Police personnel perform full state honours during the funeral of Indian industrialist Ratan Tata in Mumbai on October 10, 2024. Crowds of mourners gathered in India's financial capital Mumbai on October 10 for the funeral of industrialist Ratan Tata, hailed as a "titan" who led one of the country's biggest conglomerates. (Photo by SUJIT JAISWAL / AFP)
NEW DELHI: The Tata Group rose from US$4 billion to US$100 billion in revenue under the magical Ratan Tata's leadership from 1991 to 2012. Through innovations, strategic divestments, international expansions, and improved corporate governance, Tata revamped the conglomerate, making significant acquisitions and entering new sectors.
In fact, The Tata Group, a major Indian conglomerate, has seen remarkable growth over the last few decades, as reported by India's The Economic Times.
When Ratan Tata took charge in 1991, the group's annual revenue was US$4 billion. By 2012, when Tata retired, this figure had surpassed US$100 billion, making Tata Group the first Indian conglomerate to achieve this milestone.
Ratan Tata joined Tata Industries in 1962 as an assistant and became chairman in March 1991.
At that time, the group was a collection of semi-autonomous divisions under JRD Tata's decentralised leadership. Tata centralised management at Bombay House, the group's headquarters, and led the company through India’s economic liberalisation in the early 1990s.
Under his leadership, Tata restructured the group by selling off underperforming sectors such as cement, textiles, and pharmaceuticals. The company focused on strengthening its software and steel businesses and ventured into new areas like telecommunications, passenger cars, insurance, finance, retail, and aviation.
The group also formed key international partnerships with companies like Cummins, AIA, and Starbucks. Significant acquisitions included Jaguar Land Rover, Tetley, and Corus. By the end of Tata's tenure, over 60% of the group’s revenue originated from operations in more than 100 countries.
Ratan Tata overhauled the group’s corporate governance by ensuring Tata Sons, the holding company, had a significant stake in key units to avoid hostile takeovers. He introduced a three-dimensional, blue ..
Additionally, in 2004, he took Tata Consultancy Services (TCS) public, raising US$1.17 billion in India’s largest IPO at the time. This move provided capital for acquisitions and strengthened the group’s financial foundation.
Ratan Tata's tenure faced challenges as well. Tata Consumer Products dealt with a crisis involving ULFA militants in the late 1990s. Tata Motors faced a Rs500-crore loss with the launch of the Indica car in 1998, causing shareholder unrest and leading Tata to offer his resignation.
He launched the Tata Nano in 2005, which was promoted as the world’s cheapest car, but faced difficulties due to political opposition and protests over land issues in West Bengal.
A financial scandal hit the group in 2001 with a ₹500 crore fraud uncovered at Tata Finance. Ratan Tata assured investors their money would be repaid, leading to Tata Finance's merger into Tata Motors in 2005.
A significant moment was the terrorist attack on the Taj Mahal Palace Hotel on November 26, 2008. The attack resulted in tragic losses and struck a key property of the group.
Ratan Tata retired in December 2012 but briefly returned from October 2016 to February 2017 to address leadership challenges. His leadership is noted for its impact on Tata Group and the Indian economy.
Ratan Tata’s tenure transformed the Tata Group significantly. He is remembered for his vision, leadership, and resilience.
The former Tata Group chairman who put a staid and sprawling Indian conglomerate on the global stage with a string of high-profile acquisitions, has died, the Tata Group said in a statement late on Wednesday. He was 86.
Tata, who ran the conglomerate for more than 20 years as chairman, had been undergoing intensive care in a Mumbai hospital, two sources with direct knowledge of his medical situation had told Reuters.
"It is with a profound sense of loss that we bid farewell to Mr. Ratan Naval Tata, a truly uncommon leader whose immeasurable contributions have shaped not only the Tata Group but also the very fabric of our nation," the company said.
Ratan Tata "was a visionary business leader, a compassionate soul and an extraordinary human being," Indian Prime Minister Narendra Modi said on social media platform X. "Extremely pained by his passing away. My thoughts are with his family, friends and admirers in this sad hour."
