Ratan Tata: The 'modest' Indian tycoon who died at 86

Tata headed a diverse group of over 100 companies that spanned various industries, from salt production to software services.

Ratan Tata, who passed away at the age of 86, was among the most globally recognized figures in Indian business.

The billionaire headed the Tata Group, a diverse conglomerate that operates over 100 companies in various sectors, from salt production to software development. This organization has about 660,000 employees and generates more than $100 billion (£76.5 billion) in yearly revenue.

Established by Jamsetji Tata, a trailblazer in Indian enterprise, the Tata Group has been operating for 155 years and encompasses a vast business empire that includes companies like Jaguar Land Rover, Tata Steel, as well as ventures in aviation and salt production.

According to Peter Casey, the author of "The Story of Tata," an official book about the group, the company’s philosophy combines capitalism with charitable efforts, striving to conduct business in a manner that improves the lives of others.

Tata Sons, the parent company of the group, consists of various firms, some of which are privately owned while others are publicly traded. However, fundamentally, they are all under the ownership of a charitable trust, as he points out.

Ratan Tata was born in 1937 into a traditional Parsi family, a community known for its education and success, which can be traced back to Zoroastrian refugees in India. His parents divorced in the 1940s.

JRD Tata (in the middle) invited Ratan Tata (on the left) to become part of the company following Ratan's return to India from the United States.

Tata attended college in the United States, earning an architecture degree from Cornell University. Over the course of his seven years there, he picked up skills like driving and flying. He faced some nerve-wracking moments, including an incident during his studies where he experienced an engine failure while piloting a helicopter, as well as two occasions when the single engine of his plane failed. "I had to glide in," he recounted in an interview. Eventually, he often took charge of his company's business jet.

He came back to India in 1962 after his grandmother, Lady Navajbai, fell sick and wanted him by her side. During this time, JRD Tata, a family member from another side of the family, invited him to be a part of the Tata Group. "JRD Tata was the most significant mentor in my life... he was like a father and a brother to me, and I feel that people haven't acknowledged that enough," Tata shared in an interview.

Ratan Tata was assigned to a steel factory in Jamshedpur, located in eastern India, where he worked on the factory floor for a few years before being promoted to the position of technical assistant to the manager. In the early 1970s, he took the helm of two struggling companies within the group—one produced radios and televisions, while the other focused on textiles. He successfully revitalized the first company, but the outcomes with the textile business were varied.

In 1991, JRD Tata, who had guided the company for more than 50 years, chose Ratan Tata to take his place, despite there being more experienced candidates available. Ratan Tata later remarked that during that period, the criticism he faced was very personal; JRD was accused of favoritism, and he himself was labeled as an unsuitable candidate.

Peter Casey mentions that during Ratan Tata's leadership, an established but somewhat traditional Indian manufacturing company started to develop into a global brand, focusing heavily on consumer products.

Ratan Tata at the launch of the Nano car in 2008

However, the experience was a blend of ups and downs.

Throughout his time with the company, the group undertook several ambitious acquisitions, including the purchase of the Anglo-Dutch steel producer Corus, as well as the British automotive brands Jaguar and Land Rover. While some of these choices proved to be successful, others, such as an unsuccessful telecommunications venture, resulted in significant financial losses for the company.

A significant milestone occurred in 2000 when Tata acquired Tetley, positioning itself as the world's second-largest tea company. This acquisition marked the largest purchase of a global brand by an Indian firm.

Some years later, a journalist from a British newspaper inquired whether Tata found it amusing that an Indian company was acquiring a prominent British brand. The journalist later noted that Tata was both clever and modest, not the type to revel in his achievements like some colonial figure from the East India Company.

Tata's attempt to create a safe and budget-friendly vehicle ended up falling short of expectations. The car was introduced with much excitement in 2009 as a small model priced at only 100,000 rupees ($1,222; £982). However, after an encouraging start and initial excitement, the brand struggled against competitors due to problems with production and marketing.

Tata later admitted that it was a significant error to promote the Nano as the most affordable car in the world. He noted that people are reluctant to be perceived as driving the cheapest option available.

Ratan Tata was a certified pilot and frequently took to the skies in his company's private jet.

His strength and determination were put to the test during the Mumbai terror attacks on November 26, 2008. The prestigious Taj Mahal Palace Hotel, part of the Tata Group, was one of two high-end hotels targeted, alongside a train station, a hospital, a Jewish community center, and several other locations in Mumbai.

Out of the 166 individuals who lost their lives during the 60-hour attack, 33 were from the Taj Hotel. This group included 11 staff members, which accounted for about one-third of the hotel's total fatalities. In response to the tragedy, Tata committed to supporting the families of the employees who were either killed or harmed, providing them with the equivalent of the salaries their loved ones would have earned for the rest of their lives. Additionally, Tata invested over $1 billion to repair and restore the damaged hotel within a span of 21 months.

In the later stages of his career, Tata became involved in an unfortunate scandal. In October 2016, he stepped back into the role of interim chairman at Tata Sons for a brief period following the dismissal of Cyrus Mistry, which led to a contentious corporate conflict (Mistry tragically passed away in a car accident in September 2022). Ultimately, the position was awarded to Natarajan Chandrasekaran, who had previously served as the CEO of Tata Consultancy Services, the most valuable company in India, with a market value of $67 billion.

Peter Casey characterized Tata as a "humble, reserved, and somewhat timid individual." He noted a sense of "dignified tranquility" around him, along with a strong sense of self-discipline, which involved making a daily handwritten to-do list. Tata also referred to himself as "somewhat of an optimist."

Tata was a humble and thoughtful entrepreneur. In 1989, when a strike severely disrupted work at one of his factories in Pune and the police had to step in, Tata expressed to reporters, "Maybe we underestimated our workers. We thought we were doing everything possible for them, but in reality, we might not have been."

In 2009, Tata delivered a speech at a school reunion, sharing his vision for the nation: a place where every Indian has the same chance to succeed based on their abilities.

"In a nation like ours," he remarked, "it's important to set a positive example rather than showing off your wealth and status."