Quick Summary
- Ratan Tata (1937-2024) was a leading Indian Business tycoon and philanthropist.
- He completed his education from Cornell University and also went to Harvard Business School to pursue an advanced programme.
- During his 21-year tenure at Tata Group, the revenue increased more than 40 times and the profit increased more than 50 times.
Table of Contents
“I don’t believe in taking the right decisions. I take decisions and then make them right.”
Ratan Tata, the ex-chairman of Tata Group, philanthropist, visionary, and industrialist, was one of India’s most prominent and prosperous businessmen. He was the great-grandson of Jamsetji Tata, the founder of the Tata Group.
The success story of Ratan Tata is very interesting and full of life lessons. In 1991, Ratan Tata became the chairman of the Tata Group. During his tenure, Tata Group became the largest conglomerate in India. People widely know the success story of Ratan Tata. With his interests and ideas, he expanded the Tata Group in many sectors such as automobiles, steel, hotel, etc.
The net worth of Ratan Tata was over $1 billion (INR 8250 Crore). He is known for having launched the world’s cheapest car, a $2,200 Tata Nano, the “People’s Car in 2008.” Tata is also one of the world’s most great philanthropists, donating 60-65% of his earnings to charity. The success story of Ratan Tata has earned him a place in the hearts of millions.
He passed away recently on 9th October, 2024 due to age-related ailments. He took his last breath at Mumbai’s Breach Candy Hospital.
Learn about Ratan Tata’s success story, early life, career, philanthropy, and more.
The Life of Ratan Tata
- Born on 28 Dec. 1937 in Bombay, now Mumbai, during the British Raj, Ratan Tata was an Indian industrialist, philanthropist, and former chairman of Tata Group. He is the son of Naval Tata and Sooni.
- His parents got divorced in 1948 when he was only 10 years old. As a result, Navajbai Tata, his grandmother, brought him up.
- Tata has a younger brother Jimmy Tata and a half-brother Noel Tata.
- In Ratan Tata’s early life, he attended the Campion School in Mumbai till the eighth grade. His guardians enrolled him in Mumbai’s Cathedral and John Connon Schools, and later in Shimla’s Bishop Cotton School.
- He graduated from Riverdale Country School in New York City in 1955. There he earned a degree in architecture with structural engineering from Cornell University in the United States.
- Later, in 1975, he enrolled at Harvard Business School and completed an Advanced Management Programme.
- His career began with the Tata Steel division in 1962. Nine years later, he became the director-in-charge of the National Radio & Electronics Company Limited.
- Ratan Tata Struggle Story: In 1977, he transferred to Empress Mills, a failing textile plant under the Tata Group. Other Tata executives dismissed his proposal, resulting in the subsequent closure of the mill.
The Success Story of Ratan Tata
Learn about Ratan Tata success story in short below-
- Tata Group began when JRD Tata stepped down as chairman of Tata Sons in 1991 and Ratan Tata was chosen as his successor.
- He convinced Tata Tea to buy Tetley, Tata Motors to buy Jaguar Land Rover, and Tata Steel to buy Corus, transforming it from a mostly Indian company into a multinational firm.
- He also conceptualized the Tata Nano vehicle. The car’s price was designed to be affordable for the Indian buyer.
- In 2008, Tata set up one of the largest philanthropic organizations in India, the Tata Trusts. In the same year, Tata was awarded the Padma Vibhusan for his national service.
- During his 21-year tenure, the revenue increased more than 40 times and the profit increased more than 50 times.
- The success story of Ratan Tata took a turn when in 2012, on his 75th birthday, he retired as chairman of the Tata Group.
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Contributions to Tata Group
Founded in 1868 in Mumbai, the Tata Group is the largest Indian multinational conglomerate. Jamsetji Tata, “the father of Indian industry”, is the founder of Tata Group. The products and services of Tata Group are present in over 150 countries and operations in 100 countries spanning six continents.
The board of directors and shareholders guide and oversee each of the 30 publicly traded Tata Group companies. Philanthropic trusts own 66% of Tata Sons, the Tata holding business, whereas the Tata family owns just a minor portion.
The combined revenue of $128 billion (INR 9.6 trillion) in 2021-22 speaks volumes for the success story of Ratan Tata. Tata’s major interests span from steel, automobiles, and telecommunications to software consultancy, hotels, and consumer products.
Tata Group has come a long way since Ratan Tata took over as chairman in 1991. That was also the year India began the economic reforms that would propel it to the top of the world’s fastest-growing economies.
He was succeeded by Cyrus Mistry, managing director of the Shapoorji Pallonji Group. In 2016, Cyrus Mistry resigned as chairman of Tata Sons, and Ratan Tata was appointed as temporary chairman.
As of March 2023, the market value of Tata Group stands at Rs 21.1 Lakh Crore, making it the most valuable business group preceding Reliance Industries.
Ratan Tata: The Philanthropist
The inspiring story of Ratan Tata, a patron of education, medicine, and rural development, can be proven from the following philanthropy work:
- He assisted the University of New South Wales Faculty of Engineering in assisting underprivileged communities with greater water access.
- A $28 million Tata Scholarship Fund was established by the Tata Education and Development Trust. This will make it possible for Cornell University to provide financial aid to undergraduate Indian students. The annual award will help about 20 students at a time.
- 2010 saw a $50 million gift from Tata Group Enterprises and Tata Charities to Harvard Business School (HBS) for the construction of an executive centre.
- Carnegie Mellon University (CMU) has received a $35 million donation from Tata Consultancy Services (TCS). The fund was for cognitive systems and autonomous vehicle research labs. It is the largest corporate contribution ever made, including the 48,000-square-foot building.
- In 2014, the Tata Group made a Rs. 950 million donation to the Indian Institute of Technology, Bombay. The funds are for establishing the Tata Centre for Technology and Design (TCTD). It was the largest gift the institute has ever received.
- The Centre for Neuroscience at the Indian Institute of Science also received a 750 million funding from Tata Trusts. This fund was to explore the processes underlying the etiology of Alzheimer’s disease and to develop ways for its early identification and treatment.
- The Tata Group also established the MIT Tata Centre of Technology and Design at the Massachusetts Institute of Technology (MIT).
Awards and Recognition
Ratan Tata’s success story includes winning the third- and second-highest civilian awards in India, the Padma Bhushan in 2000 and the Padma Vibhushan in 2008, respectively.
Along with national civilian accolades, the success story of Ratan Tata also includes a number of state civilian honors. For instance, the ‘Maharashtra Bhushan’ in 2006 for his outstanding service to public administration in Maharashtra and the ‘Assam Baibhav’ in 2021 for his remarkable contribution to cancer care in Assam.
This year, Ratan Tata was granted an Honorary Officer in the General Division of the Order of Australia (AO) for his work in India-Australia commerce, investment, and philanthropy.
Lesser Known Facts About Ratan Tata
From Humble Beginnings to Global Impact: 10 Fascinating Facts About Ratan Tata
- Family Legacy: Ratan Tata’s father, Naval Tata, was the adopted son of Ratanji Tata, making Ratan a part of the illustrious Tata family founded by Jamsetji Tata.
- Raised by Grandmother: After his parents separated when he was 10, Ratan was raised by his grandmother, Navajbai Tata.
- Harvard Tribute: The executive center at Harvard Business School is named Tata Hall in honor of Ratan Tata (AMP ’75).
- Mumbai Attacks Leadership: During the 26/11 Mumbai attacks, Ratan Tata showed compassion and leadership, assisting victims and their families.
- Business Growth: Under his leadership, Tata Group’s revenues increased over 40 times and profits over 50 times, reaching $103 billion in 2016.
- Philanthropy: Despite being one of the world’s wealthiest, his family and business donate over 65% of their wealth to charity.
- National Honors: Ratan Tata received the Padma Vibhushan and Padma Bhushan for his contributions to India’s growth in healthcare and education.
- Affordable Cars: In 2009, he introduced the Tata Nano, the world’s cheapest car, aimed at India’s low-income population.
- Love for Dogs: Ratan Tata is known for his love of dogs, and the Bombay House, Tata Sons’ headquarters, has a tradition of sheltering stray dogs during rainstorms.
- Career Start: Ratan Tata began his career at Tata Steel, turning down an offer from IBM to work in his family’s business.
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Success Story of Ratan Tata Touches Millions
The success story of Ratan Tata is nothing short of inspiring. His life and work have touched the lives of millions of people in India and around the world. Ratan Tata’s creative leadership, ethical values, and welfare work have made him a hero for many.
His gains in the business world and his grants to society prove that success can be achieved by combining hard work, determination, and a deep sense of purpose. The life story of Ratan Tata serves as a source of inspiration for aspiring entrepreneurs and business leaders, showing that with the right mindset, anything is possible.
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Frequently Asked Questions (FAQ’s)
Why Ratan Tata is a hero?
Ratan Tata is a hero because of his philanthropy, leadership abilities, ethical ideals, and dedication to social responsibility. He took Tata Groups to greater heights by putting in new ideas and supporting people around. The success story of Ratan Tata truly excites millions of people. He is a role model for aspiring entrepreneurs.
What is unique about Ratan Tata?
Ratan Tata is unique in the world of business:
1. For his visionary leadership and his ability to think beyond the common norms of the industry.
2. For regular involvement in various philanthropic work.
3. For putting the interests of the company and its stakeholders ahead of his own.
What can we learn from Ratan Tata?
Business is not just about making profits, it is also about making a good impact on society. This is the biggest lesson to learn from the success story of Ratan Tata. Other notable lessons one can learn from Ratan Tata’s motivational story include
1. Visionary leadership.
2. Commitment to social responsibility.
3. Personal ethics.
4. Willingness to take risks.
5. Embracing failure
Why is Tata successful in India?
The success story of Ratan Tata is due to his
1. Visionary leadership.
2. Strategic thinking.
3. Devotion to corporate social responsibility.
4. Investment in innovation,
5. Risks-taking attitude.
6. Branching into new sectors.
7. Honesty and ethics.
What happened to Ratan Tata?
Ratan Tata was hospitalized for routine age-related medical checkups following which he was admitted to the critical care unit of Breach Candy Hospital, Mumbai. Unfortunately, he passed away on 9th October, 2024. The exact cause of death is unknown.
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