effective enough to entice the person walking
outside to step into the store. Brands in the window
display are rotated according to the trading calendar.
Mannequins are scattered throughout the store and
showcase the designer collection for the season.
In a year, Westside showcases two spring-summer
and two autumn-winter collections, for which photoVKRRWVWDNHSODFHPXFKLQDGYDQFH7KHFROODWHUDO
display in the store changes every season as and
when the new collection gets launched.
October 2014
80 Tata Review „
PHOTOFEATURE
SHOWCASING BRANDS
Westside has several sub-brands in its fold. In
tune with the DNA of the brand and what the
brand stands for, the collection is put together
for each sub-brand at the end of every quarter.
7KHNH\SLHFHVIURPHDFKFROOHFWLRQWKDWQHHGWR
be highlighted are displayed in the focus areas
like window displays, mannequins and front
tables. For eg, Nuon is a very edgy and trendy
brand so the section is treated with a brickwall
background with dangling lights to give it an urban
loft-like feel. Other women’s brands like Gia,
LOV, Wardrobe and Sassy Soda have a different
background according to the persona they convey.
“
7KHLPSRUWDQW
part of visual
merchandising is to
create an environment
that connects with the
customer psyche. Every
sub-brand will have a
different environment.”
— Vijay Kumar, head of visual
merchandising at Westside
Under the men’s section too, the environment
changes from one sub-brand to another. From
$VFRWDIRUPDOEUDQGWR(7$ZKLFKUHÁHFWV
relaxed clothing, to Nuon and Westsport, both
energetic brands, each environment is designed
WRJLYHDIHHORIZKDWWKHEUDQGVWDQGVIRU7KH
footwear and accessories section are not treated
in isolation — they blend with the visual design
of the clothing brands. For the home section,
the focus is on maintaining a wave of colour,
and putting together a holistic view of the space,
interspersed with either a cushion wall or an
ethnic display to add a visual spurt.
7KHDFWLYLW\RIUHIUHVKLQJWKHGLVSOD\VDQG
dressing up the store is executed either early
in the morning before the store opens, or late
at night, before the store closes. No activity
takes place on weekends to avoid disturbing
the shoppers.
A great retail experience is one that touches all
the senses of the customer — sight, hearing,
VPHOOWRXFKDQGIHHOLQJ7KHWHDPDW:HVWVLGH
enhances this experience through effective
visual merchandising so that the customer feels
privileged to shop with the brand.
October 2014 „
Tata Review
81
COMMUNITY
Hope and a helping hand
To address the problems faced by India’s mental
healthcare sector, Tata Trusts are working with
TFWFSBMOPOQSPÙUTJOTFUUJOHVQDPMMBCPSBUJWF
community-based care models and tertiary care
institutions to extend timely medical care
D
ishevelled and unkempt,
28-year-old Malati (name
changed) was found
wandering the streets of
Pune with no recollection of how
she came there from her home
hundreds of kilometres away in the
state of Chhattisgarh. When Maher,
a Pune-based nonprofit that works
with destitute women, children and
men found her, she was extremely
unwell with overt symptoms of
schizophrenia. With the support
of Parivartan, a nonprofit that has
worked in the area of mental health
for several years, Maher arranged
for Malati’s treatment and helped
rehabilitate her back into the
community. Today, Malati is much
better, works at a local mall, has
been reunited with her family and
supports them financially through
her earnings.
India’s urban and rural spaces
are filled with thousands of patients
October 2014
82 Tata Review „
like Malati, who are often on
the streets because they have no
caregivers. Unlike others, Malati
was slightly more fortunate — she
received timely help, both medical
and social, that helped her recover.
Mental healthcare in India is
riddled largely by inadequate medical
and professional services, most of
which is provided through an out
of pocket payment based system
in the private sector. Lack of access
to treatments is a huge problem,
compounded by ignorance, negative
attitudes and social stigma, that often
leads to discrimination, ill treatment
and violation of human rights.
There is also a need to examine
alternative methods of making
mental hospitals more responsive
to the needs of those suffering from
severe mental disorders. To reach
out to people in need, Tata Trusts
have partnered with nonprofits like
Parivartan and Sangath, who are
working tirelessly in this space.
One initiative that caters
to people like Malati is Incense
(integrated community care for
meeting needs of vulnerable persons
with severe mental disorders). The
Incense initiative is based on the
idea of collaborating with mental
hospitals to implement services
that are need based, contemporary
and locally relevant. Incense is
thus implemented as a partnership
between Sangath, Parivartan, the
Regional Mental Hospital (RMH) at
Yerwada, Pune and the Lokopriya
Gopinath Bordoloi Regional Institute
of Mental Health in Tezpur, Assam.
The Tata Trusts have provided a grant
of `30.38 million to Parivartan and
`31.9 million to Sangath, to build
such effective intervention models
for the mentally ill.
Parivartan, also hosts and is
the hub for community based Jan
Man Swasth Programme (JMSP)
to address the mental health needs
of people with ‘priority’ disorders
like psychosis, depression, epilepsy,
problems due to alcohol abuse
and suicide prevention. There are
currently six such sites where the
JMSP is being implemented by the
following partners — Ashadeep
and ANT in Assam, the Foundation
COMMUNITY
for Research in Community
Health (FRCH) and Parivartan in
Maharashtra, the Jan Chetna Manch
in Jharkhand and the Ramakrishna
Mission Hospital at Varanasi.
The Tata Trusts have funded this
programme by enabling grants to all
these agencies.
Dr Sudipto Chatterjee, a
psychiatrist by profession, is the
programme director. He has a vast
body of knowledge and experience in
the field of mental health. Ashagram,
the first community-based mental
health programme in the country,
was started by him. Dr Chatterjee
and co-programme director Dr
Hamid Dabholkar, a psychiatrist
and founder member of Parivartan,
oversee the management of the
Incense and the JMS programmes.
A NETWORK OF SUPPORT
The JMS programme’s aim is to
establish and evaluate a communitybased care system for those affected
by mental disorders. Tasneem Raja,
senior programme officer, health, at
the Tata Trust, explains the objective:
“While we have funded several
mental health initiatives in the past,
we realised that much more work
was needed. We wanted to create
something that would impact a
large number of people. The aim of
this intervention is not merely to
treat the disorder but to restore the
person back to as much functionality
as possible, which means you must
have livelihood and adult literacy
linkages, along with other support.
The intervention is hence based on
a development context rather than
only a medical context.”
The programme aims to
advocate and facilitate the systemic
integration of mental healthcare
services within the public healthcare
From top: At the primary health centre in Limb village, Satara, two women
discuss their cases. Roopali Bhosale (standing) programme coordinator and
master trainer, Parivartan team, with three community health workers
system. At one of the sites in Satara
district, Parivartan works with several
Primary Health Centres (PHCs) in
integrating mental health services
within the existing public health
system. On an average, one PHC in
the district serves approximately 22
villages with a total population of
around 46,000 people. Each PHC
has only two medical officers who
alternatively visit the PHC every three
weeks. They work with nearly 40-60
patients every day. On an average
they come across 3-4 people who
have some form of mental disorder.
The team has developed an
intervention package of community
based psycho social rehabilitation
and they train doctors and
community health workers to help
identify people with severe and
common mental disorders (like
depression and anxiety) so that they
can get timely help and medical
intervention. The community
health workers also organise health
awareness talks in villages and make
home visits, as necessary. They
October 2014 „
Tata Review
83
COMMUNITY
also reach out to those suffering
from epilepsy and alcohol-related
problems.
Sultana Mulani, a community
health worker who has been
trained by Parivartan, explains
the challenges of the task: “Earlier,
people would not be forthcoming
if somebody in their family had
a mental disorder. Many of them
would chain or lock up the patient
if there was no one at home to look
after him or her. But slowly this is
changing. Because of our healthcare
awareness programmes in the
villages and after seeing the benefits
of medical treatment, people are
seeking our help and intervention.”
The JMSP faces huge challenges
and obstacles, not the least of which
is social resistance. Making systemic
changes is not an easy task.
Yet, what keeps the teams
going are the success stories like
that of Malati and the others, whose
lives have changed for the better.
Eventually, JMSP will scale up these
intervention programmes across
the country, every 100,000 people
per site.
PACKAGE OF CARE
The Incense programme works
with three of the most vulnerable
categories of people with severe
mental disorders: long stay residents
of mental hospitals (those who have
been in a mental hospital for more
than one year); homeless mentally
ill persons and patients living in the
community who do not have access
to medical treatment and care.
After an initial review of 669
long stay patients, the Incense team
at Pune identified 200 patients
who would receive comprehensive
intervention. The team’s effort has
been to improve the quality of life of
these people, many of whom have
lost basic life skills because of their
isolation from the outside world.
Dr Dabholkar explains: “We
have developed packages of care
which includes leisure and livelihood
activities, psycho education,
farming, etc and started re-skilling
those suffering from moderate
mental illnesses. We have been able
to reach out to nearly 100 people
from both sites and have managed to
rehabilitate them, either in their old
job or in a new job.”
Shamika Bapat, a psychiatric
social worker from Parivartan who
works on this project, adds, “Once
the patients feel better, we educate
Long stay ward at the Yerwada mental hospital in Pune
October 2014
84 Tata Review „
them on the importance of taking
regular medication, symptom
management, relapse management,
along with life skills such as handling
money, using a mobile phone, etc.
We try to develop their livelihood
skills through activities like making
paper gift bags, handmade paper
diaries and clay beads.” These
creative activities may not bring in a
significant income, but have a great
therapeutic benefit.
The team in Pune has also set up
a separate long stay and transit ward
within the Yerwada mental hospital
campus, with help from the hospital
authorities. While the civil work for
these wards was undertaken by the
hospital, refurbishment was done
through the grant received from the
Tata Trusts.
The long stay ward can
accommodate around 60 patients
who have been identified and will
soon be shifted there. Here they will
be further skilled and trained for a
livelihood based activity. Some of the
patients will move to the transit ward
— a bright and cheerfully painted
room — which is a preparatory
stage before they move out into the
community. Even that will be done in
stages, with the patients first moving
into a community home where
they will learn to lead independent
lives and later making the attempt
to reunite with their families and
integrate back into the community.
HOMELESS BUT NOT ALONE
The Incense programme also works
with homeless mentally ill persons
across both Pune and Tezpur. The
project offers direct counselling and
medical treatment by taking the help
of local authorities such as the police
and the community. The afflicted are
taken to the nearest mental hospital
COMMUNITY
for treatment. Once they show signs
of improvement, the programme
staff works with organisations like
Maher and others to help stabilise
and rehabilitate them further. In
many scenarios, contacting families
is possible. The programme engages
with the individual and family to
facilitate the person moving back
home with adequate support to
address some of the challenges
that led to homelessness in the first
place, most commonly unbearable
financial strain.
The challenges are many —
patients are non-cooperative because
they fear being confined in a mental
hospital; communication is difficult
since some of the patients come from
different states and do not speak
the local language; family members
cannot be traced or are unwilling to
take in the patient; and so on.
The homeless are the worst
off — especially women, many of
whom have been physically and
sexually abused. Many suffer from
other serious illnesses because they
have been neglected and uncared for.
The Parivartan and Sangath teams
are currently working with about
40 such people in Pune and 24 in
Tezpur respectively.
The final component of
the Incense programme is a
collaborative, multi sectoral method
of extending need-based services to
people with such disorders living in
the community. This is provided in
collaboration with the hospitals at
Tezpur and Pune through trained
and supervised non-specialist health
workers who provide home-based
care, information to manage the
illness better to the individual and
the family, encouraging compliance
with medical treatments, access
to employment, social support,
Community housing for women
From left: Shamika Bapat, social worker at Parivartan with two
homeless women who found refuge and hope at Unnati Niwas
The Parivartan team at Pune managed to move out a few women
patients from the mental hospital to Unnati Niwas, a community
home funded by the Trust. The home provides these women with
a safe place to stay, one with a warm atmosphere and where they
have a little more freedom. There is a supervisor who ensures
that the patients take their medications regularly to keep their
illness in check. Currently four women live here, two of whom
have got jobs, while the other two manage the house chores.
Fifty-year old Sarita Lajput (name changed), one of the
VNLDMØKHUHMFØHMØSGDØGNLDØL@JDRØNEÚBDØÚKDRØ@ØINAØVGHBGØRGDØHRØ
proud of and for which she gets paid. “I am very happy here. It
is much better than staying in the hospital where I had to do a
lot of menial chores,” she says. Thanks to the Parivartan team,
these women lead near-normal lives. The team has also helped
these women get Aadhar (unique identity) cards, open bank
@BBNTMSRØ@MCØL@HMS@HMØÚWDCØCDONRHSRØØ
financial and social inclusion.
Dr Dabholkar appreciates
the support and role that the Tata
Trusts have played. “The Trust has
been with us from the start — right
from selection of the sites, the NGO
partners, developing the framework
to giving us the required funds
and being flexible in the use of
these funds. The support has been
phenomenal — they have invested
into the dream and the idea.”
For the millions of patients
suffering from mental disorders
in India, the Incense and JMSP
initiatives offer a ray of hope. These
programmes don’t just work to bring
about a systemic and sustainable
change in the mental healthcare
sector but also ensure that help is
available and accessible to those in
need.
— Jai Madan
October 2014 „
Tata Review
85
COMMUNITY
Grandma learns
the letters
Women’s literacy centres of Tata Power Delhi
Distribution have empowered more than 12,000
XPNFOUPMJWFXJUIEJHOJUZBOEDPOÙEFODFUIVT
far, with more joining the ranks each day
B
eena Rani sits amongst her
grandchildren, not in her
role as a grandmother but as
a student. The trim 60-yearold has learnt the letters and numbers
— thanks to the classes at Tata
Power Delhi Distribution’s (TPDDL)
women’s literacy centres (WLCs) —
and never loses a chance to practice
them. She completed her course at
the WLC in Patrasar Colony jhuggi
jhopdi (JJ) cluster or slum colony.
The people living in the JJ
clusters are some of the poorest
of the poor in Delhi. The clusters
lack basic amenities such as sewage
lines, regular water supply, proper
paths, etc; however, they have
electricity provided by TPDDL. The
company supplies power to North
and North West Delhi. The 218 JJ
clusters in its area of operations are
the focus of TPDDL’s community
activities. The literacy classes, a part
October 2014
86 Tata Review „
of the company’s corporate social
responsibility (CSR) activities, are
conducted by TPDDL employees
with commitment that goes beyond
mere volunteering or CSR.
“We don’t see it just as a CSR
programme or a literacy initiative, but
a women empowerment project. We
drive this with as much passion, or
more, than we do our operations or
technology processes,” avers Praveer
Sinha, CEO and executive director,
TPDDL.
A JUMBLE OF SHAPES
In 2006, when TPDDL conducted
a need assessment study in JJ
clusters, women’s literacy came
up as the biggest need of the hour.
Illiteracy added to the sufferings of
women who were already subject
to chronic poverty and genderbased disadvantages. Women
lacked a voice and respect in their
family and community. They were
rendered immobile due to illiteracy
and needed escorts to step out of
their homes since bus numbers,
signboards on roads, destination
signs on buses, etc were just a jumble
of shapes for them. Keying in the
numbers on a mobile phone was
a task which terrified them. Wily
grocery shopkeepers short-changed
COMMUNITY
them of their hard-earned money.
Unable to sign, they put thumb
impressions on documents. The
company’s WLCs have transformed
the lives of these women in more
ways than one. TPDDL started with
two centres in 2007; the number
stands at 290 now, and is set to
increase to 500 in 2015-16. The
centres are run with support from
three NGO partners — Dhanpatmal
Virmani Education Trust (DVET,
251), Sahyog Care for You (28) and
Prayas (11) — which are funded
by the company and with whom it
shares an integrated relationship.
TPDDL decides the JJ cluster
where a WLC has to be set up and
then the NGO conducts a survey
in the area and selects a lady with
education up to class 10 or 12 from
the community as the instructor.
The class is held at the instructor’s
residence, which is little more than
an 8 x 8 feet room, accommodating
15-20 beneficiaries. The NGOs decide
the remuneration based on factors
such as utilisation of the residence,
electricity consumption, etc.
BACK TO THE BLACKBOARD
Each centre teaches women in
two groups of 15-20 each. The
classes are for 1-1.5 hours daily, six
days a week, and the course is of
six months duration. The centres
operate from noon to 5pm. The
beneficiaries, mostly domestic helps,
decide the time as per their personal
convenience — after husbands go to
work, children go to school and they
complete their chores.
Learning the letters and numbers
becomes easy and interesting for the
women with the Computer Based
Functional Literacy (CBFL) program
developed by Tata Consultancy
Services (TCS). CBFL is an animated
audiovisual software that provides
basic knowledge of numerals,
alphabets and language in a lucid
and simple manner, and requires
minimal intervention from the
teacher. CBFL has to its credit the
distinction of enabling functional
literacy in 40-45 hours. An adult
education book developed by DVET,
based on content by Jamia Millia
University, is also a handy accessory
to enabling literacy. A small library
with about 40-50 books is set up at
each centre with a subscription to
a Hindi newspaper, which serve as
follow-up support. The beneficiaries
come back at leisure to borrow
books or read the newspaper after
completing their course.
Instructors undergo a one-day
training programme, which is jointly
conducted by TPDDL and TCS at
TPDDL’s training centre, followed
by monthly training sessions. TCS
also supports the programme by
providing recycled computers
to each centre. Apart from basic
training in operating computers
and CBFL, the teacher is trained on
how to organise classes; identify,
approach and convince women;
and persuade family members — a
difficult task in the male-dominated
Oblivious of their surroundings, mothers become attentive students as instructors go over their notebooks
and explain the letters on the audiovisual software
October 2014 „
Tata Review
87
COMMUNITY
“WLCs are social engineering
programmes. They do not come with a
sunset clause of five or 10 years.”
Praveer Sinha, CEO and executive director, TPDDL
October 2014
88 Tata Review „
A NEVER-ENDING JOURNEY
Another interesting add-on is the
‘Earn While You Learn’ scheme.
During the training session at
the beginning of each month, the
instructors or brand ambassadors
are given a list of 100 defaulters
in the vicinity of their centre.
The brand ambassadors counsel
defaulters on the pitfalls of not
paying bills. Their efforts often
convert a significant number of
defaulters into paying customers.
Against each fully paid bill, the
Women’s literacy centres: the growth story
18,000
17,400
16,000
14,000
290
250
12,000
161
8,000
6,000
4,000
0
200
9,000
10,000
2,000
300
150
3,249
1,359
819
18
12
FY 09-10
FY 10-11
1,959
100
75
50
20
FY 11-12
/PPGCFOFÙDJBSJFT
FY 12-13
FY 13-14
FY 14-15*
No of centres
0
No of literacy centres
WHEN THE SHAPES BEGIN
TO MAKE SENSE
Once women realise the benefits
of becoming literate, they become
ardent students and supporters,
and family members’ votaries, of
women’s literacy. Mukesh Rana says,
with more than a touch of pride,
“She (wife Milan Devi) has gained
confidence to sit at our shop. Her
speech has become refined and she
knows how to speak to customers.”
Mukesh and Milan Devi Rana are the
parents of Pinky Rana, an instructor
at the WLC in Patrasar Colony. Mrs
Rana, a reluctant student, had started
attending classes at her daughter’s
house after she saw the huge turnout.
WLCs are witnesses to heartwarming tales of empowerment
unique to each beneficiary. Anju
Wadhwa, programme manager,
DVET, recounts, “At one of the
centres, an old lady just wouldn’t
stop smiling after she saw her name
etched out for the first time in
letters she had written.” A 60-yearold beneficiary now feels confident
enough to take up dancing and
singing classes. Another 60-yearold confessed to Mr Sinha at the
annual day, “I depended on my
mother-in-law to recite the mantras
for the karva chauth pooja. She was
reluctant to teach me the prayers.
After attending classes, I can read
my own prayers.”
As Mr Sinha points out,
“WLCs are social engineering
programmes. They do not come with
a sunset clause of five or 10 years.”
And hence, TPDDL is constantly
innovating to come up with better
No of beneficiaries
JJ clusters where family members
discourage aspirants with comments
such as “tumhe kaun sa collector
banna hai 50 saal me” [It’s not like
you will become a district collector
at 50 (after becoming literate)].
Resistance is overcome through
personal visits to beneficiary homes
by instructors, rallies, putting up of
banners and posters, etc. A proactive
role is played by the corporate
communications department in
enabling, enhancing and expanding
the reach of the WLCs across the
JJ clusters. “At TPDDL, we have a
robust CSR communication strategy
focused on creating beneficial
engagements within the communities
in which we operate,” says Ajey
Maharaj, head of department,
corporate communications.
add-ons to the programme. After the
WLC programme was in full swing,
the TPDDL team came up with a
value addition and declared centre
instructors as brand ambassadors.
The ambassadors are the first
TPDDL touch points in JJ clusters,
providing information about various
CSR programmes such as the mobile
dispensary, vocational training
centres, de-addiction camps, tutorial
centres, WLCs and the unique
`0.1 million accident insurance
scheme for a consumer who pays
bills regularly — the company pays
the insurance premium. The brand
ambassador is paid a designated
amount for her services.
COMMUNITY
ambassador is paid `100, and `50
against a partially paid bill. Recently,
a brand ambassador earned `7,000,
the highest amount paid by TPDDL.
As Mr Sinha explains, “Although
the programme is not driven by
business imperatives, it has resulted
in significant improvement in
collections, from `50 million to
`1 billion annually.”
Bill collection and bill
distribution by brand ambassadors
have also been started on a trial
basis in a few locations, with plans
to increase the coverage in the
future. The WLC beneficiaries
are encouraged to form self-help
groups (SHGs), which are linked to
banks, enabling members to set up
bank accounts and avail of financial
assistance later. There are 190 SHGs
in operation, which have opened
accounts in various nationalised
banks. Children of WLC beneficiaries
have access to many other CSR
programmes of TPDDL such as
tutorial classes from standard 1 to
standard 10 and vocational training
(VT) in various trades at the eight
existing VT centres.
WLCs are major milestones in
the company’s CSR journey and have
created a ripple in the community,
the effect of which will be felt by
generations to come — as the wellknown adage says “If you educate a
woman, you educate a family.”
“TPDDL’s CSR initiatives are
never static; they are constantly
evolving. We work hard to come up
with new and improved programmes
to enrich the lives of communities
around our area of operations,” says
Dileep Kumar, general manager and
head of department, corporate social
responsibility.
‘I am very happy now’
Heartfelt feelings of beneficiaries find expression
in letters to the CEO of Tata Power Delhi
Distribution on completion of the literacy course.
A loose translation of a letter.
Sir,
I am a student at the adult literacy centre. I am happy
at being able to study at this centre. Now I am able to
correctly calculate the change the shopkeeper owes me.
Earlier I used to accept whatever he said he owed me. I
am very happy now.
Thank you,
Gyanthi Devi
In the beneficiaries’ words
“We were ashamed to take our mother to school during
parent-teacher meetings and took someone who knew how
to sign and presented her as our mother. Now I am proud
to take my mother to school as she knows to sign.”
— Kanchan Singh
“I used to put thumb impressions on documents. Now, I
have learnt to sign in English and Hindi. We were buffaloes
earlier. The literacy programme has made us humans.”
— Anju S
“I am able to add and subtract and give customers the
correct change.”
— Milan Devi Rana
“I have learnt how to use the mobile phone and can call
up and talk to my mother at will.”
— Poonam Singh
— Shalini Menon
October 2014 „
Tata Review
89
PERSPECTIVE
Playing it safe
For Tata companies across the globe, improving safety
standards at the workplace is assuming top priority
A
round ten years ago, Corus
(rebranded as Tata Steel in 2010)
adopted a policy of ‘zero harm’,
aiming to prevent workplace
accidents altogether. Andrew Page, director of
health and safety for Tata Steel group, explains
that, while legal and moral issues are highly
important, the company also thinks about
safety in a proactive, value-creating way. “It
is incredibly important to us that we operate
reliably,” he says, “and operating reliably
means we are operating safely as well.”
The company has now set the European
benchmark where safety is concerned. Not
just other steel companies but companies
from other sectors with hazardous working
conditions are looking to learn from Tata
Steel.
A key role in that success was played by
Ashorne Hill, the Tata Steel trust established
to provide education for employees of Tata
Steel and, increasingly, of other businesses.
Ashorne Hill helped to embed new safety
Morgen Witzel is an internationally known writer, lecturer
and thinker on the problems of management. He is
the author of more than twenty books, including the
bestsellers Tata: The Evolution of a Corporate Brand
and Doing Business in China. He is also a fellow of the
Centre for Leadership Studies at the University of Exeter
Business School, United Kingdom.
October 2014
90 Tata Review „
standards and then provided training
programmes to cascade those standards down
through the company and build a culture of
safety. “Tata Steel fundamentally changed
attitudes to safety,” says Chris Rowles, director
of learning solutions at Ashorne Hill. “Safety
is no longer something you have to do; it is
now the first thing you consider. That culture
changed right through the organisation.”
SPREADING THE STANDARDS
The rest of the Tata group is determined
to learn from Tata Steel and continually
improve safety standards right across the
group. Mr Rowles and his team are working
with Tata Quality Management Services
(TQMS) in Pune to help disseminate the
zero-harm approach. They have already run
programmes for the construction industry
‘vertical’, a cluster of five firms including
Tata Housing, Tata Projects, Tata Realty and
Infrastructure, Voltas (the air-conditioner
and refrigerator maker) and Tata Consulting
Engineers. The construction industry in India
is notorious for its high accident rates, and
Tata is determined to continue to improve
standards. Companies often adopt higher
safety standards to bid for work in Europe or
the US, where excellent safety performance is
essential to a successful bid.
PERSPECTIVE
As a first step, TQMS developed six
standards relating to workplace safety:
an electrical-safety standard, a fire-safety
standard, a working-at-height standard
(for work conducted on ladders, scaffolds
and cherry pickers), a lockout-tagout
standard (which regulates safety when
working with sources of energy), a job-safety
analysis standard (setting standards for risk
assessment and control across the board)
and finally a contractor safety-management
standard that ensures contractors and subcontractors will abide by the same standards.
This final standard is particularly important
in India, where contracting out of work is the
norm and contractors and sub-contractors
use a lot of transient workers. Getting these
workers to accept the need for higher safety
standards requires a holistic approach.
Mr Rowles and his team ran workshops
for the five companies in the vertical, helping
their CEOs to come to terms with the issues
of culture change and helping them to
develop strategy maps for their organisations.
These programmes were run for executives at
the very highest level, since their leadership
and support is crucial; if members of the top
team buy into the new safety culture, they are
in a position to disseminate it through the
rest of the organisation. TQMS subsequently
organised a forum to allow the companies
in the vertical to liaise with each other,
benchmark best practices and develop new
ways of working safely.
The key issue in any organisation, says
Mr Rowles, is to work out how to inspire
culture change. The onus should be on
individuals to think proactively about safety at
all times: abiding by the legal minimum is not
good enough. That culture is relatively new in
Europe; the task is often to help establish it on
a global basis.
IN FOR THE LONG HAUL
There is a huge amount of work involved
in bedding down safety standards in any
organisation. Culture change is one of the
hardest things to achieve, and it is even harder
If members of the top team buy into the
new safety culture, they are in a position to
disseminate it through the organisation.
when the change programme crosses national
and cultural boundaries. Often this involves
addressing some very fundamental ways of
thinking and working. Ashorne Hill’s methods
for achieving culture change are based on
two principles: (1) that, if the CEO supports
change, it will happen, but (2), even so, change
will take a long time. It might take another ten
years for these standards to bed down and a
zero-harm culture to take root, and CEOs and
senior managers will have to work very hard
to support change in their own cultures. This
is a fascinating case study of the importance
of culture change — one that will interest
companies in many sectors and with many
different cultural issues to confront.
And, of course, there is the hope that,
if Tata companies set new safety standards,
other construction companies will follow suit.
The impact, in terms of injuries prevented and
lives saved could be enormous.
This feature was originally published in Tata
Europe’s Perspective magazine, Issue 1 2014.
October 2014 „
Tata Review
91
BOOKS
The greatest company in the world?
The story of Tata
Excerpts from a book by Peter Casey on how the family-owned Tata
group evolved into a leading global company
before. His passion fuelled a new type
teve Jobs was passionate about
of travel as well as the expansion of the
creativity and innovation, a
Tata empire.
combination he parlayed into
Ratan Tata is passionate about what
Apple, which has designed
he believes in,” Tata Sons executive
revolutionary products. Mary Kay Ash,
director R Gopalakrishnan says. Where
founder of Mary Kay Cosmetics, was
previous leaders had outside interests,
passionate about cosmetics as a means
Ratan was more focused on doing
of making women feel good about
what is best for the company. He was
themselves. George Eastman, consumed
passionate about his work, reliant on his
with photography from a very young
capable staff, few of his decisions ever
age, founded Eastman Kodak Company.
required more than forty-eight hours to
Jamsetji Tata was also passionate, but
make.
his passion stemmed from a deep desire
Cyrus Mistry is also passionate and
to change his part of the world. It was his
has begun making hard decisions about
life’s mission.
how to improve performance of some of
Unlike most entrepreneurs, Jamsetji
the Tata units.
started a business as a way to make
Entrepreneurs who are passionate
other things possible, not because
about what they invest their time in
he was particularly inspired by cotton
stand out. Their enthusiasm for their
or textiles. He was passionate about
work is evident in how they walk,
excellence, however, which he applied to
how they talk, the expressions they
every aspect of his life.
use, and how engaged they are with
It was passion that drove him to
others. Their enthusiasm
build the best business
is contagious, even when
possible, providing the best
they are discussing subjects
care and opportunities for
unrelated to their business.
employees and generating
They have about them an air
the most revenue possible
NEØBNMÚCDMBDØ@MCØONRHSHUDØ
qØTKSHL@SDKXØSNØADMDÚSØSGDØ
energy.
surrounding community.
It is clear that the leaders
The same level of
of Tata were passionate about
passion was also evident
their work — not how they
in JRD Tata, who found
made money, but how they
a way to merge his love
used the money they made to
NEØÛXHMFØVHSGØGHRØE@LHKXlRØ
Author: Peter Casey
serve those around them.
growing enterprise.
Publisher: Penguin
Stories continue to
Founding an airline that
Group, 2014
circulate about how Jamsetji
provided a mail service and
Pages: 230
Tata approached experts to
then a passenger service
Price: `599
ask for their help in bringing
connected India in a way
about major changes in India.
that had not been possible
S
October 2014
92 Tata Review „
BOOKS
One such anecdote involves Charles
Page Perin, an American metallurgical
engineer tapped by Jamsetji to help
build a steel plant in India. In describing
SGDHQØÚQRSØLDDSHMFØ/DQHMØQDB@KKDCØk(ØV@RØ
ONQHMFØNUDQØRNLDØ@BBNTMSRØHMØSGDØNEÚBDØ
when the door opened and a stranger
in a strange garb entered. He walked in,
leaned over my desk and looked at me
fully a minute in silence.
Finally, he said in a deep voice, “Are
you Charles Page Perin?” I said, “Yes.”
He stared at me again silently for a long
time, and then slowly he said, “I believe I
have found the man I have been looking
for. I want you to come to India with me,
SNØÚMCØRTHS@AKDØHQNMØNQDØ@MCØBNJHMFØBN@KØ
@MCØMDBDRR@QXØÛTWDRØ,QØ*DMMDCXØVHKKØ
build the steel plant wherever you advise
and I will foot the bill. Will you come to
India with me?”
k(ØV@RØCTLAENTMCDCØM@STQ@KKXlØ
/DQHMØ@CLHSRØk!TSØXNTØCNMlSØJMNVØVG@SØ
character and force radiated from Tata’s
face. And kindliness, too. “Well,” I said,
“yes, I’d go.” And I did.’
Jamsetji had that effect on people.
His passion for his life’s work radiated
from him, drawing others in support of his
work.
Much the same can be said of the
Tata leaders who succeeded him. Thier
personal commitment to their work
attracted others who supported their
altruism and philosophy. Who, after all,
could argue with a man who wanted
only what was best for his nation and its
people?
CK Prahalad: The Mind of the Futurist
Excerpts from a book that provides rare insights into the life and
teachings of management guru CK Prahalad
T
he Tata-CK romance started when
CK caught the Tata’s attention
when he estimated India’s market
size at 600 million, larger than
that of China; which made him wonder
why Indian business houses were making
such a big fuss about threat from foreign
competition. There was enough for
everyone if right products at right prices
were offered in the domestic market itself.
Ratan Tata said he was highly inspired
by his view. He remembers another of
CK’s statements that got him thinking —
“The world is your market, why limit your
imagination only to India?”
Mr Tata insists he was one of the
few who welcomed foreign competition
at all times and was not a party to the
!NLA@XØ"KTAlRØCDL@MCRØENQØ@ØKDUDK
OK@XHMFØÚDKCØ'DØR@HCØm(Ø@KV@XRØEDKSØSG@SØ
the Indian customer needed to choose
consumer products, automobiles, living
accommodation, etc. And that only
competition would drive industry. There
was a great deal of opposition for letting
that happen because people wanted to
continue protectionism.”
It’s interesting that the timing of the
CEO Forums in Mumbai from 2000 to
2009 and the Tata group’s aggressive
global acquisitions were around the same
period. In a way, the forum inspired many
Tata senior executives to stay on the
path of massive global expansion. The
ENQTLØ@BSDCØKHJDØ@ØkRBGNNKØENQØSGHMJHMFØ@MCØ
acting big’ on the back of which Chairman
Ratan Tata launched what seemed like
outrageously ambitious global acquisition
plans — Tetley in 2000, Daewoo Motors’
commercial vehicle business in 2004,
Corus Steel in 2006 and Jaguar Land
Rover in 2008.
October 2014 „
Tata Review
93
BOOKS
innovation, it has to be the environment
These were among the 35 or so global
that you create and the openness of the
acquisitions the Tatas made since 2000.
environment. I think Prahalad succeeded
It’s quite likely that Tata senior executives’
in opening people’s eyes to that.”
network with CK made it easier for them to
translate Ratan Tata’s vision into action on
Hitting at the Bottom of the Pyramid
the ground.
In his celebrated book The Fortune at the
It’s interesting that between 1991 and
Bottom of the Pyramid (Prahalad, 2005),
2013, the Tata group metamorphosed
"*Ø@QFTDCØSG@SØSGDØ!N/ØRDFLDMSØVNTKCØ
from an Indian conglomerate to a highly
indeed be unviable so long as companies
respectable global entity. Its 100 or so
do not change their business models; but
companies generated revenue in excess
if they are willing to relook at how they
of $100 billion in 2013 and had a market
need to address this segment (sometimes
capitalisation of close to 100 billion in
through adaptation; sometims through a
September 2013. Ratan Tata regularly gets
completely new business model), then a
ranked as the most respected business
fortune awaits them. The fortune arises
leader in India by almost all surveys run
from the sheer numbers in this segment.
by newspaper and magazines for nearly a
decade.
Co-creation
Ratan Tata said he was “…very
The next big contribution by CK has been
impressed by the perspective and the
his idea of co-creation developed jointly by
statesmanship CK brought into the
Venkat Ramaswamy and presented in their
meetings and how he pushed the thinking
book The Future of Competition published
one way or the other without imposing his
in 2004. They argued for a changed line
viewpoint and setting milestones and gate
of thinking about the customers to be
posts along the way.”
marketed to.
3NØ@ØPTDRSHNMØNMØSGDØHMÛTDMBDØNEØ
The new idea was to move away from
management consultants or gurus on
just catering to their needs to involving
the Tatas, Mr Tata said management
them in the different stages in the value
consultants by and large focus on
BG@HMRØNEØSGDØOQNCTBSØRS@QSHMFØEQNLØSGDØ
structures. “Prahalad was different; he
design of the product, to its
focused on widening your
distribution and delivery and
imagination, in fact, in
after sales service.
achieving certain things that
They called it a movement
were not in the box. And
from customer satisfaction
he encouraged thinking out
to creating a new customer
of the box. Anybody could
experience. This involved a
argue with me that most
different way of thinking by
management consultants
organisations; willingness
want you to go into the box,
to engage in a dialogue with
their box. I think Prahalad
the customer, providing them
opened your eyes by saying
access to your information
that it’s not the box that
Author: Benedict
and induce a much higher
counts, but your ingenuity,
Parmanand
degreee of transparency.
your innovativeness.
Publisher: Westland
Customers decide what kinds
I would say that he
Ltd, 2014
of products they want, and
fostered innovativeness and
Pages: 150
what kinds of risks they would
you can’t put that into a box,
Price: `399
like to take in the process.
you can’t create a code for
October 2014
94 Tata Review „