Ratan Tata: Leader who took Tata Group from $5 billion to $100 billion

Ratan Tata took over as Chairman of Tata Sons in 1991, succeeding JRD Tata. At that time, the Tata Group was largely an Indian conglomerate with annual revenues of around $5 billion.

In Short

• Ratan Tata transformed Tata Group into a global powerhouse
• Iconic acquisitions include Tetley, Corus, Jaguar Land Rover
• Tata Nano embodied Ratan Tata’s vision of affordable mobility

Ratan Naval Tata, one of India's most revered industrialists and philanthropists, passed away on Wednesday, October 9, 2024, at the age of 86. He had been undergoing treatment for prolonged illness at Mumbai’s Breach Candy Hospital for the last few days.

As the man who led the Tata Group from 1991 to 2012, Ratan Tata's legacy is not just one of towering business achievements but one deeply rooted in the ethos of putting "India and Indians first."

Early life and entry into Tata Group

Born on December 28, 1937, in Mumbai, Ratan Tata came from a distinguished Parsi family. He faced personal challenges early on, including his parents' separation, but his grandmother, Navajbai Tata, played a pivotal role in his upbringing. Educated at prestigious institutions like Cornell University and Harvard Business School, Ratan Tata was destined for greatness.

His entry into the Tata Group in 1961 was humble, beginning on the shop floor of Tata Steel, where he worked alongside blue-collar workers. This hands-on experience gave him a unique understanding of the people who powered India's industrial growth.

Transforming Tata Group

Ratan Tata took over as Chairman of Tata Sons in 1991, succeeding JRD Tata. At that time, the Tata Group was largely an Indian conglomerate with annual revenues of around $5 billion.

Under his visionary leadership, the Group expanded to over $100 billion in revenue by the time he retired in 2012. Today, the Tata Group operates in over 100 countries, with a strong presence in industries, ranging from steel and automobiles to IT services and consumer goods.

Iconic acquisitions and global expansion

Ratan Tata's approach was bold, steering the Tata Group toward becoming a global powerhouse. His philosophy of putting India and its people first was evident in how he leveraged international acquisitions to bolster the country's image on the global stage.

Tetley (2000): The acquisition of the British tea giant for $450 million was one of the first major overseas purchases by an Indian company. It marked Tata's entry into the global beverage market.

Corus (2007): Tata Steel's $13 billion acquisition of Corus made Tata one of the world's largest steel producers.

Jaguar Land Rover (2008): Ratan Tata transformed Tata Motors into a global automotive player with the $2.3 billion acquisition of these iconic British car brands. This deal not only turned Tata Motors into a global competitor but also resurrected the luxury car brands.

'India and Indians First': The Tata Nano

Perhaps no other project better symbolized Ratan Tata's commitment to India than the Tata Nano, launched in 2008.

His vision was to create the world's cheapest car, priced at Rs 1 lakh, to provide affordable mobility for the Indian middle class. Though the car didn't achieve commercial success, the sentiment behind the Nano was a testament to Tata's people-centric leadership. It reflected his desire to improve the lives of millions of Indians through innovation.

Navigating crises with grace

Ratan Tata’s leadership shone through during times of adversity. The 2008 Mumbai terrorist attacks shook India, and one of the primary targets was the Taj Mahal Palace Hotel, part of the Tata Group.

Ratan Tata was at the forefront of the recovery efforts, ensuring that the Taj was rebuilt stronger than ever. His compassion toward the victims and employees of the attacks further underscored his commitment to people and ethics.

Awards and recognition

Ratan Tata’s contributions to business, philanthropy, and the nation earned him numerous accolades and awards, both domestically and internationally:

• Padma Bhushan (2000): India’s third-highest civilian award.
• Padma Vibhushan (2008): India’s second-highest civilian honor, recognising his extraordinary contributions to trade and industry.
• Honorary Knight Commander of the Order of the British Empire (KBE, 2009): Awarded by Queen Elizabeth II for his services to UK-India relations.
• Business Leader of the Year (2006): Named by the Economic Times.
• Oslo Business for Peace Award (2010): Recognising his ethical leadership in business.
• Lifetime Achievement Award (2014): Conferred by the Rockefeller Foundation for his philanthropic endeavors.
• Carnegie Medal of Philanthropy (2007): Acknowledging his significant contributions to social causes.
• CNN-IBN Indian of the Year in Business (2006): For his outstanding leadership.

Business leader who wore many hats

Beyond his achievements in business, Ratan Tata was a multifaceted leader. In 2007, he became the first Indian to fly an F-16 Falcon-a symbolic moment highlighting his adventurous spirit and his love for aviation.

He was also deeply involved in the Tata Group's philanthropic arm, the Tata Trusts, which contributes to sectors like education, healthcare, and rural development. Throughout his career, Ratan Tata ensured that the Group's wealth served the nation, with 60-65% of Tata Sons' dividends directed to charitable causes.

Ratan Tata's legacy extends far beyond the companies he built. Under his leadership, the Tata Group became synonymous with trust, integrity, and social responsibility. His emphasis on ethical leadership continues to inspire the business community both in India and globally.

As India mourns the loss of a legend, Ratan Tata's contributions to business, society, and the country will be remembered for generations to come. His life's work was not just about creating wealth but about creating value for India and its people.