India lamented the loss of one of its most cherished industrialists, a “truly uncommon leader,” Ratan Tata, who passed away recently and left behind a legacy of kindness, generosity, and inspirational leadership. It certainly makes sense that the loyal and appreciative Tata employees would grieve the passing of a compassionate and generous super-boss. Also, the elites of various spheres of society politics, entertainment, sports, or business – who had the chance to interact closely with the chairman or chairman emeritus of the conglomerate would naturally express their condolences and offer tributes. But it’s just amazing how many common people who aren’t even closely related to the Tata Group – are honouring Ratan Tata.
This seems rather unusual. It’s true that the Tata Group, under the stewardship of Ratan Tata, generously funded several philanthropic works. However, that could provide the benefiting parties with a stake limited to a particular quantity. Furthermore, Tatas typically follow rules and laws when operating their enterprises. That could give them some moral credibility in the eyes of the general public. But that simply fails to explain common people’s overall attitude.
How would one characterise the man Ratan Tata? Tata was described as a “modest, reserved, and even shy man” with a “stately calm” and “fierce discipline” by Peter Casey, the author of The Story of Tata. It’s interesting to note that Ratan Tata got the moniker “Millennial Dumbledore” thanks to Shantanu Naidu, his young assistant. Naidu began working closely with the industrialist in 2018. Naidu’s 2021 book I Came Upon a Lighthouse: Short Stories of Life with Ratan Tata is a light-hearted account of this unusual relationship between a millennial and an octogenarian that sheds light on a well-known Indian icon. Again, though, that’s mostly through a personal prism. Undoubtedly, a lot of ordinary people who are flooding the internet with their tributes were unable to comprehend the true nature of the Millennial Dumbledore.
What, therefore, could have made Ratan Tata one of the most embraced faces of Indian capitalism, if not the most universally accepted? Is the magic of social media integrated with this as well? Significantly, Ratan Tata had 13.1 million X (previously Twitter) and 11 million Instagram followers, making him perhaps the most followed Indian entrepreneur. These figures will likely even exceed the number of followers possessed by numerous well-known influencers. It’s true that carefully designed and maintained social media accounts can manipulate some level of popularity.
Indeed, there are a lot of myths, quotes, images, and anecdotes about Tata that are frequently shared on social media. However, this comes with the normal risk of some misinformation being mixed in or being diluted a bit. Still, many captivating stories about his generosity, compassion, and innovative leadership that can be routinely found online must have contributed to creating and connecting a lot of his followers. It’s definitely not the entire chemistry, though. He had gone through plenty of corporate thrillers, of course. Ratan Tata was 54 when he was appointed chairman of the Tata Group. The sphere of the conglomerate’s economic empire was to undergo a thorough transformation during the next thirty years. And this voyage would be mostly led by Ratan Tata.
When JRD Tata, who had led the group for over half a century, named Ratan Tata as his successor in 1991, the latter found that some people in the organisation had positioned themselves as power centres and this didn’t align with his working style. He removed Russy Mody of Tata Steel, Darbari Seth of Tata Chemicals, and Ajit Kelkar of Indian Hotels to overcome the challenge. Two decades later, Cyrus Mistry, whom Tata personally endorsed but who eventually succeeded him as chairman of Tata Sons in 2012, would present him with yet another formidable obstacle.
A bitter management feud erupted four years later when Mistry was ousted from his position and Ratan Tata found himself embroiled in a rare, unsavoury controversy. The boardroom disputes transitioned to legal tribunals, ultimately reaching the Supreme Court. The details of this corporate conflict could have made for a riveting thriller, no doubt. However, a significant portion of the underlying story is unknown and might remain so. Around the same time Ratan Tata was appointed chairman of the Tata Group in 1991, the country’s economic history saw a tectonic shift through the beginning of the economic liberalisation. It’s, thus, impossible to differentiate Ratan Tata’s journey from this magically changing economic locus of India.
The Tata Group had $4 billion in revenue when he took the helm in 1991, and by the time he retired in 2012, it had become $100 billion, which is roughly $165 billion at present. At present, the Tata Group is collectively employing over 1 million people. And Ratan Tata oversaw a large part of this advancement. He also became a reverse coloniser during this journey. That’s a special aspect of his legacy. In a country that was a British colony for almost two centuries, Ratan Tata exhibited the audacity to acquire numerous foreign companies, many of which were British. This might, in my opinion, have made many people in this country very proud. In the 21 years of his chairmanship, Ratan Tata made more than 60 such deals. He attempted to acquire the British tea manufacturer Tetley just three years after becoming chairman of the Tata Group.
Following an unsuccessful first effort, he could eventually acquire Tetley, the second-biggest tea manufacturer in the world. It was the first instance of acquiring a significant foreign company by an Indian conglomerate, making history. Perhaps the most noteworthy acquisition took place in 2007 when he took over Corus, the Anglo-Dutch steelmaker and Europe’s secondbiggest steel producer, for $13 billion. Thus far, it remains the biggest crossborder acquisition in India’s history. Tata’s other well-known acquisitions include British Salt, Tyco, NatSteel, Daewoo, Eight O’Clock, and St. James Court. And, of course, Ford’s UKbased car brands, Jaguar and Land Rover in 2008. Tata rose to prominence as one of India’s best known corporate figures abroad.
He was referred to as a “titan” in an Economist magazine profile from 2011, which credited him with turning the family business into “a global powerhouse.” “He owns less than 1% of the group that bears his family name. But he is a titan nonetheless: the most powerful businessman in India and one of the most influential in the world,” it said. These, together with the creation of indigenous brands like Indica, Indigo, Sumo, and Safari brands of cars and Ginger Hotels, and bringing back Air India to the conglomerate’s empire, undoubtedly raised Ratan Tata’s profile in the eyes of the general public. Not many headline writers in newsrooms around the world could resist calling Ratan Tata “India’s Henry Ford” when he debuted his version of the “people’s car” at the 2008 auto expo in Delhi.
The Tin Lizzie, which Henry Ford famously placed “America on the wheels” precisely one hundred years ago, was thought to have a real spiritual successor in Tata’s Nano. Ratan Tata, thus, conquered several peaks. He may be a Millennial Dumbledore, a reverse coloniser, and, of course, India’s Henry Ford, all of which might have contributed to creating his extensive fan base. And none of these is an easy achievement, though.
(The writer is Professor of Statistics, Indian Statistical Institute, Kolkata.)