Ratan Tata, the esteemed former chairman of the Tata Group and a prominent figure in Indian business, passed away at 86 on Wednesday, October 9.
Known for his visionary leadership and transformative impact, Tata took the helm of the Tata Group in 1991, a pivotal time coinciding with India’s economic liberalization.
His tenure saw the conglomerate expand into diverse sectors, including information technology, steel, automobiles, and hospitality, establishing it as a global powerhouse.
Tata Group tweets, “It is with deep sorrow that we announce the peaceful passing of our beloved Ratan. We, his brothers, sisters and family, take solace and comfort in the outpouring of love and respect from all who admired him. While he is no longer with us in person, his legacy…
Ratan Tata’s journey
After earning his architecture degree from Cornell University, Tata returned to India in 1962 to begin his career at the family business founded by his great-grandfather nearly a century prior.
He gained valuable experience at various Tata enterprises, including Telco (now Tata Motors Ltd) and Tata Steel Ltd, where he significantly improved the performance of the National Radio & Electronics Company by reversing losses and expanding market share.
In 1991, Ratan Tata succeeded his uncle, J.R.D. Tata, as chairman, just as India embarked on sweeping economic reforms that opened the nation to global markets, setting the stage for substantial growth.
One of his early initiatives involved curbing the influence of certain leaders within Tata Group companies by implementing retirement policies, advancing younger talent into senior roles, and tightening control over operations.
In 1996, he established Tata Teleservices, and in 2004, he took Tata Consultancy Services public, which became a major revenue generator for the group.
To achieve further growth, Tata recognized the need to expand internationally.
Under his leadership, the group made significant acquisitions, including the British tea company Tetley in 2000 for $432 million and the Anglo-Dutch steel giant Corus in 2007 for $13 billion—the largest acquisition of a foreign company by an Indian firm at that time.
Tata Motors also acquired luxury British brands Jaguar and Land Rover from Ford for $2.3 billion in 2008.
Among his notable projects at Tata Motors were the Indica, the first car designed and manufactured in India, and the Nano, aimed at being the world’s most affordable car.
Tata contributed initial designs for both vehicles.
While the Indica achieved commercial success, the Nano, priced at approximately 100,000 rupees (around $1,200) and envisioned as a solution for India’s masses, faced challenges due to safety concerns and poor marketing, leading to its discontinuation a decade later.
An avid pilot who occasionally flew the company’s aircraft, Ratan Tata remained unmarried, known for his reserved personality, simple lifestyle, and dedication to philanthropy.
Approximately two-thirds of Tata Sons’ share capital, the holding company for the Tata Group, is owned by philanthropic trusts.
His tenure at Tata was not without controversy, notably a public dispute following the ousting of Cyrus Mistry, a member of the wealthy Shapoorji Pallonji family, from the chairmanship of Tata Sons in 2016.
The Tata Group cited Mistry’s inability to turn around underperforming divisions, while Mistry accused Ratan Tata, who held the title of chairman emeritus, of meddling and establishing a competing power structure within the organization.
After retiring from active leadership, Ratan Tata became a well-known investor in Indian startups, supporting various ventures, including digital payments company Paytm, Ola Electric (a subsidiary of the ride-hailing service Ola), and Urban Company, which offers home and beauty services.
Among his numerous accolades, Tata was awarded the Padma Vibhushan in 2008, India’s second-highest civilian honor, in recognition of his distinguished service to trade and industry.
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