Ratan Tata


Ratan Naval Tata was an Indian industrialist and philanthropist. He served as the chairman of Tata Group and Tata Sons from 1991 to 2012, and he held the position of interim chairman from October 2016 to February 2017. In 2000, he received the Padma Bhushan, the third-highest civilian honour in India, followed by the Padma Vibhushan, the country's second-highest civilian honour, in 2008.
Ratan Tata was the son of Naval Tata, who was adopted by Ratanji Tata, son of Jamsetji Tata, the founder of the Tata Group. He graduated from Cornell University College of Architecture with a bachelor's degree in architecture. He had also attended the Harvard Business School Advanced Management Program in 1975. He joined the Tata Group in 1962, starting on the shop floor of Tata Steel. He later succeeded JRD Tata as chairman of Tata Sons upon the latter's retirement in 1991. During his tenure, the Tata Group acquired Tetley, Jaguar Land Rover, and Corus, in an attempt to turn Tata from a largely India-centric group into a global business.
Throughout his life, Tata invested in over 40 start-ups, primarily in a personal capacity, with additional investments through his firm, RNT Capital Advisors.

Early life and education

Ratan Tata was born in Mumbai, during the British Raj, into a Parsi family, on 28 December 1937. He was the son of Naval Tata and Soonoo Tata. Tata's biological grandfather, Hormusji Tata, was a member of the Tata family by blood. In 1948, when Tata was 10, his parents separated, and he was subsequently raised and adopted by Navajbai Tata, his grandmother and the widow of Ratanji Tata. He had a younger brother, Jimmy Tata, and a half-brother, Noel Tata, from Naval Tata's second marriage to his stepmother Simone Tata, and two half-sisters, Shireen and Deanna Jeejebhoy, from his mother's second marriage.
Tata studied at the Campion School, Mumbai, until 8th grade. He then continued his studies at the Cathedral and John Connon School in Mumbai, the Bishop Cotton School in Shimla, and the Riverdale Country School in New York City, from which he graduated in 1955. After high school, Tata enrolled in Cornell University, from which he graduated with a bachelor's degree in architecture in 1962. While at Cornell, Tata became a member of the Alpha Sigma Phi fraternity. In 1975, Tata enrolled in the Advanced Management Program at Harvard Business School. In 2008, Tata gifted Cornell $50 million, becoming the largest international donor in the university's history. Tata also donated $50 million to Harvard Business School, Harvard University, to establish an executive center, which is now called Tata Hall, that supports over 9,000 executive education students each year.

Career

Early years

After graduating from Cornell, Tata worked at the architectural firm Jones & Emmons in Los Angeles, until his return to India in late 1962.

Later years

In the 1970s, Ratan Tata was given a managerial position in the Tata group. He achieved initial success by turning the subsidiary National Radio and Electronics around, only to see it collapse during an economic slowdown. In 1991, JRD Tata stepped down as chairman of Tata Sons, naming his successor. Initially, Tata faced stiff resistance from the heads of various subsidiaries, who had a large amount of operational freedom under the senior Tata's tenure. In response, Tata implemented a number of policies designed to consolidate power, including the implementation of a retirement age, having subsidiaries report directly to the group office, and requiring subsidiaries to contribute their profit to building the Tata group brand. Tata prioritized innovation and delegated many responsibilities to younger talent. Under his leadership, overlapping operations between subsidiaries were streamlined into company-wide operations, with the group exiting unrelated businesses to take on globalization.
During the 21 years Tata led the Tata Group, revenue grew over 40 times, and profit over 50 times. When he took over the company, sales overwhelmingly comprised commodity sales, but at the end of his tenure, the majority of sales came from brands. He had Tata Tea acquire Tetley, Tata Motors acquire Jaguar Land Rover, and Tata Steel acquire Corus. These acquisitions repositioned Tata from a largely India-centric group into a global business, with over 65% of revenues coming from operations and sales internationally.
He also conceptualized and spearheaded the development of the Tata Nano car after the grand success of the Diesel Tata Indica, which helped put cars at a price-point within reach of the average Indian consumer. Tata Motors has since rolled out the first batch of Tigor Electric Vehicles from its Sanand Plant in Gujarat, which Tata has described as "fast-forward India's electric dream."
Upon turning 75, Ratan Tata resigned his executive powers in the Tata group on 28 December 2012. An ensuing leadership crisis over his succession drew intense media scrutiny. The board of directors of the company appointed his successor, Cyrus Mistry, a relative of Tata and the son of Pallonji Mistry of the Shapoorji Pallonji Group, which was the largest individual shareholder of the Tata group. On 24 October 2016, Cyrus Mistry was removed as chairman of Tata Sons, and Ratan Tata was made interim chairman. A selection committee, which included Tata as a member, was formed to find a successor. On 12 January 2017, Natarajan Chandrasekaran was named as the chairman of Tata Sons, a role he assumed in February 2017. In February 2017, Mistry was removed as a director for Tata Sons. The National Company Law Appellate Tribunal later found in December 2019 that the removal of Cyrus Mistry as the chairman of Tata Sons was illegal, and ordered that he be reinstated. On appeal, India's Supreme Court upheld the dismissal of Cyrus Mistry.
Tata had also invested in multiple companies. He had invested in Snapdeal, – one of India's leading e-commerce websites at that time. In January 2016, he invested in Teabox, an online premium Indian Tea seller, and CashKaro.com, a discount coupons and cash-back website. He had made small investments in both early and late-stage companies in India, such as INR 0.95 Cr in Ola Cabs. In April 2015, it was reported that Tata had acquired a stake in the Chinese smartphone startup Xiaomi. In 2016, he invested in Nestaway, an online real-estate portal that later acquired Zenify to start the online real-estate and pet-care portal, Dogspot. Tata also launched a companionship startup for senior citizens named Goodfellows to encourage intergenerational friendships.

Philanthropic contributions and endowments

Tata was a supporter of education, medicine and rural development, and considered a leading philanthropist in India. Ratan Tata was the highest international donor to the Cornell University.

1984 Anti-Sikh Pogrom victims

In the aftermath of the 1984 Anti-Sikh Riots, Ratan Tata extended his support to affected Sikh survivors by donating trucks through Tata Motors. This enabled Sikh truck drivers who had lost their vehicles during the violence to regain their livelihoods. His charitable donation enabled many Sikh victims to rebuild their lives and businesses. Following this act, Sikh drivers in Punjab and other parts of India continue to remain loyal customers of Tata trucks.

University of New South Wales

Tata supported University of New South Wales Faculty of Engineering to develop capacitive deionisation to provide improved water for challenged areas.

University of California

Tata Hall at the University of California, San Diego is a state-of-the-art research facility that was opened in November 2018. The building is named after the Tata Trusts, which donated $70 million to UC San Diego in 2016 to establish the Tata Institute for Genetics and Society, which is housed within the building. The Tata Institute for Genetics and Society at UC San Diego is a joint initiative between the Tata Trusts and UC San Diego. It aims to address some of the world's most pressing problems, such as the spread of infectious diseases and the need for sustainable food sources. The research conducted at the institute focuses on a range of topics, including gene editing, stem cell therapy, and disease control. Tata Hall at the UC San Diego is a 4-storey building that is spread over 128,000 square feet and houses research facilities for the biological and physical sciences. The building has laboratories, offices, and meeting spaces that are designed to foster collaboration and innovation among researchers. It is a LEED-certified building; designed to be environmentally sustainable and energy-efficient.

Tata Education and Development Trust

Tata Education and Development Trust, a philanthropic affiliate of Tata Group, endowed a $28 million Tata Scholarship Fund that will allow Cornell University to provide financial aid to undergraduate students from India. The scholarship fund will support approximately 20 scholars at any given time and will ensure that the very best Indian students have access to Cornell, regardless of their financial circumstances. The scholarship will be awarded annually; recipients will receive it for the duration of their undergraduate study at Cornell.

Executive center at Harvard Business School

In 2010 Tata Group companies and Tata charities donated $50 million for the construction of an executive center at Harvard Business School. The executive center has been named Tata Hall, after Ratan Tata. The total construction costs have been estimated at $100 million. Tata Hall is located in the northeast corner of the HBS campus, and is devoted to the Harvard Business School's mid-career executive education program. It is seven stories tall, and about 155,000 gross square feet. It houses approximately 180 bedrooms, in addition to academic and multi-purpose spaces.