Passing Away of a 'Ratan' - An Obituary to Ratan Tata

Ratan Naval Tata, an iconic industrialist, philanthropist, and visionary leader, passed away yesterday on 9th October,2024, leaving behind a legacy that transcends generations and borders. As the chairman emeritus of Tata Sons, he was the driving force behind the transformation of the Tata Group into a global powerhouse. A man of quiet dignity, deep intellect, and a heart full of compassion, Ratan Tata's life was defined by his relentless pursuit of excellence, commitment to social good, and unwavering integrity. He held the imagination of Indians for decades, brought corporate India closer to common man and posed as the face of an iconic Indian brand – Tata for a very long time. 

Ratan Tata’s most visible imprint on me and this generation came at the moment of developing Tata Nano car. The resolution to bring Nano car to life is the greatest example of how he did business – deeply dedicated to social causes intertwining with business acumen and an ability to inspire change all over nation. The idea for the Tata Nano, often dubbed “the world’s cheapest car,” was born from Ratan Tata’s desire to make car ownership affordable for millions of Indians who relied on two-wheelers for transportation. The idea came to him after witnessing a family of four riding precariously on a scooter in heavy rain. He envisioned a safe, affordable, and reliable car that could be accessible to the common man. Ratan Tata was deeply involved in the execution of the Nano project. He oversaw the entire process, from conceptualization to production. The project faced numerous challenges, including cost constraints and engineering hurdles. However, Tata’s leadership and insistence on innovation led to the development of a robust engineering and design team that maximized potential at the lowest cost. The Tata Nano was a groundbreaking achievement, symbolizing Tata’s commitment to innovation and fulfilling the needs of the common man. The Nano project resulted in 31 design and 37 technology patents overcoming numerous challenges. The car was priced at Rs 1 lakh (ex-factory), making it an affordable option for many families back then. Launched in 2008, the Tata Nano was hailed as a breakthrough in automotive engineering. Priced at around $2,000, it was designed to be the "people's car" and revolutionized the Indian auto market. 

Ratan Tata’s involvement in the Tata Nano project exemplifies his ability to turn ambitious ideas into reality, driving innovation while keeping the needs of society at the forefront. While the Tata Nano did not achieve the commercial success it aimed for, it remains a significant chapter in automotive history for its ambitious attempt to democratize car ownership in India. His resolve to conceptualize the car, design and develop indigenously, fight to build Nano factory in West Bengal, lose it and resilience in shifting the location to Gujarat, build and bring it to reality is a visible lesson for countless Indians who saw the mammoth operation few years back. This will definitely propel the mission to give the nation a car which any common man can own without burden in time to come. Not just this Nano example, he demonstrated leadership in numerous Tata projects which earned the trust of crores of Indians for a long time. Tata means trust and trust means Tata - that is how the business is done.

Early Life and Education 

Born on December 28, 1937, in Mumbai, India, Ratan Tata was the great-grandson of the legendary Jamsetji Tata, the founder of the Tata Group. He grew up in the affluent yet grounded Tata family, which instilled in him the values of humility, responsibility, and service to society. His parents, Naval and Sonoo Tata, divorced when he was just 10 years old, and he and his younger brother, Jimmy, were raised by their grandmother, Lady Navajbai Tata. It was a difficult time for the young Ratan, but these early challenges helped shape his resilience and independent spirit. 

Ratan Tata was educated at the prestigious Campion School in Mumbai and later at the Cathedral and John Connon School. After completing his schooling, he moved to the United States to study architecture at Cornell University, graduating in 1962. His time at Cornell and his experiences in the U.S. played a crucial role in broadening his perspective and inspiring him to think globally. Following his graduation, he enrolled at Harvard Business School, where he completed the Advanced Management Program in 1975. This education, combined with his innate leadership abilities, would later prove instrumental in his efforts to elevate the Tata Group to new heights. 

The Beginning of a Stellar Career 

Ratan Tata’s journey with the Tata Group began in 1961 when he joined as a low-ranking employee in Tata Steel's Jamshedpur plant. Here, he worked on the shop floor, handling the same responsibilities as his fellow blue-collar workers. This experience was a deliberate choice on his part—he wanted to understand the group’s core business from the ground up. His humility and work ethic were evident early on, traits that would remain consistent throughout his career. 

For several years, Ratan worked in various Tata companies, gaining valuable experience across sectors. He quickly established a reputation as a man of action, someone who could be counted on to solve complex problems with calm determination. His management style was a marked departure from the conventional; he emphasized innovation, employee welfare, and a strong ethical foundation in business dealings. In 1981, J.R.D. Tata, then-chairman of Tata Sons, handpicked Ratan as his successor, recognizing in him the same pioneering spirit that had defined the Tatas for generations. 

Leadership at Tata Group: Transformation and Global Expansion 

In 1991, Ratan Tata took over as chairman of Tata Sons. It was a time of great change for India, which was on the cusp of economic liberalization. The Tata Group, a sprawling conglomerate with interests in steel, automobiles, power, chemicals, and more, faced the challenge of remaining competitive in a rapidly globalizing world. Ratan Tata, with his forward-thinking vision, knew that the group had to modernize, innovate, and become global to maintain its leadership position. 

One of his first tasks was to consolidate the group’s diverse businesses. Many Tata companies had become independent fiefdoms, operating with little coordination or alignment. Ratan implemented a strategy of streamlining the organization, focusing on core industries, and divesting non-performing businesses. Under his leadership, Tata Sons increased its stake in several key companies, allowing for greater control and accountability. He also introduced a mandatory retirement policy for company heads, ensuring a culture of rejuvenation and fresh leadership. 

Ratan Tata’s tenure was marked by bold and often unconventional decisions. He had the foresight to see that India could not remain an isolated player in the global market. Thus, he spearheaded Tata’s international expansion, acquiring global brands and entering new markets. Perhaps the most iconic of these acquisitions was Tata Motors' purchase of Jaguar Land Rover (JLR) in 2008, a move that many initially questioned. However, under Tata’s leadership, JLR became a success story, turning profitable and strengthening Tata Motors’ position as a global automotive player. 

Other major acquisitions included Tata Tea’s purchase of the Tetley brand, Tata Steel’s acquisition of Corus, and Tata Consultancy Services' (TCS) rise as one of the world’s leading IT services companies. Ratan Tata’s vision was not only to make Tata a global brand but also to ensure that the group’s expansion benefited India, creating jobs, fostering innovation, and driving economic growth. 

Legacy of Philanthropy and Social Responsibility 

Ratan Tata’s leadership extended far beyond the corporate world. Like his forebears, he was deeply committed to philanthropy and social welfare. Under his guidance, the Tata Group’s philanthropic efforts expanded significantly, particularly in areas such as education, healthcare, rural development, and the environment. 

The Tata Trusts, which control two-thirds of Tata Sons’ equity, have historically played a major role in funding social initiatives across India. Ratan Tata was instrumental in ensuring that the group’s wealth was used for the betterment of society. He focused on rural development, supporting initiatives that helped uplift marginalized communities and providing healthcare and education to those in need. 

A passionate advocate for education, Ratan Tata made significant contributions to both Indian and international institutions. He donated generously to his alma mater, Cornell University, where he helped establish scholarships for Indian students. Similarly, he supported research and innovation at the Indian Institute of Technology (IITs) and other Indian educational institutions. 

In recognition of his philanthropic efforts, Ratan Tata was awarded the Padma Bhushan (2000) and the Padma Vibhushan (2008), two of India’s highest civilian honors. His approach to philanthropy was often understated—he rarely sought publicity for his charitable work, preferring to let the actions speak for themselves. 

Personal Life and Humility 

Despite his towering achievements, Ratan Tata remained a private and humble individual. He never married and kept a low profile in his personal life, avoiding the social spotlight that often accompanies the wealthy and powerful. Known for his simplicity, he shunned extravagance, living a modest life in comparison to many of his peers. 

Ratan Tata’s love for animals was well-known. He was a passionate advocate for animal welfare and actively supported initiatives to care for stray dogs and promote animal rights. His home was always open to animals in need, and he often spoke about the joy and companionship they brought into his life. 

Throughout his career, Ratan Tata was known for his integrity and ethical conduct. He believed in the importance of doing business the right way, even when it was not the easiest or most profitable path. His refusal to engage in corrupt practices, even when faced with considerable pressure, earned him respect both in India and internationally. 

Retirement and Chairman Emeritus 

Ratan Tata stepped down as chairman of Tata Sons in 2012, passing the baton to his successor, Cyrus Mistry. However, his involvement with the Tata Group continued, and he remained a guiding force as chairman emeritus. In the years following his retirement, Tata continued to be a key player in India’s business and philanthropic sectors. He became an influential voice in the startup ecosystem, personally investing in several young, innovative companies, helping to nurture the next generation of Indian entrepreneurs. 

Tata’s post-retirement years were also marked by his active role in global forums, where his wisdom and experience were sought after by business leaders and policymakers alike. He maintained a close relationship with the Tata Trusts, ensuring that the group’s philanthropic mission continued to evolve in response to India’s changing needs. 

A Lasting Impact 

Ratan Tata’s passing marks the end of an era, but his legacy will endure for generations to come. He was not just a titan of industry; he was a man of principle, a visionary who used his immense influence for the greater good. His contributions to business, philanthropy, and society at large are immeasurable. 

In Ratan Tata, India and the world have lost a leader who embodied the values of integrity, compassion, and excellence. His life serves as a reminder of what can be achieved when one’s ambitions are guided by a deep sense of responsibility to others. As we reflect on his remarkable journey, we are reminded of his own words: "I don’t believe in taking the right decisions. I take decisions and then make them right." 

Ratan Tata will be remembered not just for what he built, but for how he built it—with grace, humility, and an unwavering commitment to making the world a better place. His legacy will continue to inspire future generations, both within the Tata Group and beyond. Like a Nano, we, as Indians need to take his ideas and dreams forward with as much determination and resolve. We need to emulate the figure he has demonstrated for long and gives countless ‘Ratans’ to the nation. That can be the true tribute we can pay to the iconic brand and the figure behind it.