Ratan Tata: From unlikely heir to global legacy builder of the Tata group | People

Not surprisingly, Tata’s journey as head of the Tata Group—beginning in 1991, the year India embraced economic reforms and liberalization—coincided with the country’s rise as an economic powerhouse and the exposure of India’s managerial and technological talent across the country. globe.

However, the thread that connects most of the dots in this story is Tata’s personal journey.

“It is difficult to be a father. A surname does not allow failure…” Gita Piramal wrote in Business Maharajas, first published in the 1990s.

However, that is exactly what the money was betting on when Tata took over—that he would fail. He joined the group in 1962, armed with a bachelor’s degree in architecture from Cornell. He went through various positions before starting a steady career at the National Radio and Electronics Company in 1971. Ten years later, he was appointed Chairman of Tata Industries, where he began to show glimpses of his talent by turning the company into a corporation. a strategic think tank and promoter of high-tech projects.

However, few paid attention to Tata Industries at a time when legends like Russi Mody at Tata Steel, Darbari Seth at Tata Chemicals and Tata Tea, and Ajit Kerkar at Indian Hotels reported freely to a great legend: JRD Tata .

Naturally, few expected Ratan Tata to go far when he became the head of the group. He shouldn’t have even been that. His main rival for this position, Mody, gave a newspaper interview which ended his chances.

Mody’s dismissal finally made it clear that Ratan Tata would not go along with JRD’s loose state structure. Instead, he did the hard work of bringing the satraps to heel. From there, he systematically increased Tata Sons’ shareholding in group companies. In 1996, he introduced the Brand Subscription Scheme, where group companies paid money to use the Tata name.

Once Tata felt secure, he pursued his dreams. Unlike some of his peers, such as Rahul Bajaj, who guarded their sovereignty and did not part with equity, Tata was open to working with foreign partners. He took this step further with a series of imports, notably Tetley, Corus, and Jaguar Land Rover.

What he did at home was equally important. He had always dreamed of creating a people’s car for India, combining the luxury of the Ambassador and the economy of the Maruti. Thus, Indica was born and held its own against international brands for a while. However, the ambitious Nano became a challenge. Tata had promised a car suitable for India for around Rs 1 lakh, but despite fulfilling that promise, the Nano did not catch the eyes of the people of India, who refused to be identified as the owners of the cheapest car.

Then came the Radia tapes episode. Tata and Niira Radia met in the 1990s when the group was trying to launch an airline with Singapore International Airlines. Radia, who had moved to India with her three sons, was advising SIA. After the leak of the tapes showing Radia in questionable conversations, their association has been closely watched even though Tata has been saying many times that Radia was brought in to fight negative campaigns against the group.

On top of this, when Tata handed over to Cyrus Mistry in 2012, it was clear that he was leaving history behind. However, dissatisfaction with Mistry’s direction led to a board battle in 2016, with Tata returning as interim chairman before starting a permanent succession.

It’s been an eventful journey for someone who shouldn’t have been in the role. He might not even have been Tata. His father, Naval, was adopted by Ratanji Tata, son of the group’s founder Jamsetji.

Ratan Tata could have always been an architect, but his grandmother’s illness brought him back to India frequently, and one thing led to another. He stayed, writing an indelible chapter in India’s business history.

First published: October 10 2024 | 1:05 AM IST