SHAPER OF TOMORROW

Last Updated12/10/2024

Ratan Tata, one of India's most revered business leaders, will be remembered for the monumental transformation he orchestrated at Tata Group. He took India’s oldest and largest business conglomerate, once a domestic-focused and commodity-centric entity, and turned it into a global, consumer-facing powerhouse.
This shift positioned Tata Group as a trailblazer in the post-liberalisation Indian economy. The change is most evident in the group’s three largest companies today — Tata Consultancy Services (TCS), Tata Motors, and Titan — which represent the group's pivot to high-growth sectors and global markets.

Under Ratan Tata’s leadership, Tata Group shed its image as a diversified but somewhat unwieldy domestic conglomerate reliant on commodities like steel and power. Instead, the group embraced high-growth sectors, especially in the global arena.
Tata Consultancy Services (TCS): Today, TCS is India's largest IT company, generating about 95% of its revenue from exports. It has become a global leader in technology services, symbolizing Tata Group's shift towards more technology-driven and internationally focused businesses.
Tata Motors: While maintaining its leadership in commercial vehicles, Tata Motors has expanded into the luxury automobile sector through its acquisition of Jaguar Land Rover (JLR), which now accounts for a significant portion of its sales.
Titan: A fully consumer-facing company, Titan is a prime example of Tata's focus on building strong consumer brands. Its presence in jewelry, watches, and eyewear has made it a market leader in the lifestyle sector.
Other successful consumer-oriented ventures include Tata Consumer Products, Voltas, and Trent, showcasing how Ratan Tata’s strategy diversified the group’s portfolio while ensuring its financial robustness and adaptability in the global market.

One of Ratan Tata's most significant decisions was to assert more control over the sprawling Tata empire. Under JRD Tata, the group’s major companies were run by strong leaders like Russi Mody (Tata Steel), Darbari Seth (Tata Chemicals and Tata Tea), and Ajit Kerkar (Taj Hotels), who exercised considerable autonomy.
Ratan Tata shifted this dynamic by replacing the old guard and aligning the companies with a central strategy, emphasizing a cohesive, group-wide vision.

Ratan Tata believed that the future of Indian business lay in going global. Under his leadership, Tata Motors acquired Jaguar Land Rover (JLR), Tata Steel acquired Corus, and Tata Tea bought Tetley, marking Tata Group’s aggressive expansion into international markets.
However, not all global ventures were successful:
Tata Steel’s acquisition of Corus was a misstep, as acknowledged by JJ Irani, former managing director of Tata Steel. The acquisition turned out to be financially draining due to market challenges.
The Tata Nano, Ratan Tata’s ambitious project to build the world’s cheapest car, failed to capture the market’s interest. Though it was hailed as a revolutionary concept, the Nano was not commercially viable and struggled with low sales.
The group’s foray into telecom also did not deliver the expected returns, leading to significant losses.
Despite these setbacks, Ratan Tata’s broader vision of creating a global Indian brand came to fruition in other areas, especially through TCS, Titan, and Tata Motors’ luxury vehicle segment.

One of the more contentious episodes in Ratan Tata’s legacy was the ouster of Cyrus Mistry as chairman of Tata Group in 2016. The internal conflict, which eventually spilled into the public and legal domains, marked a tumultuous period for the conglomerate.
After Mistry’s removal, N Chandrasekaran took over as chairman and has since stabilized the group, steering it into new growth sectors like semiconductors and contract manufacturing.

As Tata Group ventures into newer industries, the question remains: Who will carry forward the legacy Ratan Tata so masterfully built? The group has already begun exploring emerging sectors such as semiconductors and electric vehicles, and it continues to solidify its place in global markets.

Ratan Tata’s vision and leadership have left an indelible mark on Tata Group, transforming it into a global conglomerate that is synonymous with Indian industry.
By shedding non-performing assets, focusing on consumer brands, and expanding globally, he not only modernized the group but also aligned it with the changing dynamics of the Indian economy.