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Wealth Creator in India: Philanthropy and the Tata Group have traditionally been synonymous. Ratan Tata has continued this tradition of the Tata Group. Tata provided financial assistance worth crores of rupees in every sector from education to health and rural development and support of stray animals. Tata Trust donated Rs 1500 crore during the Covid period.
Vikas Saraswat. The entire country is in mourning after the demise of industrialist Ratan Tata. Apart from the industry and top leaders, the way the common people paid emotional tribute to Ratan Tata, from the Garba Pandal of Goregaon to the evening aarti of Kashi, reflects the nationwide feeling of affection and gratitude towards the Tata family and Ratan Tata himself.
Tata Group has set great milestones and milestones in the field of industry and business and has emerged as one of the most trusted brands in the industry. Ratan Tata carried forward this golden and rich legacy very well. During his 21-year tenure as chairman, under Ratan Tata's leadership, Tata Group's revenues grew 46 times to Rs 4.75 lakh crore and profits grew 50 times to Rs 33,500 crore.
Ratan Tata invested in around 50 domestic and foreign startups. Startups like Paytm, Ola Electric, Lenskart and Blue Stone have become very big today. It would not be an exaggeration to say that Ratan Tata has made a huge contribution in encouraging startups in the country.
Ratan Tata took charge of the Tata Group in 1991 when the country was adopting a policy of liberalization. This was a very challenging time for Indian industries and businesses that had grown under domestic protection for decades, where they suddenly had to compete in the free market with large multinationals.
Due to patronage, the business capabilities of the Tata group companies became dormant and inactive, just like those of the public sector companies. The Chief Executive Officers of these companies, with their arbitrary working style contrary to the basic mantras of the Tata Group, not only weakened the efficiency of the companies, but also brought the Tata Group to the verge of dissolution.
Ratan Tata established the Group Executive Office and placed its members on the boards of Tata companies. Also, by fixing 26 percent stake of Tata Sons in all the companies, it paved the way to protect it from forced acquisition i.e. hostile takeover. During this period, there were massive layoffs in Indian hotels, TISCO and Telco (now Tata Motors), plant and machinery and a lot of young talent was recruited.
While Ratan Tata had a positive attitude towards new suggestions, new technology and new management policies, in many cases his decisions were based on emotions, personal conscience and determination. Helen Deresky and Elizabeth Christoph have mentioned interesting memoirs of Ratan Tata in their book.
Ratan Tata's response to an industry executive's request to make a completely Indian car with the entire automotive sector in mind was, 'Why doesn't Mr. Tata show a completely made-in-India car before talking about it?' The Tata Indica, which despite its initial shortcomings not only became one of the best-selling cars in Indian history, but also marked a milestone in India's self-reliance in the automobile sector.
The launch of Indica was based on the Tata Group's 4-point business policy, which included starting any project with a small or large budget, leaving enough capital to fix potential defects and ramp up production.
Similarly, Tata did not heed the advice of American consulting firm McKinsey to completely disinvest in TISCO, i.e. sell its stake, but instead further restructured it. TISCO was the predecessor of Tata Steel. Ignoring disinvestment advice, Tata Steel further increased its steel production capacity by purchasing Anglo-Dutch steel giant Corus. This was the biggest case of foreign acquisition of an Indian company.
Despite being one of the richest men in India, Ratan Tata's personal life was very plain and simple. He was also seen standing in queues with other employees at Tata Group offices and sometimes driving his car. Sometimes he would also board the normal black-and-yellow taxis plying in Mumbai. He also considered wealth creation as a means of service.
Ratan Tata's legacy as an entrepreneur will be remembered for how he not only successfully led his group through a period of transformation but also led it to global expansion. Ford Co., which Bill Ford had humiliated and sent back to Tata when it went for the Indica deal in 1998, did the Tata Group a favor by buying Jaguar and Land Rover, its two biggest brands, in 2008, which was tough. Were passing through time.
Above all, Ratan Tata's greatest achievement was that despite socialist bitterness nurtured for decades, he worked to instill in the Indian psyche respect for capital, enterprise and wealth creation in an Indian society filled with politicians and politics. India needs many visionary entrepreneurs like Tata if we are to emerge as a major economic power.
Such entrepreneurs who create wealth in the society also need to be given due respect, because the golden future of India will not be decided by hollow socialism and political slogans, but by business and enterprise. It is not right that some leaders are bent upon branding industrialists as villains for narrow political reasons.