Ratan Tata – The Name Says It All!
If there is a businessman and his business empire known for spending a major chunk of their revenue on philanthropical activities, then Ratan Tata is second to none. The Tata Group is deeply woven into the fabric of India, with an inseparable bond that has lasted for decades and is likely to endure for centuries to come.
An Overview of the Tata Group
In today’s article, I’m going to walk you through the life of Ratan Tata and the conglomerate of nearly 100 companies he is known for, the TATA group. You heard that right, TATA is not a single company. As of 2022, TATA group has 29 Public listed companies and more than double that number of unlisted companies doing their operations in more than 100 counties across 6 continents!
TATA is one of the major job providers in the world with over 800,000 employees working under them in various verticals. Ratan Tata, being the face of the group has been constantly able to take it from success to success!
Ratan TATA and the TATA group
- A lot of people from the current generation have this perception that the TATA group was founded by Ratan Tata. But in reality, it is not the case. Ratan Tata is the heir of the Tata family that founded this business more than a century back.
- The Tata group was founded by Mr Jamsetji Tatain in the year 1868 with an initial capital of Rs. 21,000 which in the current valuation translates to several crores.
- The family of Tata was well established even before the start of the company. Ratan Tata is the heir of this family and belongs to the 5th Generation of Jamsetji Tata.
The Early Life and Education of Ratan Tata
Ratan Tata took birth in the year 1937 to Mr Naval Tata who was the adopted son of Sir Ratanji Tata. He is an extremely well-educated businessman who did his graduations at Cornell University and Harvard Business School.
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Ratan Tata’s Entry into the Business World
- Ratan Tata began his business career in 1961 and earned a managerial role by 1970. He revived NELCO (National Radio and Electronics), a company on the brink of bankruptcy, bringing it back to life.
From there on, there was no looking back in his carrier and in fact, he was gradually emerging as the face of the group of companies.
- It was in 1991 that Ratan Tata took charge as the Chairman of Tata Sons after Mr J. R. D Tata stepped down. His initial years as chairman weren’t as easy as he had to confront resistance from many senior managers of that time.
- However, gradually he became an integral part of the company and he turned out to be the final word in the firm when it comes to decision-making.
Major Business Acquisitions Under Ratan Tata’s Leadership
- The Years Following Ratan Tata’s tenure as the chairman of the Tata Group saw a lot of new perspectives and revolutionary decisions spearheaded by the caiman himself. Ratan Tata was successful in acquiring many companies from around the world.
- The story of acquiring Jaguar Land Rover is quite interesting and inspiring. When the Motor Manufacturing wing of Tata Group (Tata Motors) was going through a hard time, Ratan Tata had a meeting with the representative of Ford group to sell it. However, the discussion didn’t go through well and the acquisition failed.
- Nine years later, Tata Motors acquired Jaguar Land Rover when it was facing bankruptcy. This remarkable turnaround is often seen as a heroic tale, fit for a blockbuster movie.
- Ratan Tata also succeeded in turning the company into an international one with multiple acquisitions of well-known international brands. He also took all initiative to list the group in the US stock market!
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TATA: More Than Just a Business – An Emotion!
- Tata is more than a company. It is an emotion – The quotes from the fans of the company go like this. These are not mere words from some fanatic fans, but a reality coming from the bottom of the hearts of millions of Indians.
- Tata group stood by all the major milestones the country has witnessed in the last decade. In fact, a number of firms the government now boasts of owning were actually created by the Tata Group and handed over to the government.
For instance, Air India was handed over to the government by the Tata Group. It was founded by J. R. D Tata in 1932 as Tata airlines!
- Tata in the Motor Industry -Under Ratan Tata’s leadership, Tata Motors achieved remarkable milestones. The ‘Indica’ became India’s first fully indigenously manufactured four-wheeler, showcasing the nation’s ability to meet its own technological needs.
- Even IIS (Indian Institute of Science) shares a similar story. Now a dream institution for millions, it was founded when Jamsetji Tata envisioned creating a world-class institute for quality education.
- Another major milestone in Ratan Tata’s tenure came in 2008 when he led the creation of the Tata Nano, the world’s most affordable car.
- Tata Nano was a dream coming true for Ratan Tata. As a keen observer, he noticed how Indian middle-class families struggle to travel. The nuclear families resorted to two-wheelers which meant high risk as far as safety is concerned.
- Tata Motors offered a new car at the cost of a new bike. This type of business is a pure showcase of commitment towards social well-being which outweighs other businesses by several miles.
Other verticals of Tata
There is a great variety of products and services offered by Tata. Literally, Tata Salt is a famous brand throughout India. Tata Steel, Tata Tea, Tata Motors, Tata Consultancy Services – The list is quite large.
Tata has a presence in almost every sector in India. Under Ratan Tata’s leadership, the company’s revenue grew over 35 times, and its profit increased by more than 50 times. It is often said that if Tata were a single entity, it would surpass India’s richest businessmen, Adani and Ambani, in wealth.
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Philanthropy and Social Impact
Ratan Tata and the Tata Group are renowned for their dedication to social service and philanthropy, with nearly 65% of the group’s revenue directed toward charitable activities. Ratan Tata is regarded more as a philanthropist than just a businessman.
It is hard to find a company with so much affinity towards social causes and the well-being of an entire country. It is of utmost importance that all new business aspirants learn this aspect of generosity from Ratan Tata once they are sure about scalability!
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