A look at Ratan Tata's business successes and 'aspirational mistakes'

Ratan Tata's tenure as chairman was marked by transformative achievements, including the Tata Indica and the acquisition of Tetley, and Jaguar Land Rover, expanding the group's global footprint

Veteran industrialist and former Tata Sons chairman, Ratan Tata, passed away at Breach Candy Hospital in Mumbai on Wednesday (October 9) at the age of 86. Tata, who steered the Tata Group — a salt-to-software conglomerate with over 100 companies and nearly 660,000 employees — led the organisation for more than 20 years.

Born in 1937, Ratan Tata was the son of Naval Tata and the grandson of Jamsetji Tata, the founder of the Tata Group. After earning a degree in architecture from Cornell University in New York, he returned to India in 1962 and began his career with the family business, nearly a century after it was established by his great-grandfather.

 

Here are some notable achievements of Ratan Naval Tata during his lifetime:

Tata Indica, India’s first indigenous passenger car

Under his leadership, the company ventured into passenger vehicles, launching the iconic Tata Indica in 1998. The compact hatchback, developed by Tata Motors, was designed and manufactured in India to cater to the local market’s demand for small, fuel-efficient vehicles. 

Known for its spacious interior and 20 kmpl fuel efficiency, the Indica initially came with a 1.4-litre diesel engine, later joined by a 1.2-litre petrol option. 

The car became one of the best-selling models in the country and underwent several upgrades, including the introduction of the Indica Vista in 2008. Although Tata Motors discontinued the Indica in 2020, its legacy continues through the Tata Tiago, introduced in 2016.

Tetley tea acquisition, a taste of international brew  

Ratan Tata drove the acquisition of Tetley in the year 2000 for $430 million, which marked a significant step towards international expansion for the Group. At the time, Tata Tea, despite being one of the largest global tea producers, lacked a global footprint and was underperforming compared to larger brands like Unilever. 

The bold acquisition of Tetley, which was then three times the size of Tata Tea, not only expanded Tata’s presence in the global beverage market but also set the stage for a series of international acquisitions in the following decade.

Jaguar Land Rover (JLR) acquisition

Tata’s acquisition of Jaguar Land Rover (JLR) from Ford in 2008 for $2.3 billion was a defining moment for Tata Motors, placing the company on the global stage. Ratan Tata described it as a ‘momentous time’ for Tata Motors, highlighting the iconic status of the two British brands. 

This acquisition also held personal significance for Tata, as it followed a failed attempt to sell Tata Motors’ passenger car division to Ford in 1999, during which Ford executives reportedly made disparaging remarks. In a twist of fate, Tata ended up acquiring JLR nearly a decade later, a transaction that was praised by Ford’s chairman at the time.

Corus Steel acquisition, a rare failure  

In 2007, Tata Steel made headlines with its $12.9 billion acquisition of Corus, a UK-based steel producer. It was the largest acquisition by an Indian company, and Ratan Tata played a key role in elevating Tata Steel to one of the top-10 global steel producers. However, the deal did not prove as successful as other Tata ventures, with former Tata Steel Managing Director JJ Irani later referring to the Corus acquisition as an “aspirational mistake”.

Tata Nano launch: Car for common people 

Ratan Tata’s vision for an affordable vehicle for the masses materialised in 2008 with the launch of the Tata Nano, often referred to as India’s first ‘lakhtakia’ car, priced at Rs 1 lakh. While Tata envisioned the Nano as a solution for families that could only afford two-wheelers, the project faced significant hurdles. 

Initial plans to manufacture the Nano in Singur, West Bengal, were derailed by protests, forcing Tata Motors to relocate production to Gujarat. Moreover, the car’s positioning as a ‘poor man’s vehicle’ hurt its appeal, and despite its innovative concept, the Nano was gradually phased out after a few years.

TCS’ success story under Ratan Tata  

During Ratan Tata’s tenure, Tata Consultancy Services (TCS) went public in 2004, marking India’s first $1 billion IPO by a private-sector company. TCS, which at the time had a presence in 32 countries, has since expanded to 55 countries with over 300 offices and 200 delivery centres. Today, TCS is valued at $183.36 billion, making it one of India’s largest and most successful companies.

26/11 Mumbai attacks and Taj Hotel rehabilitation  

The iconic Taj Mahal Palace Hotel, a Tata Group property, was one of the targets during the 2008 Mumbai terror attacks. Among the 166 people killed in the 60-hour siege, 33 were at the Taj, including 11 hotel employees. Ratan Tata personally ensured the families of victims were taken care of, pledging lifelong salaries to the relatives of deceased employees. 

He also oversaw the restoration of the hotel, which reopened just 21 months after the attacks, at a cost of over $1 billion. 

“In the immediate aftermath of the 2008 Mumbai attacks, I met him while staying at the iconic Taj Hotel. In that moment of national crisis, the titan stood tall and became the embodiment of the Indian spirit, to rebuild and emerge stronger as a nation,” said actor Kamal Haasan in a post on X, paying his respects to the late industrialist.