Ratan Tata (1937-2024): The Greatest Industrialist and Philanthropist

2024-10-10 13:36:22

By : JSB Market Research

In : BLOG

Ratan Tata was an industrialist and philanthropist. Naval Tata and Sooni Tata had him in Mumbai on December 28, 1937. He was appointed chairman of Tata Sons and Tata Group in 1991. He resigned from his position in 2012. Later, he served as interim chairman from 2016 to 2017.

He led Tata Groups and Tata Sons to significant success once he was appointed the chairman in 1991. He completed his studies from Campion School, Mumbai, Cathedral and John Cannon School in Mumbai, and Bishop Cotton School in Shimla. He later continued his studies in New York City at Riverdale Country School.

After graduating in 1955, he went on for graduation with a bachelor’s degree in architecture from Cornell University in 1959. When he was studying at Cornell, he became a member of the Alpha Sigma Phi Fraternity.

He became the largest international donor in the history of the university when he donated $50 million to Cornell in 2008.

Ratan Tata never married and was single for most of his life. He once shared that he was close to getting married 2-3 times with different partners, but none of those relationships worked due to his commitment to making this world a better place to live in.

Ratan Tata’s Career

In 1962, Ratan Tata joined as an assistant in Tata Industries and spent six months at the Jamshedpur plant of Tata Engineering and Locomotive Company, now known as Tata Motors. Later in 1963, he joined Tata Iron and Steel Company, now known as Tata Steel.

He joins Tata Computer Systems in 1968, now known as Tata Consultancy Services. Ratan Tata was given the managerial position in the Tata Group in the 1970s. His initial success came when he turned around the subsidiary National Radio and Electronics, but it eventually collapsed during an economic recession.

After becoming the director of Tata Sons in 1974, he went on to complete his Advacned Management Program at Harvard Business School in 1975. In 1981, he got appointed as the chairman of Tata Industries and transformed the business into a strategic framework that supports high-tech projects just after two years.

For a brief period from 1986 to 1989, he also served as the chairman of national carrier Air India. Later, on March 25, 1991, he took over from J.R.D. Tata as the chairman of Tata Sons and Tata Trusts. Many were unhappy about this decision; some even accused JRD Tata of nepotism. But with his persistence and hard work, he turned everyone in his favor.

Ratan Tata implemented control by establishing retirement age, requiring subsidiaries to directly report to the group office and contribute their profits to strengthen the Tata Group brand. Tata gave innovation the top priority and responsibilities to younger employees. His leadership helped the organization reach greater heights globally.

In the two decades that he led the Tata Group, he increased the revenue by 40% and the profits by 50%. In his tenure, he acquired Tetley (Tata Tea), Jaguar Land Rover (Tata Motors), and Corus (Tata Steel). With these acquisitions, Tata was repositioned as a global enterprise, with over 65% of revenue derived from operations and sales outside of India.

Ratan Tata’s Philanthrophy

Ratan Tata's generosity has left a lasting legacy. More than 65% of his Tata Sons shares are donated to charitable organizations. His donations have supported social development, healthcare, and education initiatives across the nation. Tata has always prioritized raising the standard of living for Indians.

He wanted to bring changes in the education and healthcare sector of India, which he did. He ever worked for the betterment of rural development. His dedication to sustainability and innovation led to large investments in rural electricity and clean water projects. Tata Trusts have played a significant role in funding agricultural research that aims to raise the standard of living for Indian farmers.

Tata Sons and Tata Trusts pledged a donation of ₹1,500 crore during the 2020 pandemic to help people infected with the virus. Tata Trusts contributed ₹500 crore for healthcare facilities, testing kits, and personal protective equipment (PPE).

During the 2008 Mumbai terror attacks, Ratan Tata acted quickly to establish the Taj Public Service Welfare Trust, offering rehabilitation for affected families and relief to victims.

Also, everyone is aware of Ratan Tata’s love for the dogs. Before his death, his last endeavor was the establishment of Tata Son’s global headquarters at Bombay House, which looks after several stray animals.

Ratan Tata also met his assistant Shantanu Naidu through their mutual fondness for dogs. Naidu met Tata when he was seeking finance for his startup, Motopaws, a social enterprise that offered reflective collars to street dogs.

Ratan Tata’s Family Tree

Ratan Tata was born in Parsi Zoroastrian family to Naval Tata and Sooni Tata. Naval Tata was born in Surat to Hormusji Tata, a member of Tata family by blood. Naval Tata was adopted in the Tata family.

When Ratan Tata was only 10 years old, his parents divorced. He was then adopted and raised by his grandmother, Navajbai Tata, the widow of Ratanji Tata. He has a younger brother, Jimmy Tata, and a half brother, Noel Tata.