Shy, reticent almost reclusive—Ratan Tata seems almost opposite of what a chairman of India’s largest corporate house might be. But time and again he has displayed a spine of steel.
Ratan Tata is one of the most respected corporate chieftains in India. However, there's a still a lack of clarity about who'll be his successor after his planned retirement in 2012.
With the latest acquisition of London-based steelmaker Corus, Tata has certainly arrived on the global arena.
That's a short snapshot of Ratan Tata, 69, who controls the $22bn Tata group, which includes 96 companies manufacturing a range of products from automobiles to watches, steel to fertilisers.
Aggressive tycoon:
Way back in 1962 a young Ratan Tata fresh out from studies in the US joined the house of the Tatas. Over the next 30-years he worked in almost every group company before the legendry JRD Tata chose him as the chairman of the group.
Almost immediately he faced criticism for his decisions to sell Tata oil mills and move out of ACC—the largest cement company at the time. Besides, at the group’s headquarters he was opposed by the stalwarts he had tipped to the chairman posts.
Rusi Modi of Tata Steel and Ajit Kerkar of Indian Hotels seemed unhappy with him at the helm but he managed to ease them out. He then focussed on his dream project—an indigenous passenger car. In 1998 Tata motors unveiled the Indica. It transported the company from a commercial vehicle maker to one of India’s biggest carmakers.
In 2000, Tata’s bought the Teteley Tea. Since then they have been buying companies worth thousands of crore.
Today, the smooth, suave, and introvert Ratan is being seen as an aggressive and ambitious businessman, whose strategic vision has shifted from local to global.
In a recent interview, Ratan Tata said: "We were very obsessed with ourselves in India. So, I have felt for some time that we didn't need to be that."
This realisation has struck many Indian promoters and, after the Tata-Corus deal, India's Foreign Direct Investment (FDI) outflows will exceed FDI inflows in the first seven months of this financial year.
Crucial Milestones :
As the group entered the 21st century, Ratan Tata was obsessed with four critical issues.
The first was to globalise his group's operations, where he has succeeded to a certain extent.
The second was to safeguard his companies against possible hostile takeovers after the London-based Indian, Lakshmi Mittal, purchased the Luxembourg-based Arcelor early last year to become the world's largest steelmaker, and announced his ambitious plans in India.
So, to thwart any threats, Tata decided to up his stakes in most of the group companies.
Lone Fighter:
The unmarried Ratan Tata had to look for a successor. There were several candidates - including his step-brother, Noel - but none of them had an established track record. Some of them didn't have the character to carry on the legacy of a group that's synonymous with reliability of products, honesty, integrity and public service.
Last year, the retirement age for non-executive directors of Tata Sons, the holding company, was raised from 70 to 75 years.
The Corus buyout makes Tata Steel the world's fifth largest steelmaker.
But it needs to play the catch-up game with Mittal. Tata has to do the same with Mukesh Ambani, the promoter of India's largest private sector firm, Reliance Industries, which aims to be among the top 100 in the Fortune 500 list.
Ratan Tata is one of the most respected corporate chieftains in India. However, there's a still a lack of clarity about who'll be his successor after his planned retirement in 2012.
With the latest acquisition of London-based steelmaker Corus, Tata has certainly arrived on the global arena.
That's a short snapshot of Ratan Tata, 69, who controls the $22bn Tata group, which includes 96 companies manufacturing a range of products from automobiles to watches, steel to fertilisers.
Aggressive tycoon:
Way back in 1962 a young Ratan Tata fresh out from studies in the US joined the house of the Tatas. Over the next 30-years he worked in almost every group company before the legendry JRD Tata chose him as the chairman of the group.
Almost immediately he faced criticism for his decisions to sell Tata oil mills and move out of ACC—the largest cement company at the time. Besides, at the group’s headquarters he was opposed by the stalwarts he had tipped to the chairman posts.
Rusi Modi of Tata Steel and Ajit Kerkar of Indian Hotels seemed unhappy with him at the helm but he managed to ease them out. He then focussed on his dream project—an indigenous passenger car. In 1998 Tata motors unveiled the Indica. It transported the company from a commercial vehicle maker to one of India’s biggest carmakers.
In 2000, Tata’s bought the Teteley Tea. Since then they have been buying companies worth thousands of crore.
Today, the smooth, suave, and introvert Ratan is being seen as an aggressive and ambitious businessman, whose strategic vision has shifted from local to global.
In a recent interview, Ratan Tata said: "We were very obsessed with ourselves in India. So, I have felt for some time that we didn't need to be that."
This realisation has struck many Indian promoters and, after the Tata-Corus deal, India's Foreign Direct Investment (FDI) outflows will exceed FDI inflows in the first seven months of this financial year.
Crucial Milestones :
As the group entered the 21st century, Ratan Tata was obsessed with four critical issues.
The first was to globalise his group's operations, where he has succeeded to a certain extent.
The second was to safeguard his companies against possible hostile takeovers after the London-based Indian, Lakshmi Mittal, purchased the Luxembourg-based Arcelor early last year to become the world's largest steelmaker, and announced his ambitious plans in India.
So, to thwart any threats, Tata decided to up his stakes in most of the group companies.
Lone Fighter:
The unmarried Ratan Tata had to look for a successor. There were several candidates - including his step-brother, Noel - but none of them had an established track record. Some of them didn't have the character to carry on the legacy of a group that's synonymous with reliability of products, honesty, integrity and public service.
Last year, the retirement age for non-executive directors of Tata Sons, the holding company, was raised from 70 to 75 years.
The Corus buyout makes Tata Steel the world's fifth largest steelmaker.
But it needs to play the catch-up game with Mittal. Tata has to do the same with Mukesh Ambani, the promoter of India's largest private sector firm, Reliance Industries, which aims to be among the top 100 in the Fortune 500 list.
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