Mitsubishi Monitor

2024.12.19

Founded in India, the Tata Group Shares Surprising Commonalities and a Strong Relationship with Mitsubishi

Tata Consultancy Services Japan Limited (TCS Japan) is the Japanese arm of Tata Consultancy Services (TCS)—an India-headquartered IT services company that has supported the business transformation of major companies worldwide for over 55 years—and is part of the Mitsubishi Corporation Group. It may be a surprise to learn that a company with Indian origins is a member of the Mitsubishi Corporation Group. In fact, Mitsubishi and the Tata Group share similar histories and philosophies, which has brought them close to one another.

Love one’s country and value humanity: The founder’s philosophies and company histories closely align

The Tata Group is a multinational conglomerate headquartered in India. It operates across 10 industries and comprises 30 companies, including TCS, with a presence in more than 100 countries, and a workforce of over one million employees. The group’s founder, Jamsetji Tata (1839-1904), is often regarded as the "Father of Indian Industry." Hiroko Oka from TCS Japan explains the origin of the Group as follows.

"Mr. Jamsetji Tata began his trading business in 1868, and subsequently ventured into various industries including textiles, hospitality, and steel production. With a philosophy and vision of loving his country and valuing humanity, he contributed to the establishment of an industrial foundation in India from the colonial period through post-independence, setting the foundations for the conglomerate to be. As you know, Yataro Iwasaki founded the Tsukumo Trading Company in 1870, two years after Jamsetji Tata began his business. Mitsubishi also supported Japan’s industrialization and economic growth following the Meiji Restoration, and has since established itself as a global conglomerate operating across various industries."
Yataro Iwasaki is credited with being the first in Japan to pay bonuses. Similarly, Jamsetji Tata also undertook many initiatives in labor welfare that were unprecedented at the time.

Oka continues, "Mr. Tata was a compassionate leader filled with a pioneering spirit. He introduced humidifiers and a fire sprinkler system in his textile plant, making it the first industrial facility in India to have such equipment. He also established a pension fund in 1886 and began paying compensation for accidents in 1895. Being mindful of employee health, he built a water purification plant, grain warehouses, separate clinics for male and female employees, and a creche for employees’ children. Even after Jamsetji’s passing his spirit lived on in the actions of the group’s companies. In 1912 steel manufacturer Tata Steel implemented an eight-hour workday, some seven years before the International Labor Organization established such labor standards. The company also strived to improve working conditions by introducing modern employee welfare programs, such as free medical assistance, educational facilities, paid leave, training programs, maternity benefits, profit-sharing bonuses, and a pension system. In this sense Tata Steel was decades ahead of its time and significantly more advanced than others."

Jamsetji Tata also focused on core infrastructure development, putting plans in motion for the establishment of what would later become India’s first steel plant and the nation’s second hydroelectric power station. He also emphasized corporate social responsibility, proactively engaging in areas such as education, healthcare, and environmental protection.

Emphasizing social contributions aligned with the founder’s philosophies

The two groups share a commitment to contributing to society through their corporate activities. The Mitsubishi Group’s member companies adhere to a management philosophy established by Koyata Iwasaki, the fourth president of Mitsubishi, called the Three Principles: Shoki Hoko (contributing to society through corporate responsibility), Shoji Komei (conducting business with integrity and fairness), and Ritsugyo Boeki (expanding business based on an all-encompassing global perspective).

"The Tata Group upholds the core philosophy of 'Impact through Empowerment' (social contributions achieved through the capabilities of individuals and groups necessary for development and reform) and with a focus across three key areas: education, health, and the environment. The Group’s social contributions cover a wide range of areas: Tata Sons, the holding company of the Tata Group, undertakes initiatives such as providing scholarships, improving school infrastructure, and training teachers; TCS offers IT skills education and online educational resources to children in various regions around the world; Tata Power is a leading producer of renewable power generation systems including wind and solar; and Tata Medical Center, which incorporates advanced medical practices, provides cancer treatment and medical services to low-income individuals," explains Oka.

Furthermore, 66% of the equity in Tata Sons is owned by the Tata Trusts, philanthropic organizations which use the dividends received from Tata Sons to help fund various social contribution activities, including education, medical care, rural development, the arts, and culture.

Oka continues, "Their social contribution activities are directly linked to the spirit of their founder, which is embodied in his management philosophy: 'In a free enterprise, the community is not just another stakeholder in business, but is in fact the very purpose of its existence.'"

Bonds between the Tata Group and Mitsubishi rooted in the Meiji era

The ties between the Tata Group and Japan, as well as Mitsubishi, are long-standing and profound. In 1893, as the textile industry flourished in Japan and the import volume of Indian cotton increased, Jamsetji Tata came to Japan. He then initiated a joint shipping operation with Nippon Yusen for cotton trading, which led to the establishment of Japan’s first transoceanic liner service, operated on the Japan-India route.
Additionally, in the mid-1910s, Tata Steel’s visit to Yawata Steel Works marked a turning point for Tata Steel, allowing it to promote plant management by its own nationals without relying on overseas engineers, as well as to introduce larger blast furnaces, which significantly expanded its business. Furthermore, following India’s independence, Japan and India have concluded various agreements and partnerships, which remain in effect today. In 2012, marking the 60th anniversary of the establishment of diplomatic relations between Japan and India, Ratan Tata, then-chairman of the Tata Group, was awarded the Grand Cordon of the Order of the Rising Sun in recognition of his contributions to enhancing and developing Japan-India economic ties.

Founded in 1968 in India, TCS established a sales office in Tokyo in 1987, marking its entry into the Japanese market. TCS then incorporated as Tata Consultancy Services Japan Limited in 2004, and founded Nippon TCS Solution Center Limited, a joint venture with Mitsubishi Corporation, in 2012. In 2014, TCS Japan (Nihon TCS) was established through a merger of three companies: Tata Consultancy Services Japan Limited, Nippon TCS Solution Center Limited, and IT Frontier Corporation, an IT Services subsidiary of Mitsubishi Corporation.

The journey from the Tata Group’s founding to the establishment of TCS Japan

"Established in 2014 as a joint venture between Mitsubishi Corporation and TCS, TCS Japan leverages the strengths of TCS’s expertise in cutting-edge technologies, its extensive global track record, firmly established global IT governance, and efficient and streamlined processes, backed by an in-depth understanding of Japan’s unique business environment and challenges. With a team of 10,000 professionals worldwide and a strong integration of technology and industry knowledge, TCS Japan remains committed to enhancing global competitiveness by driving business transformation across Mitsubishi and the Mitsubishi Corporation Group," concluded Oka.

INTERVIEWEE

HIROKO OKA

Head, Marketing & Communications

Tata Consultancy Services Japan Limited 10F Azabudai Hills Mori JP Tower, 1-6-9 Azabudai, Minato-ku, Tokyo

Founded in India in 1968, TCS is a member of the Tata Group, one of the world’s largest multinational conglomerates. It operates in 55 countries worldwide, employing over 612,000 highly trained professionals. TCS Japan was established in 2014 as a joint venture between TCS and Mitsubishi Corporation. With consulting as its core business, the company develops comprehensive services and solutions that leverage cognitive technologies in the fields of business, technology, and engineering.