A Tribute to Ratan Tata

Ratan Tata, one of India's most respected business leaders is no more.

He died at a hospital yesterday in Mumbai, India.

As the news of his demise spread, condolences and tributes started flowing in from all across India as well as the rest of the world.

Here's what India's Prime Minister Narendra Modi said -

• He provided stable leadership to one of India's oldest and most prestigious business houses. At the same time, his contribution went far beyond the boardroom. He endeared himself to several people thanks to his humility, kindness and an unwavering commitment to making our society better.

Modi expressed his condolences and called him "a visionary business leader, a compassionate soul and an extraordinary human being".

While Ramesh Damani could not have put it any better -

• He was the conscience keeper for India Inc.

Undoubtedly, Ratan Tata was one of the most-fierce competitors that we've seen in our lifetime.

Tata received the Padma Bhushan, one of India's most distinguished civilian awards, early in 2000 and later the Padma Vibhushan in 2008. But that isn't the full story of the champion. Ratan Tata was so much more.

He was a brother, a friend, and a hero to so many people around the world. The kid from Bombay grew from a bachelor's degree in architecture to a star who was largely responsible for taking the Tata group to a global business.

Ratan Tata's 'Go Global' Strategy

When it comes to globalisation by Indian companies, the Tata Group is the first name that springs to mind.

All thanks to Ratan Tata.

Right from humble beginnings when Jamsetji Nusserwanji Tata started his business career in 1868 trading with China, the Tata group has always had a global outlook. But it was Ratan Tata who took the Tata group truly global, in turn, creating an international empire.

As early as 1983, when JRD Tata, his predecessor asked him to draw up a blue print for the future, Ratan Tata recommended the group seek growth internationally. He wanted to restructure the group to address the global opportunities.

Ratan Tata's appointment as chairman of the Tata group in 1991 coincided with the year when India launched economic reforms.

At a time, globalisation was a new concept in India. Ratan Tata took the lead not only in big acquisitions but also in changing the mindset of India's top business leaders.

Beginning with Tata Tea's acquisition of Tetley in 2000, Tata went on a shopping spree acquiring as many as 36 companies in just 9 years.

Among them, the most noteworthy and possibly controversial acquisitions till date have been the Tetley acquisition by Tata Tea, Tata Steel's takeover of Anglo-Dutch steel maker Corus, and the British automobile marquee Jaguar and Land Rover by Tata Motors.

Some problems did emerge later on and worsened more as Brexit and trade wars escalated, while Europe's steel industry never fully rebounded from the 2008 financial crisis.

Tata was criticised by analysts to pull back and refocus on India, where rising incomes, consumption, and internet use, among 1.4 billion people, made Europe look comparatively less promising.

For more discussion on whether Ratan Tata's 'Go Global' strategy being right or wrong, check out this editorial.

Ratan Tata's Personal Investments

Now, let's look at some of his personal investments and what we could take away from his investing philosophy...

# Ola

Back in 2015, Ratan Tata invested an undisclosed amount in Ola's parent company, ANI Technologies in the Series F round. At the time, the company raised US$ 500 million in funding to diversify its business. It wanted to be more than just a ride hailing app.

Today the company operates in other business verticals including financial services and cloud kitchens. It also has an electric mobility business, Ola Electric.

Speaking on his investment, Mr. Tata, said,

• The electric vehicle ecosystem is evolving dramatically every day, and I believe Ola Electric will play a key role in its growth and development. I have always admired the vision of Bhavish Aggarwal and I'm confident that this will be part of yet another important strategic move into this new business area.

# FirstCry

In 2016, Ratan Tata had invested an undisclosed amount in his personal capacity into Brainbees Solutions, which owns the FirstCry.com.

His investment in the company was a great vote of confidence in the ecommerce space and especially in the baby and maternity products ecosystem.

The company has now outgrown its competitors to become the dominant driver in this space across mobile, online & offline channels. It's also on the definitive path to profitability.

For more on Ratan Tata's investments and what you can learn as an investors, check out Ayesha Shetty's editorial on Ratan Tata's top 5 personal investments.

Few Ratan Tata Quotes that Have Stuck with Us Over the Years...

1. "I don't believe in work-life balance. I believe in work-life integration. Make your work and life meaningful and fulfilling, and they will complement each other."
2. "Take the stones people throw at you and use them to build a monument."
3. "Ups and downs in life are very important to keep us going because a straight line even in an ECG means we are not alive."
4. "I don't believe in leaving things to luck. I believe in hard work and preparation."
5. "Never compromise on your values and principles, even if it's the hard way."
6. "If you want to walk fast, walk alone. If you want to walk far, walk with others."
7. "Success is not measured by the position you hold, but by the impact you have on others."
8. "Your competition is not other people but the time you kill, the ill will you create, the knowledge you neglect to learn, the connections you fail to build, the health you sacrifice along the path, your inability to generate ideas, the people around you who don't support and love your efforts, and whatever god you curse for your bad luck."
9. "I will certainly not sell my stake in Tata Motors and Tata Steel, and never have, no matter how much I was criticised."
10. "What I would like to do is to leave behind a sustainable entity of a set of companies that operate in an exemplary manner in terms of ethics, values and continue what our ancestors left behind."

At Home Around the World

In 2004, Ratan Tata, then Chairman of Tata Sons, summed up the Tata group's efforts to internationalise its operations thus:

• "I hope that a hundred years from now we will spread our wings far beyond India, that we become a global group, operating in many countries, an Indian business conglomerate that is at home in the world, carrying the same sense of trust that we do today."

It seems his vision has come true already. The revenue of Tata companies taken together for FY24 has soared to new peaks.

These companies collectively employ 826,474 people in more than 100 countries.

In 2024, Tata Group stocks have demonstrated a growing trend and recently surpassed the combined market capitalisation of Rs 300 billion (bn) for the first time.

The group has taken significant leaps towards the electric vehicle sector, semiconductors, renewable energy and what not - take any emerging sector or a high growth industry and Tata will be there.

The conglomerate's long-standing presence, trusted brand image, and commitment to excellence has made it a preferred choice among investors as well.

The group has big goals for its upcoming stage of development. With a renewed emphasis on India, the group is planning to devote over 80% of its capital expenditures to local businesses over the next five years.

It includes Tata Power's plan to spend over US$ 10 bn over the next five years in renewable energy, a US$ 5 bn project to build Giga factories and its investments in electronics. The group also intends to make 5G telecom gear and is also beefing up its play in the semiconductor space.

The Tata group's aviation business (Air India, Air India Express, Tata SIA Airlines (Vistara) and AIX Connect) has also narrowed losses in FY24.

If you want to dig deeper, use Equitymaster's stock screener which has a separate section for the best Tata group companies.

In conclusion... Ratan Tata had the necessary vision to understand what Anand Mahindra meant when he said, 'You are not safe at home unless you are globally competitive'.

He set out to do so with regard to most of the businesses and was quite successful at it.

We need leaders like Mr Ratan Tata for India to grow from here. As he once said -

"I am proud of my country. But we need to unite to make a unified India, free of communalism and casteism. We need to build India into a land of equal opportunity for all. We can be a truly great nation if we set our sights high and deliver to the people the fruits of continued growth, prosperity and equal opportunity."

Ratan Tata put it best when he said,

"Be a person of integrity, and always do what is right, even when it is difficult." There is only one reason why people, regardless of their investing allegiances, loved Ratan Tata - his pursuit of greatness knew no boundaries.

RIP to one of the greatest to ever live! Thank you for blessing the world with your generosity and kindness... an entire generation of humans are better off because of it.

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