Ratan Tata — The Iconic Indian Businessman Who Built A Global Empire

6 min readJan 6, 2016

Any discussion on the topic of ‘The great builders of modern India’ is incomplete without mentioning the name of Ratan Tata, the iconic businessman, investor, philanthropist and chairman Emeritus of Tata Group. Polite, elegant and reserved, Mr Tata has been the king of India’s corporate scene for the past two decades. His legacy is unparalleled for he has transformed the Tata group to a truly global conglomerate, built a strong leadership pipeline that will make sure the group endures much beyond him and above all, has shown India Inc. how to dream big.

“If you want to walk fast, walk alone. But if you want to walk far, walk together” — Ratan Tata

When Ratan Tata took over as the chairman of Indian Multinational Conglomerate Tata Group in 1991, critics were loud and unrestrained in their disapproval and scepticism. Ratan Tata was considered to have gained his position purely on the strength of his surname; and critics derided that he didn’t possess an iota of the charisma of his uncle and predecessor, JRD Tata. Nearly 20 years later when he stepped down as the chairman of Tata Group in 2012, Ratan Tata had achieved almost everything that a successful businessman dreams for. At Rs 3.46 trillion ($51 billion), Tata Group’s revenue was 40 times the 1991 level, while net profit had gone up four times. Tata Group has become the largest Indian multinational conglomerate; with more than 65% of the group’s income coming from overseas. It has 98 operating companies (28 listed) spread across 56 countries in six continents. In the past decade — the decade that marked the glorious years of Ratan Tata — nearly $18 billion was shelled out to acquire 22 companies worldwide, including Tetley Tea and Corus Steel in the UK, New York’s Pierre Hotel and Jaguar Land Rover. The Tata Group includes India’s largest private steel company (Tata Steel), the biggest auto manufacturer (Tata Motors) and the largest IT outsourcing firm (Tata Consultancy Services — TCS).

Early Life and Career

Ratan Tata was born on 28th December, 1937. An indirect descendant of the great Indian businessman Jamshedji, Ratan Tata endured a tough childhood, his parents divorcing when he was only seven. After attending Mumbai’s Campion School, he went to Cornell in the US, where he earned a degree in architecture and structural engineering, and the Advanced Management Program from Harvard Business School in 1975. When he returned to India after turning down a job with IBM, he was sent to Jamshedpur to work the floor at Tata Steel with other blue-collar employees, shovelling limestone and handling the blast furnace. The trial by fire at the bottom of the pecking order would stand him in good stead. JRD Tata’s decision to pass the baton on to him in 1991 coincided with the start of India’s economic reforms. After a period of consolidation, Ratan Tata came into his own.

“Tata’s job is the most difficult one in the country today. Whoever runs the Tata Group has to provide strategic leadership, direction and inputs on multiple businesses, which is hugely challenging,” — Rajeev Gupta, MD of private equity firm Carlyle India.

Timeline of Milestone Achievements

Ratan Tata’s visionary leadership and business genius is apparent in Tata Group’s meteoric rise as the biggest Indian conglomerate under his leadership. Here’s a timeline of Tata’s key achievements:

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.
2003: Tata Consultancy Services (TCS) became the first Indian software company to cross $1 billion in revenue.
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 world’s cheapest passenger car.
2008: Tata Motors acquires the Jaguar and Land Rover businesses from Ford, and forms a new company, Jaguar Land Rover.

An Inspiration To A Billion Indians

From driving cars to flying choppers, from charity to business strategy, Ratan Tata does it all, and he does it passionately. He made his first solo flight at 17 and enjoys piloting his Falcon 2000. He has also flown the F-16 and F/A-18 fighters, getting into their cockpits at the Aero India 2007 show.

Mr.Tata is a director on the boards of Alcoa Inc., Mondelez International and Board of Governors of the East-West Center. He is also a member of the Board of Trustees of University of Southern California, Harvard Business School Board of Dean’s Advisors, X Prize and Cornell University. Now retired from the corporate sphere, he retains the chairmanship of the Tata Trusts, a group of some of the country’s oldest and certainly most high-profile philanthropic organisations. Ratan Tata is known for giving a number of scholarships to Indian students studying in India and abroad. Tata Trusts had donated more than $25 Million to Cornell University and $50 Million to Harvard University. A significant proportion of Tata group’s profits have been ploughed back into helping change the lives of impoverished Indians. While the Tata Group routinely spends 4 per cent of its net profits on activities related to corporate social responsibility (CSR), the two largest Tata trusts between them disbursed an additional $800m during Ratan Tata’s two-decade tenure as chairman.

In the past 2 years, Ratan Tata has assumed the role of a startup mentor and angel, investing in companies like Paytm, Snapdeal, Xiaomi, Ola Cabs, YourStory and others. Recently, Ratan Tata (in association with Tata Trusts) partnered with the revolutionary Khan Academy to create specialised, freely available online content tailor-made for India, including rolling out content in regional languages.

“For me as an Indian and as a citizen of the planet, it is a great privilege to start the partnership with Khan Academy. I see it as a great way to make a difference for the generations to come.” — Ratan Tata

Ratan Tata is not just a successful business leader but an ideal role model for many businessmen and entrepreneurs. In the age of crony-capitalism and greedy businessmen, Mr.Tata stands tall as the shining example of humility and commitment exhibiting Responsible, Authentic and Integral (Integrating inner values and outer actions) leadership of the highest order. We need more of you in the corporate world, Mr.Tata!

Watch Ratan Tata’s interview at The Stanford Graduate School of Business:

Ratan Tata — The Iconic Indian Businessman Who Built A Global Empire

Early Life and Career

Timeline of Milestone Achievements

An Inspiration To A Billion Indians

References

Written by #Genius50