The Man Who Made Steel a Synonym for Innovation: Ratan Tata's Legacy

Little did the copywriter who wrote “We also Make Steel” in the early nineties to showcase the social and philanthropic initiatives for Tata Steel know that it still holds so true for the entire group. What makes Ratan Tata iconic is not just business acumen but his ability look far and deep into the future and steer the conglomerate in the right direction. Having started out just as an assistant the early sixties Ratan Tata took over the reins of the group in 1991 from JRD Tata. His elevation to the top post may have been due to his hereditary lineage, but what he did with it is the legacy that defines him.

Ratan Tata: The Architect of India's Corporate Renaissance

1991marked the beginning of transformation for India’s commerce and business. Liberalization and the maturing of the capital markets opened the doors to international brand to create their footprint. The overall business environment was euphoric. Prior to this the Indian software talent was being exploited. Most software companies relied on body-shopping as their revenue. Tata Consultancy Services (TCS) was poised to change this paradigm.

Along with companies like Infosys and Wipro, TCS broke the glass ceiling restricting the growth of this business. 1999 presented a huge opportunity with Y2K issue looming large which was aptly capitalized by TSC before going public in 2004. The script still dominates the stock market indexes and is in the top ten valued shares.

How Ratan Tata Revolutionized India's Automotive Industry

Till the eighties the Indian roads were dominated by just two cars. The Premier Padmini, known fondly as the Fiat and Ambassador. This changed with the advent of the Maruthi 800. The Tata group had a large presence in the auto sector but this was restricted to commercial vehicles. Their foray in the passenger segment came in 1991 with Tata Seaira. However, these were built on the same platform as the Tata Mobile a multi-utility pick-up. However,the true step to be a part of the passenger vehicle market was the launch of India’s first indigenously designed and manufactured Indica in 1998.

It has not always been a bed of roses for Ratan Tata. The initial model of Indica had more that its share of problems and the company lost around Rs.500 crores. Market analysts advised Mr.  Tata to stick the commercial vehicles, a segment the company knew best. The second disaster was the much talked about Tata Nano. Although conceived with most noble of intensions to the provide the country with an affordable four-wheeler, the project had more than its share of problems. The shifting of the production plan from Singur in West Bengal to Gujarat due to political unrest led to huge cost over-runs. Insiders believe to keep the selling cost sub 1 lac, Tata Motors was losing money on every unit sold. The bigger problem was the positioning of the can as ‘cheap’. Customers wanted an affordable car bur did not want to be seen in a cheap one.

That however is history. Tata Motors Passenger cars has emerged a major player in the segment and an undisputed leader in the EV category. The acquisition global brands like Bentley and Landover further strengthened this portfolio.

From Steel to Stars: Ratan Tata's Cosmic Journey

The path of transformation was long and rocky. From dealing with satraps who dominated and ran their individual group companies as their kingdoms to battel with long-term ally and friend the Shapoorji Group. It has not been accolades all the way. Ratan Tata has had his share of brickbats too. The Tata Group revenues today stand at $ 165 Billion from $4 billion in 1991 when Ratan Tata inherited the group. Ratan Tata is much more that the revenue growth of the group. It is his vision and the pursuit of that vision to create value to the society at large will be labeled has his greatest contribution. And of course – The Tata Group Does Not Make Just Steel.