Born to a family of Indian industrialists and philanthropists who founded ironworks and steelworks, cotton mills, and hydroelectric power plants that proved crucial to India’s industrial development, Ratan Naval Tata comes from a Parsi family. Jamsetji Nusserwanji Tata (1839— 1904) was the founder of the family’s fortunes. After an education at Elphinstone College in Mumbai (then Bombay), he joined his father’s export trading firm in 1858 and helped establish branches of the company in Japan, China, Europe, and the United States. In 1872 he concentrated on cotton manufacturing, founding mills at Nagpur in 1877 and, later, at Bombay and Coorla. His enterprises were noted for efficiency, for improved labour-protection policies, and for the introduction of finer grades of fibre. He also introduced the production of raw silk to India and planned for the Bombay-area hydroelectric power plants that became the Tata Power companies after his death.
By the late 1950s the Tata Group controlled the largest single aggregation of Indian industry. J.R.D. Tata was succeeded as chairman by his nephew, Ratan Tata, in 1991. Ratan aggressively sought to expand the Tata Group, acquiring such companies as the London-based Tetley Tea (2000) and the Anglo-Dutch steel manufacturer Corus Group (2007). In 2008 he oversaw Tata Motors’ purchase of the elite British car brands Jaguar and Land Rover from the Ford Motor Company. In 2012 Ratan retired as chairman and was succeeded by Cyrus Mistry. In October 2016 Mistry was abruptly dismissed, and Ratan took over as interim chairman; media reports indicated that conflicts over business strategy were the reason for Mistry’s ouster. In January 2017 Natarajan Chandrasekaran was appointed as the new chairman of the Tata Group.
Ratan Tata is a bachelor. He is known for his low profile lifestyle. He resides in a simple house in Mumbai and drives around in a Tata Sedan.
Ratan Tata became chairman (1991–2012 and 2016–17) of the Tata Group, a Mumbai-based conglomerate.
He was educated at Cornell University, Ithaca, New York, where he earned a B.S. (1962) in architecture before returning to work in India. He gained experience in a number of Tata Group businesses and was named director in charge (1971) of one of them, the National Radio and Electronics Co. He became chairman of Tata Industries a decade later and in 1991 succeeded his uncle, J.R.D. Tata, as chairman of the Tata Group.
Upon assuming leadership of the conglomerate, Tata aggressively sought to expand it, and increasingly he focused on globalizing its businesses. In 2000 the group acquired Londonbased Tetley Tea for $431.3 million, and in 2004 it purchased the truck-manufacturing operations of South Korea’s Daewoo Motors for $102 million. In 2007 Tata Steel completed the biggest corporate takeover by an Indian company when it acquired the giant Anglo-Dutch steel manufacturer Corus Group for $11.3 billion.
In 2008 Tata oversaw Tata Motors’ purchase of the elite British car brands Jaguar and Land Rover from the Ford Motor Company. The $2.3 billion deal marked the largest-ever acquisition by an Indian automotive firm. The following year the company launched the Tata Nano, a tiny rearengined, pod-shaped vehicle with a starting price of approximately 100,000 Indian rupees, or about $2,000. Although only slightly more than 10 feet (3 metres) long and about 5 feet (1.5 metres) wide, the highly touted “People’s Car” could seat up to five adults and, in Tata’s words, would provide a “safe, affordable, all-weather form of transport” to millions of middle- and lower-income consumers both in India and abroad. In December 2012 Tata retired as chairman of the Tata Group. He briefly served as interim chairman beginning in October 2016 following the ouster of his successor, Cyrus Mistry. Tata returned to retirement in January 2017 when Natarajan Chandrasekaran was appointed chairman of the Tata Group.
Among many other honours accorded him during his career, Tata received the Padma Bhushan, one of India’s most distinguished civilian awards, in 2000.
CHILDHOOD AND EARLY LIFE
Ratan Tata was born on December 28, 1937 in Surat, India, to Naval Tata and Sonoo. Naval Tata was the adopted son of the Jamsetji Tata’s younger son Ratanji Tata. Jamsetji Tata was the founder of the Tata Group of Companies. Ratan Tata has a brother, Jimmy, and a step-brother, Noel Tata.
When he was ten, his parents, got separated and thereafter, he and his brother were brought up by his grandmother, Navajbai Tata.
He received his early education from the Campion School, Mumbai and finished his schooling from the Cathedral and John Connon School, Mumbai. In 1962, he obtained his B.S. in architecture with structural engineering from Cornell University, U.S.A.
Later he got enrolled at the Harvard Business School and completed an Advanced Management Program in 1975.
CAREER
In 1962, he started his career with the Tata Steel division where he shoveled stones and worked with the furnaces along with the blue-collar employees. It was a difficult job and helped him gain a better understanding and respect for his family business.
In 1971, he was appointed as the Director-in-Charge of the National Radio & Electronics Company Limited (NELCO) in order to help its struggling finances. He worked towards building a better consumer electronics division but the economic recession and union strikes prevented him from achieving success.
In 1977, he was moved to Empress Mills, a struggling textile mill within the Tata Group. He proposed a plan for the mill but the other Tata executives rejected it and the mill was shut down. Later, he was moved to the Tata Industries.
In 1991, J.R.D. Tata appointed him as the new Chairman of the Tata Group of Companies. This decision came under scrutiny following objections from other executives of the company and questions were raised regarding his ability to run the corporation.
But he succeeded in improving the financial success of the industries and expanded the growth of the organization under his leadership. He transformed the management and vision of the division, and managed to bring in significantly larger dividends.
He also became a member of the Prime Minister's Council on Trade and Industry. He served on the advisory board of the RAND's center for Asia Pacific Policy and is also an active participant in India's AIDS initiative program.
He also holds the membership of the international advisory board of the Mitsubishi Cooperation, the American International Group, JP Morgan Chase and Booze Allen Hamilton.
26/11 ATTACK WAS A LIFECHANGING MOMENT FOR RATAN TATA
The Taj Hotel in Mumbai is a Tata property and one notes that the property is largely restored. Lives too were shattered by Islamic terrorism. What did the Tata’s do?
1. All category of employees including those who had completed even 1 day as casuals were treated on duty during the time the hotel was closed
2. Relief and assistance to all those who were injured and killed
3. The relief and assistance was extended to all those who died at the railway station, surroundings including the “Pav-Bhaji” vendor and the pan shop owners
4. During the time the hotel was closed, the salaries were sent my money order
5. A psychiatric cell was established in collaboration with Tata Institute of Social Sciences to counsel those who needed such help
6. The thoughts and anxieties going on people’s mind was constantly tracked and where needed psychological help provided
7. Employee outreach centres were opened where all help, food, water, sanitation, first aid and counselling was provided. 1600 employees were covered by this facility
8. Every employee was assigned to one mentor and it was that person’s responsibility to act as a “single window” clearance for any help that the person required
9. Ratan Tata personally visited the families of all the 80 employees who in some manner – either through injury or getting killed – were affected.
10. The dependents of the employees were flown from outside Mumbai and taken care off in terms of ensuring mental assurance and peace. They were all accommodated in Hotel President for 3 weeks
11. Ratan Tata himself asked the families and dependents – as to what they wanted him to do.
12. In a record time of 20 days, a new trust was created by the Tatas for the purpose of relief of employees. Tatas were covered by compensation. Each one of them was provided subsistence allowance of Rs. 10,000/- per month for all these people for 6 months.
14. A 4 year old granddaughter of a vendor got 4 bullets in her and only one was removed in the Government hospital. She was taken to Bombay hospital and several lacs were spent by the Tatas on her to fully recover her
15. New hand carts were provided to several vendors who lost their carts
16. Tata will take responsibility of life education of 46 children of the victims of the terror
17. This was the most trying period in the life of the organisation. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible
18. The settlement for every deceased member ranged from Rs. 36 to 85 lacs in addition to the following benefits:
a. Full last salary for life for the family and dependents
b. Complete responsibility of education of children and dependents – anywhere in the world
c. Full Medical facility for the whole family and dependents for rest of their life
d. All loans and advances were waived off – irrespective of the amount
e. Counsellor for life for each person
AWARDS & ACHIEVEMENTS
2014 Life time Achievement Award in Ethical Governance & Leadership — Asian Centre for Corporate Governance & Sustainability Ratan Tata, Chairman Emeritus, Tata Sons, received the ‘Life time Achievement Award in Ethical Governance & Leadership’, from Mervyn King, Chairman, IIRC, UK, who has the unique distinction of having authored the King's Committee Report I, II and III on Corporate Governance. The award was presented to Mr Tata at the Asia Business Responsibility Summit 2014, organised by the Asian Centre for Corporate Governance & Sustainability on January 8, 2014, at the Bombay Stock Exchange Convention Hall, Mumbai.
2012 The Grand Cordon of the Order of the Rising Sun — Government of Japan Mr Tata was conferred the Grand Cordon of the Order of the Rising Sun by the Japanese government — for his contribution to strengthening economic relations between Japan and India — at a ceremony in Tokyo. Established in 1875, the order is awarded to those who have distinguished achievements in international relations, promotion of Japanese culture, advancements in their field, development in social and occupational welfare or the preservation of the environment.
Lifetime Achievement Award — The Rockefeller Foundation The Rockefeller Foundation honoured Mr Tata for his ‘innovative approach to business and philanthropy’. Mr Tata received a Lifetime Achievement Award for innovation from the foundation.
2011 Swiss Ambassador’s Award for Exceptional Leadership — Government of Switzerland The Government of Switzerland honoured Mr Tata with the Swiss Ambassador’s Award for Exceptional Leadership and for his contribution to strengthening bilateral ties between India and Switzerland. Conferring the award, Switzerland’s Ambassador to India, Philippe Welti, said that Mr Tata is not just an Indian corporate icon, but a global business leader.
2010 Hadrian Award — World Monuments Fund The World Monuments Fund named Mr Tata and the Tata family as recipients of the Hadrian Award in recognition of their leadership in the restoration and protection of India’s cultural heritage, the preservation of iconic sites that date back to India’s greatest empires, and generous and longstanding support for archaeological excavation.
2009 Business Process Innovation Award — The Economist The British news magazine, The Economist, announced Mr Tata as the winner of the eighth edition of its annual Business Process Innovation Award for the successful development and launch of the world’s most affordable car, the Tata Nano. The citation stated that “Tata has forged a company that is shaping businesses across the globe and changing the way Indian companies conduct business.”
Grand Officer of the Order of Merit of the Italian Republic — Government of Italy The Italian government awarded Mr Tata the Grand Officer of the Order of Merit of the Italian Republic in December 2009. Handing over the award, Italy’s Minister for Economic Development, Claudio Scajola, said, “Tata is universally acknowledged as one of the outstanding business leaders of the world. He epitomises the Indian continent’s vibrant economic growth.”
2008 Padma Vibhushan — Government of India India’s President, Pratibha Patil,conferred the Padma Vibhushan (awarded for exceptional and distinguished service) for trade and industry on Mr Tata at a function at Rashtrapati Bhawan. The Padma Vibhushan is the second highest civilian honour in India. In 2000, Mr Tata was awarded the Padma Bhushan (the third highest civilian award in India) for trade and industry by the then Indian President, KR Narayanan.
Honorary Citizen Award — Government of Singapore The Singapore government feted Mr Tata with its Honorary Citizen Award, a national award conferred to recognise the contributions of foreigners who have rendered valuable services to Singapore and its people, or who have made a significant impact in the areas of business, technology, information communications, education, health, arts and culture, sports, tourism, community services or security.
2007 Qimpro Platinum Standard Statesman for Quality Award — The Qimpro Foundation The Qimpro Foundation honoured Mr Tata with the Qimpro Platinum Standard 2006 — Statesman for Quality Award. The citation of the award mentioned that “Ratan Tata, Chairman, Tata Sons, is a role model who has redefined corporate governance, social responsibility and global ambition for Indian entrepreneurs.”
Andrew Carnegie Medal of Philanthropy — Carnegie Corporation Mr Tata received the prestigious Andrew Carnegie Medal of Philanthropy, on behalf of the Tata family, from Vartan Gregorian, president of Carnegie Corporation of New York during the 2007 Carnegie Medal of Philanthropy ceremony in Pittsburgh, United States. The award is in recognition of the longstanding commitment of the Tata family to philanthropic causes.
2006 FIRST Award for Responsible Capitalism — FIRST organisation This award honours business leaders who have consistently demonstrated social responsibility as an integral part of commercial success. Handing over the award, Lord Woolf, chairman of the judging panel, said: “Mr Ratan Tata has demonstrated how it is possible to combine being an extremely successful leader of highly innovative companies with social responsibility...”
2005 Businessman of the Year in Asia — Forbes magazine Mr Tata received this award in recognition of the phenomenal growth that the Tata group recorded in the 1995-2004 period.
Quality of Life Award — Auburn University College of Human Sciences in conjunction with the United Nations Mr Tata was honoured for his contribution to the wellbeing and quality of life of individuals and communities in India and globally. At the awards ceremony, the Tata group was described as “an exemplary model of corporate philanthropy...”
2003 Entrepreneur of the Year Award — Ernst & Young Mr Tata was named the Ernst & Young Entrepreneur of the Year India in 2003; he received the award from LK Advani, then Deputy Prime Minister of India. The ‘entrepreneur of the year program’ was first established in the United States in 1986 to celebrate the achievements of outstanding individuals who head growing, dynamic businesses and make significant contributions to their respective economies.
2002 Asia Pacific Community Building Award — East-West Center The East-West Center (EWC) honoured Mr Tata for the contributions he made towards building better relations and understanding between India, the United States and the countries in the Asia Pacific region. The award was presented at the annual celebrations of the East-West Center Foundation in Hawaii. EWC is an internationally recognised educational and research organisation established by the United States Congress in 1960 to strengthen relations between the United States and countries in Asia and the Pacific region.
1995 Alumni Achievement Award — Harvard Business School This award is given to Harvard Business School alumni who have contributed significantly to their companies and communities. Mr Tata completed the ‘advanced management program’ at Harvard Business School in 1975.