Obituary: Ratan Tata, the Modest Tycoon Who Transformed Indian Business
Ratan Tata, one of India's most esteemed business leaders, passed away at the age of 86. He was at the helm of the Tata Group—a vast conglomerate known as a "salt-to-software" empire, comprising over 100 companies and employing approximately 660,000 individuals. Under his leadership, the group's annual revenues exceeded $100 billion (£76.5 billion).
Founded by Jamsetji Tata, a pioneer of Indian entrepreneurship, the Tata Group has a storied history spanning 155 years. Its diverse portfolio includes well-known brands such as Jaguar Land Rover, Tata Steel, and ventures in aviation and consumer goods. According to Peter Casey, author of The Story of Tata, the company's ethos integrates capitalism with philanthropy, aiming to improve lives through its business practices.
Early Life and Education
Ratan Tata was born in 1937 into a traditional Parsi family—an educated and prosperous community that traces its roots to Zoroastrian refugees in India. His parents separated when he was young, and he later pursued higher education in the United States, earning a degree in architecture from Cornell University. During his time there, he also learned to drive and fly. However, he faced several close
calls, including engine failures while flying, which he recounted in interviews.
After his grandmother, Lady Navajbai, fell ill, Tata returned to India in 1962. It was during this time that JRD Tata, a relative and a key figure in the family business, invited him to join the Tata Group. Ratan Tata regarded JRD as his greatest mentor, describing him as a father and brother figure.
Rise within the Tata Group
Tata began his career on the factory floor at a steel plant in Jamshedpur, where he worked for several years before becoming the technical assistant to the manager. In the early 1970s, he took on the challenge of reviving two struggling group companies—one producing radios and televisions and the other focused on textiles. His efforts to turn around the electronics firm were successful, while the textile company yielded mixed results.
In 1991, JRD Tata appointed Ratan as his successor, a decision met with skepticism due to accusations of nepotism. Reflecting on this period, Ratan Tata later stated that he faced significant criticism but was determined to prove his worth.
Under Ratan Tata's leadership, the Tata Group transitioned from a traditional manufacturer to a global brand with a strong emphasis on consumer goods. His tenure was marked by bold acquisitions, including the purchase of the Anglo-Dutch steelmaker Corus and the British car brands Jaguar and Land Rover. Although some of these decisions were lucrative, others, such as a failed telecom venture, proved costly.
A landmark achievement came in 2000 when Tata acquired Tetley, making the group the world's second-largest tea company in a deal that marked a significant milestone in Indian business history. A British journalist once remarked that Tata was too modest to gloat about his successes, unlike many corporate leaders.
Legacy and Reflections
Despite his many accomplishments, Tata's venture into creating an affordable car, the Nano, turned out to be a disappointment. Launched in 2009 with much fanfare and a base price of 100,000 rupees ($1,222; £982), the Nano initially attracted attention but ultimately struggled in the market due to production and marketing challenges. Tata later reflected that branding it as the "world's cheapest car" was a mistake, noting that people often prefer not to be associated with such a label.
Ratan Tata's legacy is one of modesty, resilience, and a commitment to integrating business success with societal benefit. His passing marks the end of an era for the Tata Group and the Indian business landscape, leaving behind a transformative impact that will inspire future generations of entrepreneurs.