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Ratan Naval Tata Write Up: Who Is Ratan Tata?

The “Titan of Indian Business”, Ratan Tata is a “shy” and “lonely” man who turned Tata Group into a worldwide billion-dollar empire. Though retiring from his position in 2012, the former chairman Ratan Tata had a net worth of $219 billion in 2010, according to Forbes. A few notable businesses that Tata Group owns include: Voltas (the largest air-conditioning company of India), Tata Trusts, Tata Starbucks, Jaguar Land Rover, Tetley, and a number of Indian hotels. Aside from Ratan Tata and Tata Group, Ratan also has a very fundamental upbringing, interesting love lives that never worked, and philantrophy, in addition to his entrepreneur characteristics and skills. Childhood and Family Life

Ratan Tata was born on December 28, 1937, in Surat, India, to Naval Tata and Sonoo. His father was the adopted son of Ratanji Tata who was the younger son of Jamsetji Tata, the founder of the Tata group. He had a happy childhood until his parents got divorced when he was 10 years old. He and his brother went to school, but the boys at his school would constantly harass him. The two brothers were raised by their grandmother who built their values and taught them to always retain their dignity. As he was the grandson of Tata Group’s founder, Ratan Taya had a very wealthy and luxurious childhood that contrasts to the minimalistic lifestyle he lives right now. He later experienced a conflict with his father due to the difference in their opinions on what he should study and where he will study. Ratan Tata’s grandmother had always had a huge impact on him since his childhood.

Education

Opposite to a popular entrepreneur image of Ratan Tata, he surprisingly did not major in business, economics, or accounting, instead, he majored in architecture. Ratan Tata’s father wanted him to major in engineering, but Ratan had a strong urge and was persistent to major in architecture, and that was what he did. He decided to attend university in America because he always had a fantasy about America. Again, the decision went against his father’s wishes as his father wanted him to attend a university in the UK. After graduating, Ratan is known to have only designed two houses - his mother’s and his own beach-house off in the Arabian Sea. Later in life, Ratan attended the seven-week Advanced Management Program at Harvard in 1975.

Ratan Tata’s Love Life

Ratan Tata has not been married for his whole life, but there were a few times where he got really close to marriage. The first time he was close to getting married was with a lady he met in America. He wished to marry this lady in India as his grandmother was unwell, but her parents did not want her to go to India due to the Indo-China war that was occurring. Even after this event, he had almost gotten married three additional times, but the love stories are unknown to the public.

Important People in Ratan Tata’s Life

The most important person in Ratan Tata’s life was his grandmother as his grandmother had been a core figure in his life since he was a young boy. His grandmother had planted a copious amount of morals, to help him always keep his head high. She had always been supportive of his decisions and taught him about living with values and morals. His brother, Jimmy Naval Tata was also an important figure in his life as he was always there with Ratan Tata during their childhood.

The Process to The CEO of The Tata Group

Being a member of the Tata family, Ratan Tata started his first job at Tata group as a worker at Tata steels. After gaining many experiences in multiple businesses of the Tata group, he was appointed as director in charge. He continuously worked hard and became the next chairman of the Tata group after a decade of being appointed the director in charge.

Beliefs

Ratan Tata is a person who has strong beliefs in equality and ethics. Ratan Tata’s beliefs were mostly formed through his family’s religion that originated from Persia. Ratan Tata still believes in a value his grandmother has taught him, to always retain dignity at all times. He has explained that without this value, he would have gotten into fights and arguments that were unnecessary and a simple waste of time. Ratan Tata is known to be a humble man as he has visited employees and their families if they were affected by a problem within the company. He puts values in his beliefs and has led up a life that motivates others to live without greed and to be humble.

Entrepreneur Characteristics and Skills

Due to Ratan Naval Tata’s entrepreneurial characteristics and skills, this leads from a family business to a widely-known and respected overseas Tata Group as of today. Firstly, taking risk is an important characteristic every entrepreneur needs to come out of their comfort zone and take the company to a new position. Back to a decade ago, Indian citizens’ income was still below the average which they aim to buy bicycles or motorcycles. By observing those problems, Ratan Tata came out with an idea targeting low customer classes in which they created Tata Nano. The business would be successful enough to motivate customers to buy an affordable price. Even though it was a failure, Ratan Tata succeeded in acquiring the Jaguar and Land Rover businesses from Ford and made tremendous growth over 4 times through adjusting the

engine, cost control, and so on. Being a risk-taker is not enough for an entrepreneur, he is also a visionary. In 1991, to speed up Indian GDP, the government opened trade, distribution, and foreign investment. Ratan Tata seized the opportunity and let the Tata group enter the global market while others stayed still.

Furthermore, Ratan is a man of his word. To take Indian citizens to new heights, he promised to build up Tata Nano. Before starting the production, he did the land acquisition but failed by protest and political clashes. Ratan then changed the factory to Gujarat. Ratan Tata once said, “I don’t believe in making the right decisions. I take decisions and then make them right.”. This quote demonstrates that he has faith in himself.

Ratan Tata knows how to move forward. Being a leader is not always about improving the knowledge of oneself, but also about motivating others to help them explore new ideas and work productively.

Ratan Tata was also hard-working. Even though he was born rich in the Tata group, in his early career, he denied working at a managerial position and started selling in a retail store of Tata Steel. Through his potential and hard work, he became the CEO of the Tata group.

An entrepreneur does not only need leader qualities but also skills. The management skills have changed significantly since Ratan Tata undertook his position as the CEO of the Tata Group. He is able to manage to make important decisions in a short time. Since Ratan Tata became a leader in 1991, he let the companies enter the global market, allied with smaller companies, trading, investment, acquisitions, and encompassing different industries. He is not only able to manage some business sectors but also able to make the profit grow more efficiently. Management skill is not enough to be a leader, but also creative and relationship skills. His creative skills have shown through investment. He invested in many different companies in case any of them go bankrupt. For example, Ratan Tata invested in Snapdeal, an Indian e-commerce company with $130 million in revenue, and Xiaomi, one of the biggest

electronics companies in China, so on. He is a man who thinks out of the box, he doesn’t stop at acquiring companies, investing, producing, but also creating different companies such as Tata Nano, one of the cheapest cars, Tata Chemicals, Steel, Sky, etc. Last but not least, he has the capability to inspire the best employees working together as a team to develop a Tata group prosperously.

Ethics and Social Responsibility

Ratan Tata always has overvalue in ethics in business and community. His mindsets have led him to be a successful businessman and philanthropist. According to Tata website, there are five core values that Tata promise will follow in any decision they make. They are integrity, responsibility, excellence, pioneering, and unity. The company has Corporate Social Responsibility (CSR). They opened hospitals for researching cancer, launching technical and vocational training for youth members, providing sport training centers in Jamshedpur. Specifically, they ensure that “our people and partners, enable continuous learning, and build caring and collaborative relationships based on trust and mutual respect.” They also promise they, “will be fair, honest, transparent and ethical in our conduct; everything we do must stand the test of public scrutiny”. The companies follows some ethical considerations such as workplace safety, anti discrimination. As mentioned by Tata information, “These include an eight-hour working day, free medical aid, establishment of a welfare department, leave with pay, workers' provident fund scheme, workmen's accident compensation scheme, maternity benefits, profit sharing bonus and retiring gratuity.” It means that labour practices in Tata are managed carefully to ensure that every employee has opportunities. Moreover, there are some Tata’s business ethics principles. For instance, product quality. They are committed to give good services and produce quality products for customers who use Tata group’s goods. To stakeholders and investors, Tata presents information accurately (he has high duty to report).

In 2000, Ratan Tata received the award Padma Bhushan by the former Indian President which is the second-highest civilian honor. Through this honor, this indicates how philanthropic

he always contributes to India. Back in 1868, Jamsetji Tata, founder of the Tata group, was the first person to improve Indian society. For example, in the past, there was a lack of education in India because no pioneers had enough money to create schools. Indian Institute of Science, The Tata Institute of Social Sciences were established for Indian. Also, there was the Tata Medical Center, The Tata Institute of Social Sciences, the Tata Institute of Fundamental Research, and the National Centre for the Performing Arts, Tata Sky, and so on. Noticeably, Tata Medical Center is the first center that brought cancer treatment for Indian. Even though cancer is a disease that can not be completely cured, but still helps patients live as long as possible. These formed Tata Trusts for Indian people, a charity organization owned 66% of Tata Sons. Tata does not only sell products but also services for the community. Their purpose is to provide essential needs for people who are below low classes in more than a decade. Based on the information of Carnegie Medal of Philanthropy, Ratan Tata stated, “Today, a large amount of philanthropy in India is deployed in traditional forms, like building a temple or hospital. India has to move to a more sophisticated form of philanthropy that is designed to make a difference rather than just building edifices.” Through his word, Tata Trust has solved the problem of children having malnutrition. For example, Tata provides nutritional food for more than thousands of children a day due to their poverty in schools. It is for children as well as pregnant women. Furthermore, in some poor provinces, some families do not have a suitable income for children going to school, the teams in Tata visit every house to be sure every child has access to education instead of being child-labor for families. They also sponsor scholarships to students. It is why Tata Trusts was created to also serve water conservation.

Business

Tata’s group is a multinational conglomerate company which was founded by Jamsetji Tata in 1868. The Tata group is also considered as a free market system. Even though the companies already had a huge impact on India by supplying goods and services, it has not gone to the global market to become a professional company until Ratan Tata became a chairman of the group. As claimed by Tata website, the revenue of the company is up to 136 billion USD in

2019. In recent years, Tata started doing global acquisitions to many popular brands such as Tetley in 2000, South Korean Daewoo Commercial Vehicles in 2004, NatSteel Ltd in 2005, Jaguar and Land Rover from Ford in 2008. To make the business known globally, Tata decided to open Tata Limited. For example, Tata Steel serves goods and transports around Europe. Tata is the first company that has the most employees in the UK. Last but not least, Ratan Tata expanded in diversing industries. For example: Tata Steel, Tata Powers, Chemicals, IT, Engineering, Retails. TATA also entered a new industry such as Tata Nano. These explanations above shortly demonstrate reason Tata growth has changed over decades by Ratan Naval Tata

Rewards

From the period of 2001 to 2014, there are many honors Ratan Tata achieved after being the CEO of the Tata group. Significantly, according to Hindustan Times, Ratan Tata has received one of the highest awards given by Queen Elizabeth which is GBE (Knight Grand Cross) in 2014. Since Tata Group acquired Jaguar Land Rover and Tetley Tea, creating jobs in the UK. Secondly, he received Padma Bhushan in 2000 and Padma Vibhushan in 2008 which are the second and third highest awards by the Indian government due to Tata’s contributions. Here are some Ratan Naval Tata’s awards in more than a decade: Honorary Doctor of Business Administration in 2004, Carnegie Medal of Philanthropy and Honorary Fellowship in 2007, Inspired Leadership Award in 2008, Honorary Knight Commander of the Order of the British Empire United Kingdom in 2009, Business Leader of the Year, Hadrian Award World Monuments Fund, and Oslo Business for Peace in 2010, Earnst and Young Entrepreneur of the Year in 2013. The NANO

One of Ratan Tata’s most popular innovations is the Nano, also known as the world’s cheapest auto with the price tag of $2,200 per auto. The Nano was launched in 2009 and was made by Tata Motors, a car company that is owned by Tata Group. Ratan got the idea to create this car when he saw Indian families riding on unsafe scooters in terrible road conditions such as

slippery roads in the dark. This gave him the motivation to provide the most accessible cars for the people by making it extremely affordable, therefore, Ratan likes to refer to it as “The People’s Car”. However, according to an article by Quartz India, “Nano did not just rewrite the story of affordable cars, it also altered the 34-year-old political history of the Indian state of West Bengal” (Quartz India). Before the launch, the Nano innovation already received mass protests when the Communist Party of India-Marxist (CPIM) government of West Bengal planned to take over 997 acres of land for Tata Motor company to have their factory in Singur, West Bengal. People were extremely unhappy with land acquirement because the land was fertile farmland building a car plant factory over the farmland would mean damage to the area’s agriculture. Additionally, the protesting activists became more hostile when they found the charred body of a 19-year-old female on the acquired land. Then, the communist government of over three decades was replaced by the first woman chief minister in Mamata Banerjee, the same woman who started the Nano protests. In 2008, as the protests got too intense to handle in West Bengal, Tata Group decided to move the factory to Sanand, Gujarat. Finally, the Nano debuted in 2009 and the excitement for the cheap small car was not only in Indian neighborhoods, but around the world. About 9,000 units of the Nano were sold in 2010, however, the success did not last. Nanos were reportedly caught on fire many times since 2010 by the stigma around buying “the cheapest car”, a term that was only a marketing tactic by Tata Group. In June 2018, only three Nanos were sold and the company finally announced that the car will no longer be sold and only produced on demand. This can either be seen as a great failure or a great lesson by Ratan Tata.

Conclusion/Last Words

The world of entrepreneurs not only admire Ratan Tata for his success, but also for his humble personality and social consciousness. His 51 years working with Tata Group (1961-2012) helped him and the company learn many lessons and achieved many grand successes on the way. Ending with a well-said quote by Ratan Tata on Forbes, "Be passionate in areas relevant to you, and be a voice that is respected and abreast of developments"....