How Tata Built India: Two Centuries of Indian Business


Tata: the industrial conglomerate that lies
at the heart of India’s success on the global business stage. For almost two centuries, the Tata Group has
pioneered multiple industries in India and remains a market leader in most of them. You’ve probably heard of Tata Motors, their
car division, but as you’ll soon find out, their reach extends far beyond that one subsidiary. In this video, we’ll go through through
three generations of Tata businessmen to see how they built one of India’s most successful
companies. This video is brought to you by Skillshare,
where I just released my second class on investing that dives much deeper into how stocks work
and how you can value them. You can watch my new class for free by registering
with the link in the description. The story of Tata begins during the reign
of the British Empire. India back then was a huge exporter of cotton,
but the brutal regime of the British East India Company left little room for local entrepreneurs
to develop. The poor treatment by the British eventually
resulted in a rebellion against them, in 1857, which ended the power of the British East
India Company and replaced it with the British Raj. Now, compared to its ruthless predecessor,
the Raj was much more focused on keeping the peace. The Raj didn’t exploit the Indian population
quite as harshly and it also invested a lot of money in building India’s first railways
for example. Of course, at the end of the day, the British
Raj was still an oppressive colonial power, but at least it finally gave the local population
the economic opportunity to develop themselves. Because India was an exporting country, the
first Indian entrepreneurs came from exactly that sector and one of them was Jamsetji Tata. He was the son of an exporter in Mumbai and
he graduated in 1858, exactly the perfect time to take advantage of the economic reforms
of the British Raj. Because his father’s export business was
growing, in 1859 Jamsetji went to Hong Kong to develop a subsidiary there and upon seeing
the sheer scale of British commerce there, he realized that the Tata export business
had truly global potential. Over the course of the next decade he would
travel to Japan, China and Great Britain, establishing a network of distribution for
his father’s business. He’d eventually create his own exporting
company in 1868 and using the money he made, he started building textile mills of his own,
effectively creating a vertically-integrated business. From the very start Jamsetji’s philosophy
was find the best practices used across the world and to bring them back to India. In his textile mills he enacted policies that
were virtually unknown to most of India, like offering sickness benefits and pensions to
his employees. But Jamsetji wasn’t content with just the
textile industry: he saw the wonders the Industrial Revolution had created in Europe and he wanted
to recreate them back home. He began working on a steel production plant
in 1901, modeled after the ones he had seen in Germany. Even more ambitious was his hydroelectric
project, inspired by his visit to the Niagara Falls power plant in 1903. Jamsetji realized the incredible power of
tourism and so he also created a chain of hotels, starting with the Taj Mahal Palace
Hotel, which even today is one of the most recognizable buildings in Mumbai. Jamsetji was truly a man dedicated to business
and to helping people through it: he valued education to the point where he donated land
and buildings towards the creation of the Indian Institute of Science, the eminent university
of India. He would not, however, live to see most of
his projects realized, because he died while on a business trip in Germany in 1904, leaving
the already sizable Tata company to his two sons. Together they consolidated their ownership
into a single holding company, which in turn is owned by the charitable trusts they created
for future generations. Jamsetji’s sons fulfilled many of their
father’s ambitions: they oversaw the creation of India’s first steel works in 1907, India’s
first cement plant in 1912 and the first indigenous insurance company in 1919. By the time the leadership mantle passed onto
the next generation in 1938, Tata Sons was comprised of 14 different companies. This time, however, instead of it going to
one of Jamsetji’s grandsons, leadership instead went into the hands of a distant cousin
with a very interesting background. Jehangir Tata, better known as JRD, had been
in the company since 1925, but he had been raised in France and was a close friend to
the man who made the first flight across the English Channel. In other words, JRD was a passionate aviator
and in 1929 he obtained India’s first pilot license, so unsurprisingly his first big project
at Tata was to develop an airline. In 1932 he created the Tata Air Service, which
originally only carried mail, but then in 1938 started doing passenger flights as well,
even helping out the British in the Second World War. Now, you’d imagine India’s independence
in 1947 would’ve been beneficial to the Tatas, but in reality the socialist policies
of the newly-created government were at odds with private business. India’s first prime minister saw just how
successful JRD had been with his airline and in 1953 he unilaterally decided to nationalize
it. He kept JRD as the airline’s chairman until
1977 and as you can imagine, the company only went downhill from there, drowning in ever-increasing
debt. Of course, JRD would not let politics get
in the way of business and so he did his best to grow Tata while avoiding the wrath of the
socialists. He created Tata Motors in 1945, originally
with the idea of building locomotives, but in 1954 he branched out into commercial vehicles
through a partnership with the German car company Daimler. Over the course of his 52 years of leadership,
JRD expanded the Tata Group from 14 companies to 95, but to do that he had dramatically
lower the ownership Tata Sons had in each one in order to appease the socialists. In 1969 the Indian government introduced the
Monopolies and Restrictive Trade Practices Act, which was essentially targeted at Tata
even though they were very far from a monopoly by western standards. But as JRD expanded the group and lowered
its ownership in the individual subsidiaries, he started losing control. Some of his companies just weren’t performing
and the man he sent to fix them was this guy: Ratan Tata. He is one of Jamsetji’s great-grandchildren
and he joined the Tata Group in 1962. His first major project came in 1971 and it
was pretty difficult: Ratan was given charge of a struggling Tata company known as NELCO,
which in the 1950s was India’s biggest producer of radios, but just twenty years later it
had fallen to a 3% market share. Ratan’s focus was on technology and the
future, so instead of trying to salvage the radio, he instead funded the development of
new products like satellite communications, which restored NELCO in the 1980s and made
Ratan the apparent successor of JRD. Ratan claimed leadership of the Tata Group
in 1991, right as a wave of economic liberalization swept across India. The socialists lost power and India finally
joined the global capital market, but this presented a big threat to Tata. Up until now it had operated in a very protected
economy, which was suddenly open to competition from foreign companies. Worse yet, JRD had let Tata become extremely
decentralized, so it would be very slow to adapt to new competitors. Ratan had no choice but to re-establish ownership
over all the Tata subsidiaries and that didn’t come cheap. He sold 20% of Tata Sons, the holding company,
and used that money to buy shares in the Tata subsidiaries, especially Tata Steel and Tata
Motors. He then reorganized all hundred subsidiaries
into seven sectors, establishing a framework along which he could actually control them. But just wielding power isn’t enough to
turn around a struggling business and in the 1990s pretty much every Tata company was losing
ground to international competitors. Ratan’s answer, however, was brilliant:
he started acquiring foreign competitors and absorbing them into the Tata Group, effectively
buying all their talent and supply chains and experience in order to strengthen his
business back home in India while also expanding internationally. Ratan’s buying spree began in the year 2000
when his beverage company, Tata Tea, acquired the Tetley company from Great Britain. Over the next decade Ratan ended up acquiring
hundreds of companies for pretty much every subsidiary in the Tata Group. Most notably, he purchased the European steel
titan Corus for $12 billion in 2007 and then Jaguar Land Rover for $2 billion in 2008. As you can imagine, the international buying
spree has been paying dividends for Tata and today the majority of their revenues actually
come from outside of India. What’s even more beautiful is that the majority
of Tata subsidiaries are actually public companies whose shares you can purchase on the stock
market in India. And if buying stocks and being a shareholder
sounds appealing to you, well then you’re probably gonna be happy to learn that I’ve
just released my second course on Skillshare about the stock market. My first one was a very general introduction,
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this video and if you’re not a subscriber yet, well you know what to do. Anyway, you can expect my next video two weeks
from now, and until then: stay smart.

Why the Queen’s Speech was Boris Johnson’s Conservative manifesto I FT


My government’s
priority has always been to secure the United
Kingdom’s departure from the European Union. Today’s Queen’s Speech was
less of a legislative agenda for the next parliament and
more of a Conservative party manifesto. That’s because Boris
Johnson, the prime minister, knows he doesn’t have a
majority in the House of Commons and therefore will find
it very difficult to, A, pass the Queen’s
Speech at all, and B, pass any of these proposals
through the House of Commons in the form of new laws. We aim to create a
new age of opportunity for the whole country. And as we prepare to
get Brexit done… …by October the 31st, we
are setting out now our vision of an open, global, free trading
United Kingdom, a high-wage, low-tax economy. Labour, the opposition, accused
Mr Johnson of playing politics and bringing the Queen into
parliament to effectively read his plan for a general election
and his Tory party manifesto. There has never been such a
farce as a government with a majority of minus 45… …and a 100 per cent record of
defeat in the House of Commons setting out a legislative agenda
they know cannot be delivered in this parliament. A huge part of the
Queen’s Speech today were the government’s plans to
toughen up the criminal justice system. We saw tougher measures
proposed to deal with foreign nationals who
have been convicted of a crime to return to the UK after
having been deported, also proposals for tougher
and longer sentences for those who have committed
the most serious offences. We’ve also seen
proposals reiterated for a tougher immigration
system, including a points-based one
that will make it harder for certain
nationals from the EU to come and work
and live in Britain. What do we want? Brexit! But aside from the
domestic agenda put forward by the prime minister today,
clearly the number one issue in parliament is still Brexit. Brexit is clearly dominating
the headlines in the news and the business of
MPs in parliament, but it’s also bringing people
out into the streets of London to protest at what they either
think is a betrayal of Brexit or calls for Brexit to
be halted altogether. What do we want? Brexit! When do we want it? Now!

Ukrainegate explained: why Donald Trump is facing his most perilous crisis | FT


Frankly, Ukraine, we
want to help them. And I do like the new president. You know why I like him? Because he was honest. Because he said there
was no pressure. Why, of all the things that
have happened in the Trump presidency over the
last three years has this incident,
this Ukrainegate, for lack of a better word,
been the scandal that has threatened Donald
Trump’s presidency the most? Therefore, today, I’m announcing
the House of Representatives is moving forward with an
official impeachment inquiry. First of all it’s
important to remember that impeachment and
the impeachment process is a political process,
not a legal process. So although there
are other things that a lot of his
critics have charged that Trump did that
was illegal this is now something
that’s explainable. And in politics, being
able to explain something is very, very important. You want to get the public
and other members of Congress on your side in this. And being able to explain that
the president of the United States picked up the phone,
called a foreign leader, and asked him, in some ways
threatened him, to dig up dirt on your preeminent
political rival, is incredibly explainable. This is something your average
American can understand. And what we’ve seen from
polling now is that there is – public opinion is shifting
against the president on this, for this very reason. It’s hard to imagine
a set of circumstances that would have alarmed
the founders more than what’s on that call. So to my Republican
colleagues that say there’s nothing to
see here, or, yeah, it’s bad but is it really
something you’d remove the president
from office for, they’re going to have to
answer: if this conduct doesn’t rise to the level of
the concern the founders had, what conduct does? Now… Again, it doesn’t take
a rocket scientist to figure this one out, whereas
in the Mueller investigation with all the Russia scandal,
it was incredibly complicated. The number of players
involved, and what was said, and the he said/she
said element of it, that was a very
difficult scandal to explain to your
average voter. This one is not. So as a political process,
impeachment for this Ukraine phone call is a much easier
thing for the Democrats to argue. The actions of the
Trump presidency revealed dishonourable fact
of the president’s betrayal of his oath of office, betrayal
of our national security, and betrayal of the
integrity of our elections. The second thing which I think
is important to acknowledge is that this happened while
Donald Trump was president. I guess it seems
very obvious to say that but remember, the
accusations made against Trump of soliciting help from the
Russians during the campaign happened before
he was president. So should the president
of the United States be held liable for things that
happened before his presidency? Again, it was a more
complicated issue. This one clearly happened in
the Oval Office, on the phone. Something that can be easily
explained as an abuse of power. And as a result, again, gets
back to point number one, much more explainable from
a political perspective. It’s a whole hoax. And you know who’s
playing into the hoax? People like you and
the fake news media that we have in this country. The question, sir,
was what did you want President Zelensky to do
about Vice-President President Biden and his son, Hunter. Are you talking to me?

Can Facebook And Google Detect And Stop Deepfakes?


Deepfakes have started
to appear everywhere. From viral celebrity face swaps to
impersonations of political leaders, it can be hard to spot the
difference now between real and fake. We’re entering an era in which our enemies
can make it look like anyone is saying anything at any point in time. And the digital impressions are
starting to have real financial repercussions. In the U.S., an audio deepfake of a CEO reportedly
scammed one company out of 10 million dollars. In the UK, an energy
firm was tricked into a fraudulent transfer of 220,000 euros. And with the 2020 election not far
off, there is huge potential for weaponize deepfakes on social media. Now tech giants like Google, Twitter,
Facebook and Microsoft are stepping up. With Facebook spending more than
10 million dollars to fight deepfakes, what’s at stake for businesses
and what’s being done to detect and regulate them? One of the
most well known deepfake creators is Dr. Fakenstein, or Jeff White. He walked us through the process. So let’s say we’ve got
source footage of Trump. I am concerned I wouldn’t want
to see a violent crackdown. And I have my destination
footage: The Little Rascals. This column here is Trump’s
face over the Little Rascals. Essentially a deepfake is an A.I. generated video or audio clip of a
real person doing and saying fictional things. A computer uses its deep
neural network, hence the term deepfake to learn the movements or sounds
of two different recordings and combine them in a realistic way. And there is an emerging
market for creators of deepfakes. I’ve had hundreds of work requests since
I put out some of my videos. Most people just want to have a
laugh and be entertained by it. White creates videos for
Jimmy Kimmel Live. Ladies and gentlemen, all rise for
Brooklyn Heights. And next month, he’s quitting his day job at a dairy
farm to create deepfakes full time. A handful of well known creators like
him use it solely for satire. It can be used for
more publicly available fun, too. Like with Berkeley’s Everybody
Dance Now project. The technology is nothing new. It’s part of how major Hollywood
studios include actors in critical roles after they’ve died. Lord Vader
will handle the fleet. It helps gaming companies let
players control their favorite athletes. What is new: the process
has become cheaper and easier. Towards the beginning of 2018 then a
couple of important projects, one of them was known as FakeApp, the other
was known as Faceswap, became readily available. And in the last year, year
and a half, the pace of innovation around the creation of deepfakes
has accelerated quite a bit. And you can just go online and
you can find tools, download them. All I have to do to create a deepfake
at this point in time is to click 10 times. Whoa! It’s so easy that Symantec made a
deepfake of me without much notice before our interview. The amount of material
that you need to create these things is 10 to 20 seconds of
video and maybe a minute of audio. This wouldn’t even be happening. This is something that takes about, you
know, not a lot of source material. But just imagine if you had
hours and hours and hours of video at hand, we could create a really
good likeness of you from different angles, saying different things. So what’s at stake for companies or
individuals when seeing or hearing is no longer believing? The fact that
people can see something like this, believe that it’s true and collectively the
markets can react to it are a huge concern for people. The newest attack that we are seeing,
which people had not anticipated, in some sense is the use of the
audio deepfakes to cause financial scams. I would like to transfer
five thousand dollars to Adam. In the last few months, security
firm Symantec says it’s seen three attempted scams at companies involving
audio deepfakes of top executives. In one case, the company lost 10
million dollars after a phone call where a deepfake audio of the CEO
requested a transfer of the money. The perpetrators still
hasn’t been caught. Here’s a station you might like. It’s no different than what you would
see for like what powers like Alexa or some other products like that. And the CEO will answer whatever question
you have because they can be created on the fly. But deepfakes
also offer profit opportunities to some companies. You’d have an actor that
would license their likeness and then at a very low cost, the studio
could produce all kinds of marketing materials with their likeness without having
to go through the same level of production that they
do today, you know. And so I can imagine lots and lots
of audio being produced using the voice of an actor, the voice of someone
other VIP and all of that being monetized. Just like we practiced. Ready? Now Amazon is doing just that. Today in Los Angeles,
it’s 85 degrees. Say my name. Woohoo. It announced in
September 2019 that Alexa devices can speak with the voice of
celebrities like Samuel L. Jackson. On Instagram, A.I. generated influencers like lilmiquela are
backed by Silicon Valley money. The deepfake videos of these virtual
influencers bring in millions of followers, which means a lot of
potential revenue without having to pay talent to perform. And in China,
a government backed media outlet introduced a virtual news anchor who
can work 24 hours a day. I will work tirelessly to keep you informed
as texts will be typed into my system uninterrupted. But the potential for misuse is high. So one of the most insidious uses of
deepfakes is in what we call revenge porn or pornography that somebody puts out
to get back at somebody who they believe wronged them. This
also happens with celebrities. But certainly things like this that
would ruin the reputation of a celebrity or somebody else in the public eye
are going to be top of mind for these social media companies. Also top of mind for social
media companies: the 2020 elections. Researchers expect that in the 2020
election, deep fakes will probably be deployed. Will it be deployed by
a foreign nation looking to cause instability? That’s possible. And that could be significant. In that case, you would have
a candidate saying something totally outrageous. I own one pair of underwear. Or something that enflames the markets
or something that puts their chances of being elected in question. There is also a concern about faking
words from leaders of countries, from leaders of organizations like the IMF
that would have a significant consequence, even if it was short term,
on markets and even on global stability in terms of conflict. That he was engaged in a cover up. In May, House Speaker Nancy
Pelosi accused Facebook of allowing disinformation to spread when the company
refused to take down a manipulated video of her. In response, Facebook updated its
content review policies, doubling down on its refusal to remove deepfakes. Two British artists tested Facebook resolve
by posting a deepfake of CEO Mark Zuckerberg on Instagram. Whoever controls the data
controls the future. Facebook held its ground, refusing to
remove it along with other deepfakes like those featuring Kim
Kardashian and President Trump. I pulled off the biggest heist of
the century and people just have no idea. Now there’s a question,
though, about whether misinformation, whether these deepfakes are actually
just a completely different category of thing from normal kind
of false statements overall. And I think that there’s a
very good case that they are. Now Facebook is trying to get ahead
of deepfakes before they make it on its platforms. It’s spending more than
10 million dollars and partnering with Microsoft to launch a Deepfake Detection
Challenge at the end of the year. Facebook itself will create deepfakes with
paid actors to be used in the challenge. Then pre-screened participants
will compete for financial prizes to create new open source
tools for detecting which videos are fake. Twitter told CNBC it challenges eight to
10 million accounts per week for policy violations, which includes the use
of Twitter to mislead others. As a uniquely open service,
Twitter enables the clarification of falsehoods in real time. We proactively enforce policies and use
technology to halt the spread of content propagated through
manipulated tactics. And it recently acquired a
London-based startup called Fabula A.I., which has a patented A.I. system it calls geometric deep learning
that uses algorithms to detect the spread of misinformation online. At YouTube, which is owned
by Google, community guidelines prohibit deceptive practices and videos are
regularly removed for violating these guidelines. Google launched a program last
year to advance detection of fake audio specifically, including its
own automatic speaker verification spoof challenge, inviting researchers
to submit countermeasures against fake speech. One small cybersecurity company
has already launched an open source tool that’s helping create
algorithms to detect deepfakes. The way our platform works is we’re
pulling in billions of pieces of content on a monthly basis. Text, images, video, all
kinds of stuff. And so in this case, as the
video flows through our platform, we’ll now route it through deepfake detection
that says like, deepfake, not deepfake, and if it is
a deepfake, alert our customers. Baltimore based ZeroFOX intends to be the
first to have customers pay to be alerted of deepfakes. Meanwhile, academic institutions and the
government are working on other solutions. Another approach is to put
a registry out there where people can register their authentic content and
then other people can check with the registry to see if that content
is in fact, authentic or not. The Pentagon’s research enterprise,
called Defense Advanced Research Projects Agency, or DARPA, is fighting
deep fakes by first creating its own and then developing technology
that can spot it. The people who are defending us
against deepfakes are using A.I. just as much as the people who
are creating them are using A.I. It’s just that those who are creating
deepfakes seem to have a running start on this. I don’t think that
there’s a silver bullet yet developed. The technology is really only
one or two years old. And so we’re at an early stage. And at least until Facebook
announced monetary prizes, the business potential on the detection
side was small. There’s not really a market segment
for deepfake protection that’s mature yet. The tech is new. The threat landscape is just
beginning to emerge or whatever. So we’re the first or amongst the
first in terms of companies to develop and ship the technology around this. One of the best things about the Facebook
challenge is that it brings in a lot of people who probably weren’t
interested in this technology to try and work on it, and I think what
we really need in the space with deepfakes is finding something that is
novel that we haven’t thought of before that works
for detecting these. Even if you can detect deepfakes,
there is currently little legal recourse that can be taken to stop them. For the most part, they are legal
to research and create at this point. Can you do an impression of
him? It’s going to be great. For the most part, if you’re a
public person, you really don’t own the rights to your public appearances or
even videos taken without your consent in public. I genuinely love
the process of manipulating people online for money. There are some things
that are unclear about the law, but for the most part, this also
applies to just regular people who post videos of themselves on
Facebook and YouTube. But if your image is used in
adult content, it’s likely illegal in states like California, where revenge porn is punishable
by up to six months in jail and a $1,000 fine. So a lot of porn websites, for
example, have declared that they are not going to allow hosting of deepfake
or uploading of deep fake-based porn. You can call me Sam. In China, a
deepfake app that allowed users to graft their faces onto popular
movie clips went viral. But it was shut down earlier this
month over privacy concerns because the app maintained the rights
to users’ images. In June, New York Congresswoman
Yvette Clarke introduced the DEEPFAKES Accountability Act in the House. It would require creators to disclose
when a video was altered or generated and allow victims to sue. There is no way that a law
like this will enforce a lawsuit against somebody who is sitting in a country
in Eastern Europe or anywhere else across the globe that has already proven
to be hostile to the U.S. when it comes to enforcing
our laws around cybersecurity. I don’t like people passing
off videos as real. My stuff’s clearly satire. I don’t think anyone is
mistaking my stuff for real. Satirical deepfake creators like Dr. Fakenstein take ownership of their work
and are even monetizing it. But that’s different for
those with malicious intent. If you’re intent on publishing a deepfake
and not having it traced back to you, there are plenty of ways
that you can remain anonymous. For better or worse, deepfakes
are only getting more refined. The challenge will be whether the
technology to detect and prevent them can keep up. I think that the
people who are creating deepfakes for nefarious reasons are way
ahead of us. I think that they have access to A.I. that is more advanced than what we
have working on the solution side and certainly access to more resources than we
have so far given people to fight against the problem. Hopefully that will change with
what’s taking place now. May sound basic, but how we move
forward in the age of information, is going to be the difference between whether
we survive or whether we become some kind of dystopia. God bless you, your families, our
children, and God bless the United States of America.