Ratan Tata is symbol of global Indian ambition
By Harihar Swarup
If one has to ask what is single biggest achievement of Ratan Tata who has hung his boots? The simple answer would be: reliability of Tata products and the confidence that customers have reposed in brand Tata. Customers see the Tata label, and without blink of an eye, purchase the item. Ratan Tata’s second achievement was in the automobile industry; he gave India first indigenously produced car.
When Ratan decided to build India’s first homemade car, he knew who he should convince to come back to his motherland. He brought V. Sumantran, an aeronautical engineer, a former head of engineering at Swedish carmaker “Saab”, who earlier worked with General Motors for 17 years. Sumantran led the initiative for Tata to make the dream car—Indica, which got over 100,000 bookings from enthusiastic Indian consumers even before its launch. Ratan Tata drove the Indica when it was rolled out from the Tata motor factory. Indica became the symbol of India’s car industry that has emerged as a small car hub for the world.
In 2005, Tata Motors expanded its bus range by introducing Star-bus that was aimed at the school-bus market. In addition, with increased competition from global bus maker Volvo, it launched Globus range of buses for the luxury travelers. The buses were introduced after Tata tied-up with Spanish bus maker Hispano Corrocera for technology. Ravi Kant, who retired as Tata Motors chief executive, was appointed to the top slot in 2005.
In 2008, Ratan Tata kept the promise that he had made in an earlier interview that Tata Motors would build a car for Rs. One lakh. The Nano, he called the new car, demonstrated India’s frugal engineering capabilities. Tata Motors silenced skeptics that the “car for Rs. One Lakh” was just a dream.
While Ratan Tata built cars for the people, his dream of taking forward Tata’s legacy in aviation flopped, thanks to politicians who scuttled the group’s entry into the sector which it started in India — JRD Tata, Ratan’s uncle, flew from Karachi to Bombay carrying air mail in 1932 to launch India’s first airlines. The airlines, which was known for its punctuality, was nationalised in 1953. Ratan Tata’s attempt to launch a private airline with Singapore Airlines was dashed by politicians, rival lobbies and bureaucrats, as also his plan to build an international airport in Bangalore. However, Tata has already entered the aerospace industry by building systems and components for global aerospace companies such as Boeing and Airbus. Ratan flew an F-16 fighter during the “Aero India 2007” air show at Yelankha air force station on the outskirts of Bangalore.
Ratan Tata, who led the transformation of the Tata group from a conventional corporate house into a $100 billion global conglomerate with high-profile acquisition abroad, retired last month, ending a 50-year run in one of India’s oldest business empires. He handed over the rein of the group to 44-year-old Cyrus Mistry. Ratan hanged his boots after steering the group for 21 years as his chairman, when he succeeded legendary JRD Tata. While JRD made Ratan the Chairman out of the blue in 1991, Mistry of the Shapoorji group and whose family owns 18 per cent stake in the Tata Sons, was chosen by a five- member selection committee.
During Rata Tata’s tenure, the group revenues grew manifold, totaling $100.09 billion in 2011-2012 from a turnover of mere Rs.10,000 crore in 1991. His vision to transform the group into a multi-national giant resulted in high profile acquisition such as Tata Tea’s takeover of UK brand Tetley for $450 million in 2000. But Ratan set new standards for Indian Corporates in the current era of globalisation when Tata Steel acquired Anglo-Dutch rival Corus for 6.2 billion pounds beating CSN of Brazil in 2007.
A year later, the group’s automotive firm Tata Motors lapped up British luxury vehicle maker Jaguar Land Rover for $2.3 billion from Ford Motor Co. Even as Tata was concentrating on activities abroad, he came up with the idea of producing the world’s cheapest car when he conceived the Rs. 1 lakh small car Nano. The Tata group underwent moments of high tension in executing the Nano project when it got into problems on acquisition of land in Singur in West Bengal. Ironically, the group shifted from Singur to Sanad in Gujarat.
For all his achievements, Tata describes his half-a-century with the group modestly as “a journey of great learning.” He further comments, “It was a period of learning, a period of frustration also from time to time…. I tried to uphold the values and the ethical standards that there were. I feel satisfied that I have done my best to do what I considered to be the right thing and that has been there throughout.”
On his post retirement plan Tata, a bachelor, has said he will spend time on technology, which is quite a passion with him. He will brush up his piano, which he learnt as a schoolboy and pursue flying, apart from his focus on philanthropic activities. (IPA Service)