Ratan Tata, the iconic former chairman of the Tata Group and a celebrated philanthropist, has passed away at the age of 86. His legacy is indelible, not only for his visionary leadership but also for his efforts in transforming one of India’s oldest business houses into a global powerhouse. Over his long tenure, Tata played an instrumental role in shaping India’s corporate landscape, pioneering bold moves in a newly liberalised economy, and pushing the boundaries of Indian business on the global stage.
Ratan Tata took the reins of the Tata Group in 1991, a pivotal time in India’s history. The country had just opened its doors to economic liberalisation after decades of protectionism and license-based operations. It was an era of opportunity but also one filled with uncertainty. Tata, however, saw this as the perfect moment to make his mark.
His tenure was defined by a strategy of audacious acquisitions and internationalisation. Most famously, at the turn of the millennium, Tata executed the largest cross-border acquisition in Indian corporate history by purchasing Tetley Tea, a British company three times the size of Tata’s tea business. The acquisition shocked the global business community and was emblematic of a former colony buying one of the British Empire’s prized assets. This bold move symbolised not only Tata’s ambition but also a broader trend of Indian companies asserting themselves on the global stage.
Tetley was just the beginning. Over the next decade, Tata spearheaded the acquisitions of Corus, a major British steelmaker, and Jaguar Land Rover (JLR), two storied British brands. These acquisitions catapulted Tata Group’s profile and positioned it as a truly global entity. Although some of these moves, such as the Corus deal, were seen as missteps due to the timing of the global financial crisis, their symbolic importance cannot be overstated.
Mircea Raianu, historian and author of Tata: The Global Corporation That Built Indian Capitalism, described these acquisitions as “the empire striking back.” Tata’s ability to take over British industrial giants signified a reversal of colonial power dynamics, as an Indian company emerged as a global player, snapping up assets from its former coloniser. For a country still grappling with post-colonial identity, Ratan Tata’s achievements resonated deeply.
Ratan Tata’s leadership style was as unconventional as his education. With a degree in architecture and an early career that placed him on the fringes of his family’s business empire, Tata brought a unique perspective to corporate leadership. His tenure saw not just a global expansion but a structural transformation of the group itself.
When Tata became chairman, the conglomerate had devolved into a collection of semi-autonomous entities, each run by influential executives with little oversight from the holding company, Tata Sons. These “satraps,” a term borrowed from Persian to describe powerful provincial governors, had considerable autonomy at companies like Tata Steel, Tata Motors, and the Taj Group of Hotels. Ratan Tata’s early years were spent centralising control, streamlining operations, and creating a more cohesive corporate structure.
This process wasn’t without resistance. Tata had to navigate boardroom battles and internal dissent, but his vision ultimately prevailed. By centralising decision-making and surrounding himself with a fresh team of executives, including non-resident Indians and international professionals, Tata could drive the group’s global expansion. He also established the Group Corporate Centre (GCC), an internal body responsible for providing strategic direction, overseeing mergers and acquisitions, and ensuring that the group’s values were upheld across its various subsidiaries.
The GCC played a pivotal role in Tata Motors’ acquisition of Jaguar Land Rover. While initially regarded as a risky move—given that JLR was struggling under Ford’s ownership—the deal later proved to be a masterstroke. JLR transformed Tata Motors’ global standing, turning it from a local truck and tractor manufacturer into an internationally respected automotive brand. The acquisition was seen as poetic justice since Ford had rejected Tata Motors’ advances earlier in the 1990s.
While Ratan Tata’s international exploits captured headlines, he also turned his attention to India’s burgeoning consumer market. His most ambitious domestic project was the Tata Nano, launched in 2008. Marketed as the world’s cheapest car, the Nano was envisioned as an affordable vehicle for India’s growing middle class, many of whom were still reliant on motorcycles and scooters for transportation.
However, the Nano project didn’t unfold as expected. Although Tata had anticipated strong demand for a low-cost vehicle, Indian consumers were less enthusiastic. The car was perceived as too cheap, and in a market driven by aspiration and status, few wanted to be seen driving what was labelled as a “poor man’s car.” Despite Tata’s persistent efforts to shed the stigma attached to the Nano, the project was ultimately a failure, and the car was discontinued after years of declining sales.
In hindsight, Ratan Tata acknowledged that the marketing approach was flawed, and the “poor man’s car” tag had become a burden that could not be undone. Yet, even in failure, Tata’s vision was clear: he wanted to make mobility accessible to millions of Indians, and the Nano, while unsuccessful, was a bold experiment in serving India’s mass market.
Ratan Tata’s retirement in 2012 marked the end of an era for the Tata Group, but his influence over the company did not wane immediately. His succession planning was fraught with challenges. Tata’s chosen successor, Cyrus Mistry, was appointed chairman in 2012, but the relationship between the two soon soured. By 2016, Mistry was ousted in a highly publicised boardroom coup, sparking a bitter legal battle between Mistry and the Tata Group.
While Tata was not directly involved in the day-to-day operations of the company post-retirement, his role as chairman of Tata Trusts—an entity that owns two-thirds of Tata Sons’ stock—meant that he continued to wield significant influence. This backdoor involvement in the group’s affairs was criticised by some as undermining the authority of the chairman, leading to further complications in the group’s governance.
In 2022, Cyrus Mistry tragically died in a car accident, bringing a somber end to the years-long dispute. Despite the legal battles and internal strife, Ratan Tata’s contributions to the Tata Group’s global ascent remained uncontested. The group emerged stronger, and its governance issues were gradually addressed.
Beyond the high-profile acquisitions and controversies, Ratan Tata’s lasting legacy is the transformation of the Tata Group into a modern, global conglomerate. Under his leadership, the group made significant investments in technology and innovation, most notably through Tata Consultancy Services (TCS).
TCS, founded in 1968, had grown exponentially during Tata’s tenure, becoming India’s largest IT services company and a critical driver of the group’s revenue. In fact, when some of Tata’s more audacious acquisitions—such as Corus—underperformed, it was TCS that carried the weight of the group. Today, TCS is one of the world’s leading IT services firms, contributing to nearly 75% of the Tata Group’s revenues.
Tata’s strategic foresight in focusing on technology proved prescient as India emerged as a global IT hub. TCS, along with Jaguar Land Rover, helped balance the group’s more traditional businesses in steel and automobiles, ensuring that Tata remained relevant in the rapidly evolving global economy.
Beyond his corporate achievements, Ratan Tata was also deeply committed to philanthropy. His family’s philanthropic trust, Tata Trusts, has contributed significantly to education, healthcare, and rural development in India. Even as he navigated the complexities of modern business, Tata never lost sight of the values instilled by his forebears—values of social responsibility and nation-building.
One of his final major milestones was the Tata Group’s acquisition of Air India in 2022, bringing the national airline back under the Tata umbrella after nearly 70 years of government ownership. For Tata, a trained pilot, this was a deeply personal victory, but it also signified his belief in India’s growth story. Despite the risks involved in running an airline, Tata was willing to take bold bets on India’s future.
