Ratan Tata's boardroom battles: Veteran industrialist Ratan Naval Tata died late on October 9 at Mumbai’s Breach Candy Hospital, leaving behind a legacy that far exceeds his immensely successful business empire.
Tata, who remained a bachelor, is survived by a brother, Jimmy Tata, and two half-sisters from his mother’s side. He also has a half-brother, Noel Tata, who is the chair of Trent.
Ratan Tata joined the family firm after acquiring a B.S. in architecture from Cornell University, Ithaca, New York, in 1962. He initially worked on the shop floor, gaining experience in a number of Tata Group businesses before being named director in charge of one of them, the National Radio and Electronics Co., in 1971.
Tata assumed leadership in 1991 after his predecessor, JRD Tata, passed away in Switzerland. By coincidence or destiny, his taking over the Tata Group coincided with the opening up of India’s economy in 1990. The resulting economic reforms brought liberalisation and global investment into the country.
The businessman inherited one of India’s oldest conglomerates and rapidly expanded the 156-year-old business house. It now has operations in more than 100 countries and clocked $165 billion in revenue for the year ended March 2024.
In 2008, Tata was given the country’s second-highest civilian award, the Padma Vibhushan.
Tata found himself at the centre of intense battles for control of the conglomerate not once but twice in his career. Tata won both.
The first battle, when he took over as chairman in 1991, pitted him against long-time executives who had been running "fiefdoms" under his predecessor. Thus, within six years of taking over, Tata reorganised the then $5.9 billion revenue group, including sacking maverick leaders including Russi Modi of Tata Steel, Darbari Seth at Tata Chemicals, and Ajit Kelkar of Indian Hotels Co.
The second, in 2016 — four years after his retirement — was about preserving his legacy as Cyrus Mistry, former Chair of Tata Sons, sought to reduce debt. Tata had helmed the group for 21 years and named Mistry to be his successor in 2012, but the latter was sacked on October 24, 2016 in an acrimonious boardroom coup.
The battle led to a public spat with the Shapoorji Pallonji family, which owns 18 per cent of Tata Sons and has had a 70-year partnership with the Tatas. In 2020, Mistry’s family signalled its intent to sell an 18% stake in Tata Sons.
Tata then returned as interim chairman of the conglomerate before handing over the baton to Natarajan Chandrasekaran in January 2017 and moving to his role of chairman emeritus of Tata Sons. N Chandrasekaran remains at the helm of Tata Sons, to date.
(With inputs from Agencies)
