Ummid Assistant

Applications open for Manmohan scholarship at Cambridge

IIM-Trichy to offer short courses too at Chennai centre

Welcome Guest! You are here: Home » Business & Economy

Ratan Tata's legacy, Cyrus Mistry's challenge

Thursday December 27, 2012 01:04:32 PM, Gyanendra Kumar Keshri, Rohit Vaid, IANS

Related articles

Cyrus Mistry to succeed Ratan Tata

Cyrus Mistry will be the new chairman of the $71 billion Tata Group, succeeding incumbent Ratan Tata who retires next year, Tatas announced Wednesday  »

Cyrus Mistry feels 'honoured'

New Delhi: As Ratan Tata steps down as chairman of India's largest industrial house Friday, he leaves behind for his successor at Bombay House, Cyrus Mistry, not just a $100-billion empire he helped grow 13-fold in the 21 years at its helm but also a legacy that earned him wide praise as an able corporate leader with values.

Tata joined Tata Group as an apprentice on the shop floor of Tata Steel's Jamshedpur plant in 1962. He took over the top job in 1991, succeeding uncle JRD Tata, at a crucial time when India began its market liberalisation programme and his peers at the "Bombay Group" argued against it and sought a level-playing field for their businesses.

In the more than two decades at the helm, the Cornell-educated Tata not only consolidated the group's business in domestic markets but also expanded it globally, acquiring assets, diversifying businesses and forging new linkages.

In recent years, he conceived and presented to the world the smallest car "Nano". Much before that, in 2008, the Government of India honoured him with its second-highest civilian award, the Padma Vibhushan.

"Ratan has built very adroitly on the grand foundations built by his predecessors, especially JRD. He has not only nurtured the Tata DNA but reshaped it for the new age," Says Bajaj Group chairman Rahul Bajaj.

"The very fact that he is retiring at 75 speaks volumes of his commitment to managing the Tata companies through values," Bajaj added.

Tata Group's market capitalisation, which has some 30-odd listed companies, is now nearly Rs.4.54 trillion ($825 billion), 33 times more than in 1991 when Tata took over the top job. During this period, the group's aggregate sales have increased 43 times, while net profit has grown 51 times.

Tata Group's global expansion started in 2000 with the acquisition of Britain's largest tea firm, Tetley, by Tata Tea, now called Tata Global Beverages.

Since then Tata Group has made several big-ticket global acquisitions, including the purchase of Anglo-Dutch steel maker Corus Group. Tata Steel also acquired Europe's second largest steel maker Corus in 2007 for $12 billion. The company is now called Tata Steel Europe.

Another big acquisition was of iconic British auto makers Jaguar and Land Rover by Tata Motors.

The Group under Tata's leadership also made serveral other acquisitions in the global and domestic markets.

These include acquisition of controlling stake in government-run Videsh Sanchar Nigam Ltd (VSNL) by Tata Sons, purchase of heavy vehicles unit of Daewoo Motors in South Korea by Tata Motors, acquisition of Singapore's NatSteel by Tata Steel and purchase of New York-based The Pierre hotel by Indian Hotels Company.

According to those following the Tata Sons story, it was to Ratan Tata's credit that the group entered new businesses like telecommunications, finance and retail and increased focus on information technology and renewable energy.

At the same time the Group, they add, he led the exit from sectors like cement, textiles and cosmetics, while embarking on new areas. Today, as a result of that, the Tata empire has in its fold the most profitable company in the information technology busines -- Tata Consultancy Services.

Godrej Group chairman Adi Godrej said Ratan Tata leveraged the strength of TCS and Tata Motors while getting out of businesses such as Tata Oil mills and Lakme which were not a strategic fit.

"His clarity of thought and vision for the group has shone through remarkably," said Godrej, who is also the head of industry lobby Confederation of Indian Industry.

Ratan Tata is retiring from the Tata Group's top job as he turns 75, a rule he himself framed. He, however, will remain as chairman emeritus of Tata Sons. Cyrus Pallonji Mistry, 44, who was selected by a panel of eminent people, succeeds him.

Mistry will be the sixth chairman of Tata Group in its 144-year history and only second who does not carry the "Tata" surname. Other people who held the position of chairman of the Tata Group, apart from Ratan Tata, are: Jamsetji Nusserwanji Tata, Sir Dorab Tata, Sir Nowroji Saklatwala and J.R.D. Tata.

Ratan Tata's departure from the iconic Bombay House in downtown Mumbai marks the end of an era in which India looked outward and its business went global.
 


(Gyanendra Kumar Keshri and Rohit Vaid can be reached at biz@ians.in)

 



 

 


 





 

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

I

More Headlines

Miffed Jayalalithaa walks out of NDC meet

Gang rape: What is going wrong with Indian society?

Tea garden owner, wife burnt alive in Assam

Yeddyurappa decision Jan 4 on bringing down BJP ministry

President prorogues parliament

UN voices concern over situation of Muslims in Myanmar

Streets to Tweets: Social media topped India's tech trends

Gay marriage plan undemocratic: Britain's top Catholic priest

Govt to sell 12.5 percent stake in Rashtriya Chemicals and Fertilisers

 

Top Stories

Gangrape victim flown to Singapore for treatment

The 23-year-old grievously injured gangrape victim was late Wednesday night flown out of India for treatment in Singapore, even as  »

Constable's death: Delhi Police fail to provide evidence

Row over dead constable, witnesses say he wasn't hit

Woman judge to probe Delhi gang-rape case

 

  Most Read

Government to sell 12.5 percent stake in Rashtriya Chemicals and Fertilisers

The government Wednesday decided to sell 12.5 percent of its stake in Rashtriya Chemicals and Fertilizers (RCF) Limited to help meet the Rs.30,000 crore   »

No breakthrough likely at all-party meet on Telangana

Notwithstanding the high expectations that a section of Congress leaders have, the all-party meeting convened by the central government over the Telangana issue Dec 28 is not likely to achieve any breakthrough in finding a solution to the contentious issue. With just two days to go for the  »

 

  News Pick

Al-Aqsa Mosque complex stormed by Jewish settlers

Sheikh Azzam Al-Khatib, the head of Islamic Waqf department in occupied Jerusalem, said that 14 settlers entered the complex through the Al-Magharebah gate and started provoking the Muslim  »

Uttar Pradesh BJP wooing Narendra Modi?

While the hoardings carry the names of various local and state unit leaders, the appearance of Modi in them set off speculation that the party may be accepting that Modi was its best bet for Lok Sabha 2014. The hoardings, outside  »

Two dead in communal clashes in North Maharashtra town

Two persons belonging to different communities have been reported killed and scores including some policemen are injured in a communal violence that erupted Monday evening in Raver - a North Maharashtra town some 60 kms from here. Police have imposed curfew and the situation  »

T20: Pakistan beat India by five wickets

Pakistan beat India by five wickets in the first of the two Twenty20 Internationals at the  »

Bangalore warms up for India-Pakistan T20 Christmas party

 

Picture of the Day

Artists performing dance drama based on the ‘Geetgovindam’, by Shri Jayadev, at the inauguration of the 60th Annual Arts Festival, at Kalakshetra, Chennai on December 21, 2012.

 

Recommend the story to your friends

 

 
 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Science & Technology

RSS

Scholarships

About us

International

Health

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

The Funny Side

Education & Career

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2012 Awaz Multimedia & Publications. All rights reserved.