Ratan Tata and the Epic Legecy

October 19, 2024 · 14 min read

Vaquill Intern

Ratan Naval Tata was a prominent Indian industrialist and philanthropist whose values, work ethics, and journey continue to inspire generations. He was the chairman of the Tata Group from 1990 to 2012 and held the position of Interim Chairman from October 2016 to February 2017. He is known for transforming the Tata group and helping it achieve its current height. He was awarded the Padma Bhushan (3rd highest civilian award in India) in 2000 and the Padma Vibhushan( 2nd highest civilian award in India) in 2008.

He was born on 28 December 1937 in Bombay (now Mumbai), India, to Naval Tata(father) and Sooni Commissariat (mother). He breathed his last on October 9, 2024, at Mumbai Breach Candy Hospital, in Mumbai, Maharashtra, India.

He proved the meaning of his name Ratan (jewel) as he became the most precious jewel of India.

EARLY LIFE AND EDUCATION

Ratan tata was born on 28 December 1937 to a Parsi Zoroastrian family in Bombay. His father Naval Tata was adopted by Navajbai, wife of Sir Ratanji Tata from J.N. Petit Parsi Orphanage. His mother Sooni Commissariat was the niece of the Tata group founder Jamsetji Tata. The two separated when Ratan Tata was 10 years old. He was subsequently raised by his grandmother Navajbai Tata, the widow of Sir Ratanji Tata along with his younger brother, Jimmy Tata. He had a stepbrother named Noel Tata, who was born out of his father’s second marriage to Simone Tata.

Ratan Tata attended the Campion School, Mumbai till class 8th. He later shifted to the Cathedral and John Connon School, Mumbai. He was also enrolled in the Bishop Cotton School in Shimla and the Riverdale Country School in New York City; he finally graduated high school in the year 1955. He went to Cornell University for further studies and graduated with a bachelor’s degree in architecture in 1962. He was an Alpha Sigma Phi Fraternity member while studying at Cornell. Later, he also pursued the Advanced Management Program at Harvard Business School in 1975.

CAREER

EARLY YEARS

In 1961, he met the architect A. Quincy Jones and joined his firm Jones & Emmons in Los Angeles as an architect. Ratan Tata planned to live and work as an architect in Los Angeles. But later, upon his grandmother’s request, he returned to India.

ENTRY TO TATA GROUP

Back in India, Ratan Tata received a job offer from IBM, JRD Tata was not amused with the job offer, so he insisted on joining the Tata group. Ratan Tata joined Tata Sons in 1962, where he worked as an assistant at Tata Industries starting on the shop floor of Tata Steel.

He was given the position of Director-in-charge at NELCO (National Radio and Electronics), a subsidiary of Tata Group. He achieved initial success as he improved the consumer electronics division and turned the company into a profit-making enterprise. His work resulted in vain as the company later collapsed during an economic slowdown.

He was transferred to Empress Mills, in 1977, a struggling company under Tata Group. He devised the plan to improve it but the higher-ups rejected the plan and the company was later shut down.

He joined the board of Tata Sons as a director in 1974 and was later appointed as the chairman of Tata Industries in 1981

In 1991, JRD Tata stepped down as the chairman of Tata Sons and named Ratan Tata his successor. The decision resulted in a lot of resistance as the senior executives heading various companies like Russi Mody( Tata Steel), Ajit Kerkar ( Taj Hotels), Drabari Seth (Tata Tea, Tata Chemicals), and Nani Palkhivala ( Director on board of several Tata Companies) were expected to succeed JRD Tata and secure their position.

The decision invited a lot of criticism from both within the company and outside the company. He was branded as the wrong choice by several media outlets. While heading the company, he realized that the company was unevenly managed and heavily bureaucratic. He also faced severe opposition from the senior company executives who operated with much freedom under J.R.D Tata’s time.

Ratan Tata worked hard with dedication and proved them wrong. He brought about major changes in the functioning of the company. He introduced the policy wherein the subsidiary companies had to directly report to the group office, he convinced them to pay their profit for using the brand name of Tata Group.

He also set a retirement age.

According to the new rule, the retirement age was set at 70 so that the senior workers were replaced with younger staff who would contribute to the company in the long run.

With this, the debate around the succession issue was put to an end as Seth and Kerkar retired because they had already crossed the age limit. Mody was sacked because of a public scuffle which went against the values of the company and Nani Palkhivala quit the job due to health issues.

After the succession issue was sorted Ratan Tata started to focus on improving the company. It was a remarkable coincidence as Ratan Tata’s succession as the company head synchronized with the opening of the Indian economy. The company was aiming to make the most out of the situation and aimed to operate the group on foreign shores.

MILESTONES

Despite the severe criticism he faced during his initial years, it can be agreed upon that the Tata group under the reins of Ratan Tata flourished. During the 21 years he led the company, the revenue of the company grew over 40 times and the profit grew over 50 times.
When he initially took over the company the revenue was mainly generated through commodity sales but as he ended his tenure the majority of the sales were coming from the brands.
He acquired the English brand, Tetley through Tata Tea in the year 2000 for $450 million, Jaguar Land Rover was acquired by Tata Motors from Ford Motors in 2008 for $2.3 billion and the South Korean truck manufacturing unit of Daewoo Motors was acquired for 102$ million. He also led to the acquisition of the steel giant company Corus Group for $11.3 billion.
These acquisitions led to the expansion of the Tata Group and its global footprint by reaching over 100 countries.
He conceptualized the Tata nano car and launched it in 2008. The price of the vehicle was fixed at an affordable rate. The car was launched to attract the middle classmen of the society.

PHILANTHROPIC WORK

The Tata’s have been known for their core values. The company and its leaders have always believed that giving back to society should be one of the greatest motives of a company. A massive 66% of the Tata Group goes towards charitable purposes.

As Jamsetji Tata, founder of Tata Group stated “There is one kind of charity common enough among us. It is that patchwork philanthropy which clothes the ragged feeds the poor, and heals the sick.

I am far from decrying the noble spirit which seeks to help a poor or suffering fellow being. [However] what advances a nation or a community is not so much to prop up its weakest and most helpless members, but to lift up the best and the most gifted, so as to make them of the greatest service to the country.”

Ratan Tata has successfully carried forward his legacy of giving back to society through his philanthropic works.

His contributions cover a wide range of sectors which have helped India and its citizens immensely. His notable ones include:

EDUCATION

He has led to the establishment of:

The Tata Centre for Technology and Design at the Indian Institute of Technology Bombay (IIT-B), the Tata Centre for Technology and Design at the Massachusetts Institute of Technology (MIT), and the University of Chicago
The Tata Hall a state-of-the-art research facility, and The Tata Institute for Genetics and Society in UC San Diego.
Tata Education and Development Trust at Cornell University is a scholarship fund that supports approximately 20 Indian scholars studying there.
The Tata Innovation Center at the Cornell Tech
The Executive Centre at Harvard Business School, later named Tata Hall

He supported the University of New South Wales Faculty of Engineering in its initiative to provide and improve water quality in affected areas.
He is the Highest International donor to the Cornell University

SCIENCE AND RURAL DEVELOPMENT

Ratan Tata as the chairman of Tata Trusts provided a grant of Rs 750 million to the Centre of Neuroscience of the Indian Institute of Science to study the underlying causes of Alzheimer's disease and to evolve the methods for early diagnosis and treatment
He has given generous donations and support during natural calamities like COVID-19 and the donations for setting up several schools and hospitals.
The Transforming Rural India Initiative (TRI), an initiative of the Tata Group in collaboration with the government, NGOs, philanthropists, and civil society groups aims to transform the areas of acute poverty
He has several times worked with the government and NGOs to provide and improve water sanitation, nutrition, maternal care, and infrastructural support.

CHALLENGES FACED BY RATAN TATA

When Ratan Tata took over Empress Mills, a loss-making company under Tata Group, he demanded 50 lakh rupees to be sanctioned to improve the facility and turn it into a profit-making unit. The aim was revolutionary, but the demand was not sanctioned which led to its shutdown.
When Ratan was named as the successor of The Tata Group, he had to face lots of criticism from within and outside the group. He was termed as a bad choice. Despite these challenges, he proved his worth in the coming years.
He decided to enter the automobile industry with the launch of Tata Indica, an affordable car to attract the masses of the country. The car failed in the market and the company had to suffer losses.
Due to the recent failure, Ratan Tata decided to sell Tata Motors to the then-giant, Ford Motors. Reportedly, he was insulted by the Ford owner. Ford said, “When you don’t know anything about passenger cars, why did you start the business”. This was a major insult to Ratan Tata
Later in 2008, this insult was replied to very gracefully as Tata bought Jaguar-Land Rover for $2.3 billion from the now loss-making company Ford, which was on the verge of bankruptcy.
Ratan Tata designed the world’s most affordable car - Tata Nano, this project was launched with the aim of providing cars to middle-class men. The car’s launch price was capped at around rs. 1 lakh. But sadly, the project was a failure. The car’s design model was not to the liking of people and it failed miserably.

Despite the challenges he faced, he made sure to fight back. He always aimed for excellence, trust, and teamwork within the organization. He is known for his business acumen as well as

AWARDS AND HONORARY TITLES

Year	Name	Awarding Organization
2000	Padma Bhushan	Government of India
2001	Honorary Doctor of Business Administration	Ohio State University
2004	Medal of the Oriental Republic of Uruguay	Government of Uruguay
2004	Honorary Doctor of Technology	Asian Institute of Technology
2005	International Distinguished Achievement Award	B'nai B'rith International
2005	Honorary Doctor of Science	University of Warwick
2006	Honorary Doctor of Science	Indian Institute of Technology Madras
2006	Responsible Capitalism Award	For Inspiration and Recognition of Science and Technology (FIRST)
2007	Honorary Fellowship	The London School of Economics and Political Science
2007	Carnegie Medal of Philanthropy	Carnegie Endowment for International Peace
2008	Padma Vibhushan	Government of India
2008	Honorary Doctor of Law	University of Cambridge
2008	Honorary Doctor of Science	Indian Institute of Technology Bombay
2008	Honorary Doctor of Science	Indian Institute of Technology Kharagpur
2008	Honorary Citizen Award	Government of Singapore
2008	Honorary Fellowship	The Institution of Engineering and Technology
2008	Inspired Leadership Award	The Performance Theatre
2009	Honorary Knight Commander of the Order of the British Empire (KBE)	Queen Elizabeth II
2009	Life Time Contribution Award in Engineering for 2008	Indian National Academy of Engineering
2009	Grand Officer of the Order of Merit of the Italian Republic	Government of Italy
2010	Honorary Doctor of Law	University of Cambridge
2010	Hadrian Award	World Monuments Fund
2010	Oslo Business for Peace Award	Business for Peace Foundation
2010	Legend in Leadership Award	Yale University
2010	Honorary Doctor of Laws	Pepperdine University
2010	Business for Peace Award	Business for Peace Foundation
2010	Business Leader of the Year	The Asian Awards
2012	Honorary Fellow	The Royal Academy of Engineering
2012	Doctor of Business honoris causa	University of New South Wales
2012	Grand Cordon of the Order of the Rising Sun	Government of Japan
2013	Foreign Associate	National Academy of Engineering
2013	Transformational Leader of the Decade	Indian Affairs India Leadership Conclave 2013
2013	Ernst and Young Entrepreneur of the Year – Lifetime Achievement	Ernst & Young
2013	Honorary Doctor of Business Practice	Carnegie Mellon University
2014	Honorary Doctor of Business	Singapore Management University
2014	Sayaji Ratna Award	Baroda Management Association
2014	Honorary Knight Grand Cross of the Order of the British Empire (GBE)	Queen Elizabeth II
2014	Honorary Doctor of Laws	York University, Canada
2015	Honorary Doctor of Automotive Engineering	Clemson University
2015	Sayaji Ratna Award	Baroda Management Association, Honoris Causa, HEC Paris
2016	Commander of the Legion of Honour	Government of France
2018	Honorary Doctorate	Swansea University
2021	Assam Baibhav	Government of Assam

FREQUENTLY ASKED QUESTION (FAQs)

Ratan Tata’s father Naval Tata was adopted by Sir Ratanji Tata who was the son of Jamshedji Tata while Ratan Tata’s mother Sooni Commissariat was the niece of Jamshedji Tata

2. Is Ratan Tata adopted?

No, he is not adopted. However, his father Naval Tata was adopted by Sir Ratanji Tata.

3. Did Ratan Tata marry?

No, he did not marry. But, in an interview, he mentioned he was close to marrying four times.

4. Does Ratan Tata have any children.

No, Ratan Tata does not have any children.

5. What are some interesting facts about Ratan Tata?

Ratan Tata is a licensed pilot and he was the first Indian to fly an F-16 Falcon 1n 2007

REFERENCES

Written by Shubhangi Singh

Shubhangi is a law student at Chanakya National Law University and an intern at Vaquill.

Ratan Tata and the Epic Legecy

EARLY LIFE AND EDUCATION