Ratan
was born on December
28,
1937 to Naval and Soonoo Tata. Ratan's childhood was not exceptional,
as his
parents divorced when he was just seven. But his grandmother ensured
that he
never missed his mother. She showered Ratan and his brother Jimmy with
love and
at the same time trained them to be disciplined and gentlemanly. Even
today,
Ratan attributes his success to the excellent upbringing by his
grandmother. At
the same time, Ratan was very close to his mother, Soonoo. Soonoo had
remarried, but remained in close touch with her sons.
Having
completed his
schooling
at Bombay's famous Campion School, Ratan moved to the United States to
study
Structural Engineering at the prestigious Cornell
University. After his
graduation, Ratan wanted to stay back in the US and make a career for
himself.
But his grandmother persuaded him to come back and join the family
business. This
was the turning point in Ratan's life. Even though at that time, he was
reluctant to return to India, today he looks back and acknowledges that
it was
the right decision.
Once
back in India, Ratan
joined TELCO (today Tata Motors), which was into manufacturing of
automobiles.
Soon, he was shifted to TISCO, the flagship company of the Tata's,
which was
into the manufacture of Iron and Steel. He worked at TISCO's plant at
Jamshedpur for six years, during which time he learned both, the
technical
aspects of the company’s products, and the corporate values of
the Tata Group.
In
1968, Ratan was shifted
back
to Bombay to assume a more senior position within the
group. However,
everything was not fine. Ratan was given charge of two sick companies
in the
Tata group, Nelco and Central India Textiles. It was a difficult
experience for
Ratan, however Ratan turned around both the companies within a few
years. This experience strengthened Ratan immensely, and he was
now ready
to take on larger responsibilities. He had also left an enduring mark
on the
seniors in the Tata's Management Team.
His
perseverance and hard
work
bore fruit when he was made Chairman of Tata Industries in 1981. He
took over
from JRD Tata, who was now 78 years old, and was slowly moving towards
retirement. This move created waves in the world of business.
Ratan was
being hailed as the heir apparent of the Tata Empire. But Ratan's
period of
victory was also laced with grief; his mother was diagnosed with a
terminal
cancer. Ratan immediately flew with her to New York for her treatment.
He
stayed with her for four months, till she lost the battle to the
ravaging
disease.
During
this period, Ratan
had
plenty of time to think. And look at various avenues for the Tata Group
to move
with the times. The once dominant and monopolist group was now
facing
stiff competition in all spheres of business. Ratan had sensed the
consumer
revolution. He knew he had to convert the Tata group into a highly
competitive
and diversified group of companies. He thought out a process,
calling it
the 1983 Tata Strategic Plan. This was the turning point in the Tata's
heritage
of more than 100 years, a group that had stuck on to generic businesses
without
diversification. With JRD Tata's support, Ratan diversified into
contemporary industries like telecommunication, software, biotechnology
etc.
At the
same time, he
created an
intense culture of competitiveness within the Tata Group. Slowly the
laid back
attitude of the employees and management changed. In 1991, JRD
retired and
named Ratan as the Chairman of the entire Tata Group. This move was
well
accepted by the business community and within the Tata group. Their
faith was
not misplaced as Ratan began to grow the Tata group to dizzy heights,
with
innovation and customer value as the key words. He was instrumental in
creating
the first totally indigenous Indian Car, Sierra, Estate and Indica.
Tata
also was a forerunner
in
the emerging software field through his pet project the Tata
Consultancy
Services. Both these ventures put the Tata's back into the top echelons
in the
Indian and International economy. The existing businesses were
improved. They
bounced back into market leadership positions in spite of intense
competition. Ratan's radical change in the group’s
philosophy was
questioned by the senior management team. Eventually, these very
changes were
commended and lauded.
Ratan's
tenure at the helm
was
not filled with high points, but loaded with problems too. The Union
problem in
Tata's Pune plant in the 1990s, turned ugly and threatened to tarnish
the
reputation of the Tata Empire, which was built over a century. But
Ratan has
stood up and fought. And Won. Over the years, Ratan Tata won many such
tough
situations, and carried on the legacy of his predecessors capably.
Under
his leadership, the
Tata
group has grown tremendously Ratan Tata has his own capital in Tata
Sons., the
holding company of the group. Though his share is just about 1%, his
personal
holding is valued at US$1 Billion. About 66% of the equity capital of
Tata Sons
is held by philanthropic trusts endowed by members of the Tata family.
Since
this shareholding belonged to Ratan’s ancestors and these trusts
were created
by them, Ratan Tata has an effective right over them. If all the value
of this
is added, his Net Worth is estimated at around US$50 Billion, making
Ratan Tata
one of the richest people in the world.
On
January 31, 2007, under
the
chairmanship of Ratan Tata, Tata Sons successfully acquired Corus
Group, an
Anglo-Dutch steel and aluminium producer. The merger created the fifth
largest
steel producing entity in the world. On March 26, 2008, Tata Motors
bought
Jaguar & Land Rover, the two iconic British brands, from Ford Motor
Company. Ratan Tata's dream was to manufacture a car costing just Rs
100,000.
He realized his dream by launching the Tata Nano car in New Delhi Auto
Expo on
January 10, 2008.
Ratan
lives a simple life without the hype that
would normally go with a person of his statue. His vision to steer each
of the
Tata group companies towards growth and profits has come true.