Indian industrialist and philanthropist (1937–2024)
This article is about the former chairman of Tata Sons. For the philanthropist and grandfather of Tata, seeRatanji Tata. For the father of J. R. D. Tata, seeRatanji Dadabhoy Tata.
Ratan Naval Tata[a] (28 December 1937 – 9 October 2024) was an Indian industrialist, philanthropist, visionary leader and ethical statesman. He served as the chairman ofTata Group andTata Sons from 1991 to 2012 and he held the position of interim chairman from October 2016 to February 2017.[3][4] In 2000, he received thePadma Bhushan, the third highest civilian honour in India, followed by thePadma Vibhushan, the country's second highest civilian honour, in 2008.[5]
Throughout his life, Tata invested in over 40 start-ups, primarily in a personal capacity, with additional investments through his firm, RNT Capital Advisors.[8][9][10] he died on 9th October, 2024.
Ratan Tata was born in Mumbai (earlierBombay), during theBritish Raj, into aParsiZoroastrian family, on 28 December 1937.[11] He was the son ofNaval Tata (who was born inSurat and later adopted into the Tata family), and Soonoo Tata (the niece of Tata group founderJamsetji Tata). Tata's biological grandfather, Hormusji Tata was a member of the Tata family by blood. In 1948, when Tata was 10, his parents separated, and he was subsequently raised and adopted by Navajbai Tata, his grandmother and widow of Ratanji Tata.[12] He had a younger brother Jimmy Tata[13] and a half-brother,Noel Tata, from Naval Tata's second marriage to his stepmotherSimone Tata and two half-sisters Shireen and Deanna Jeejebhoy from his mother's second marriage.[14]
After graduating from Cornell,[25] Tata worked at the architectural firm Jones & Emmons in Los Angeles,[26] until his return to India in late 1962.[27][better source needed]
In the 1970s, Ratan Tata was given a managerial position in the Tata group. He achieved initial success by turning the subsidiary National Radio and Electronics (NELCO) around, only to see it collapse during an economic slowdown.[28][29] In 1991,J. R. D. Tata stepped down as chairman of Tata Sons, naming him his successor. Initially, Tata faced stiff resistance from the heads of various subsidiaries, who had a large amount of operational freedom under the senior Tata's tenure. In response, Tata implemented a number of policies designed to consolidate power, including the implementation of a retirement age, having subsidiaries report directly to the group office, and requiring subsidiaries to contribute their profit to building the Tata group brand. Tata prioritized innovation and delegated many responsibilities to younger talent.[30] Under his leadership, overlapping operations between subsidiaries were streamlined into company-wide operations, with the group exiting unrelated businesses to take on globalization.[31]
During the 21 years Tata led the Tata Group, revenue grew over 40 times, and profit over 50 times.[28] When he took over the company, sales overwhelmingly comprised commodity sales, but at the end of his tenure, the majority of sales came from brands.[32][33] He hadTata Tea acquireTetley,Tata Motors acquireJaguar Land Rover, andTata Steel acquireCorus. These acquisitions repositioned Tata from a largely India-centric group into a global business, with over 65% of revenues coming from operations and sales internationally.[28]
He also conceptualized and spearheaded the development of theTata Nano car after the grand success of DieselTata Indica, which helped put cars at a price-point within reach of the average Indian consumer.[34][30]Tata Motors has since rolled out the first batch of Tigor Electric Vehicles from itsSanand Plant in Gujarat, which Tata has described as to "fast-forward India's electric dream."[35]
Upon turning 75, Ratan Tata resigned his executive powers in the Tata group on 28 December 2012. An ensuing leadership crisis over his succession drew intense media scrutiny.[36] The board of directors of the company appointed his successor,Cyrus Mistry, a relative of Tata and the son ofPallonji Mistry of theShapoorji Pallonji Group, which was the largest individual shareholder of the Tata group.[37][38] On 24 October 2016, Cyrus Mistry was removed as chairman of Tata Sons, and Ratan Tata was made interim chairman. A selection committee, which included Tata as a member, was formed to find a successor.[39] On 12 January 2017,Natarajan Chandrasekaran was named as the chairman of Tata Sons, a role he assumed in February 2017. In February 2017, Mistry was removed as a director for Tata Sons.[40] TheNational Company Law Appellate Tribunal later found in December 2019 that the removal of Cyrus Mistry as the chairman of Tata Sons was illegal, and ordered that he be reinstated.[40] On appeal, India'sSupreme Court upheld the dismissal ofCyrus Mistry.[41]
Tata had also invested in multiple companies. He had invested inSnapdeal – one of India's leading e-commerce websites at that time. In January 2016, he invested in Teabox, an online premium Indian Tea seller,[42] and CashKaro.com, a discount coupons and cash-back website.[43] He had made small investments in both early and late stage companies in India, such as INR 0.95 Cr in Ola Cabs.[44] In April 2015, it was reported that Tata had acquired a stake in the Chinese smartphone startupXiaomi.[45] In 2016, he invested in Nestaway an online real-estate portal that later acquiredZenify to start the online real-estate and pet-care portal,Dogspot.[46][47][48][49] Tata also launched a companionship startup for senior citizens namedGoodfellows, to encourage intergenerational friendships.[50]
Tata was a supporter of education, medicine andrural development, and considered a leading philanthropist in India. Ratan Tata was the highest international donor to the Cornell University.[51][52][53]
In the aftermath of the1984 Anti-Sikh Riots, Ratan Tata extended his support to affectedSikh survivors by donating trucks throughTata Motors. This enabled Sikh truck drivers who had lost their vehicles during the violence to regain their livelihoods. His charitable donation enabled many Sikh victims to rebuild their lives and businesses. Following this act, Sikh drivers in Punjab and other parts of India continue to remain loyal customers of Tata trucks.[54]
Tata Hall at theUniversity of California, San Diego (UC San Diego) is a state-of-the-art research facility that was opened in November 2018. The building is named after theTata Trusts, which donated $70 million to UC San Diego in 2016 to establish the Tata Institute for Genetics and Society (TIGS), which is housed within the building. The Tata Institute for Genetics and Society at UC San Diego is a joint initiative between the Tata Trusts and UC San Diego. It aims to address some of the world's most pressing problems, such as the spread of infectious diseases and the need for sustainable food sources. The research conducted at the institute focuses on a range of topics, including gene editing, stem cell therapy, and disease control.[57] Tata Hall at the UC San Diego is a 4-storey building that is spread over 128,000 square feet and houses research facilities for the biological and physical sciences. The building has laboratories, offices, and meeting spaces that are designed to foster collaboration and innovation among researchers. It is aLEED-certified building; designed to be environmentally sustainable and energy-efficient.[57]
Tata Education and Development Trust, a philanthropic affiliate of Tata Group, endowed a $28 million Tata Scholarship Fund that will allowCornell 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 it for the duration of their undergraduate study at Cornell.[58]
In 2010 Tata Group companies and Tata charities donated $50 million for the construction of an executive center atHarvard Business School (HBS).[59] The executive center has been namedTata Hall, after Ratan Tata.[60] The total construction costs have been estimated at $100 million.[61] 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.[62]
The Tata Innovation Center atCornell Tech is named after Ratan Tata, and mixes academics and industry in a building on the Roosevelt Island campus. The seven-floor structure is meant primarily as a business incubator for students, faculty, and staff, with 70% of the building being commercially leased and 30% devoted to academic space.Tata Consultancy Services (TCS) is a tenant in the space.[63]
Ratan with Indian prime ministerNarendra Modi at the Platinum Jubilee Milestone book launch
In 2014, Tata Group endowed theIndian Institute of Technology, Bombay with₹950 million (US$11 million) and formed the Tata Centre for Technology and Design (TCTD) to develop design and engineering principles suited to the needs of people and communities with limited resources.[64][65]
Tata Trusts under the chairmanship of Ratan Tata provided a grant of₹750 million (US$8.9 million) to the Centre for Neuroscience,Indian Institute of Science to study mechanisms underlying the cause of Alzheimer's disease and to evolve methods for its early diagnosis and treatment. This grant was to be spread over 5 years starting in 2014.[66][67]
Tata Group, under the leadership of Ratan Tata formed the MIT Tata Center of Technology and Design atMassachusetts Institute of Technology (MIT) with a mission to address the challenges of resource-constrained communities, with an initial focus on India.[68]
Ratan Tata was the highest international donor to the Cornell University.[51][52][53] Cornell University paid tribute to its alumnus Ratan Tata, honouring his leadership, philanthropy, and contributions to education and research, particularly through the Tata-Cornell Institute for Agriculture and Nutrition.[69]
Following theattack on theTaj Mahal Palace Hotel in November 2008 by Pakistan based terrorists ofLashkar-e-Taiba, Tata decided to restore the heritage of the hotel as well as financially support the families of people who lost their lives in the attack, even personally visiting the homes of victims to ensure their well-being. During the carnage, Tata also chose to wait outside the Taj Hotel for three days until the operation concluded.[70]
In June 2024, Tata personally appealed on Instagram for volunteers to donate blood for a critically ill stray dog at his Mumbai animal hospital, prompting numerous offers and underlining his personal commitment to animal welfare.[71]
He served in various capacities in organisations in India and abroad. He was a member of Prime Minister's 'Council on Trade and Industry' and the 'National Manufacturing Competitiveness Council'. He was on the jury panel ofPritzker Architecture Prize[73] – considered to be one of the world's premier architecture prizes.
Over the years, Tata had served on theCornell University Board of Trustees, personally advising the school's administration in matters of international involvement, particularly regarding projects connected to India. More broadly, Tata had served on the board's Academic Affairs, Student Life, and Development Committees. In 2013 he was named Cornell Entrepreneur of the Year.[74]
In February 2015, Ratan took an advisory role at Kalari Capital, a venture capital firm founded byVani Kola.[80]
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.[81] On 12 January 2017,Natarajan Chandrasekaran was named as the chairman of Tata Sons, a role he assumed in February 2017.[82]
Tata never married and had no children. In 2011, he stated, "I came close to getting married four times and each time I backed off in fear or for one reason or another."[83]
On 10 October, Tata was given astate funeral.[87] His last rites were conducted at the Parsi crematorium atWorli. He was accorded with military and 21-gun salute during his final rites.[87][88] TheMumbai Police delivered a ceremonial guard of honour and his body was wrapped in the Indian flag.[89] Even after death, Tata donated₹10,000crore (US$1.2 billion) in his will which includes hismenteeShantanu Naidu.[90]
Ratan Tata's will, made public after his death, outlines the distribution of his₹10,000crore (US$1.2 billion) crore estate among family, friends, staff, and charitable organisations.[91]
Ratan Tata Endowment Foundation (RTEF): A significant portion of Tata's wealth around₹3,800crore (US$450 million) crore worth of shares, including inTata Group companies likeTata Motors andTata Sons, will be transferred to the RTEF, a charitable trust established in 2022 and the Ratan Tata Endowment Trust for philanthropic purposes.
Family: The will designates assets to Tata's family members, including his brother Jimmy Tata and half-sisters Shireen and Deanna Jejeebhoy. His half sisters are also the will's executors.
Mohini Mohan Dutta: Mohini Mohan Dutta, a Jamshedpur-based entrepreneur and former Tata Group employee, is entitled to one-third of the residual estate, including bank deposits exceeding₹350crore (US$41 million) and proceeds from selling personal items.
Shantanu Naidu: Tata's mentee and executive assistant, Shantanu Naidu, is named in the will. Tata also relinquished his stake in Naidu’s companionship venture,Goodfellows, and waived his education loan of₹1crore (US$120,000) extended for hisMBA studies atCornell University.
Staff: Provisions are included for long-serving household staff. Tata bequeathed nearly₹3.5crore (US$410,000) to his household staff and office employees. He waived personal loans given to his staff and even a neighbour. Additionally,₹1lakh (US$1,200) was allocated to part-time helpers and car cleaners. Several staff members received individual bequests, including: Rajan Shaw (Cook) – just over₹1crore (US$120,000), including a loan waiver of₹51lakh (US$60,000), Subbaiah Konar (Butler) –₹66lakh (US$78,000), including a loan waiver of₹36lakh (US$43,000), Delnaz Gilder (Secretary) –₹10lakh (US$12,000), Raju Leon (Driver) –₹1.5lakh (US$1,800) along with a₹18lakh (US$21,000) loan waiver, Hoshi D Malesara (Tata Trusts Consultant) –₹5lakh (US$5,900), Devendar Katamollu (Alibaug Bungalow Caretaker) –₹2lakh (US$2,400), Deepti Divakaran (Personal Assistant) –₹1.5lakh (US$1,800), Gopal Singh (Peon) –₹50,000 (US$590), Pandurang Gurav (Peon) –₹50,000 (US$590), Sarfaraz Deshmukh (Helper) –₹2lakh (US$2,400) loan waiver.[92]
Pets: Tata's will ensures that hisGerman Shepherd - Tito, will be cared for and his will allocated₹12lakh (US$14,000) for the dog’s care.
Assets: Tata’s estate comprises assets including a 2,000-square-foot beach bungalow inAlibaug, a two-story residence inMumbai, and fixed deposits exceeding₹350crore (US$41 million).[93]
Luxury cars: Tata's collection of 20 to 30 luxury vehicles may be acquired by the Tata Group for display in a museum or for auctioning.
Clothes: Tata also instructed that all his clothing be donated to NGOs for distribution to the underprivileged. Known for his refined taste in fashion, Tata’s wardrobe included brands like Daks, Polo,Brooks Brothers,Brioni suits, andHermes ties.[92]
Overseas: HisSeychelles land worth₹85lakh (US$100,000)was bequeathed to RNT Associates, aSingapore-registered fund, whose shareholders include formerTata Trusts managing trustee R Venkatraman and formerTata Technologies CEO Patrick McGoldrick.[92]
Ratan Tata received thePadma Bhushan in 2000 andPadma Vibhushan in 2008, the third and second highest civilian honours awarded by the Government of India.[94] Tata also received various state civilian honours such as 'Maharashtra Bhushan' in 2006 for his work in the public administration inMaharashtra and 'Assam Baibhav' in 2021 for his contribution towards furthering cancer care inAssam.[95]
In 2021, one of Tata's executive assistants, Shantanu Naidu, wrote a memoir that covered his time with the industrialist. The book,I Came Upon a Lighthouse: A Short Memoir of Life with Ratan Tata was published throughHarperCollins India.[145]
Media related toRatan Naval Tata at Wikimedia Commons
Quotations related toRatan Tata at Wikiquote
