Ratan Naval Tata: Importance of his multifaceted legacy

No analysis of RNT's legacy would be complete without his contribution in high technology. The shift began when he was appointed chairman of Tata Industries, the promoter company of the group, in 1981. Tata brought in fresh talent—from within and without—and a fiery ambition to make the conglomerate a global powerhouse

Brian Carvalho
Published: Oct 18, 2024 10:37:45 AM IST
Updated: Oct 18, 2024 12:33:14 PM IST

Circa 2003: Around the time Ratan Naval Tata (RNT) began blueprinting his potentially game-changing plan to launch the country’s most affordable car—the Nano would be launched six years later—there was excitement brewing in another significant quarter of the Tata group. Not at Bombay House, the headquarters, but roughly a kilometre away in Mumbai’s financial district of Nariman Point, on the 11th floor of Air India building. The till-then-low-profile Tata Consultancy Services (TCS) was gearing up to go public, with Tata Sons set to dilute a slice of its holding in what would be India’s largest initial public offering (IPO).

Analysts and the media went to town speculating the valuation of the most profitable company in the group and the biggest contributor to Tata Sons, by far. Around ₹60,000 crore or even ₹110,000 crore were some numbers touted. The man at the wheel of Tata Sons—widely known to be passionate about the group’s automotive business and closely involved with flagships like Tata Steel and Tata Chemicals—was also keeping an eagle eye on the IT services hidden gem.

Some 18 months before TCS went public in July 2004, I got the opportunity to meet RNT for a feature on the S Ramdorai-helmed company. “The primary driver is that you can use stock as a currency to grow inorganically. It could be advantageous to the Tata group as well,” Ramadorai had told me.

RNT for his part was mindful of the value locked within TCS. Reminiscing fondly on a six-month stint at the then-two-year-young IT services fledgling in 1970, he said: “TCS is a jewel that needs to be fully supported. It is the flagship, in terms of earnings and profits, and is a global company. When market conditions are right, we will be able to unlock significant value.” 

When TCS first crossed the $200 billion market capitalisation landmark in 2022, the jewel perhaps had never shone brighter. RNT would have approved in his usual understated way.

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No analysis of RNT’s legacy would be complete without his contribution in high technology. The shift began when he was appointed chairman of Tata Industries, the promoter company of the group, in 1981. Remember, this was in an era when the group was more known for its locomotives and heavy vehicles.  

TCS may have been the first tech-enabled jewel in the Tata crown, but others may be readying to shine. Almost two decades after the TCS IPO, Tata Technologies, which engineers next-gen connected and autonomous electric vehicles, went public. And there’s more longer-term promise of hi-tech value-creation: Earlier this year Tata Electronics got the go-ahead to build a mega semiconductor fabrication facility in Dholera in Gujarat in partnership with Taiwan’s PSMC.

The current edition of Forbes India is a homage to the man who comprehensively transformed the group after taking over as Tata Sons chairman in 1991 from JRD Tata. Along with a hi-tech focus, Tata brought in fresh talent—from within and without—and a fiery ambition to make the conglomerate a global powerhouse.  

RNT was also chairman of the Tata Trusts, which own 66 percent of Tata Sons, and which now has RNT’s half-brother Noel in charge. Divya Shekhar’s ‘Pursuit Beyond Profits’ on page 34 decodes how the late chairman redefined the group’s legacy of charitable giving.

Don’t also miss Benu Joshi Routh’s piece on RNT’s perhaps lesser-known inclination: Architecture and design. Four designers who crossed paths with the Cornell-educated architect reminisce about, among other things, RNT’s eye for detail, and sense of form and proportion.

Best,

Brian Carvalho

Editor, Forbes India

Email: Brian.Carvalho@nw18.com

X ID: @Brianc_Ed

(This story appears in the 01 November, 2024 issue of Forbes India. To visit our Archives, click here.)

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