India: Industry leader Ratan Tata dies aged 86

Ratan Tata, the former chairman of India's sprawling Tata Group conglomerate, died Wednesday at age 86, the Tata Group said in a statement. 

"It is with a profound sense of loss that we bid farewell to Mr. Ratan Naval Tata, a truly uncommon leader whose immeasurable contributions have shaped not only the Tata Group but also the very fabric of our nation," N Chandrasekaran, Chairman of Tata Sons, wrote in a statement.  

On Monday, Tata had said on social media he was undergoing routine medical examinations due to his age and unspecified medical conditions at a Mumbai hospital.

Modi recalls Tata's 'stable leadership'

Indian Prime Minister Narendra Modi described Tata as a visionary leader 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 boardrooms," Modi said on X.

Google CEO Sundar Pichai said Ratan Tata "deeply cared about making India better."  He praised Tata's business and philanthropic legacy, highlighting his instrumental role in mentoring and developing modern business leadership in India.

Mukesh Ambani, chairman and managing director of Reliance Industries, described Tata's death as a loss to every Indian.

Ratan Tata's early years

Tata was born in Bombay, now Mumbai, in 1937, into a Zoroastrian Parsi family.

After graduating in architecture from Cornell University in the United States, Tata returned to India in 1962 and joined the family business, founded under British colonial rule, working at the Tata steel and motor concerns. 

He would later describe his experiences of initially staying in a hostel for apprentices and working on the shop floor near blast furnaces as giving him knowledge of being "hand-in-hand with the workers."

Tata took the helm of Tata Group from his uncle in 1991. This was also around the time the Indian economy opened to radical free-market reforms.

Turning Tata into a global conglomerate

The first iteration of Tata Sons was founded in 1868 as a trading firm by Jamsetji Tata. In 2023-24, it recorded a revenue of $165 billion (€150.85 billion).

The group now comprises more than 30 companies across 10 sectors, operating in over 100 countries. Together, these companies employ more than 1 million people, according to the group's website.

During his over 20 years of leadership, Ratan Tata was credited with expanding and diversifying the company into one of the world's largest conglomerates, and a major global enterprise. A big part of this was looking to global markets by making big acquisitions just as India began to open its economy to the world. 

In 2000, the group purchased the British tea firm Tetley. In 2007, Tata organized what at the time was India's biggest takeover of a foreign firm, adding Anglo-Dutch steelmaker Corus to the portfolio for $13 billion (€12 billion). 

At a time when technology stocks were not on everyone's radar, Tata went public in 2004 with the conglomerate's software outsourcing arm, Tata Consultancy Services.

In 2008, Tata Motors bought British luxury auto brands Jaguar and Land Rover from Ford Motor Co. for $2.3 billion.

The business visionary also had to institute a company retirement age policy after facing opposition from older board members who did not agree with his ambitious steering of the company.

In 2021, Tata Group bought state-owned Air India. This was the very same airline the company had launched in 1932, which went on to become Air India, later taken over by the government. 

The group's other full-service carrier, Vistara, started with Singapore Airlines, was recently merged in with Air India.

A quest for growth

It "was the quest for growth and changing the ground rules to say that we could grow by acquisitions which earlier we had never done," Tata said in an interview with the Stanford Graduate School of Business in 2013. He was also responsible for building the Indica, the first car model designed and built in India.

The Tata Nano later became the world's cheapest car, with a sticker price of around $1,200.

It was touted as a model of affordable personal transport for the masses, however, it was discontinued after 10 years due to safety issues.

A bachelor's retirement and later years

Ratan Tata officially stepped down as chairman of Tata Sons on his 75th birthday in December 2012. He was succeeded by Cyrus Mistry as the new chairman who was later removed.

Tata came out of retirement in 2016 to serve as the interim chairman until a permanent successor, N Chandrasekaran, was appointed in early 2017.

After his retirement, the lifelong bachelor focused on leading the group's charitable arm and investing in some of India's most promising start-ups.

Tata received the Padma Bhushan, one of India's most distinguished civilian awards, in 2000 and "Padma Vibhushan" in 2008.

dh, ss/wmr (Reuters, AFP, AP)