“Goodnight, sweet prince, and flights of angels sing thee to thy rest.” These poignant words from Shakespeare’s Hamlet resonate deeply as the world mourns the loss of Ratan Naval Tata (RNT), who passed away recently at the age of 86. He would have celebrated his 87th birthday this December. For many, Tata embodied the quintessential “prince charming” of Indian business, merging intellect with elegance, and charm with humility. A lover of dogs and an aviation enthusiast who continued to fly well into his 70s, Tata captivated countless hearts with his radiant personality, gallantry, and genuine simplicity.
The Rise of an Industrial Titan
Ratan Tata was not merely a visionary; he was a fierce competitor who demonstrated remarkable resilience during his early career battles within the Tata Group. He emerged not just as a successor to his illustrious predecessors but as a formidable empire builder who reshaped the landscape of Indian industry. Armed with a degree in architecture from Cornell University, Tata returned to India ready to navigate the complexities of a legacy business group that required modernisation. His education provided him with the foundation to lead, but it was his experience within the Tata conglomerate that equipped him to manage its intricate internal dynamics.
In March 1991, Tata was thrust into the spotlight when the then-chairman, JRD Tata, named him as his successor. In a group steeped in the legacies of Jamshedji Tata and JRD Tata, Ratan faced a daunting task. Many within the organization viewed him as an unknown entity, dismissing his potential in favor of more flamboyant leaders like Russi Mody of Tata Steel and Ajit Kerkar of Indian Hotels. Underestimating him proved to be a grave mistake.
A Tough Battle for Control
Tata’s leadership was immediately put to the test. In a fierce boardroom battle, he ousted Russi Mody, asserting his vision for Tata Steel at a time when the industry was undergoing seismic shifts following India’s economic liberalization in 1991. While Mody’s charisma was undeniable, Tata recognized the urgent need for restructuring within the company to adapt to the changing landscape. His decisive action paved the way for Tata Steel to evolve into a modern enterprise, proving his capability and vision.
Throughout his 22-year tenure at the helm of the Tata Group, Tata remained steadfastly focused on the future. He inherited a vast empire that, despite its impressive revenues, struggled with poor returns on investment. Under JRD’s leadership, the companies enjoyed considerable autonomy, leading to a lack of strategic direction. Early in Tata’s leadership, he recognized the perilous state of Tata Steel’s ownership, which had dwindled to just 5% for the Tata family. Determined to protect the group’s legacy, he took swift action to bolster the family’s stake across various companies, raising it to 34% in Tata Steel, 36% in Tata Motors, and 72% in Tata Consultancy Services (TCS).
Daring Acquisitions and Innovative Dreams
Once he secured the company’s defenses, Tata turned his sights toward ambitious growth initiatives. His audacious acquisition of the Anglo-Dutch steel giant Corus in 2006 for $12 billion marked a historic milestone as the largest cross-border acquisition by an Indian company. The following year, he took another bold step by acquiring Jaguar Land Rover from Ford Motors, a significant achievement that underscored his commitment to expanding the Tata brand on the global stage.
Tata’s innovative spirit was exemplified by the launch of the Tata Nano, aimed at providing an affordable vehicle for middle-class families. While ambitious, this venture faced considerable challenges. Critics argued that prioritizing a price point over product development was misguided. However, Tata’s vision echoed Oscar Wilde’s sentiment: “A dreamer is one who can only find his way by moonlight, and his punishment is that he sees the dawn before the rest of the world.”
While the Nano and Corus acquisitions faced hurdles, they serve as reminders of the inherent risks in ambitious ventures. Additionally, the controversial rise and fall of Cyrus Mistry, who Tata initially appointed as his successor, marred Tata’s legacy during his later years. However, Tata Motors has since emerged as a leader in the electric vehicle market, and Tata Steel has a valuation of $11.5 billion.
