The legendary industrialist’s most famous Business Tycoon
Business tycoon Ratan Tata turned 86 today. Ratan Tata was born on December 28, 1937, in Bombay (now Mumbai), during the British Raj, into a Parsi family. He is the son of Naval Tata, born in Surat, who was later adopted by the Tata family. His grandmother, Navajbai Tata, and Sooni Tata are the niece of the founder of the Tata Group, Jamshedji Tata.
Ratan Tata’s biological parents, Hormusji Tata, were members of the Tata family by blood. In 1948, when Ratan was 10 years old, his parents separated, and later, he was nurtured and cared for by his grandmother, Navajbai Tata, and the widow of Ratanji Tata. He was raised under the care of Navajbai Tata after his parents’ separation.
Through the second marriage of Naval Tata to Simone Tata, Ratan Tata has a younger brother, Jimmy Tata, and a stepbrother, Noel Tata, with whom he shares a close bond.
He studied at Campion School, Mumbai, up to the 8th grade. After that, he pursued education at Cathedral and John Connon School in Mumbai, Bishop Cotton School in Shimla, and Riverdale Country School in New York City. In the year 1955, he successfully secured his bachelor’s degree, marking a significant academic achievement.
Following his high school years (11th, 12th, and 13th grades), Tata enrolled at Cornell University, where he obtained a bachelor’s degree in architecture in 1959. In 2008, Tata made a historic contribution of $50 million to Cornell, becoming the largest international donor in the university’s history.
Career
In the 1970s, Ratan Tata was appointed to a managerial position within the Tata Group. He achieved early success by reviving the struggling subsidiary, National Radio and Electronics (NELCO), but it faced setbacks during an economic downturn. In 1991, J.R.D. Tata resigned from the chairmanship of Tata Sons, and Ratan Tata was named his successor.
Initially, Ratan Tata encountered resistance from the heads of various group companies who enjoyed substantial operational autonomy under the senior Tata’s tenure. Tata responded by passing numerous laws designed to strengthen the present power structure.� Among these were setting retirement age guidelines and mandating subsidiary heads to report directly to the group headquarters, and encouraging subsidiaries to contribute to the Tata Group brand.
Tata prioritized innovation and entrusted young talents with significant responsibilities. Under his leadership, overlapping operations among subsidiaries were streamlined into a more organized company-wide operation. Simultaneously, the group divested businesses not aligned with the global strategy.
Ratan Tata’s strategic judgments and visionary approach were essential in restructuring the Tata Group, promoting cooperation among its sister companies, and divesting non-core operations to enhance its worldwide competitiveness.
Over the course of 21 years, Ratan Tata led the Tata Group, witnessing revenue growth of more than 40 times and profit increase of more than 50 times. When he took charge, a significant portion of sales comprised commodity sales, but by the end of his tenure, a majority of sales came from branded products.
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Under his leadership, Tata made strategic acquisitions, including the acquisition of Tetley by Tata Tea, Jaguar Land Rover by Tata Motors, and Corus by Tata Steel. With over 65% of income originating from operations and sales abroad, these purchases helped Tata develop a strong global footprint in the corporate world.
These acquisitions were not only momentous for the Tata Group, but they also had a big impact on how the business grew to become a well-known brand throughout the world and a substantial source of outside income.
He conceptualized the Tata Nano car and also took the lead in its development, contributing to making cars accessible to the average Indian consumer at an affordable price. Tata Motors has started producing the first batch of Tigor electric cars at its Sanand plant in Gujarat. The business has referred to this as “accelerating India’s electric dream swiftly ahead.” This initiative shows how committed the country is to advancing electric vehicles.
Upon reaching the age of 75, Ratan Tata resigned from his executive responsibilities within the Tata Group on December 28, 2012. The succession issue that followed received a lot of media attention. The board of directors and the legal department of the company rejected the appointment of his successor, Cyrus Mistry, who was the son of Ratan Tata’s relative and the largest individual shareholder in the Tata Group, Shapoorji Pallonji Mistry.
On October 24, 2016, Cyrus Mistry was removed from the position of Chairman of Tata Sons, and Ratan Tata was appointed as interim Chairman. A selection committee was formed to find a new successor, with Tata also serving as a member. On January 12, 2017, Natarajan Chandrasekaran was named Chairman of Tata Sons, a role he officially assumed in February 2017.
Come February 2017, Mistry got the boot from Tata Sons’ board.� However, in December 2019, the National Company Law Appellate Tribunal found that the removal of Cyrus Mistry from the position of Chairman of Tata Sons was illegal and ordered his reinstatement. Upon appeal, the Supreme Court of India upheld the dismissal of Cyrus Mistry
Tata has not only managed his wealth wisely but has also invested in various companies. Investing in Snapdeal, one of the top e-commerce websites in India, he took his first step into the e-commerce industry. In January 2016, he invested in TeaBox, an online premium Indian tea seller, and CashKaro.com, a discount coupon and cashback website.
Tata has made smaller investments in startups in both their early and final stages, such as investing 0.95 crores in Ola Cabs. In April 2015, it was announced that Tata acquired a stake in the Chinese smartphone startup Xiaomi. In 2016, he invested in the online real estate portal NestAway, which later acquired Zenify to start DogSpot, an online portal for real estate and pet care.
To encourage inter-generational friendship, Tata launched Good Fellow, a startup for senior citizens in India. His investments are a reflection of his forward-thinking attitude, encouraging creative endeavors in a range of industries.
