- By Aditya Pratap Singh
- Thu, 10 Oct 2024 10:06 AM (IST)
- Source:JND
Ratan Naval Tata business tycoon: Tata Group's current turnover is $165 billion, but in 1991, when Ratan Tata took over, its annual turnover was $4 billion. Ratan Tata lifted the valuation of to $100 billion in his leadership and left the group. It was a historic moment for both India's economy and Tata Group as the conglomerate was the first Indian business group to achieve such a valuation. Ratan Tata joined the group in 1962 as an assistant at Tata Industries but became the chairman only in March 1991. Back then, the group was dominated by senior executives, he removed these executives and concentrated power in the group's headquarters, Bombay House.
Ratan Tata took advantage of opportunities and risks
India's economic liberalization began when Ratan Tata took over the group in 1991. He took advantage of this moment with both hands, however, the time was yielding a bunch of opportunities but there was a bit of risk too, which also included the emergence of competitive markets after the end of the license Raj. Now, he had to deal with some global giant as well as the Indian market was opening for all.
Tata had to withdraw from these sectors
According to a TOI report, Tata took bold decisions such as selling underperforming sectors like cement, textiles, cosmetics and pharmaceuticals, doubling down on existing businesses like software and steel, and entering new sectors like telecom, passenger cars, insurance, finance, retail and aviation. He partnered with international giants like Cummins, AIA and Starbucks, which helped the group manufacture automotive engines, sell insurance, and offer coffee from Kargil to Kochi.
The begun of Ratan Tata era (1991-2012)
Under Ratan Tata's leadership, the Tata Group expanded its business internationally. He acquired several global companies.
Corus Steel (2007) Tata Steel acquired British company Corus, making it one of the world's largest steel manufacturers. Jaguar and Land Rover (2008) Tata Motors acquired Jaguar and Land Rover, making it a major player in the global automobile industry.
Tata Nano During Ratan Tata's tenure, Tata Nano was launched, known as the world's cheapest car.
Entry into the Tea and Coffee Industry Tata acquired the prestigious Tetley Tea of Britain and Eight O'Clock Coffee of America, giving birth to Tata Global Beverages.
Ratan Tata's journey with the group was not without challenges. In the late nineties, Tata Consumer ran into trouble when ULFA militants targeted its tea plantations for funding. This created turmoil in the company. Apart from this, the launch of the Indica car in 1998 led to Tata Motors incurring a loss of Rs 500 crore in the financial year 2000. This dissatisfied the shareholders and Tata offered to resign from the post of chairman.