Lessons from the life of a nation-builder

When we think of the Tata Group, what comes to mind is more of an institution rather than a faceless conglomerate or corporation. A lot of this is thanks to Ratan Tata who served as chairman of the Tata Group for more than two decades. On 9th October 2024, he breathed his last, leaving a legacy that will continue to live on and be felt not only across India but the world.

One would be tempted to think he was always an obvious successor, but this was far from the case. In 1962, a 24-year old Ratan Tata returned from his education abroad, and started out on the factory floor of TELCO, heaping limestone into a blazing blast furnace with his fellow workers. His initial years involved being shunted across various arms of the business group. “I thought they were testing me to see if I would throw in the towel,” he said of the time. Eventually, under his leadership, the Tata Group forged paths in a wide range of sectors from telecommunications to software services and retail.

He was a leader known not just for his success on the business front but also for his character. In this blog, let's take a look at some of the lessons that his life has to offer.

Being ahead of the curve

Ratan Tata understood that not being able to guess where the world was headed next meant being left behind. He demonstrated an almost intuitive ability to predict technological and market trends, such as investing in e-commerce platforms and digital payment companies in the early days of the digital shift in India.

This is evident even in one of his earliest launches, which was Tata Salt. Until 1983, salt was being sold as an unpackaged commodity in India. He knew the potential of a branded alternative both in terms of commercial impact and how it could raise the bar for quality and standardization in the space. It transformed how Indians viewed and consumed salt.

His realization that Tata companies needed to venture beyond India spurred Tata Consultancy Services to foray into international markets. It was a decision that paid off handsomely, making TCS one of India's first global IT leaders. Today, TCS has both offices and subsidiaries in 50+ countries globally, whereas domestically, it is one of India's biggest employers in the private sector. Naturally, TCS has played a big role in India's reputation as an IT giant.

In 2014, he launched the Tata Sustainability Group at a time when sustainability was not yet a trend that had conquered the corporate world. The initiative helped cement Tata's commitment to environmentally conscious business practices and reduced the carbon footprint of the businesses. It entailed significant investments in renewable energy, community development programs, and green technologies.

An appetite for innovation and risk-taking 

He boldly led Tata Motors (previously known as TELCO) into the passenger car manufacturing game despite the considerable technological expertise it required. It wasn't smooth sailing for the company. Eventually, in 1999, the company even considered a move to sell the passenger car division to Ford. During the meeting, however, certain unflattering remarks about Tata's inexperience in car manufacturing led him to rethink the decision. Soon afterwards, vindication arrived in the form of the Indica, India's first locally designed and developed car. Its grand triumph heralded success for the car division. A decade later, Tata Motors was successful enough to purchase Jaguar Land Rover from a flailing Ford.

He greenlit the building of EKA which was India's first supercomputer. It was a project that required significant investments and faith but as someone who prizes innovation, he realized its potential. Tata Advanced Systems (TASL) was another initiative he championed that helped amplify India's prowess in terms of aerospace capabilities as well as defense.

A chapter that encapsulates many of his traits — risk-taking, grit, ambition, persistence, etc. — was the Tata Nano. When first announced, the idea of the 'world's cheapest car' priced at 1 lakh rupees ($2,500) almost seemed like a laughable idea, an impossible task.

It was a noble idea but for the R&D teams at Tata Motors, it sparked a massive engineering challenge that called for new methods of automotive production. It needed to marry cost-effective materials and intelligent, lightweight design without compromising on safety.

Proving naysayers wrong and turning failure into success

Frugal innovation, a low-cost manufacturing process, a reimagined automotive plant, supply chain tweaks – these were just a few of the numerous factors that had to come together for the Tata Nano to become a reality.

In 2008, when many doubted whether it would see the light of day, the Tata Nano rolled out of factory floors and into showrooms. Something like the Nano had never been done before in the world of passenger cars. Unfortunately, it was not the commercial success that the company expected with its ultra-low pricing. But was the Nano ultimately a failure for the company?

In isolation, it may appear so, but it's hard to claim that it was a failure given the technological learning it provided the company. The R&D breakthroughs that happened over the course of its production became huge assets for Tata Motors in the long run. They have helped the company improve the sustainability of its production practices as well as apply them in the development of electric cars such as the Nexon. This has helped Tata become one of the pioneers in the electric vehicle space in India.

Thinking of the big picture 

For Ratan Tata, business wasn't just about profit-generating enterprises. It was also a way of improving the nation and the lives of those around him. He has ensured that substantial portions of the profits of the Tata Group go into initiatives that further social welfare. By launching or supporting initiatives across areas such as healthcare, education, and rural development, he has been able to touch millions of lives.

The idea for the Tata Nano germinated with an observation. “I remember seeing a family of four on a motorbike in the heavy Bombay rain — I knew I wanted to do more for these families who were risking their lives for lack of an alternative."

In 2019, he launched the Tata Swach, a water purifier that was designed to be affordable for lower income households, enabling access to clean water for millions of Indians. It is a case of R&D where the needs of the nation and the profit motive coincide.

He also strived to make quality healthcare affordable for the masses with Tata Medical Center. In his own words, "Our vision for Tata Medical Center was an institution that would offer highest quality cancer treatment laced with compassion and kindness. An institution which will not differentiate between the poor and the affluent when it comes to delivering care. It’s a matter of immense pride that TMC today is among the best life-giving and lifesaving institutions in India with an endeavor to provide this treatment at affordable costs."

Thinking beyond the bottomline 

When values and convictions drive business rather than purely profit-oriented motives, it fuels the human spirit in a way that monetary incentives rarely can. When a business has strong underlying value systems, it permeates across the organization in big and small ways. Instead of clocking in and clocking out mechanically, employees look to build things of value for others. This is how a leader can step in and elevate what work means for everyone.

Ratan Tata was that kind of leader. Despite being born into the lap of luxury and wealth, into one of India's biggest business empires, he exemplified humility with his words and actions. He displayed ambition that was untethered by material or superficial fixations. He showed courage in the face of adversity, and the gumption to follow through on promises, no matter how hard they were to keep or how much he had to sacrifice. He dreamed big but his dreams were not just for him; he dreamed for his country and especially for those who are voiceless and helpless. While he may be gone, his legacy lives on not only in the companies that bear his name but businesses across India and the world, and in the hearts of millions of ordinary people who were inspired by the example he set.

"The greatest pleasure I've had is trying to do something, everybody says 'could not be done.'"- Ratan Tata

 

Image attribution: Hraxx, CC BY-SA 4.0, https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons