Ratan Tata, the legendary industrialist and philanthropist, passed away in Mumbai on October 9, 2024, at the age of 86. He is widely recognized for transforming Tata Group into a global business empire and expanding its presence to over 100 countries. His death was announced by Tata Group Chairman Natarajan Chandrasekaran, who praised Tata as a “remarkable leader whose unparalleled contributions have not only shaped the Tata Group but also significantly impacted the nation’s growth.”
Chairmanship and Global Expansion
As Chairman of Tata Group from 1991 for over two decades, Ratan Tata’s leadership brought the 156-year-old business into the global spotlight. The conglomerate now operates across more than 100 countries and reported $165 billion in revenue for the fiscal year ending in March 2024. Tata’s vision and ambition were instrumental in the group’s vast portfolio, which spans various sectors from automobiles and steel to technology and hospitality.
Strategic Acquisitions
Under Ratan Tata’s stewardship, the group acquired prominent international businesses, including British steel giant Corus Group in 2007 and luxury carmaker Jaguar Land Rover in 2008. Despite these ambitious moves, Tata’s expansion came at a time of global economic uncertainty, including the 2008 financial crisis, which brought new challenges to the acquisitions.
Kavil Ramachandran, executive director of the Thomas Schmidheiny Center for Family Enterprise at the Indian School of Business, noted that “Ratan Tata envisioned big and pushed the Tata empire beyond Indian borders. However, some initiatives, although visionary, faced timing issues.”
Leadership Challenges
Internal Struggles
Ratan Tata’s first tenure as Tata Group Chairman lasted 21 years until his retirement in 2012. He later returned briefly in 2016 during a leadership crisis following the dismissal of his successor, Cyrus Mistry. This period marked one of two intense internal struggles during Tata’s career, the first occurring in 1991 when he initially assumed leadership and had to contend with long-serving executives holding significant control within the company. Despite these conflicts, Tata prevailed both times, securing his legacy within the conglomerate.
The Mistry Controversy
In 2016, after Mistry’s ouster as Chairman of Tata Sons, the Tata Group’s main holding company, a bitter legal battle ensued between the Mistry family and Tata Sons. The dispute strained the 70-year-old partnership between the two families and led to Mistry’s family signaling its intention to sell its 18% stake in Tata Sons in 2020.
A Legacy of Compassion
The 2008 Mumbai Terror Attacks
Tata’s leadership extended beyond the boardroom. During the 2008 Mumbai terror attacks, the group’s iconic Taj Mahal Palace Hotel was one of the primary targets. Ratan Tata personally visited the families of the 31 people, including 11 employees, who lost their lives in the attack. His compassionate approach and attention to the victims’ families underscored his philanthropic side and deep-rooted commitment to the community.
Personal Life and Philanthropy
A Private Individual
Despite his vast professional accomplishments, Tata remained a private individual, never marrying and having no children. His passing leaves a significant leadership gap at the helm of Tata Trusts, a charitable organization controlling 66% of Tata Sons. Tata Trusts, traditionally led by a Tata family member, plays a key role in guiding the conglomerate’s direction through its shareholding in Tata Sons.
Support for Startups
In his later years, Tata became an enthusiastic supporter of startups, backing ventures such as Ola Electric Mobility, which saw tremendous success with its 2024 public offering, and Goodfellows, a platform fostering intergenerational friendships.
Early Life and Education
Childhood and Family Background
Born in Mumbai on December 28, 1937, Ratan Naval Tata was raised by his grandmother after his parents, Naval and Sooni Tata, divorced when he was 10. He attended school in Mumbai before studying at Cornell University, where he initially pursued mechanical engineering. However, he later switched to architecture, fulfilling a personal passion despite his father’s disapproval.
Career Beginnings
Tata returned to India after college due to his grandmother’s ill health, opting to join the family business rather than accept a job offer from IBM. Ratan Tata’s career with the Tata Group began in 1962, with guidance from then-chairman Jehangir Ratanji Dadabhoy (JRD) Tata. JRD, a distant relative, mentored Ratan Tata, and by 1991, Ratan was chosen to lead the conglomerate.
Major Achievements
The Indica and Expansion into Automobiles
At the time Ratan Tata became chairman, Tata Group was largely domestic-focused, with Tata Consultancy Services still in its infancy and its automotive division not yet producing passenger cars. The 1990s marked a turning point for India’s economy, which began to open up to private enterprises following decades of socialist policies. As foreign automakers such as Ford and Hyundai entered the Indian market, Tata decided to launch the country’s first locally produced passenger vehicle, the Tata Indica, which was released in 1998 and referred to by Tata as “my baby.”
Bold Acquisitions
During the 2000s, as India’s economy surged, Tata Group expanded its global presence, acquiring major foreign businesses like Corus and Jaguar Land Rover. Despite these triumphs, the 2008 financial crisis and a global steel glut created challenges for the group, leading to financial strain and widespread criticism that Tata had overpaid for the Corus deal. Tata Steel eventually downsized its European operations in response to declining demand and rising costs.
Navigating Challenges
The Jaguar Land Rover Experience
The Jaguar Land Rover acquisition also encountered obstacles, including slumping demand in China and the uncertainty surrounding Brexit. However, the Tata Group successfully turned around the luxury car brand, which continued to grow in prestige despite global market turbulence.
The Nano Microcar
One of Ratan Tata’s most ambitious endeavors, the Nano microcar, aimed at providing affordable transportation to millions of Indians, failed to meet its target. Launched in 2008 with a price tag of 100,000 rupees ($1,190), the Nano suffered from initial quality concerns and a lack of demand, leading to its discontinuation in 2018.
Final Triumph
Air India Acquisition
Perhaps the most symbolic achievement of Tata’s career came in 2021 when Tata Sons regained control of Air India, the nation’s flagship airline, almost 90 years after it was nationalized. The acquisition allowed Tata to reclaim an airline that had originally been founded by JRD Tata, further cementing his legacy within the group.
Conclusion
Ratan Tata’s impact on Indian industry and global business is unparalleled. As the Tata Group continues to thrive under new leadership, his visionary approach and dedication to philanthropy will be remembered for generations to come.