Ratan Tata, the industrialist who turned Tata Group from an India-centric conglomerate into a global powerhouse while setting new standards for ethical business practices and philanthropy, died yesterday at Breach Candy Hospital in Mumbai. He was 86.
Tata Sons-the holding company of Tata Group-stated that Tata succumbed to his brief illness.
As the head of Tata Sons from 1991 to 2012, Mr Tata spearheaded some of India’s most audacious overseas buyouts-including the purchase of tea group Tetley, luxury car maker Jaguar Land Rover, and the Anglo-Dutch steel maker Corus, among others. Under his stewardship, the group’s revenues expanded from $5 billion to over $100 billion, representing one of the most spectacular turnarounds in Indian corporate history.But Mr. Tata was so much more than an excellent businessman, great and successful. He stood on two worlds-the traditional values of Indian business and global capitalism-with clarity and vision, and more than a little panache.
Ratan Naval Tata was born on December 28, 1937, to the illustrious Parsi Zoroastrian Tata family by Naval Tata and Sooni Tata. His parents split when he was 10 years of age. He stayed with his grandmother, Navajbai Tata. He joined Cornell University and pursued architecture. The experience in that place groomed him in business and design more than being very systematic.
Mr. Tata joined the Tata Group after graduating from Harvard Business School in 1961. He was put on the shop floor of Tata Steel, and most of his growing-up years on the shop floor ended in the late 1970s with the collapse of a separate venture with Nelco. This taught him lessons in life, hardening his personality and helping him grow into a leader who would not rock the boat easily.
When Mr. Tata replaced J.R.D. Tata as chairman in 1991, he faced opposition from powerful satraps in the group. Taking a bold move, he began to modernize the conglomerate. He introduced a retirement age for directors and streamlined operations. His vision was not only to keep the profit margins intact but to establish a global competitor with the ethical foundations of the institution in place.
Perhaps his most notable project would be the Tata Nano: A car conceived to be the world’s cheapest, selling at $2,500. Commercially not as successful as he had envisioned, the Nano nonetheless captured the essence of innovation that Mr. Tata embodied and wanted to bring such goods to ordinary Indians.
Never married, he had devoted his life to business and philanthropy. Via the Tata Trusts, controlling 66% of Tata Sons, he had poured billions into education, healthcare, and rural development. Donations included $50 million to Cornell University and major gifts to institutions around the world.
India’s two highest civilian awards have been conferred upon him: the Padma Vibhushan in 2008 for his contribution to Indian industry and society and the Padma Bhushan in 2000.
The leadership qualities that characterized Mr. Tata were a unique mix of ambition and humility. He was said to lead a frugal life-most often driving himself to work in a modest car. He, however, thought on a grand scale, visualizing a future when Indian companies could rub shoulders with global behemoths.
Post his retirement in 2012, Mr Tata continued to be actively engaged as the chair of the Tata Trusts and was soon thrust into becoming an important investor in the young and rising start-up culture of India, offering capital and mentorship to young entrepreneurs.
His brother is Jimmy Tata, and half-brother Noel Tata survive him. However, what brings his legacy alive is the multiple lives he touched – from the Tata Group employees to the recipients of the charity work that transpired all his life. For many Indians, Mr. Tata represented the possibility that ethical business practices and commercial success could go hand in hand.
One of his last interviews saw him reflecting on his life’s work: “I don’t believe in taking the right decisions. I take decisions and then make them right.” That was an approach that transformed not just a business empire, but Indian industry as well.
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