Ratan Tata Sage not an industrialist
Who is Ratan Tata?
Ratan Naval Tata was born on 28 December 1937 in a Parsi family. He is the son of Naval Tata, who had been adopted from J. N. Petit Parsi Orphanage by Ratanji Tata and his wife Navajbai Tata.
Ratan Tata is an Indian industrialist, investor, philanthropist, and former chairman of Tata Sons. He was the chairman of Tata Group, a Mumbai-based global business conglomerate from 1991 till 2012 and left all his position in 2012 for Cyrus Mistry. After some time an ideological conflict occurred between Tata and Cyrus Mistry and again he took the charges to form 24 October 2016 for an interim term, and continues to head its charitable trusts.
He was awarded two of the highest civilian awards of India Padma Vibhushan in 2008 and Padma Bhushan in 2000.
Name: Ratan Naval Tata
Born: 28 December 1937 Surat, Bombay Presidency, British India
Parents: Naval Tata (Father) Sonoo Tata (Mother)
Residence: Colaba, Mumbai, India
Alma mater: Cornell University & Harvard Business School
Occupation: Chairman Tata Group
Awards: Padma Vibhushan(2008), Padma Bhushan(2000)
Education & Early Life
Ratan Tata did his schooling from Cathedral and John Connon School & Bishop Cotton School (Shimla). He was graduated in degree in architecture (B.Arch) with structural engineering from Cornell University in 1962, and the Advanced Management Program from Harvard Business School in 1975. Ratan Tata’s parents Naval and Sonoo separated in 1948 when he was ten and his younger brother, Jimmy, was seven years old. Both Ratan and Jimmy were raised by their grandmother Navajbai Tata. Ratan Tata has a half-brother Noel Tata from Naval Tata’s second marriage to Simone Tata.
Ratan Tata strongly believes in giving wealth back to the people. He claims that about 60-65% of the wealth that he has created from his companies goes back to people in the form of education, medicine, and rural development. He is one of the biggest philanthropists in India.
Ratan Tata started his career in the Tata group in 1961. In 1991, J. R. D. Tata stepped down as chairman of Tata Sons, naming Ratan Tata his successor. In his leadership of 21 years, Tata Group revenues grew over 40 times, and profit, over 50 times. He took some bold decision to acquire Tetley to form Tata Tea, Tata Motors to acquire Jaguar Land Rover and Tata Steel to acquire Corus. These decisions made Tata from a largely India-centric group into a global business, with over 65% of revenues coming from operations and sales in over 100 countries. Ratan Tata relinquished all executive power in the Tata group on 28 December 2012, just after turning 75, appointing as his successor, Cyrus Mistry, the 44-year-old son of Pallonji Mistry of the Shapoorji Pallonji Group, the largest individual shareholder of the group and related by marriage. Later, on 24 October 2016, Cyrus Mistry was removed as the Chairman of Tata Sons and Ratan Tata was made interim chairman. On 12 January 2017 Natarajan Chandrasekaran was named as the Chairman of Tata Sons, a role he assumed in February 2017.
Recently, Ratan Tata invested his personal savings in Snapdeal- one of India’s leading e-commerce website and in Jan 2016 made an undisclosed funding in Teabox- an online store selling premium Indian Tea and CashKaro.com- online discount coupons and cashback website.
He also made some small investment in both early and late stage companies in India. He made investments of INR 0.95 Cr in Ola Cabs and INR 1 Cr in Paytm. In April 2015, it was reported that Tata had acquired a stake in Chinese smartphone startup Xiaomi, with specific terms undisclosed.
Surprising and interesting facts about Ratan Tata
Ratan Tata, the head of TATA Group which runs 96 businesses which include companies like
- Tata Steel
- Tata Motors (Jaguar, Land Rover)
- Tata Consultancy Services (TCS)
- Tata Power
- Tata Chemicals
- Tata Global Beverages
- Tata Teleservices
- Taj Hotels
- Tata Starbucks
- Tata Communications
He is still single. He did not marry in his lifetime.
He is not even counted in the billionaire’s club. How is it possible that Ratan Tata is not on the billionaire’s list of Forbes magazine?
The reason is very simple. Tata Group’s 96 companies are held by its main company named “Tata Sons” and the main owner is not Ratan Tata but various charitable organizations. 60% to 65% of the ownership of Tata Sons which is the key holding company of other 96 Tata group is held by various charitable organizations.
So If you count 65% ownership of Tata Sons in Ratan Tata’s own personal financial statement then Ratan Tata’s Net worth would cross $ 70 billion, which is much more than Warren Buffet’s current net worth of $62 Billion according to Forbes list 2008.
“He is not billionaire on paper, but in reality he is the richest person alive”
His policy is “Donating is the best way to spend money” and that’s the reason why many people had so much respect for this man.