Ratan Tata: Return If Possible (RIP)
In a country where societal norms often emphasise the importance of having an heir for property inheritance, Ratan Tata’s stance sends a powerful message. Despite his vast wealth, he never felt the need to name an heir, defying traditional expectations and exemplifying a selfless approach to leadership.
The Tata legacy dates back to 1822 when Nusserwanji Tata was born into a Parsi priest family that had settled in Gujarat. At the age of 20, Nusserwanji moved to Mumbai and skillfully began trading cotton. He soon expanded into cotton exports and reinvested all his profits into the business and his children’s education, recognising the importance of knowledge. In 1859, he sent his son Jamsetji Tata to Hong Kong for education and business training.
Jamsetji Tata was exceptionally talented and joined his father’s cotton trading business. When the American Civil War broke out in 1861, Jamsetji capitalised on the opportunity by exporting cotton to London at double the price. Before this, American traders supplied cotton to England. However, when America stabilised postwar, England resumed importing from the U.S., placing Jamsetji in a difficult situation. To repay his investors, he had to sell his house. But like a phoenix, he rose again, venturing into cotton manufacturing. He established India’s first cotton mill in Nagpur, named Empress Cotton Mill. The workers in the mill were initially complacent, so Jamsetji introduced pension schemes, provident funds, group insurance, and family gatherings, which significantly improved their morale and productivity. In 1903, he founded the Taj Hotel in Mumbai, becoming India’s first five-star hotel with electricity. In 1907, Jamsetji launched India’s first steel plant in Mayurbhanj through a public issue, which received overwhelming support from nearly 8,000 investors. During World War I, this plant supplied steel to England. By 1914, the Tata Group had expanded to 14 companies worldwide. Jamsetji had two sons, Dorabji and Ratanji Tata. After Ratanji’s demise, Ratanji’s widow, Navajbai Tata adopted a boy from a Parsi orphanage, naming him Naval Tata. Dorabji Tata managed the Tata Group after Jamsetji’s passing. He led the group until 1938, when the chairmanship passed to J.R.D. (Jahangir Ratanji Dadabhoy) Tata (a scion from a different branch of the Tata family), who went on to lead the company for 52 years. Under his leadership, the Tata Group grew tremendously, producing India’s first locomotives and founding TCS, which became the second-largest employer in the country. He also established Tata Airlines and built hydroelectric power plants. However, government’s nationalisation policies later turned Tata Airlines into Indian Airlines.
J.R.D. Tata famously said, “Business is not only for profit but for nationbuilding.”
Naval Tata, the adopted son, had two children: Ratan Tata and Jimmy Tata. When Ratan was 10, Naval separated from his wife and remarried, having a son named Noel Tata. Ratan was raised by his grandmother Navajbai Tata. He studied at Cathedral and John Connon School in Mumbai and later pursued higher education at Cornell University, earning a degree in Architecture. He completed advanced management studies at Harvard Business School and briefly worked in the U.S.
On J.R.D.’s encouragement, Ratan returned to India and joined the Tata Group. His initial task was to revive the struggling NELCO (Tata Group’s pioneering integrated security and satellite solutions provider), which he managed to increase from a 2% to 20% market share. However, labour strikes in 1977 forced the company to shut down. Ratan was then tasked with reviving the Empress Cotton Mill, but the 1969 Monopolies and Restrictive Trade Practices Act posed challenges for the group. J.R.D. recognised Ratan’s dedication, passion, skills, and visionary leadership, naming him as his successor despite opposition from others.
On March 25, 1991, Ratan Tata became Chairman. Around this time, Prime Minister P. V. Narasimha Rao and Finance Minister Manmohan Singh announced economic liberalisation, opening India’s market to the world, transitioning from a socialist to a capitalist model. Ratan Tata took a decisive step that contrasted sharply with the decentralised approach of J.R.D. Tata’s leadership. While J.R.D. Tata maintained a structure where individual Tata companies operated with considerable autonomy, Ratan Tata began consolidating ownership by increasing Tata Sons’ stake in key companies. This strategic shift enabled him to embark on acquiring international brands, transforming Tata Group into a global powerhouse. Under his leadership, Tata acquired globally recognised brands such as Tetley, Jaguar Land Rover, and Corus, thus globalising the Tata Group. By then, the Tata Group was expanding rapidly, with the number of companies within the conglomerate steadily increasing.
Ratan Tata had always been deeply aware of the issues faced by India’s poor and middle class. The Tata Group, under his guidance, focussed on sectors such as education and health. Notably, J.R.D. Tata had established India’s first free cancer research and treatment centre in Mumbai. Building on this legacy, Ratan Tata spearheaded the creation of cancer research centres and hospitals in Varanasi, Muzaffarpur, and Kolkata.
Among all the Tata companies, Tata Motors was especially close to Ratan Tata’s heart. In 1998, he took on the ambitious project of launching the Tata Indica, investing significant amounts in setting up a dedicated plant. However, the car initially struggled in the market, leading to substantial losses for Tata Motors. Members of the board advised Ratan Tata to sell the plant, a suggestion he initially agreed to, and he travelled to the U.S. to negotiate with Ford. During discussions, Ford’s chairman Bill Ford made a disparaging remark, asking, “Why did you invest in a business you had no expertise in?” This statement deeply affected Ratan Tata, who promptly cancelled the sale and returned to India. Determined, he focussed on improving the Indica, which was re-launched successfully, earning widespread acclaim.
A similar challenge arose with the Tata Sumo. After selling about 5,000 units, customers reported gearbox issues. To uphold the brand’s reputation, Ratan Tata decided to recall all 5,000 cars at the company’s expense, repair them, and return them to the customers. This commitment to quality and service brought significant success to Tata Motors.
In the 1980s, one of Tata’s factories faced threats from a group of 100-200 hired goons who aimed to take control of the workers’ union. Despite being advised by his staff to leave for safety reasons, Ratan Tata believed that conceding to such demands would set a dangerous precedent. He stayed with the workers to show solidarity until police action restored order.
Ratan Tata regarded every employee of the Tata Group as part of his family, a value he consistently upheld. On one occasion, while in Pune, the Managing Director of a local factory fell seriously ill and needed to be moved to Mumbai. With it being a Sunday, no air ambulance was available. Ratan Tata, a licensed pilot like J.R.D. Tata, prepared to fly the MD himself. However, during this time, his staff managed to arrange an air ambulance, and the MD was safely transferred to Mumbai and recovered well.
Ironically, years later, when Ford faced financial difficulties and neared bankruptcy, Ratan Tata expressed interest in acquiring the company and invited Bill Ford to Mumbai for discussions. Ratan Tata treated him with utmost respect, never mentioning Ford’s earlier insult. At the conclusion of the deal, Bill Ford acknowledged the gesture by saying, “You are doing us a big favour by buying our company.” Instead of taking revenge, Ratan Tata assured Ford that the acquired brands would retain their identity and that the Tata name would not overshadow them.
While expanding the Tata Group globally, Ratan Tata continued to focus on social initiatives. He allocated 66% of Tata Sons’ profits to Tata Trusts, emphasising that fulfiling social responsibility was an integral part of the business.
Ratan Tata’s love for animals, particularly dogs, was well-known. His generosity earned recognition when Queen Elizabeth and Prince Charles wanted to honour him with a Lifetime Achievement Award. Despite the elaborate arrangements, Ratan Tata politely declined to attend, explaining to Prince Charles that his pet dog was unwell and needed him. Prince Charles later revealed this story during an interview, highlighting Tata’s compassionate nature. In Mumbai, Ratan Tata established a 24/7, state-of-the-art animal hospital with 200 beds, ICU facilities, surgical services, pharmacy, radiology, and pathology labs.
Living in Colaba, Mumbai, Ratan Tata led a simple life, his humility and genuine personality made him an icon of inspiration for millions.
Whenever Ratan Tata was near the Taj Hotel and needed to have lunch, he would not go to the Taj Hotel but to a nearby fast food shop for his meal. Many times, Ratan Tata would drive his car himself.
Ratan Tata never forgot the grassroot customers. In 2003, he noticed that a common man, with his wife and two children, often travelled on a single scooter or motorcycle. To provide such families with an affordable car, he envisioned and announced the plan for the Tata Nano, a low-cost car. He began the process to set up the Tata Nano car plant in Singur, West Bengal. However, due to certain issues, he had to consider relocating the plant to other states. During this time, the Gujarat government approached Ratan Tata with a proposal in the Taj Hotel itself, offering several sites and all necessary approvals for the Tata Nano plant. Accepting the offer, Ratan Tata conducted aerial inspections of the sites and finalised one to establish the Tata Nano plant. Despite this, the entire process took five years, and the manufacturing cost of the car, initially promised at one lakh rupees, began to rise. During the delay, competitors launched budget cars into the market.
When the Tata Nano finally launched, it did not receive the expected response. This could partly be attributed to a failure in the marketing strategy. Despite these challenges, Ratan Tata fulfilled his promise to provide an affordable car at one lakh rupees.
Everyone knows about the terrorist attack on Mumbai on November 26, 2008, which claimed 166 lives and left many others permanently injured. Among the locations targeted, two terrorists took control of the Tata Group’s Taj Hotel, resulting in 31 casualties and severe damage to the property. After the attack, Ratan Tata visited the staff, inquired about their well-being, and took responsibility for the families of those who had lost their lives, including the education of their children. He also extended help to neighbouring business owners affected by the attack. Ratan Tata went on to renovate the Taj Hotel and other properties under the Taj Group to an even better state.
In 2019, when Covid-19 struck India, Ratan Tata donated Rs. 1,500 crore for treatment efforts. Additionally, he provided over 1,000 ventilators, respirators, 400,000 PPE kits, 3.5 million masks, hand gloves, and 3,50,000 testing kits to the government. In 2014, he donated Rs. 95 million to IIT Bombay to support research and innovation. He also contributed 50 million dollars to Cornell University to facilitate Indian students studying there and 50 million dollars to Harvard Business School. He established the Tata Innovation Fund to support new entrepreneurs and initiated scholarships for students. Under his leadership, the Tata Group’s globalisation benefitted thousands of small entrepreneurs dependent on its factories, creating millions of jobs and quality educational opportunities. He provided loans of up to 10 lakh rupees over seven years through the Tata Innovation Fellowship. In 2010, he contributed Rs. 210 crore for a cancer research and treatment centre in Kolkata. The list of his contributions is extensive.
From 1892 to 2021, the Tata Group donated 102.4 billion dollars. During his tenure, Ratan Tata also succeeded in bringing back Indian Airlines, once known as Tata Airlines, into the Tata Group.
Ratan Tata served as Chairman of the Tata Group from 1991 to 2012 and as Interim Chairman from October 2016 to February 2017. In 2000, the Government of India honoured him with the Padma Bhushan, and in 2008, with the Padma Vibhushan. He was also awarded the Maharashtra Bhushan, the highest honour from the Maharashtra government, and the Assam Vaibhav by the Assam government. Various other nations also recognised him with prestigious awards.
Today, numerous products we use daily are made by companies under the Tata Group and Tata Sons. While many possess wealth, few have the heart to give back to society as Ratan Tata did.
Ratan Tata, born on December 28, 1937, passed away on October 9, 2024, at Breach Candy Hospital in Mumbai. His funeral was conducted with state honours. One regret shared by me and many Indians is that we could not award him the highest civilian honour, the Bharat Ratna, during his lifetime.
A heartfelt tribute to this towering personality!
*References: Multiple sources from the web
Shantaram Borhade
Mechanical Draftsman P&ES MPP,
Sai Chambers, Pune
