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Ratan Tata is a name that instantly catches everyone’s attention. The scion of the Tata group has earned respect not only as a successful businessman but as a great human being and philanthropist.
Known as the best chairman in India, he always put social and employee welfare above commercial gains. At 73, he heads one of India’s largest conglomerates. It comprises nearly 100 companies with a combined revenue of USD 67 billion.
He became chairman of Tata Sons in 1990 and again in 2016 as interim chairman. During his tenure, the Tata Group reached great heights. Its revenue increased 40 times, and profits increased 50 times. Let us see his life story and learn a chapter or two from his book.
Childhood and early life
Ratan Tata was born in 1937 in Mumbai into one of India’s richest industrial families. His grandfather Jamshedji founded the Tata Group, which pioneered industrialization in post-independence India. Tata studied architecture and structural engineering at Cornell University. He later pursued a management course at Harvard University.
Although destined to lead the Tata Group, he started his career at the grassroots level. He worked with blue-collar employees in the Tata Steel division. In 1971, Tata was appointed director-in-charge of NELCO, which needed urgent revival. He successfully turned it around.
In 1990 he took over the Tata Group and initiated reforms to modernize its business practices. He brought all Tata companies under one umbrella. He also oversaw the production of the car ‘Indica’ and the compact car ‘Nano’. The Nano was the world’s most economically produced car. Tata conceived it out of concern for families traveling unsafely on two-wheelers.
Achievements of Ratan Tata
Ratan Naval Tata ran the Tata Group as chairman until his retirement in 2012. He then acted as interim chairman in 2017. He is a recipient of both the Padma Bhushan and Padma Vibhushan — the highest awards from the Government of India.
Ratan globalized the Tata brand through major acquisitions. These include Tetley Tea, the truck manufacturing arm of Daewoo Motors, Jaguar Land Rover, and the Corus Group.
IT services firm TCS went public in 2004 under Ratan Tata’s stewardship. Tata Motors was listed on the New York Stock Exchange during his tenure. The Nano, his own brainchild, followed soon after. Under his leadership, the Tata Group’s revenue grew more than 40 times and profits more than 50 times.
How did Ratan Tata face the challenges?
A major challenge came when Ratan Tata met Ford’s leadership to sell the Tata Group’s car business. The deal did not materialize. Tata then worked hard to boost the auto business instead. In 2008, Ford neared bankruptcy. Tata seized the moment and acquired Jaguar Land Rover for over $2 billion.
Ratan Tata
Further proof of his strength came during the 26/11 terror attacks. He personally led efforts to help victims outside the Taj Hotel. His own words capture his philosophy: “If you want to walk fast, walk alone. If you want to walk far, walk together.”
Be the change you want to see
Tata has always shown curiosity in new ventures and technologies. He has invested in several start-ups and next-gen innovations. He co-invested in bitcoin venture Abra with American Express. He also collaborated with Pune-based designers to provide clean drinking water to rural communities.
The result is a clean, indigenously designed sub-1000 water purifier. Tata Motors has also rolled out the first batch of Tigor electric vehicles from its plant in Sanand, Gujarat.
A true leader in every sense
Tata epitomizes true leadership. He always put the human face before commercial gains. He is involved in numerous philanthropic activities across education and rural development in India.
He has received wide recognition throughout his lifetime. In 2000, the Government of India awarded him the Padma Bhushan. In 2008, he received the Padma Vibhushan. He also holds honorary doctorates from Ohio State University, the University of Warwick, and the Asian Institute of Technology, Bangkok.
His wealth stands at a staggering GBP 300 million. Yet he owns less than 1 percent of the Tata Group. A majority of its shares belong to charitable trusts that fund philanthropic activities.
An amazing human being and businessman.
Dhirubhai Ambani and Ratan Tata were both prominent figures in Indian business. They shared no familial relationship. However, both were influential industrialists who contributed greatly to India’s economy.
Dhirubhai Ambani founded Reliance Industries, one of India’s largest conglomerates. He was known for his vision in petrochemicals, textiles, and telecommunications. Under his leadership, Reliance became a major force in India’s business landscape.