Foreign Drive

His diversification changed the face of the Tata Group

When Ratan Tata took over as chairman of Tata Sons from J.R.D. Tata, he was filling the shoes of a living legend. It was seen as a huge challenge. A few actions stand out that not only positioned the Tata Group differently but had a great impact on how firms and nations viewed India and Indian industry.

First, the number of foreign joint ventures and collaborations the Tata group entered into. It was significant that these were in new areas of business. Second, the acquisition of firms such as Daewoo, Tetley, Corus, Jaguar Land Rover. This was a watershed as it not only created a belief that Indian firms could operate multiple global businesses but also fuelled the aspiration that Indian businesses could have a global footprint. Third, the Nano project, which signalled a new approach to design and manufacturing in India by Indian firms. Many wonder what would have been the outcome had the project not been delayed by the move out of Singur.

Ratan Tata is also supporting the start-up movement in India. Over 40 start-ups have been funded, including Ola, Idea Chakki, Lenskart, Tracxn and Urban Clap. A common refrain amongst the promoters is that the investment was valuable, but what was invaluable was his involvement and mentorship. To get their plans approved by Ratan Tata was the key. He also has the ability to mentor young people. His belief is if there is something he knows and could share that would help the person, he would. What is greatly recognised and appreciated is his quiet way of contributing, looking for neither applause nor recognition. It is always country first.