Pramode Mallik
Call it sheer coincidence, destiny, or whatever you like, Ratan Tata took over the conglomerate from JRD Tata in 1991, at a time when then Finance Minister Manmohan Singh launched economic reforms to open up the Indian Economy to develop it and create more jobs and wealth.
Tata Group Crosses $100 Billion Revenue Mark
He reorganised the Tata Group and added many new companies, products, and brands. Within five years, the group’s net annual revenue soared to $6 billion. He spent $15 billion to buy Tetley Tea, Jaguar Land Rover, and Anglo-Dutch steel manufacturer Corus Group.
His achievement can be gauged by the fact that when Ratan, as he was called affectionately, decided to hang his boots in 2012, Tata Group’s revenue crossed the $100 billion mark.
Ratan Went To School In Rolls Royce
His father Naval Tata was the adopted son of Ratanji Tata, who was the son of Tata group founder JN Tata. His biological grandfather, Hormusji Tata, was a member of the Tata family. Ratan Tata’s mother Sooni Tata was the niece of JN Tata. Born in a billionaire family, Ratan went to school in a Rolls Royce car.
Ratan’s Parents Separate
But in 1948, when he was 10, his parents separated after his father Naval Tata married Swiss lady Simone. Ratan Tata was raised by his grandmother Navajbai Tata. He has a younger brother Jimmy Tata, and a half-brother, Noel Tata.
Ratan Tata never married. However, he said once that he came close to marriage four times and backed off each time for one reason or the other.
Ratan Tata went to the Campion School, and the Cathedral and John Connon School in Mumbai. He also studied at the Bishop Cotton School in Shimla, and the Riverdale Country School in New York City. He graduated in architecture from Cornell University in 1959. He paid back to his alma mater in 2008 when he donated $50 million to Cornell University.
First Business Success
Ratan Tata joined the Tata group in 1962, but he was given a managerial position i n 1970. His first business success came when he turned around National Radio and Electronics (NELCO).
Ratan Puts Tata Group On New Path
After becoming the Chairman of Tata Sons, he faced stiff challenges from the business satraps of group companies who enjoyed complete freedom. Ratan Tata implemented several policies including a retirement age for senior executives, reporting directly to the group office, contributing to the making of the Tata brand and many more strict rules for good corporate governance. With these steps, he not only consolidated his position and got complete control of the group, but he also set examples for others and paved the way for the success of his business empire.
Business Mantra: Innovation, Technology, Unchartered Path
Ratan Tata believed in innovation, taking risks and investing in unchartered fields. He cemented the Tata brand, made it a household name in the country and established it abroad. Soon, the ‘salt to software’ company became synonymous with a successful business. It was Ratan Tata, under whose leadership Tata Consultancy Services chartered new areas, issued an IPO in 2004, and became the largest information technology services company in the country. At present the TCS returns $4 billion as dividends to the Tata group and constitutes 90% of the total annual revenue of the group.
Ratan Tata’s Failed Business Venture
When Ratan Tata announced to launch of a passenger car at the cost of Rs 1 lakh, no one believed it. But he launched Nano and delivered the ‘car of the poor’ at the promised price. Tata Motors first planned the car factory in West Bengal, there were state-wide protests against the land acquisition policy of the state government. The entire plant was shifted to Gujrat and the car was rolled out. However the project failed when the safety and pollution norms were changed, the last Nano car came out in 2018. It is believed as a major business failure of Ratan Tata.
Boardroom Battles
Ratan Tata was also criticised for the public spat and the boardroom battle that he had to fight with Cyrus Mistry of Shapoorjee Pallonje group, which still owns 18% shares of the Tata group. He made Cyrus Mistry the Chairman of the Tata Sons and when the latter deviated from the path set by the Tatas, the boardroom battle erupted.
Did Ratan Tata Date Simi Garewal?
If media reports are to be believed, Ratan Tata once dated Bollywood actress Simi Garewal. Participating in a programme, once Simi Garewal fondly recalled Ratan Tata’s humility, sense of humour, and perfectionist tendencies. She also emphasised that for him, money was never the driving force in life.
From being raised by his grandmother and coming close to marriage four times to missing a prestigious award for his pet dog, from making Tata group a conglomerate with revenue of $100 billion to a failed passenger car project, Ratan Tata covered a long distance in his life and set the standard that no one in near future will be able to cross.
