Ratan Naval Tata (born 28 December 1937) is an Indian industrialist, investor, philanthropist, and former chairman of Tata Sons. He was the former chairman of Tata Group, Mumbai, Maharashtra based global business conglomerate from 1991 till 2012 and again from 24 October 2016 for an interim term, and continues as the head of its charitable trusts. He is the recipient of two of the highest civilian awards of India–Padma Vibhushan (2008) and Padma Bhushan (2000).
He is an alumnus of the Cathedral and John Connon School, Bishop Cotton School (Shimla), Riverdale Country School, Cornell University and Harvard Business School
Ratan Tata is the son of Naval Tata, who had been adopted from J. N. Petit Parsi Orphanage by the widow of Sir Ratanji Tata, Navajbai Tata. His biological maternal grandmother had been the sister of Hirabai Tata, wife of group founder Jamshedji Tata. His biological father, Hormusji Tata, had belonged to the broader Tata family; Naval therefore was a Tata by birth. Parents Naval and Sonoo separated in 1948 when Ratan was 10, and he was subsequently raised by his grandmother, Navajbai. He has a half-brother Noel Tata from Naval Tata's second marriage to Simone Tata, with whom he was raised. His first language is Gujarati.
He schooled in Mumbai and Shimla, at the Cathedral and John Connon School and Bishop Cotton School (Shimla). He graduated Riverdale Country School in 1955. He received a B. Arch. degree in architecture with structural engineering from Cornell University in 1962, and the Advanced Management Program from Harvard Business School in 1975.
Tata has remained single throughout his life. Tata's strong belief of giving wealth back to the peopleis reflected in his donations of approximately 60-65 per cent of his wealth, especially in the support of education, medicine and rural development, distinguishing him as a leading philanthropist in India
Ratan Tata, who was the chairman of the Indian conglomerate Tata Group in 1999, faced 'humiliation' when he with his team went to sell the group’s fledgling car business to Ford in 1999, but came back to 'do a big favour' just nine years later by taking over the US giant's marquee brands Jaguar and Land Rover (JLR).
Just months later, the global financial crisis hit, thrashing the auto industry, including Tata Motors, which made trucks and inexpensive cars too.
Tata bought Jaguar and Land Rover in all-cash transaction of $2.3 billion from Ford in June 2008. Nearly half of what Ford Motor paid to acquire both brands.
At that time JLR's retro designs was getting outdated, and competing with new efficient diesel engines was just making the British carmaker redundant. It's not that the American car manufacturer Ford did not tried the turnaround.
The carmaker started the work much earlier with focus of resolving quality problems. But, the carmaker was not able to really dent the luxury car market. Before handing over to Tata Motors, Ford launched Jaguar X-Type, an entry level Jaguar, but later criticised for building a disguised version of Ford's bestselling Mondeo sedan in the European markets.
However, it was Tata, who was convinced the new acquisition will turn out well in future. According to an article by Forbes, Tata Motors majorly focussed on three areas - improving liquidity, cost control and new products.
Three clear and pointed strategy later worked out well for the company.
At that time, one thing that came as a blessing for JLR was the changing consumer preference from luxury cars to luxury SUVs. On other hand, Jaguar was facing the serious challenge to sell the XJ sedan and the XK coupe because of the retro design.
Moreover, it lacked efficient engines at the time when fuel prices were touching the sky. During 2009 to 2012, Jaguar could barely sell 50,000 units across the world.
Andy Vine, Jaguar Land Rover dealer in Louisville, Ky., US recalled Ratan Tata was directly involved in the business. Ratan Tata, along with Ralph Speth, travelled across the US meeting dealers and taking the feedback on Jaguar Land Rover brand.
The XF and XJ sedans got more efficient engines in no time. Andy Vine said in a report, "Things that before we were told would take three, four, five years, by the time Mr Tata was done, we were seeing in 12 to 24 months.”
Earlier, Ratan Tata Is Richer Than Bill Gates And Yet Not In The List Of Billionaires, Here’s Why
In 2017, Bill Gates maintains his position as the world’s richest man in the Forbes annual list with a net worth of $86.0 billion. Warren Buffet, with a net worth of $75.6 billion, stands at No.2, followed by big names including Mark Zuckerberg, Jeff Bezos, and others.
But, you’ll be amazed to know that there actually is a multinational company that is making more money than all those whose Chairpersons make it to the list of the wealthiest people on the globe. And this conglomerate is none other than the Tata Group of India
The company was founded by Jamsetji Tata in 1868 and gained international recognition after its association with various brands worldwide.
Today, they are running 96 companies and there exist 30 publically listed Tata enterprises including Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications, Taj Group and several more, with a with a combined market capitalization of about $130 billion.
In India, 4 out 5 top-ranked “Responsible business” companies belong to the Tata Group.
Why then is Ratan Tata, the former Chairperson, and the Tata family’s heir, never named among those making an insane amount of money?
It is because 65% of the family’s and the company’s fortune is given away as charity. Thus, the profit made by many enterprises goes to charitable organizations and is not added in Ratan Tata’s personal financial statement. Ratan Tata’s net worth as an individual does not cross the 1 billion mark.
Born on 28 December 1937, Ratan Tata is the son of Naval Tata, whom Navajbai Tata adopted from J. N. Petit Parsi Orphanage. He studied B. Arch. at Cornell University, and the Advanced Management Program at Harvard Business School in 1975. He took up the position of Tata Group’s chairman in 1991. Under his administration, the company’s revenue increased by 40% and its profit by 50%.
The Tata family has been involved in philanthropic work since their establishment. They have contributed a lot to the betterment of healthcare facilities, improving the education system, fighting for equal rights, sports, and preservation of arts in India.
Their charity work is not limited to India but they give away a percentage of their profit for international causes too. Tata group donated ₹ 2.20 billion ($50 million) to the Harvard Business School, the largest amount received by the institute from an international donor. The amount was given for the construction of an academic block and a residential building on the school’s campus in Boston, Massachusetts.