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David Good, head of the Tata US
corporate office, on the growth and gains after three
years of operation
Now that the Tata Sons' North America office has completed
three years, it is a good time to stop, take a deep
breath, and review the significant gains made by the
Tata Group in the United States during this time.
Over the past three years, the Tata Group has become
India's first truly global business group. International
revenues are expected to top 60 per cent this year and
the international workforce is approaching 30 per cent
of the total we can definitely be considered
a global company by any standards. The primary reason
for this is the acquisition of Corus Steel and its tremendous
global assets. But if you look at the Tata presence
in the United States, you will see that the US has contributed
its fair share to the Group's worldwide growth.
We now have Taj
luxury hotels in three major US cities New
York, Boston and San Francisco; Corus/Tata
Steel manufacturing facilities in Ohio and Pennsylvania;
SerWizSol*
call centres employing hundreds of US citizens in northern
Florida and in the heart of Appalachia; engineering
work being done by TCS
and INCAT for major automotive and aerospace companies;
a massive undersea Tata
Communications broadband cable network circling
the globe; and Tetley,
Good Earth Teas and Eight O'Clock coffee products in
nearly every supermarket across the country. In fact,
I am especially delighted when I pick up a Tetley Tea
canister in my local grocery store and see "A Tata
Enterprise" printed on its side.
None of this was true three years ago, and while I cannot
and would not claim credit for any of it, I can claim
the right to talk about it, and proudly so!
Our small office in the Washington area started with
the mandate to create an "embassy" for the
Group, which could introduce the Tatas to Americans
and represent the Group to policymakers, regulators,
the media and audiences interested in how and why Indian
investment in the United States has grown so rapidly.
If you refer back to my article Good
Tidings published on the Tata website almost
three years ago, you will see that I set out several
objectives for the North America office.
The first objective was to help Americans understand
that better US-India relations both economic
and political would benefit both our countries.
This is a two-way street, and I believe that both countries
are better off for having travelled it. The highlight
of our bilateral relationship has been the agreement
to share nuclear technology something that links
the US and Indian energy industries. The agreement recognises
that India has behaved responsibly in protecting its
nuclear know-how in spite of its decision to forge a
nuclear programme outside of the formal international
non-proliferation networks. While the final coming-into-force
of that agreement has been slowed down by politics in
both countries, the fact that it was negotiated at all
is inescapable evidence that India and the United States
have overcome their traditional wariness of one another
and moved to levels of cooperation unheard of a decade
ago.
Over the past three years I have said as often as I
can and wherever I can that Indian companies are contributing
to that new relationship, and that the Tata Group in
particular, by virtue of our size and diversity, is
adding to the US economy by the creation of jobs, by
payment of taxes, through direct and indirect investments
and by providing productivity boosts through our services
companies.
A second objective was to support greater cohesion
and interaction among Tata Group companies in the US,
and here the job turned out to be bigger than we had
imagined at the time, simply because our presence is
so much larger than it was three years ago. Currently
there are more than 16,000 Tata employees representing
16 different Tata companies in about 80 locations throughout
the United States and Canada. Many of these are newly
acquired companies with thousands of new colleagues,
operating in industries as diverse as coffee, hotels
and steel. However, I am confident that we have achieved
a collective sense of pride in being part of the Tata
Group. We have had two general meetings of North American
Tata Group executives and we all agree that there is
more to bind us together as Tata men and women than
separates us as members of our own individual company
structures.
It is very interesting to me to see the percentage
of Indian faces declining as our workforce becomes more
international and takes on the face of the countries
where we operate. By the way, this internationalisation
is also a two-way street. Kapil Sharma an American
lawyer and former Capitol Hill staffer who started the
North America office with me in early 2005 has
recently transferred to Bombay House, the Tata Group
headquarters in Mumbai. Kapil will take with him a healthy
dose of US work experience, which will undoubtedly filter
through in India the same way that Indian know-how and
experience filters through the US businesses owned by
the Tata Group.
I am also happy to have Kapil's place taken by Niharika
Chibber Joe, whose own specialisation in Japan and Japanese
adds to our office's international character. The third
person in our office is Ashwini Umarji, who began with
us in September 2005. We hope to add a fourth person
in the office in early 2008 more evidence of
the growth of opportunities in the US.
Our third objective was the establishment of a corporate
social responsibility (CSR) programme one that
links most of the Group companies in the United States
and reflects the dedication and seriousness with which
the Tata Group approaches CSR.
All of our companies engage in some form of CSR. Tata
companies have contributed as good US corporate citizens
in national emergencies such as Hurricane Katrina. The
Group provided several significant donations directly
to local charities providing assistance in Louisiana,
Mississippi and Texas. TCS really stepped up to the
plate by providing gratis around-the-clock service to
the Government of Mississippi. The team worked a long
weekend to design and develop a special programme for
the Department of Employment Security to get unemployment
checks to needy recipients who had been affected by
the storm.
Just recently, the Tata Group formed a broad partnership
with Washington-based NGO First
Book, which donates books to underprivileged children
in classrooms across the United States. Tata Interactive
Services (an e-learning company) has worked pro bono
with First Book to help them design a new national information
technology net linking their donors and recipients.
Additionally, Tata
Sons, Eight O'Clock Coffee, Corus Steel, Tata Communications
(formerly VSNL International) and TCS made donations
to First Book during the December 2007 holiday season,
under a special matching programme wherein the publishing
company Simon & Schuster donated one book for every
dollar raised. The total value of the Tata contribution
was over a quarter of a million dollars. We are looking
at how we can expand this partnership during the coming
year.
We have also sought to contribute to the communities
where we operate including a donation to the
Museum of Fine Arts in Boston that facilitated the digitisation
and uploading of their world-famous collection of Indian
miniature paintings on their website, and a grant to
Harvard University which allowed 35 Harvard students
to travel to South Asia for research and study.
This is just a sampling of the many activities that
Tata Group companies engage in from scholarships
to research grants to cancer walks to clothing drives
and which reflect the deep traditional Tata commitment
to contributing to the communities from which we derive
our revenue.
Finally, we set ourselves to representing to the people
of the United States the value that is being derived
from the rapid expansion of Indian investment in the
US. This aspect of my job has taken me to business groups,
university campuses and think tanks around the United
States an opportunity to travel to many parts
of my own country, some of which I visited for the first
time. I have found among Americans an intense interest
in India and a strong shift from the picture of a mysterious
land of exotic animals and customs, to an image of a
rapidly developing country full of smart young men and
women ready to compete in Tom Friedman's "flat
world" economy.
When I describe to Americans who the Tatas are, the
diversity of our business interests and our strong commitment
to social responsibility, I can usually sense the "aha!"
moment. That is when the benefits of this close economic
relationship are realised and appreciated, even by those
who had not heard of the Tata Group previously. Interestingly,
I have rarely come across anyone who is opposed to the
closer bilateral relationship. Even when I encounter
understandable worries about US job losses and growing
competition, there is an appreciation that the Tata
Group represents the best of foreign companies and is
a welcome addition to the US business scene.
As we enter our fourth year of operation, there is
still much to be done here in the United States. New
opportunities for growth and expansion will have to
be identified and analysed, and we will have yeoman's
work ahead of us to ensure that the Tata brand is more
widely recognised and appreciated. I am acutely aware
of how fiercely the Tata Group protects its brand name
and reputation. The challenge of maintaining the well-known
Tata values embodied in the Code of Conduct while expanding
more widely outside of India is one that will have to
be met successfully.
There is also the growing concern over climate change
and the environmental risk that will accompany rapid
development in India, China and, in fact, everywhere
in the world. Our chairman Ratan Tata has mandated the
Tata Group to seek new and innovative ways to make our
industries and facilities "greener." In fact,
my office has been specifically charged to identify
environmentally friendly technologies that can be brought
to India to allow Tata businesses to grow in a way that
is in harmony with the environment and not in conflict
with it. The learning curve has been steep for me -
a former government servant and foreign service officer
turned business executive but the journey has
been made infinitely easier by the knowledge that I
represent a company that in all its actions, seeks to
give and not to take from the communities
where it operates. I always keep in mind that the Tata-US
relationship goes back more than a hundred years, and
that this is only the beginning of what will surely
be a much longer and ever more productive partnership.
*SerWizSol renamed Tata Business
Support Services in March 2008
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