Ratan Tata, a prominent Indian industrialist, has been a pillar of the Indian business environment. He has earned reverence not only as a successful industrialist but as a great human being and philanthropist.
Today Tata has its presence in almost all areas, from the cars we travel in, the clothes we wear, the hotels we vacation in, to the tea we drink.
Recognised as the best chairman in India, he has always put social and employee welfare above commercial gains. At 73, he heads one of India’s largest conglomerates, which comprises nearly 100 firms, total revenue earning of USD 67 billion.
He became the chairman of Tata Sons in 1990 and then again as interim chairman in 2016. During his tenure Tata Group reached to great heights – its revenue grew 40 times, and profit grew 50 times. Let’s have a look at his life narrative and explore the inspiring journey of Ratan Tata.
Childhood and Early Life
Ratan Tata was born to one of India’s most prosperous industrialist families in Mumbai in 1937. He is the great-grandson of Jamsetji Tata, the founder of Tata Group. His father Naval Tata was the adopted son of Ratanji Tata and Navajbai Tata. His mother was Sooni Tata. Despite hailing from a prominent family Ratan went through a disturbing childhood growing up. This was because of his parents splitting up when he was just 10.
Following the split, he was raised by his grandmother, Lady Navajbai Tata, at a manor called Tata Palace. His grandmother formally adopted him through the J. N. Petit Parsi Orphanage. He recalls being ragged at school over the divorce of his parents as this was uncommon in the 1950s.
As time passed the ragging only got worse when his mother remarried. It was during these tough times that his grandmother played a very important role in shaping his character. His grandmother taught him to the importance of retaining dignity at all costs. This gave him an alternative instead of fighting back.
Tata studied architecture and structural engineering at Cornell University in the US before enrolling in a management programme at Harvard University.
Despite being the future chairman of Tata Group, he started his career at the root level working alongside blue-collar employees in Tata Steel division. In 1971, Tata was appointed the Director-in-Charge of the National Radio and Electronics Company Limited (NELCO), which was in a dire need for a revival and turned it around.
Under his leadership, India acquired its first indigenously built automobile, the ‘Indica,’ as well as its first tiny car, the ‘Nano.’ The Nano is the world’s most economic automobile by Tata, who was thoughtful for the safety of nuclear families riding on two-wheelers.
Achievements
“I don’t believe in taking right decisions. I take decisions and then make them right.” – Ratan Tata
1998: The Tata Indica, the conglomerate’s first passenger car, was launched this year. The car went on to become the No. 1 brand in its segment within two years.
2000: Tata Tea, now Tata Global Beverages, acquired the Tetley group, the world’s second largest manufacturer and distributor of tea. Tetley is the largest tea company in the UK.
2001: Tata AIG, a joint venture between the Tata group and American International Group Inc (AIG), marks the re-entry of the Tata group into the insurance sector. The group’s insurance company, New India Assurance, founded by Dorab Tata in 1919, was nationalised in 1956.
2002: The group acquires a controlling stake in Videsh Sanchar Nigam Ltd. VSNL was founded in 1986 and was the first Indian PSU to be listed on the New York Stock Exchange.
2003: Tata Consultancy Services became the first Indian software company to cross $1 billion in revenue. The company went public a year later.
2004: Tata Motors is listed on the New York Stock Exchange. The company also acquires the heavy vehicles unit of Daewoo Motors the same year.
2007: Tata Steel acquires Anglo-Dutch company Corus, the second-largest steel maker in Europe.
2008: Tata Motors unveils the Nano, the country’s cheapest passenger car. It was initially dubbed the Rs. 1 lakh car, though it now costs Rs. 1.5-2 lakh. Tata Motors acquires the Jaguar and Land Rover businesses from Ford, and forms a new company, Jaguar Land Rover.
2012: Tata Global Beverages and Starbucks form a joint venture, Tata Starbucks Ltd, and open their first store in Mumbai
Ratan Naval Tata, who recently turned 85, helmed the Tata Group as its Chairman till his retirement in 2012, followed by a stint as interim chairman in 2017. The industrialist has been the recipient of the Padma Bhushan and the Padma Vibhushan, two of the highest awards instituted by the Indian government.
One of the biggest achievements of Ratan Tata was to make the Tata brand go global, with acquisitions such as Tetley Tea, Daewoo Motors’ truck manufacturing arm and Jaguar Land Rover apart from Corus Group.
TCS, an IT services business, went public in 2004 under Ratan Tata’s leadership. Tata Motors, the automaker, was listed on the New York Stock Exchange under Ratan Tata’s reign. Tata’s contribution to India’s car sector has been a feather in his cap, with the group building a true-blue Indian brand, the Indica, followed by the Nano, which was his own creation. During his tenure, the Tata Group’s revenues and net earnings more than doubled.
Overcoming the challenges
A big challenge Ratan Tata faced was when he met the Ford leadership to sell the Tata Group’s car business. The deal didn’t come through but Tata worked towards boosting the auto business. In 2008, nine years later, when Ford was on the brink of bankruptcy, it was Tata who managed to seal the company’s Jaguar Land Rover acquisition for over $2 billion. Further testimony to his power to overcome challenges came during the 26/11 terror attacks when he led the efforts to help victims outside the Taj hotel. To quote his own words, “If you want to walk fast, walk alone. If you want to walk far, walk together.”
A True Leader in All Its Sense
Tata is a true embodiment of leadership, who always believed in putting a humane face before commercial gains. He is involved in numerous philanthropic activities providing quality life, education in rural India.
He has received great recognition in his lifetime. In 2000, the government of India decorated him with Padma Bhushan, and in 2008, he received Padma Vibhushan. Apart from that, he was awarded several international accolades including Honorary Doctorates from Ohio State University, University of Warwick, and Asian Institute of Technology, Bangkok.
His fortune stands at a staggering volume of GBP 300 million, but he owns less than 1 percent in the colossal conglomerate of Tata Groups. Majority of Tata Group shares are owned by several charitable trusts that finance several philanthropic activities.
Ratan Tata might not be the richest man but he definitely is the greatest man and winner of the hearts.