Ratan Naval Tata

Born

December 28, 1937 (age 72) Bombay, Bombay Presi ency, Britis! "n ia

Residence; Nationality; Education;

#$mbai, #a!aras!tra, "n ia "n ian %ornell &niversity

'arvar &niversity Occupation; Home town; %!airman o( Tata )ro$* #$mbai, "n ia

Early life
Ratan Tata was born into the famous Tata family, a prominent family belonging to Mumbai's wealthy Parsi community. He was born to Soonoo and Na al Hormus!i Tata. Ratan is the great grandson of Tata group founder "amsed!i Tata. His childhood was troubled, with his parents separating in the mid#$%&'s when he was merely se en and his younger brother "immy was fi e years old. Their mother mo ed out and both Ratan and his brother were raised by their grandmother (ady Na a!bai.

Early career
Ratan Tata completed his )Sc degree in architecture with structural engineering from *ornell +ni ersity in $%,-, and the .d anced Management Program from Har ard )usiness School in $%/0. He !oined the Tata 1roup in 2ecember $%,-, after turning down a !ob with 3)M on the ad ice of "R2 Tata. He was first sent to "amshedpur to wor4 at Tata Steel. He wor4ed on the floor along with other blue#collar employees, sho eling limestone and handling the blast furnaces. Ratan Tata, a shy man, rarely features in the society glossies, has li ed for years in a boo4#crammed, dog#filled bachelor flat in Mumbai's *olaba district and is considered to be a gentleman e5traordinaire.

Career
3n $%/$, Ratan was appointed the 2irector#in#*harge of The National Radio 6 7lectronics *ompany (imited 8Nelco9, a company that was in dire financial difficulty. Ratan suggested that the company in est in de eloping high#technology products, rather than in consumer electronics. ".R.2. was reluctant due to the historical financial performance of Nelco which had ne er e en paid regular di idends. :urther, Nelco had -; mar4et share in the consumer electronics mar4et and a loss margin of &'; of sales when Ratan too4 o er. Nonetheless, ". R. 2. followed Ratan's suggestions. :rom $%/- to $%/0, Nelco e entually grew to ha e a mar4et share of -';, and reco ered its losses. 3n $%/0 howe er, 3ndia's Prime Minister 3ndira 1andhi declared a state of emergency, which led to an economic recession. This was followed by union problems in $%//, so e en after demand impro ed, production did not 4eep up. :inally, the Tatas confronted the unions and, following a stri4e, a loc4out was imposed for se en months. Ratan continued to belie e in the fundamental soundness of Nelco, but the enture did not sur i e. 3n $%//, Ratan was entrusted with 7mpress Mills, a te5tile mill controlled by the Tatas. <hen he too4 charge of the company, it was one of the few sic4 units in the Tata group. Ratan managed to turn it around and e en declared a di idend. Howe er, competition from less labour#intensi e enterprises had made a number of companies un iable, including those li4e the 7mpress which had large labour contingents and had spent too little on modernisation. =n Ratan's insistence, some in estment was made, but it did not suffice. .s the mar4et for coarse and medium cotton cloth 8which was all that the 7mpress produced9 turned ad erse, the 7mpress began to accumulate hea ier losses. )ombay House, the Tata head>uarters, was unwilling to di ert funds from other group companies into an underta4ing which would need to be nursed for a long time. So, some Tata directors, chiefly Nani Pal4hi ala, too4 the line that the Tatas should li>uidate the mill, which was finally closed down in $%?,. Ratan was se erely disappointed with the decision, and in a later inter iew with the Hindustan Times would claim that the 7mpress had needed !ust Rs 0' la4hs to turn it around.

3n $%?$, Ratan was named director of Tata 3ndustries@ the 1roup's other holding company, where he became responsible for transforming it into the 1roup's strategy thin4#tan4 and a promoter of new entures in high#technology businesses. 3n $%%$, he too4 o er as group chairman from ".R.2. Tata, pushing out the old guard and ushering in younger managers. Since then, he has been instrumental in reshaping the fortunes of the Tata 1roup, which today has the largest mar4et capitaliAation of any business house on the 3ndian Stoc4 Mar4et. +nder Ratan's guidance, Tata *onsultancy Ser ices went public and Tata Motors was listed on the New Bor4 Stoc4 75change. 3n $%%?, Tata Motors introduced his brainchild, the Tata 3ndica. =n "anuary C$, -''/, under the chairmanship of Ratan Tata, Tata Sons successfully ac>uired *orus 1roup, an .nglo#2utch steel and aluminium producer. <ith the ac>uisition, Ratan Tata became a celebrated personality in 3ndian corporate business culture. The merger created the fifth largest steel producing entity in the world. =n March -,, -''?, Tata Motors, under Ratan Tata, bought "aguar 6 (and Ro er from :ord Motor *ompany. The two iconic )ritish brands, "aguar and (and Ro er, were ac>uired for D$.$0 billion 8E-.C billion9.

Tata Nano car, -''? Ratan Tata's dream was to manufacture a car costing Rs $'',''' 8$%%?F appro5. +SE-,-''@ today +SE-,''' +SE-,0-?9. He realiAed his dream by launching the car in New 2elhi .uto 75po on "anuary $', -''?. Three models of the Tata Nano were announced, and Ratan Tata deli ered on his commitment to de eloping a car costing only $ la4h rupees, adding that Ga promise is a promise,G referring to his earlier promise to deli er this car at the said cost. Howe er, the price of the car has since been raised. Recently when his plant for Nano production in Singur, <est )engal, was obstructed by Mamta )aner!ee, his decision of going out of the state was warmly welcomed by the 3ndian corporate media and the 7nglish#spea4ing middle class. )aner!ee criticised Ratan Tata for forcing people out of their land in collusion with the (eft :ront go ernment in the state, which is headed by )udhadeb )hattachar!ee. =n =ctober /, -''?, after a contro ersial stay in <est )engal, Ratan Tata and his team shifted their Rs $#la4h car Nano pro!ect to Sanand near .hmedabad at an in estment of Rs -,''' crore 8Rs -' billion9, declaring that efforts will be made to roll out the world's cheapest car from a ma4e#shift plant to meet the deadline. The 1u!arat chief minister Narendra Modi granted him huge subsidy for building the facility, including free land. Praising Modi for speedy allocation of about $,$'' acres 8&.0 4m-9 of centrally located land, Ratan Tata said that the company had a great deal of urgency in ha ing a new location and was dri en by the reputation of the state.

The car was launched on March -C, -''%, amid much fanfare with ad ance boo4ings that preceded its launch by months.

Personal life
Mr. Ratan Tata has a metallic blue Maserati and :errari *alifornia but prefers to dri e himself in an old model Mercedes sedan much li4e "R2 who seldom used a chauffeur and dro e his own :iat to and from wor4. He sometimes li4es to fly his pri ate !et himself. He has an outdated :alcon "et, which is no longer used for commercial a iation. He has ne er been married. He li4es to wear HermHs ties and matching hand4erchiefs. Ratan Tata is largely an employee *hairman I *7= of the group and most his own holding in Tata Sons., the holding company of the group, is a result of inherited family shareholding. His share is or a little less than $;, aluing his personal holding at appro5imately +SE $ )illion, if encashed. .bout ,,; of the e>uity capital of Tata Sons is held by philanthropic trusts endowed by members of the original "ameshed!i family and the largest share is with the Shapoor!i Pallon!i Mistry family aligned originally to "amshet!i's brother in law. The biggest two of the owning trusts are the Sir 2orab!i Tata Trust and the Sir Ratan Tata Trust 8different Ratan Tata9, which were created by the families of the sons of "amshed!i Tata. Ratan Tata is on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board of trustees of the Sir 2orab!i Tata Trust. Ratan Tata is also best 4nown for the face behind changing 3ndia's automoti e industry into global climate change era.

Quotes
J GKuestion the un>uestionableG J G. promise is a promiseG

Awards and recognition

Ratan Tata ser es in senior capacities in arious organisations in 3ndia and he is a member of the Prime Minister's *ouncil on Trade and 3ndustry. Tata is on the board of go ernors of the 7ast# <est *enter, the ad isory board of R.N2's *enter for .sia Pacific Policy and ser es on the programme board of the )ill 6 Melinda 1ates :oundation's 3ndia .32S initiati e. Ratan Tata's foreign affiliations include membership of the international ad isory boards of the Mitsubishi *orporation, the .merican 3nternational 1roup, "P Morgan *hase and )ooA .llen Hamilton. He is also a member of the board of trustees of the R.N2 *orporation, +ni ersity of Southern *alifornia and of his alma mater, *ornell +ni ersity, He also ser es as a board member on the Republic of South .frica's 3nternational 3n estment *ouncil and is an .sia#Pacific ad isory committee member for the New Bor4 Stoc4 75change. J =n the occasion of 3ndia's 0'th Republic 2ay on -, "anuary -''', Ratan Tata was honoured with the Padma )hushan, the third highest decoration that may be awarded to a ci ilian. J 3n :ebruary -''&, Ratan Tata was conferred the title of honorary economic ad isor to HangAhou city in the Lhe!iang pro ince of *hina.

J =n .ugust C', -''0, it was announced that Ratan Tata was elected to the )oard of Trustees of the +ni ersity of Southern *alifornia, (os .ngeles, one of the leading research uni ersities in the +nited States. J 3n -'', he recei ed the :3RST .ward for Responsible *apitalism. J 3n March -'', Tata was honoured by *ornell +ni ersity as the -,th Robert S. Hatfield :ellow in 7conomic 7ducation, considered the highest honour the uni ersity awards to distinguished indi iduals from the corporate sector. J He was one of the recipients of the N.SS*=M 1lobal (eadership .wards -''?, gi en at a ceremony on :ebruary $&, -''? in Mumbai. Ratan Tata accepted the *arnegie Medal of Philanthropy in -''/ on behalf of the Tata family. J He was listed among the -0 most powerful people in business named by :ortune magaAine in No ember -''/. J 3n May -''? Mr Tata made it to the Time magaAine's -''? list of the <orld's $'' most influential people. Tata was hailed for un eiling his tiny Rs. one la4h car 'Nano'. J =n -, "anuary -''?, he was awarded the Padma Mibhushan, the second highest ci ilian decoration. J =n -% .ugust -''?, the 1o ernment of Singapore conferred honorary citiAenship on Ratan Tata, in recognition of his abiding business relationship with the island nation and his contribution to the growth of high#tech sectors in Singapore. Ratan Tata is the first 3ndian to recei e this honour. J 3n -''% he was appointed an honorary Nnight *ommander of the )ritish 7mpire. J He has also been conferred an honorary doctorate in business administration by the =hio State +ni ersity, an honorary doctorate in technology by the .sian 3nstitute of Technology, )ang4o4, an honorary doctorate in science by the +ni ersity of <arwic4, and an honorary fellowship by the (ondon School of 7conomics. He has recently recei ed an honorary 2octor of (aw from the +ni ersity of *ambridge.

References

3t was a ritual at Mumbai's O 3mages P Ta! Mahal Hotel O 3mages P. Two months ago, Ratan Na

al Tata, ,/, non#e5ecuti e chairman of the Rs /%,''' crore 8Rs /%' billion9 Tata group was

presiding o er the annual group management meeting for -'' of his senior managers, including Tata Sons' directors. :or the past si5 years, this has been Tata's way of reaching out to his people, telling them where the group is headed, what needs to be done and how they can do it. This year's theme was the global story. .nd the punch lineQ )e bold@ thin4 big@ lead, ne er follow. G3t is Tata's State of the +nion address to us,G says a manager who has been attending these dos. Such e5hortations are heard more often these days at )ombay House, the Tata group head>uarters. 3t's a decade since McNinsey 6 *o offered its blueprint for ushering in change. .nd ne5t year, it will be $0 years since Tata, who is low profile almost to the point of reclusi eness, was made chairman, when his legendary predecessor " R 2 stepped aside in $%%$. Tata's game plan, according to his managers, was simple ## rationalise the group's business portfolio@ deli er a return on in estment that e5ceeded the cost of capital@ ha e a symbolically and emotionally unified brand@ and grab new opportunities. Surely, after ta4ing o er, Tata's first !ob was to see that many of the group stalwarts, who were well past their retirement age, hung up their boots. He brought in new people to strengthen the parent company Tata Sons (td, where Tata trusts continue to hold a ,, per cent sta4e.

The people paradox Human resource is another issue. That Tata has personally led the company for almost $0 years and set up the Tata )usiness 75cellence Model to trade best practices, hasn't impro ed his reputation. 3t is felt that the leadership at most of the Tata companies lac4s the dynamism of many of its competitors and is not demanding of its managers. G<e are organised more li4e a telephony model system, which is not one of command#and# control, but one where multiple acti ities are happening,G says a Tata manager. *ould it be its unusual group structure, where the parent company 8TS(9 is unlisted while its offspring areQ Perhaps, say consultants. )ut some Tata managers are candid about what needs to be done. G)uilding a future cadre of leadership is necessary for us. )ut, until now, !ob rotation was unheard of in the company,G re eals a Tata manager.

Ratan Tata Biogra*!y + Tata )ro$* %!airman ,amo$s (or + Being a -ealt!y billionaire "n ian b$sinessman an c!airman o( t!e Tata )ro$*, one o( t!e largest conglomerate com*anies in "n ia. Tata etails + Born / 28t! o( December, 1937 #$mbai, "n ia 0 1ives "n ia +++ 2oo*i oo3 B$siness Peo*le 'ome3 Ratan Tata Bio So where does the group go from hereQ G<e ha e a solid middle class that gi es us longe ity and staying power. 7 erybody is being challenged. <e want to be a truly international company,G says a Tata Sons director Ratan Tata became t!e %!airman o( t!e Tata )ro$* in 1981 a(ter serving as %!airman in c!arge o( t!e Nelco ivision o( t!e gro$*. Tata is "n ia4s largest conglomerate an incl$ es t!e bran s Tata #otors, Tata 5teel, Tata Po-er, "n ian 'otels, as -ell as ot!er bran s labele $n er t!e Tata name. Ratan Tata -as born on December 28, 1937 in #$mbai, "n ia in one o( t!e ric!est (amilies in t!e co$ntry. 'is great gran (at!er, 6amse 7i Tata, -as t!e (o$n er o( t!e Tata gro$* an *asse t!e *o-er an in!eritance o-n to !is (amily. Ratan Tata gre- $* in a bro8en !o$se!ol , !o-ever, a(ter !is *arents s*lit in t!e mi /199:s an !e an !is brot!er -ere raise by t!eir gran mot!er, 1a y Nava7bai. Tata -as a goo st$ ent an st$ ie !ar at t!e %am*ion 5c!ool in #$mbai (ollo-e by st$ ies in arc!itect$re an str$ct$ral engineering at %ornell &niversity. 'e gra $ate -it! !is bac!elors egree in 19;2 an 7oine t!e Tata )ro$* in December o( t!at same year. Tata4s (irst 7ob -it! t!e )ro$* involve -or8ing -it! t!e Tata 5teel ivision -!ere !e -or8e -it! t!e bl$e/collar em*loyees s!oveling stone an -or8ing -it! t!e ($rnaces. <lt!o$g! t!is original 7ob -as *!ysically i((ic$lt, it !el*e Ratan Tata gain a better $n erstan ing an a**reciation (or t!e b$siness an !e gra $ally began ta8ing on more res*onsibility. "n 1971, Tata became Director/in/%!arge o( t!e National Ra io = >lectronics %om*any 1imite (Nelco) in or er to !el* its str$ggling (inances. Ratan Tata !el*e b$il a better cons$mer electronics ivision b$t t!e economic recession an $nion stri8es *revente !is vision (rom ta8ing !ol .

Tata -as event$ally move to >m*ress #ills in 1977, a str$ggling te?tile mill -it!in t!e Tata )ro$*. Ratan Tata rene-e t!e vision (or t!e mill b$t t!e larger Tata )ro$* -as not in agreement -it! !is a vice. "nstea , t!e mill -as s!$t o-n an li@$i ate in 198;, to Tata4s isa**ointment, an !e -as move to t!e Tata "n $stries, anot!er !ol ing com*any. 2it! Tata "n $stries, Ratan Tata -as able to trans(orm t!e management an vision o( t!e ivision an bring in signi(icantly larger ivi en s. T!is rene-e (inancial s$ccess !el*e bring t!e Tata )ro$* to t!e Ne- Aor8 5toc8 >?c!ange an gave t!e com*any even more international *o-er an *restige. Ratan Tata contin$e to ac@$ire i((erent in $stries (or t!e Tata )ro$*, event$ally *$rc!asing t!e steel an al$min$m *ro $cer, %or$s )ro$* as -ell as 6ag$ar an 1an Rover bran s (rom t!e ,or %om*any. Ratan Tata lives a very *rivate li(e in #$mbai, "n ia.