Ratan Tata passes away at 86, leaving behind a legacy of innovation

Ratan Tata, one of India's most iconic business leaders, who took the Tata Group to new heights, leaves behind an indelible legacy

When Ratan Naval Tata became chairman of Tata Group in 1991, succeeding JRD Tata at Bombay House, the group’s headquarters, few could have foreseen the transformation that lay ahead.

Under his leadership, the Tata Group evolved from a largely India-focused entity into a global powerhouse, marked by significant advances in financial strength and technological prowess.

Tata’s entry marked a cultural shift, moving away from the group's semi-governmental, conservative structure. He replaced long-serving executives with a new generation of leaders, setting the stage for a more dynamic, forward-thinking Tata Group.

Ratan Tata was the son of Naval Tata, who was adopted by Ratanji Tata, son of the group’s founder, Jamsetji Tata. The Tata Trusts, which hold a 66 per cent stake in Tata Sons (the group’s holding company), continue to exert substantial influence over the conglomerate.

 

Starting in 1962, Tata held various roles in the group, including director-in-charge of the National Radio and Electronics Company in 1971. In 1981, he was appointed chairman of Tata Industries, where he drove the company’s evolution into a strategic think tank and high-tech incubator.

Educated in architecture at Cornell University and later completing the Advanced Management Programme at Harvard Business School in 1975, Tata brought a diverse background to his role. Before his Harvard days, he had a brief stint with Jones and Emmons in Los Angeles.

Tata's chairmanship, spanning from 1991 to 2012 with an interim role in 2016-17, was marked by bold moves. He divested from profitable but non-core businesses such as ACC and Lakmé, while spearheading global acquisitions. The 2004 listing of Tata Consultancy Services (TCS) was a milestone, creating dividends that fuelled further growth.

Under his leadership, Tata acquired Tetley in 2002, Corus Steel in 2007, and Jaguar Land Rover in 2008. By 2023-24, nearly half of the group’s $165 billion revenue came from global operations, with a workforce exceeding one million. As of March 31, 2024, Tata companies’ market capitalisation stood at $365 billion.

Yet, Tata’s tenure faced challenges, including ventures into wireless telephony, the ambitious but troubled Tata Nano project, and the Corus acquisition, which was impacted by Europe’s steel industry volatility.

In December 2012, after a global search, Cyrus Mistry, a Tata Sons shareholder, succeeded Tata as chairman. However, a subsequent dispute led to Mistry’s dismissal in 2016 and a lengthy legal battle, which Tata ultimately won. Appointed chairman emeritus of multiple Tata companies after his retirement, Tata also remained chairman of Tata Trusts, maintaining significant influence over the group.

Known for his modest lifestyle in Colaba with his pets, Ratan Tata was awarded the Padma Bhushan in 2000 and the Padma Vibhushan in 2008.

Beyond business, Tata's legacy is deeply rooted in philanthropy. Over 65 per cent of Tata Sons’ shares fund charitable causes, supporting education, healthcare, and social development. Even after his formal retirement in 2012, Tata remained active, investing in startups and continuing his philanthropic efforts.

Ratan Tata’s passing marks the end of an era defined by visionary leadership, global ambition, and a commitment to philanthropy.