The steel saga

After the triumph of the discovery it was time now, to give a sobering thought to raising finance. The project would require a massive investment of about two million pounds sterling, which was difficult to attain from the Indian market despite of the great reputation the Tatas enjoyed. The other alternative was to borrow from London financiers, who in return, would demand a disproportionate control on their investments. What helped Tatas to accomplish this seemingly impossible objective was the Swadeshi movement. In 1907, the Swadeshi feeling ran high in the country, encouraging the Indians to create India’s own national resources.

When Tatas issued shares on 26th August 1907, enthusiastic supporters besieged their offices. For the first time in the financial history of the country, the Indian people - the masses, the affluent and even the Maharajas - joined hands to put up the first truly Indian enterprise. The Tata family contributed the remaining 11% shares of the Tata Iron and Steel Company Limited. Its formation, as stated by J R D Tata, who was Chairman of the Company for almost 50 years, was “unique among such adventures, unique in its advantages, and unique in its difficulties.”