Ratan Naval Tata was an iconic and modest Indian Industrialist who transformed the Indian-centric conglomerate into a global powerhouse. He was one of India’s most internationally recognized industrialists. The company grew from salt to software. He led the Tata Group, a conglomerate of over 100 companies in different business verticals with approximately 660,000 employees across six continents for over two decades. The Tata Group was founded by Jamsetji Tata, an Indian business pioneer with a history of 155 years and businesses ranging from Jaguar Land Rover to aviation and salt production.
Ratan Naval Tata was an iconic Indian industrialist who transformed the Tata Group from a largely India-centric conglomerate into a global powerhouse, leaving a significant mark on the global business landscape. His tenure as the chairman of Tata Sons from 1991 to 2012 and his brief stint as interim chairman from October 2016 to February 2017 saw the Tata Group's financial success soar. The group became the first Indian conglomerate to surpass a combined market capitalization of $400 billion, a feat that brought pride to the nation.
As of August 20, 2024, the 29 publicly listed Tata Group companies had a combined market capitalization of ₹33.7 trillion ($403 billion), with annual revenues exceeding $100 billion. Tata Consultancy Services (TCS) is the most significant contributor to the group's valuation, with a market capitalization of $190 billion, accounting for 47% of the group's total value. Other significant contributors to the group's valuation include Tata Motors, Titan, and Tata Steel, which, together with TCS, account for almost 75% of the total.
Ratan Naval Tata was born on December 28, 1937, into a highly educated and prosperous traditional Parsis family. He studied at Cornell University in the USA. In 1962, when he returned to India, a relative of his JRD Tata asked him to join the Tata Group. He started working on the shop floor of a steel plant in Jamshedpur in eastern India before he became a technical assistant to the manager. In the 1970s, he took over two sick groups and turned them around with mixed results.
In 1991, JRD Tata, despite personal criticism and a label of nepotism, appointed Ratan Tata as his successor for the company.
He navigated the growth trajectory of the conglomerate through industry changes, adapting to emerging trends and demands with a keen focus on consumer goods. Tata spearheaded the globalization of the group through strategic acquisitions.
Notable examples include Tata Tea's acquisition of Tetley, Tata Motors' purchase of UK brands Jaguar Land Rover, and Tata Steel's acquisition of Anglo-Dutch Corus. Some strategic decisions paid off, and others cost the company lots of money. The acquisition of Tetley proved impactful; they became the world’s second-largest tea company.
Additionally, this was the biggest worldwide brand acquisition by an Indian firm. Tata also faced some major disappointments in his conglomerate business journey. He ventured into building safe and affordable transportation for millions of Indians with the Tata Nano car project.
The base model of the car was only 100,000 ($1,222). However, the euphoria of the initial success was short-lived. Branding the Nano car as the world’s cheapest car was a mistake, as people did not want to be seen driving the cheapest car, so the project was shelved due to production and marketing issues.
Ratan Tata retired as chairman of Tata Sons on December 28, 2012. Although he retired from his executive role, Tata remained active in various capacities. Ratan Tata will be remembered as India’s most reflective and visionary leader globally. He is known for his modesty and self-discipline.
Dr Mythili Kolluru
The author is a National-Level Award-Winning Outstanding Women Educator and Scholar in Strategic Management. She is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat and a member of Knowledge Oman.
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