Ratan Tata – A prominent business tycoon, philanthropist and luminary figure whose success story inspires generations. Tata Group is India’s reputed multinational conglomerate founded in the year 1868. Its headquarters is in Mumbai and it operates in various sectors such as automotive, steel, information technology, telecommunications etc. Mr Ratan Tata was a chairman of Tata Group from the year 1990 to 2012 and interim chairman from October 2016 to February 2017. Mr. Ratan Tata is a man with visions right from the beginning of his career and his extraordinary skills have inspired generations worldwide.
“Apart from values and ethics which I have tried to live by, the legacy I would like to leave behind is a very simple one – that I have always stood up for what I consider to be the right thing, and I have tried to be as fair and equitable as I could be.” – Mr. Ratan Tata
Mr. Ratan Tata studied at the Campion School, Mumbai till the 8th class after which he studied at the Catheral and John Connon School in Mumbai, then in Bishop Cotton School in Shimla and the Riverdale Country School in New York City where he graduated in the year 1955. After graduating from high school, Tata enrolled in Cornell University where he did his graduation in architecture in 1959. In 2008 Tata gifted Cornell $ 50 million becoming the largest international donor in the university’s history.
In the 1970 Tata was given managerial position in the Tata Group. During 21 years Tata Group revenue grew over 40 times and profit over 50 times. When Ratan Tata took over the company sales overwhelmingly comprised commodity sales, but later the majority of sales came from brands.
The journey begins when Mr. JRD Tata Chairman of Tata Sons stepped down and Mr. Ratan Tata took over as his successor in the year 1991. This news came as a surprise for many as the existing executives like Russi Mody (Tata Steel), Darbari Seth(Tata Tea, Tata Chemicals), Ajit Kerkar(Taj Hotels) and Nani Palkhivala(Director on boards of several Tata Companies) were expected to succeed JRD Tata. This news led to a bitter feud among the group and many disagreed with the decision.
Ratan Tata Achievements
Despite facing criticism due to his relative inexperience, he took over the reins of the Tata group and led it to become a global conglomerate, with 65% of the revenues coming from abroad. Under his leadership, the group’s revenues rose by 40 times, and profits increased by 50 times. With the aim of globalizing the business, the Tata group made several strategic acquisitions under Ratan Tata’s leadership.
These include the purchase of London-based Tetley Tea for $431.3 million, the acquisition of the truck manufacturing unit of South Korea’s Daewoo motors for $102 million, and the takeover of Anglo-Dutch company Corus Group for $11.3 billion.
These acquisitions, including Tetley by Tata Tea, Jaguar Land Rover by Tata Motors, and Corus by Tata Steel, helped the Tata group to expand its global footprint, reaching over 100 countries. It also gave a significant boost to the Indian industrial sector.
Ratan Tata’s Philanthropic Contributions
Ratan Tata established the Sir Dorabji Tata Trust, thus realizing his father’s vision. Approximately 60-65% of the profits earned by Ratan Tata were donated for charitable purposes. His notable philanthropic contributions include:
- Quality Education
- Gender Equality
- Decent Work and Economic Work
- Industry, Innovation, and Infrastructure
- Reduced Inequality
- Partnerships to achieve the SDG
- Tata Centre for Technology and Design at the Indian Institute of Technology Bombay (IIT-B), Tata Centre for Technology and Design at the Massachusetts Institute of Technology (MIT) and the University of Chicago
- Tata Centre for Genetics and Society at the University of California San Diego, Harvard University South Asia Institute,
- Indian Institute of Science (IISc) – Bengaluru,
- Tata Institute of Social Sciences (TISS) – Mumbai, Tata Memorial Centre – Mumbai,
- Tata Institute of Fundamental Research (TIFR) – Mumbai
- National Institute of Advanced Studies (NIAS) – Bengaluru.
- The Tata Education and Development Trust established a $28 million Tata Fundraising Campaign in association with Cornell University to provide financial assistance to Indian undergraduates who cannot afford educational expenses.
Titles and Honours
Ratan Tata has been awarded the second-highest civilian honour of India, the Padma Vibhushan, and the third-highest civilian honour, the Padma Bhushan.
He has also received honorary doctorates from several prestigious institutions, including the London School of Economics, Cambridge University, Ohio State University, IIT Bombay, IIT Madras, and IIT Kharagpur.
Conclusion
Ratan Tata’s career and way of life journey offer valuable lessons for anyone seeking to make a positive impact in the world. His focus on excellence, innovation, and adaptability have contributed to the success of the Tata Group and his commitment to ethical leadership and corporate social responsibility has earned him respect and admiration. Additionally, his emphasis on teamwork and sustainability, as well as his compassion and willingness to lead by example, serve as a model for all. These lessons are relevant not only for business leaders, but for anyone who aspires to make a positive impact in the world.
