Overview: Ratan Tata: A Life by Thomas Mathew
Thomas Mathew’s biography of Ratan Naval Tata (RNT) is a simple and engrossing learn. It’s by far essentially the most authoritative and complete biography of RNT. The guide is predicated not simply on rigorous analysis of the prevailing Tata archives in Mumbai, Pune and Jamshedpur, however a treasure trove of paperwork painstakingly gathered by the creator which weren’t even seen by many Tata insiders. These had been supplemented by a number of lots of of hours of interviews by the creator with relations, associates, friends, colleagues and, above all, by means of unprecedentedly in depth private interactions along with his illustrious topic.
Whereas meticulously documenting the method of the consolidation and coordinated functioning of the Tata Group and its evolution into India’s largest and most diversified international conglomerate, the creator gives many desirable insights on RNT’s personal life, his persona and outlook, his goals and aspirations and his setbacks and frustrations. These assist the reader to raised perceive him as a heat, compassionate and but advanced human being.
What set RNT aside in a category of his personal was his unwavering adherence, typically underneath very tough circumstances, to the Tata legacy of impeccable integrity and probity and an abiding perception that its stakeholders weren’t solely its homeowners and shareholders, however its staff, native communities and the nation as an entire. Furthermore, as underlined by RNT, “no success or achievement in materials phrases was worthwhile until it was by honest and trustworthy means”.
The creator’s deep respect and admiration for his topic is clear within the guide. Nevertheless, it’s equally clear that the creator’s detailed protection of the most important challenges and milestones in the course of the fast progress of the Tata Group by means of RNT’s serial overseas acquisitions from the flip of the century is remarkably dispassionate and balanced. After shopping for Tetley Tea in 2000, making TCS public in 2004, RNT quickly prolonged the Group’s international attain by buying the Anglo-Dutch metal large Corus in 2007, Common Chemical substances in 2008 and the enduring Jaguar Land Rover manufacturers later the identical yr from Ford, which had acquired these at greater than double the fee.
The creator factors out that the variations between RNT and his successor, Cyrus Mistry, which sadly later performed out in public, had been mainly elementary divergences of outlook and strategy. One tended to painting the challenges posed by a few of these acquisitions within the wake of the unanticipated 2008 monetary disaster, as “sizzling spots” and unfavourable legacy points inherited from his predecessor and was both mesmerised into inaction or proposed hasty knee jerk remedial actions which aggravated the issues. The opposite’s strategy was to formulate daring turnaround methods, with clear objectives and corresponding capital allocations, geared toward changing brief time period challenges into alternatives for progress.
Other than Tata Motors and Tata Metal, one other “hotspot” was Tata TeleServices, partly as a result of partnership settlement entered into in 2008 with NTT Docomo which invested US$ 2.2 billion for a 26% shareholding. There was a transparent exit provision offering for 50% of the funding quantity within the occasion of a failure to fulfill efficiency targets. Whereas his successor needed to keep away from or delay the massive fee as a result of Japanese firm’s on account of RBI restrictions, RNT felt that the failure of a Tata firm to honour its commitments on home regulatory or technical grounds would trigger reputational harm not solely the Tata Group however the bigger nationwide curiosity of preserving a good overseas funding surroundings in India.
The guide rightly portrays RNT as a nationalist, who like JRD Tata, proudly retained his Indian citizenship all through his lifetime. He was satisfied that what was good for India was good for the Tatas. He believed in free markets and personal enterprise and that our nationwide improvement objectives can be greatest promoted by progressive removing of protectionist measures and enhanced worldwide competitiveness of Indian corporations. Because the creator concludes, when the layers of RNT’s persona are unpeeled for historical past, he could emerge as a “capitalist who was pushed, paradoxically, by the necessity to fulfil the objectives of an implacable socialist coronary heart”.
RNT’s passing in October this yr marked the tip of an period for the Tatas and for Indian business. But creator brings out how he centered on succession planning for guaranteeing continued dedication to Tata values and the long run readiness of the Group’s flagship holding firm. He had added new Administrators to the Board of Administrators earlier than steering the method of appointing Natarajan Chandrasekaran as Chairman & CEO of Tata Sons. The knowledge of the impressed alternative of this dynamic and motion oriented “Tata lifer” was borne out in additional than full measure. Up to now seven years the Tata Group’s revenues have greater than doubled from US$ 79.5 billion to UD$ 167.5 billion; Revenue After Tax grew four-fold from US$ 3.4 billion to US$13.8 billion, and the Group Market Cap elevated phenomenally from US$101 billion to US$407 billion, considerably outperforming the BSE and NSE which grew by 2.7 instances.
RNT selected to not provoke the election of his successor as Chairman of the Tata Trusts. Nevertheless, in his twilight years he had added new Trustees of eminent standing in addition to all of the remaining members of the Tata household. The election of Noel Tata as Chairman of the Tata Trusts and his induction within the Board of Administrators of Tata Sons augurs effectively for the long run.
Ronen Sen is a retired diplomat and former Unbiased Director of Tata Sons
