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Ratan Tata

Ratan Tata: Executing His ‘Grand Vision’ with Profound Grace and Humility

Ratan Tata, who passed away this week, was more than just the head of India’s largest industrial conglomerate; he was a role model for many of the country’s business tycoons, including the likes of Infosys founder Narayan Murthy.

Ratan, whose $400 billion business empire includes Tata Consultancy Services (TCS), is not known for his enormous wealth but for his simplicity. During his studies in the U.S., he even worked in hotels part-time to make ends meet.

“At that time, the Reserve Bank (of India) allowed very little foreign currency to be used for studying abroad. My father did not like breaking the law at all. So he did not want to buy dollars from the black market for me,” Ratan said in an interview with Coomi Kapoor, who later wrote a book titled An Intimate History of Parsis.

“I often ran out of money by the end of the month, so I sometimes had to borrow from friends. Often, I even scrubbed the dishes to earn some extra money.”

Even after ascending to the chairmanship of a multi-billion dollar empire, he preferred to travel in economy class, often by himself, without any personal assistants to handle his luggage.

Once the plane took off, he would quietly start his work. He had a habit of asking for black coffee with very little sugar. But he never got angry with the flight attendants when he didn’t get the coffee he wanted.

In Mumbai, he maintained a daily ritual of walking his dogs, Tito and Tango, every morning, without a security detail in sight.

His affection for dogs was so well-known that, upon arriving at his office, Bombay House, street dogs would eagerly gather around him, accompanying him up to the elevator.

“His love for animals, especially dogs, brought him immense joy,” reflected S. Ramadorai, former CEO of TCS, in an article for The Hindustan Times. “His last venture, the Small Animal Hospital in Mumbai, is a testament to that passion.”

Ramadorai also credited Tata with driving innovation at TCS, recalling how he readily approved the IT provider’s supercomputer project, EKA, without hesitation. Launched in 2007, EKA became the fourth-fastest supercomputer in the world.

Ratan was known for his strict discipline. He would leave the office promptly at 6:30 p.m. and often grew irritated if someone contacted him at home for work-related matters.

At home, he preferred to study and review files in private, yet he always answered phone calls himself, never relying on assistants.

Those close to Ratan Tata say that stubbornness runs in his family. He inherited this trait from JRD Tata and his father, Naval Tata. Suhail Seth, a close business associate of Tata, puts it bluntly: “Even if you put a gun to their head, they’d say, ‘Go ahead and shoot, but I won’t change my stance.'”

Building the World’s Cheapest Car

Ratan Tata is often remembered for launching the Tata Nano, a car that made global headlines for its price—less than $1,400. But the circumstance that led to the creation of the world’s cheapest car is an interesting story.

In 1998, Tata Motors introduced the Indica, India’s first locally designed car. The debut was far from smooth—the market wasn’t impressed, and the company struggled to keep the passenger vehicle unit afloat. Ratan Tata faced a tough call and decided to sell the unit to Ford.

When he flew to Detroit for negotiations, he was met with scorn. Bill Ford, then CEO, openly questioned why Tata had even ventured into the car industry, mocking his lack of experience. Ford went as far as saying that buying Indica would be a “favor” to Tata Motors. Humiliated, Ratan Tata and his team abruptly walked out of the talks.

Fast forward ten years, and the tables had dramatically turned. In 2008, it was Ford that found itself in dire straits, forced to sell its British luxury brands, Jaguar and Land Rover. This time, the tone was different.

Bill Ford admitted that selling the brands to Tata Motors would be a favor to Ford. Ratan Tata didn’t hesitate. For $2.3 billion, he secured both Jaguar and Land Rover, turning a moment of past insult into a victory that stunned the global automotive world.

The acquisition was a masterstroke that not only salvaged two iconic brands but also elevated Tata Motors into a global player. Earlier this year, Tata Motors beat the United States’ General Motors, as its market valuation exceeded $50 billion.

Beginning as an Ordinary Worker

Although he was heir apparent to the throne, becoming the chairman of a hundred years old family business was no easy task. After his graduation in the U.S., Ratan’s grandmother Navajbai Tata insisted he return to India. Ratan obeyed this order, although he had already started working in the U.S. On his arrival, he joined the Tata Steel factory in Jamshedpur, commonly called Tatanagar, in Jharkhand.

For six years, he blended in as just another worker, donning a simple blue uniform. Eventually, his dedication paid off—he rose to project manager and later became special assistant to the managing director.

In 1991, Ratan’s parents were finally convinced that he had gained enough experience to take the helm as Chairman of Tata Group.

Ratan’s first major success came when he turned the struggling Nelco subsidiary profitable. But the real surprise came in 2000 when he acquired the British tea giant, Tetley—double the size of Tata itself at the time. This bold move propelled Tata Group’s Global Beverages to become the second-largest tea company in the world.

Ratan didn’t stop there. He went on to buy Corus, Europe’s largest steel company, making headlines again. Today, Tata Group boasts annual revenue of $100 billion and a market capitalization of nearly $400 billion, surpassing the GDPs of countries like Colombia, South Africa, and Iran.

The jewel in its crown is TCS, which Ratan listed on the Bombay Stock Exchange in 2004. It was a multi-billion dollar IPO and was a historical moment for the country’s stock market.

Although TCS had already existed for decades before his tenure as Chairman of Tata Group, the IT vendor grew by leaps and bounds under Ratan Tata’s guidance, says Rajeev Gupta, Country Manager for TCS Mexico.

Ratan emphasized that innovation and overseas expansion were important for TCS. Therefore, Gupta pointed out, Ratan arrived in Uruguay in 2002 for the inauguration of a delivery center in Montevideo.

“His strategic direction ensured the company not only entered emerging markets but also became a leader in them.”

Today, TCS operates in nine Latin American countries with over 27,000 associates, making it one of the largest IT services companies in the region. Gupta, who met Tata personally on several occasions, says Ratan was an extraordinary leader and that “every word he spoke radiated humility, passion, and a grand vision.”

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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