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Jamsetji Tata’s Vision: Building a Nation, One Tonne at a Time

Meet Jamsetji Tata, the icon whose big ideas helped build modern India. In Jamsetji Tata, R. Gopalakrishnan and Harish Bhat reveal how Tata’s vision turned into reality with projects like Tata Steel and the Indian Institute of Science. This compelling account explores how Tata’s relentless pursuit of excellence and self-reliance laid the foundation for India’s industrial prowess, reflecting his legacy continues to drive India’s growth even today.

Jamsetji Tata
Jamsetji Tata || Harish Bhat, R Gopalakrishnan

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Tata Steel was one of the first great industrial enterprises conceptualized by Jamsetji Tata, founder of the Tata group. Jamsetji believed that steel was essential for the development of a nation. Therefore he was of the view that India should not depend entirely on imports of steel, but should have its own integrated steel plant.

 

By 1912, Tata Steel had begun production at its plant in Sakchi in eastern India (the town was later renamed Jamshedpur, in honour of Jamsetji Tata). The steel was of excellent quality, thus proving the sceptics wrong. During the First World War, the company supplied over 1,500 miles of steel rails to the Allied war effort in Mesopotamia. Over 8,000 tons of steel shells were made in the openhearth furnaces at Jamshedpur. The plant began running to full capacity on a twenty-four-hour schedule and still could not keep up with the demand, despite producing 150,000 tons of steel annually.

 

At this point, the leadership of the company—including Dorabji Tata and his partner R.D. Tata—analysed the emerging demand situation and concluded that after the war, India itself could absorb many times this amount of steel. By then Tata Steel was already supplying rails to Indian Railways. In addition, Tata Steel was also earning nice profits on the small consignments that it exported. In December 1916, Dorabji Tata was full of confidence as he spoke to his shareholders about the company’s bumper earnings, production at the plant being 30 per cent over the original capacity and its order book being totally full.

 

Buoyed by this success, the company began considering a plan of expansion to meet the high current and future demand. Charles Page Perin, who was in charge of this planning, initially recommended to the directors of the company a gradual increase in steel capacity, from 150,000 tons to 225,000 tons a year. He considered this to be a safe and prudent plan.

 

However, Dorabji Tata had a far more dynamic and ambitious plan in mind. He spoke passionately to the directors about his father Jamsetji Tata’s vision of a selfreliant and strong nation, which was at the heart of his dream for Tata Steel. He recommended a vast expansion programme, which would eventually supply India’s entire requirements of steel. To begin with, this would entail an expansion of the steel-making capacity at Jamshedpur by five times. Dorabji also said he would raise all the required capital from Indian investors.

 

This ambitious expansion plan, called the ‘TISCO greater extensions programme’, began in right earnest by 1917. However, it ran into a number of difficulties. Tata Steel was compelled to purchase materials at high wartime prices. There were labour strikes in England and a shortage of skilled labour in India. In addition, the Indian rupee depreciated during this time. As a result, the capital cost of the expansion programme, which had been budgeted at Rs 6.8 crore, rose more than three times to Rs 19.6 crore. Additional funds had to be raised from the shareholders because the company’s profits could not support such huge sums of expenditure.

 

And then, suddenly, after the First World War ended, the company’s profits declined precipitously. This happened because of several factors. Belgium began dumping its steel at very low prices in the Indian market, which had no tariff protection at that time. In addition, Japan, which was Tata Steel’s largest customer of pig iron, was hit by a huge earthquake (the Great Kanto earthquake) in 1923. One of the worst natural disasters ever to strike Japan, the earthquake reduced the country’s financial capability to purchase steel.

 

By the end of 1923, demand for Tata Steel’s products had fallen significantly and the company’s profits had declined to nearly break-even levels. On the other hand, significant funds had been expended in expanding the plant. This led to a severe cash crunch, and some of the company’s directors even suggested that it go to the British government of India with a request to be taken over by it. R.D. Tata, Dorabji’s partner, rose in angry indignation when he heard this suggestion. He pounded his fists on the table and declared that such a day would never come as long as he lived.

 

While we do not know what thoughts went through R.D. Tata’s mind when he said this, it is quite likely that he recalled Jamsetji Tata’s objective in establishing Tata Steel—a swadeshi Indian steel company, dedicated to the nation. Instead, what Dorabji and he had in mind was an alternative plan to negotiate with the government to consider imposing reasonable tariffs that would protect Tata Steel from unfair competition from tariff-free European steel.

 

However, such a plan would take time to materialize, particularly because it involved government policy. In the meanwhile, Tata Steel continued to reel under its immediate miseries, with very little cash in hand to keep operations alive. Dorabji and R.D. Tata struggled to raise funds in the adverse post-war environment. Then, one day, in 1924, a telegram arrived from Jamshedpur at Dorabji Tata’s table, bearing bad news. It simply said that there was not enough
money left to pay wages to the employees of Tata Steel. Would the fledgling company survive, or would it be forced to shut down? Would Jamsetji Tata’s dreams and visions of creating India’s first integrated steel plant come tumbling down? In November 1924, it appeared that Tata Steel was on the verge of closing down.

 

But Dorabji Tata was a man inspired by the ideals and principles of his father. To him, paying the employees their wages took precedence over everything else because it was livelihoods at stake. He knew that he had to save the company so that it could survive these very difficult times. At that point he took a step that has gone down in the history of the company as the act that saved Tata Steel. His wife and he decided to pledge their entire personal wealth, which came to around Rs 1 crore, to raise funds for Tata Steel. This included all the jewellery owned by his wife, including the famed Jubilee Diamond. This fabulous diamond, weighing 245.35 carats, was twice as large as the legendary Kohinoor and had been gifted by Dorabji to his beloved wife Meherbai many years earlier.

 

Against Dorabji’s pledge of his personal wealth, the Imperial Bank of India provided the Tatas with a loan of Rs 1 crore. This money was used to pay the wages of the workers at Tata Steel and also to fund the company for the short term. Thanks to this, production of steel at Jamshedpur continued without any significant interruption. The company’s greatest crisis had been averted, and Tata Steel survived.

 

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Get your copy of  Jamsetji Tata by Harish Bhat and R Gopalakrishnan on Amazon or wherever books are sold.

The Tata Way: Celebrating the Legacy of J.R.D Tata

On this auspicious occasion of J.R.D Tata’s birth anniversary, let’s take a journey through the fascinating world of the Tata Business Group. Starting with the founder, Jamsetji Tata, and continuing with Ratan Tata’s modern achievements, these books offer deep insights into the Tata legacy highlighting the group’s contributions to the nation and its impact on India’s business world.

 

Join us in celebrating their heritage through these rich tales of perseverance, innovation, and philanthropy that continue to inspire generations even today!

 

Jamsetji Tata
Jamsetji Tata || Harish Bhat, R Gopalakrishnan

Jamsetji Tata pioneered modern Indian industry. He has been a key catalyst in the economic growth and development of the country.
From Empress Mills to the Iron and Steel Plant, from the establishment of Indian Institue of Science to the building of the Taj Mahal Hotel, Jamsetji’s vision made India stand tall. In this carefully researched account, R Gopalakrishnan and Harish Bhat provide insights into the entrepreneurial principles of Jamsetji that helped create such a successful and enduring enterprise.

 

For the love of India
For the love of India: The Life & Times Of Jamsetji Tata||

In For the Love of India, R.M. Lala has drawn upon fresh material from the India Office Library in London and other archives, as also Jamsetji’s letters, to portray the man and his age. It is an absorbing account that makes clear how remarkable Jamsetji’s achievement truly was, and why, even now, one hundred years after his death, he seems like a man well ahead of the times.

 

The Creation of Wealth
The Creation of Wealth: The Tatas From The 19th To The 21st Century || R M Lala

The Creation of Wealth is R.M. Lala’s bestselling account of how the Tatas have been at the forefront in the making of the Indian nation-not just by their phenomenal achievements as industrialists and entrepreneurs but also by their significant contributions in areas like factory reforms, labour and social welfare, medical research, higher education, culture and arts, and rural development.

 

The Story of Tata
The Story of Tata || Peter Casey

In 1868, Jamsetji Tata, a visionary of his time, lit the flame that went on to become Tata and its group of companies. This business grew into an extraordinary one. One that some may even call ‘the greatest company in the world’. Over the decades, the business expanded and prospered under the leadership of the various keepers of the flame, such as Sir Dorabji Tata, J.R.D. Tata and Ratan Tata, to name a few. But one day, the headlines boldly declared that the chairman of the board of Tata Sons, Cyrus Mistry, had been fired.
What went wrong?

In this exclusive and authorized book, insiders of the Tata businesses open up to Peter Casey for the first time to tell the story. From its humble beginnings as a mercantile company to its growth as a successful yet philanthropic organization to its recent brush with Mistry, this is a book that every business- minded individual must read.

 

#TataStories
#TataStories: 40 Timeless Tales To Inspire You

A diamond twice as large as the famous Kohinoor pledged to survive a financial crisis; a meeting with a ‘relatively unknown young monk’ who later went on to be known as Swami Vivekananda; the fascinating story of the first-ever Indian team at the Olympics; the making of India’s first commercial airline and first indigenous car; how ‘OK TATA’ made its way to the backs of millions of trucks on Indian highways; a famous race that was both lost and won; and
many more.

#TataStories is a collection of littleknown tales of individuals, events and places from the Tata Group that have shaped the India we live in today.

The Tata Saga
The Tata Saga: Timeless Stories From India’s Largest Business Group

The Tata Saga is a collection of handpicked stories published on India’s most iconic business group. The anthology features snippets from the lives of various business leaders of the company: Ratan Tata, J.R.D. Tata, Jamsetji Tata, Xerxes Desai, Sumant Moolgaokar, F.C. Kohli, among others. There are tales of outstanding successes, crushing failures and extraordinary challenges that faced the Tata Group.

 

Tata Log
Tata log || Harish Bhat

From steel to beverages and from supercomputers to automobiles, TATA companies have broken new ground and set new standards of excellence over the past two decades. Tatalog presents eight riveting and hitherto untold stories about the strategic and operational challenges that TATA companies have faced, and the forward thinking and determination that have raised the brand to new heights.

 

Beyond The Last Blue Mountain
Beyond The Last Blue Mountain: A Life of J.R.D Tata || R.M. Lala

An exhaustive and unforgettable portrait of India’s greatest and most respected industrialist. Written with J.R.D. Tata’s co-operation, this superb biography tells the J.R.D. story from his birth to 1993, the year in which he died in Switzerland. The book is divided into four parts: Part I deals with the early years, from J.R.D’s birth in France in 1904 to his accession to the chairmanship of Tatas, India’s largest industrial conglomerate, at the age of thirty-four; Part II looks at his forty-six years in Indian aviation (the lasting passion of J.R.D’s life) which led to the initiation of the Indian aviation industry and its development into one of India’s success stories; Part III illuminates his half-century-long stint as the outstanding personality of Indian industry; and Part IV unearths hitherto unknown details about the private man and the public figure, including glimpses of his long friendships with such people as Jawaharlal Nehru, Mahatma Gandhi, Indira Gandhi and his association with celebrities in India and abroad.

 

The Tata Group
The Tata Group || Dr. Shashank Shah

A deepdive into the Tata universe, The Tata Group brings forth hitherto lesser-known facts and insights. It also brings you face-to-face with the most intriguing business decisions and their makers. How did Tata Motors turn around Jaguar Land Rover when Ford failed to do so? Why wasn’t TCS listed during the IT boom? Why wasn’t Tata Steel’s Corus acquisition successful?

 

The TCS Story and Beyond
The TCS Story and Beyond || S. Ramadorai

The TCS story is one of modern India’s great success stories. In this fascinating book, S. Ramadorai, one of the country’s most respected business leaders, recounts the steps to that extraordinary success, and outlines a vision for the future where the quality initiatives he undertook can be applied to a larger national framework.

 

he boy who wanted to fly
he boy who wanted to fly: J.R.D Tata (Dreamer’s Series) || Lavanya Karthik

Before Jeh started India’s first airline and changed the way the nation travelled, he was a boy who dreamt of flying.

 

#Tatastories: Air India, Tea and J.R.D.

On the 118th birth anniversary of the Father of Aviation in India, J.R.D Tata, read this excerpt from Harish Bhat’s #Tatastories about how the man who championed the art of giving taught lessons to the world to strive for excellence.

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#Tatastories
#Tatastories || Harish Bhat

J.R.D. Tata was the founder of Tata Airlines, which went on to become Air India. Way back in the 1940s and 1950s, this airline was the first Indian global entity, proudly taking the Indian flag to international skies. In 1948, Air India inaugurated its first international service, from Mumbai to London, a proud moment for the country.

J.R.D. was determined to make Air India the best airline in the world, notwithstanding the fierce competition from a host of other global airlines. For him, this was essential, because Air India was not just an airline, but a proud carrier of India’s image across the world. During the inaugural international flight, on which he also flew, he watched carefully for the reactions of passengers, and was greatly relieved when everything went very well, including landing in London right on time. He said, ‘It was for me a great and stirring event . . . seeing the Indian flag displayed on both sides of the Malabar Princess [the name of that particular aircraft] as she stood proudly on the apron at the airports of Cairo, Geneva and London filled me with joy and emotion.’

Thereafter, he was obsessed with making the airline special, and he knew that this required the highest standards of customer service and excellence. He told the airline’s employees, ‘I want that the passengers who travel with us do not have occasion to complain. I want to establish that there is no airline which is better liked by passengers, that is safer and more punctual, where the food and service is better, and which sets a better image than Air India.’

As early as 1949, with constant attention to every small detail, these aspirations were coming true. In fact, the prime minister of India, Pandit Jawaharlal Nehru, wrote to J.R.D. Tata on 7 May 1949, specifically complimenting him on the high quality offered by the airline. Nehru wrote: ‘This is just a brief letter to express my great appreciation of the quality of the Air India International Service. I have now travelled on four occasions between India and England in it, and the more experience I have had of it, the better I like it. I think that Air India International has played not an unimportant part in raising the prestige of India abroad . . . So, congratulations.’

Air India soon became legendary for its punctuality. Legend has it that people in Geneva, in those years, could set their watches to the time at which the Air India flight flew over their city. In those initial days, J.R.D. would fly one of the aircraft himself once every fifteen days. During these flights, he would insist on such high standards of accuracy that other pilots tried to dodge flying with him. The historian R.M. Lala tells us that on one such flight, J.R.D. asked his co-pilot, Capt. Visvanath, for the ground speed. ‘145 miles per hour,’ replied Visvanath. J.R.D. was not satisfied. He took out his slide rule, worked out his own calculations, and responded, ‘It’s 145.5.’ Those were the standards of accuracy he expected if the airline was to keep perfect time.

J.R.D. Tata’s blue notes were extraordinary in their attention to detail and relentless push for excellence in all matters big and small. After every Air India flight that he took, he would send these ‘blue notes’ to the management, summarizing his observations, including encouraging comments and scathing criticism. Here are some extracts from his notes in the year 1951, after he had flown Air India to Europe and back home: ‘Chairs: I found on VT-DAR that some of the seats recline much more than the others. As a result, those seats are more comfortable. I suggest that all our seats be adjusted for a maximum reclining angle, except, of course, the rearmost seats which are limited by bulkheads.’

And even more interesting is this note: ‘The tea served on board from Geneva is, without exaggeration, indistinguishable in colour from coffee . . . I do not know whether the black colour of the tea is due to the quality (of tea leaves) used or due to excessive brewing. I suggest that the Station Manager at Geneva be asked to look into the matter.’

Because of such meticulous attention to detail and excellence, Air India topped the list of airlines in the world in 1968 as per a survey done by the Daily Mail, London. In fact, in that same year, 75 per cent of Air India’s passengers were foreigners who came from countries with their own airlines. I have also heard that when Singapore wanted to launch an airline (now it is famous as Singapore Airlines), Prime Minister Lee Kuan Yew advised his team to study the high standards that had been set by Air India.

In my office, for the past three decades, stands a quote from J.R.D. Tata, which guided his own actions, and which inspires me every single day. He said: ‘One must forever strive for excellence, or even perfection, in any task however small, and never be satisfied with the second best.’ Remember, for instance, his note on tea and coffee.

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Get a copy of #Tatastories from your nearest bookstore or online.

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