The lasting legacy of Ratan Tata, the business icon

Ratan Tata, the revered chairman emeritus of Tata Sons and one of India’s most respected business magnates, passed away on Wednesday at the age of 86 in a Mumbai hospital. Known for his humility and visionary leadership, Tata transformed his family’s enterprise into a global conglomerate, profoundly influencing India’s economy and industrial landscape. Known for his quiet demeanour and steadfast dedication to ethical business practices, he leaves legacy extends beyond the industrial achievements of Tata Group, earning the admiration of millions both in India and abroad.
Born in 1937 into the esteemed Tata family, Ratan Tata faced personal challenges early in life, with his parents’ separation leading him to be raised by his grandmother. Despite the privileges that came with his family name, Tata’s rise was marked by a deep-seated work ethic. Educated at Cornell University in architecture and structural engineering and later at Harvard Business School’s Advanced Management Program, he declined a job at IBM to start at the grassroots level in the Tata Group.
In 1962, he joined Tata Motors—then known as Telco—where he began his career shoveling limestone alongside factory workers. This hands-on experience informed his leadership style, cultivating a deep understanding of Tata Group’s diverse industries from the ground up. By 1971, he became director of National Radio and Electronics (NELCO), gradually climbing the ranks through hard work and a commitment to operational excellence.
When Ratan Tata assumed the role of chairman in 1991, he inherited a diverse conglomerate with interests ranging from steel to hotels. However, Tata was determined to propel the family business onto the global stage. He undertook a strategic overhaul, restructuring the group’s various companies and implementing a new management style focused on innovation, globalization, and ethical practices. This transformation positioned Tata Group as a leader in multiple sectors.
Under Tata’s leadership, the company’s revenues soared, surpassing $100 billion by 2011. His focus on expansion saw Tata Group acquire renowned international brands, including Tetley Tea for $431.3 million in 2000 and Corus Steel for $11.3 billion in 2007. These bold moves brought Tata Group into markets worldwide, establishing its presence in over 100 countries. The return of Air India to the Tata fold in 2022, a company founded by his uncle J.R.D. Tata in 1932, underscored Ratan Tata’s commitment to building on his family’s legacy.
One of Ratan Tata’s most notable achievements was his transformation of Tata Motors into a key player in the global automotive industry. He led the company’s foray into passenger vehicles with the launch of the Tata Indica in 1998, India’s first indigenously designed car. Later, in 2008, Tata introduced the Tata Nano, the world’s most affordable car, aimed at making safe, personal transport accessible to India’s middle and lower-income families. The Nano, while not commercially successful in the long run, highlighted Tata’s commitment to addressing local needs through innovation.
In a strategic masterstroke, Tata Motors acquired the British luxury car brands Jaguar and Land Rover from Ford for $2.3 billion in 2008. The acquisition was initially met with skepticism, but it proved to be a remarkable success. Under Tata’s stewardship, Jaguar Land Rover returned to profitability, boosting Tata Motors’ international profile and solidifying its position in the luxury automotive market. Today, Jaguar Land Rover remains a vital asset for Tata Motors, contributing significantly to the company’s revenues.
Throughout his tenure, Tata’s willingness to take calculated risks distinguished him as an unconventional leader in Indian industry. From the acquisition of international brands to entering new sectors, Tata’s decisions often pushed boundaries. His penchant for risks extended to diverse ventures, such as Tata Chemicals and Tata Communications, which facilitated the conglomerate’s reach into various essential services globally. His business acumen extended across industries, enabling Tata Group to own stakes in everything from steel to software, making Tata a household name in India.
Tata Group’s wide-ranging portfolio now includes Tata Steel, Tata Consultancy Services, Tata Power, and Taj Hotels, with a global reputation for quality and reliability. Ratan Tata’s leadership not only grew Tata Group’s business but also elevated India’s profile as a competitive player in the global market.
Beyond business, Ratan Tata’s legacy is deeply rooted in his commitment to social responsibility. His philanthropic arm, Tata Trusts, is one of India’s largest charitable organizations, supporting projects in healthcare, education, and rural development. Notably, during the Covid-19 pandemic, Tata donated ₹500 crore to help mitigate the crisis, exemplifying his dedication to humanitarian causes. Tata Trusts have also funded numerous educational institutions, including the Indian Institute of Science and several Indian Institutes of Management, reinforcing Tata’s belief in the power of education.
Ratan Tata’s generosity extends beyond Indian borders; he donated $50 million to Harvard Business School for an executive education center. Moreover, his response to the 26/11 attacks in Mumbai, establishing the Taj Public Service Welfare Trust, provided vital support to victims and their families, underscoring his empathy and dedication to social welfare.
Ratan Tata’s contributions have earned him numerous accolades, including the Padma Bhushan and Padma Vibhushan, two of India’s highest civilian honors. Even after stepping down as chairman in 2012, he remains a beloved figure in India, admired not only for his business achievements but also for his humility and ethical approach. He has backed over 50 startups, including Paytm and Ola Electric, underscoring his continued influence on India’s evolving economic landscape.