 "Why Ratan Tata did not feature on ‘rich lists’ despite booming businesses")
Ratan Tata, one of India’s most respected businessmen, is no more. Known for his humility and philanthropic endeavours, the former Tata Group chairman died at the age of 86 on Wednesday (October 9) night at Mumbai’s Breach Candy Hospital.
Tata, who never married, has been hailed as a visionary business leader. Tributes are pouring in from across the spectrum. Tata Sons chairman N Chandrasekaran in a statement confirmed the industrialist’s death, describing him as a “friend, mentor, and guide.”
Condoling his demise, Prime Minister Narendra Modi called him a “visionary business leader, a compassionate soul and an extraordinary human being.”
“He provided stable leadership to one of India’s oldest and most prestigious business houses. At the same time, his contribution went far beyond the boardroom. He endeared himself to several people thanks to his humility, kindness and an unwavering commitment to making our society better,” he wrote on X.
One of the most unique aspects of Shri Ratan Tata Ji was his passion towards dreaming big and giving back. He was at the forefront of championing causes like education, healthcare, sanitation, animal welfare to name a few. pic.twitter.com/0867O3yIro
— Narendra Modi (@narendramodi) October 9, 2024
Despite taking his conglomerate to the global stage, Tata never featured on top of any list of billionaires. But why?
Let’s take a closer look.
Life and legacy of Ratan Tata
In 1962, Ratan Tata began working for the Tata Group founded by his great-grandfather Jamsetji Tata centuries back.
He had just returned to India after earning a degree in architecture from Cornell University in United States’ New York.
“America held a special fascination for the young Ratan Tata. He studied architecture at Cornell University and travelled across the country, washing dishes to make ends meet,” as per a 2008 report in The Guardian.
Tata took over as chairman of Tata Sons, the group’s principal investment holding company, after his uncle JRD Tata’s retirement in 1991. This came at a time of economic liberalisation in India, with the country opening its economy to the world.
It was under Tata’s leadership that the conglomerate founded telecommunications firm Tata Teleservices in 1996. Tata’s IT firm Tata Consultancy Services (TCS) went public in 2004.
Tata’s ambitions were not contained to Indian shores. In 2000, the group bought British tea firm Tetley for $432 million and Anglo-Dutch steelmaker Corus in 2007 for $13 billion. The conglomerate acquired British luxury automakers Jaguar and Land Rover in 2008 for $2.3 billion, as per a Reuters report.
Tata led initiatives like the Indica, the first car designed and built in India. The launch of Tata Nano in 2008 showed the group’s commitment to making cars affordable for Indians. Dubbed “People’s Car,” Nano was priced at Rs 1 lakh and could seat up to five people.
“I remember seeing a family of four on a motorbike in the heavy Bombay rain - I knew I wanted to do more for these families who were risking their lives for lack of an alternative," Tata had reportedly recalled on why he introduced Nano. The tiny car’s production stopped in 2018 due to low sales.
Ratan Tata retired in 2012 when the group’s revenue was estimated at $100 billion.
He invested in several Indian startups, including digital payments firm Paytm, Ola Electric, Urban Company, Lenskart and Upstox.
Why Ratan Tata was never on rich lists
From salt to aviation, the Tata Group has expanded and diversified over the years. It operates 30 companies in 100 countries across six continents.
As of March 31, 2024, the group’s overall market capitalisation was pegged at over $365 billion.
However, Tata never made it to the top of billionaires’ lists. He ranked 421 in the IIFL Wealth Hurun India Rich List of 2022 with an estimated net worth of Rs 3,800 crore. This was a rise from his previous position at rank 433 with Rs 3,500 crore in 2021.
This is because the chairmen of the Tata Group have bequeathed their assets to
Tata Trusts, one of India’s largest charitable organisations. The philanthropic trusts hold about two-thirds of the share capital of Tata Sons.
About 60 per cent of the dividends from the group’s holding company are allocated to charitable causes. The foundation has championed various initiatives in education, healthcare, and rural development.
Tata Trusts has developed 10 cancer care facilities in Assam, Jharkhand, Andhra Pradesh and Karnataka. The 86-year-old’s commitment to corporate social responsibility exceeds any status as a billionaire.
His love for philanthropy went beyond humans. The Padma Vibhushan awardee was a dog lover, who helped fund a start-up to support street dogs. Even Tata Group’s global headquarters at Bombay House has a facility for stray dogs.
Tata, who maintained a low profile, might not have been the richest person. But he was a titan who led by example.
As Tata Sons chairman Chandrasekaran said of his “mentor”, “From education to healthcare, his initiatives have left a deep-rooted mark that will benefit generations to come.”
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