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Ratan Naval Tata, GBE (born 28 December 1937) is an Indian industrialist, businessman, investor, philanthropist, and a former chairman of Tata Sons who serves as its chairman emeritus. He was also chairman of Tata Group, from 1991 to 2012, and again, as interim chairman, from October 2016 through February 2017, and continues to head its charitable trusts.[4][5] He is the recipient of two of the highest civilian awards of India – Padma Vibhushan (2008) and Padma Bhushan (2000).[6] He is well-known for his business ethics and philanthropy.[7][8]

Ratan Tata
RatanTata.jpg
Ratan Tata
Born (1937-12-28) 28 December 1937 (age 81)
ResidenceColaba, Mumbai, India[2]
NationalityIndian
Alma materCornell University
OccupationChairman emeritus, Tata Sons
Former chairman, Tata Group[3]
Parent(s)Naval Tata
Sonoo Tata
RelativesSee Tata family
AwardsPadma Vibhushan (2008)
Padma Bhushan (2000)

Born in 1937, he was a scion of the Tata family,and great-grandson of Jamsetji Tata, the founder of Tata Group. He is an alumnus of the Cornell University College of Architecture. He joined to company in 1961, and was the apparent successor to J. R. D. Tata upon the latter's retirement in 1991. During Ratan Tata's chairmanship of 21 years, revenues grew over 40 times, and profit, over 50 times. He boldly got Tata Tea to acquire Tetley, Tata Motors to acquire Jaguar Land Rover, and Tata Steel to acquire Corus, in an attempt to turn Tata from a largely India-centric group into a global business.

Contents

Early lifeEdit

Ratan Tata was born in Bombay, now Mumbai, on 28 December 1937,[9] and is the son of Naval Tata (born in Surat). His biological maternal grandmother had been the sister of Hirabai Tata, wife of group founder Jamshedji Tata. His biological father, Hormusji Tata, had belonged to the broader Tata family; Ratan therefore was a Tata by birth. Parents Naval and Sonoo separated in 1948 when Ratan was 10, and he was subsequently raised by the widow of Sir Ratanji Tata, his grandmother, Navajbai Tata, who formally adopted him through the J. N. Petit Parsi Orphanage.[10] He has a half-brother, Noel Tata (from Naval Tata's second marriage with Simone Tata), with whom he was raised. His first language is Gujarati.[11]

He studied at the Campion School till the 8th class, followed by Cathedral and John Connon School and at Bishop Cotton School in Shimla,[12] and, in 1955, graduated from Riverdale Country School in New York City.[13][14] In 1959, he then received a B. Arch. degree in Architecture with Structural Engineering from Cornell University, and in 1975, attended the seven-week Advanced Management Program of Harvard Business School — an institution which he has since endowed.[15][16]

CareerEdit

In 1961, Tata began his career in the Tata Group, working on the shop floor of Tata Steel, shovelling limestone, and handling the blast furnace.[17] Promoted to management during the 1970s; he then endured trial by fire and was able to turn Group company National Radio and Electronics (NELCO) around, only to see it collapse during an economic slowdown.[18][19] In 1991, J. R. D. Tata stepped down as chairman of Tata Sons, naming him his successor. When he settled down into the new role, he faced stiff resistance from many companies heads, some of whom had spent decades in their respective companies and rose to become very powerful and influential due to the freedom to operate under JRD Tata. He began replacing them by setting a retirement age, and then made individual companies report operationally to the group office and made each contribute some of their profit to build and use the Tata group brand. Innovation was given priority and younger talent was infused and given responsibilities.[20] Under his stewardship, overlapping operations in group companies were streamlined into a synergised whole,[21] with the salt-to-software group exiting unrelated businesses to take on globalisation.

 
Ratan Tata (right) in Bangladesh, 2005

During the 21 years he led the Tata Group, revenues grew over 40 times, and profit, over 50 times.[18] Where sales of the group as a whole, overwhelmingly came from commodities when he took over, the majority sales came from brands when he exited.[22][23] He boldly got Tata Tea to acquire Tetley, Tata Motors to acquire Jaguar Land Rover and Tata Steel to acquire Corus. All this turned Tata from a largely India-centric group into a global business, with over 65% revenues coming from operations and sales in over 100 countries.[18][24] He conceptualised the Tata Nano car.[20] As he explained in a recent[when?] interview for the Harvard Business School's Creating Emerging Markets project, the development of the Tata Nano was significant because it helped put cars at a price-point within reach of the average Indian consumer.[25]

Ratan Tata resigned his executive powers in the Tata group on 28 December 2012, upon turning 75, appointing as his successor, Cyrus Mistry, the 44-year-old son of Pallonji Mistry of the Shapoorji Pallonji Group, the largest individual shareholder of the group and related by marriage.[26][27] On 24 October 2016, Cyrus Mistry was removed as the chairman of Tata Sons and Ratan Tata was made interim chairman. The decision went through intense media scrutiny that made many scrutinize the root causes of the sudden removal, and the resultant crisis.[28] A selection committee was formed to find a successor. The selection committee consisted of Mr. Tata, TVS Group head Venu Srinivasan, Amit Chandra of Bain Capital, former diplomat Ronen Sen and Lord Kumar Bhattacharya. All of them, except Mr. Bhattacharya, were on the board of Tata Sons.[29] On 12 January 2017, Natarajan Chandrasekaran was named as the chairman of Tata Sons, a role he assumed in February 2017.

Tata invested personal savings in Snapdeal – one of India's leading e-commerce websites –and, in January 2016, Teabox, an online premium Indian Tea seller,[30] and CashKaro.com, a discount coupons and cash-back website.[31] He has made small investments in both early and late stage companies in India, such as INR 0.95 Cr in Ola Cabs[32] and INR 1 Cr in Paytm.[33] In April 2015, it was reported that Tata had acquired a stake in Chinese smartphone startup Xiaomi.[34] In October 2015, he partnered with American Express, investing in Bitcoin venture Abra.[35] In 2016, he invested in Nestaway [36] and online pet care portal, Dogspot.[37][38][39] Tata Motors rolled out the first batch of Tigor Electric Vehicles from its Sanand Plant in Gujarat, regarding which Ratan Tata said, "Tigor indicates a willingness to fast-forward India's electric dream. The government has set an ambitious target to have only electric cars by 2030."[40]

PhilanthropyEdit

Tata is a strong supporter of education, medicine and rural development, distinguishing him as a leading philanthropist in India.[41][42] Tata supported University of New South Wales Faculty of Engineering to develop capacitive deionization to provide improved water for challenged areas.[43][44]

  • Tata Education and Development Trust, a philanthropic affiliate of Tata Group, endowed a $25 million Tata Scholarship Fund that will allow Cornell University to provide financial aid to undergraduate students from India. The scholarship fund will support approximately 20 scholars at any given time and will ensure that the very best Indian students have access to Cornell, regardless of their financial circumstances. The scholarship will be awarded annually; recipients will receive the scholarship for the duration of their undergraduate studies at Cornell.[45]
  • In 2010, Tata Group companies and Tata charities donated $50 million for the construction of an executive center at Harvard Business School (HBS).[46] The executive center has been named Tata Hall, after Ratan Tata (AMP '75), chairman emeritus of Tata Sons.[16] The total construction costs have been estimated at $100 million.[47] Tata Hall is located in the northeast corner of the HBS campus, and is devoted to the Harvard Business School's mid-career Executive Education program. It is seven stories tall, and about 155,000 gross square feet. It houses approximately 180 bedrooms, in addition to academic and multi-purpose spaces.[48]
  • Tata Consultancy Services (TCS) has given the largest ever donation by a company to Carnegie Mellon University (CMU) for a facility to research in cognitive systems and autonomous vehicles. TCS donated $35 million for this grand 48,000 square-foot building that is going to be called TCS Hall.[49]
  • In 2014, Tata Group endowed the Indian Institute of Technology, Bombay and formed the Tata Center for Technology and Design (TCTD) to develop design and engineering principles suited to the needs of people and communities with limited resources. They gave ₹950 million to the institute which was the largest ever donation received in its history.[50][51]

Board memberships and affiliationsEdit

He was the interim chairman of Tata Sons. He continues to head the main two Tata trusts Sir Dorabji Tata Trust and Sir Ratan Tata Trust and their allied trusts, with a combined stake of 66% in Tata Sons, Tata group's holding company.

He has served in various capacities in organizations in India and abroad. He is a member of Prime Minister's 'Council on Trade and Industry' and the 'National Manufacturing Competitiveness Council'. He is on the jury panel of Pritzker Architecture Prize[54] – considered to be one of the world's premier architecture prizes.

He is a director on the boards of Alcoa Inc., Mondelez International[55] and Board of Governors of the East-West Center. He is also a member of the board of trustees of University of Southern California, Harvard Business School Board of Dean's Advisors, X Prize[56] and Cornell University. He is a member on the board of International Advisory Council at Bocconi University[57]

He is also a member of the Harvard Business School India Advisory Board (IAB) since 2006 and previously a member of the Harvard Business School Asia-Pacific Advisory Board (APAB) 2001-2006.

In 2013, he was appointed to the Board of Trustees of the Carnegie Endowment for International Peace.[58]

In February 2015, Ratan took an advisory role at Kalari Capital, a venture capital firm founded by Vani Kola.[59]

In October 2016, Tata Sons removed Cyrus Mistry as its chairman, nearly 4 years after he took over the reins of the over $100 billion conglomerate, Ratan Tata made a comeback, taking over the company's interim boss for 4 months. On 12 January 2017, Natarajan Chandrasekaran was named as the chairman of Tata Sons, a role he assumed in February 2017.

Honours and awardsEdit

 
The President, Smt. Pratibha Devisingh Patil presenting the Padma Vibhushan to Shri Ratan Naval Tata, at Rashtrapati Bhavan, in 2008.

Ratan Tata received the Padma Bhushan in 2000 and Padma Vibhushan in 2008, the third and second highest civilian honours awarded by the Government of India.[60]

Other notable awards include:

Year Name Awarding organisation Ref.
2001 Honorary Doctor of Business Administration Ohio State University [61]
2004 Medal of the Oriental Republic of Uruguay Government of Uruguay [62]
2004 Honorary Doctor of Technology Asian Institute of Technology. [63]
2005 International Distinguished Achievement Award B'nai B'rith International [64]
2005 Honorary Doctor of Science University of Warwick. [65]
2006 Honorary Doctor of Science Indian Institute of Technology Madras [66]
2006 Responsible Capitalism Award For Inspiration and Recognition of Science and Technology (FIRST) [67]
2007 Honorary Fellowship The London School of Economics and Political Science [68]
2007 Carnegie Medal of Philanthropy Carnegie Endowment for International Peace [69]
2008 Honorary Doctor of Law University of Cambridge. [70]
2008 Honorary Doctor of Science Indian Institute of Technology Bombay. [71]
2008 Honorary Doctor of Science Indian Institute of Technology Kharagpur. [72]
2008 Honorary Citizen Award Government of Singapore [73][74]
2008 Honorary Fellowship The Institution of Engineering and Technology [75]
2008 Inspired Leadership Award The Performance Theatre [76]
2009 Honorary Knight Commander of the Order of the British Empire (KBE) United Kingdom [77]
2009 Life Time Contribution Award in Engineering for 2008 Indian National Academy of Engineering [78]
2009 Grand Officer of the Order of Merit of the Italian Republic Government of Italy [79]
2010 Honorary Doctor of Law University of Cambridge [80]
2010 Hadrian Award World Monuments Fund [81]
2010 Oslo Business for Peace award Business for Peace Foundation [82]
2010 Legend in Leadership Award Yale University [83]
2010 Honorary Doctor of Laws Pepperdine University [84]
2010 Business for Peace Award Business for Peace Foundation [85]
2010 Business Leader of the Year The Asian Awards. [86]
2012 Honorary Fellow[6] The Royal Academy of Engineering[6] [87]
2012 Doctor of Business honoris causa University of New South Wales [88]
2012 Grand Cordon of the Order of the Rising Sun Government of Japan [89]
2013 Foreign Associate National Academy of Engineering [90]
2013 Transformational Leader of the Decade Indian Affairs India Leadership Conclave 2013 [91]
2013 Ernst and Young Entrepreneur of the Year – Lifetime Achievement Ernst & Young [92]
2013 Honorary Doctor of Business Practice Carnegie Mellon University [93]
2013 Honorary Doctorate University of Amsterdam [94]
2014 Honorary Doctor of Business Singapore Management University [95]
2014 Sayaji Ratna Award Baroda Management Association [96]
2014 Honorary Knight Grand Cross of the Most Excellent Order of the British Empire (GBE) United Kingdom Government [97][98]
2014 Honorary Doctor of Laws York University, Canada [99]
2015 Honorary Doctor of Automotive Engineering Clemson University [100]
2015 Sayaji Ratna Award Baroda Management Association, Honoris Causa, HEC Paris [101]
2016 Commander of the Legion of Honour Government of France [102]

Personal lifeEdit

In 2011, Ratan Tata stated, "I came seriously close to getting married four times and each time I backed off in fear or for one reason or another."[103]

ReferencesEdit

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External linksEdit