Indian industrialist Ratan Tata retires on his 75th birthday this week, handing over the reins of his sprawling business empire after decades at the top of the country’s turbulent corporate world.
Tata has been credited with transforming the Tata Group into a streamlined conglomerate of more than 100 companies and earning a global reputation for eye-catching purchases of Western firms.
With a portfolio ranging from salt and software to tea and telecoms, Tata is India’s largest group, and new boss Cyrus Mistry faces a challenge as the first chariman appointed from outside the immediate Tata family in its 144-year history.
“I have devoted my life, as best I could, to the welfare of the group,” Tata said ahead of his retirement on Friday.
The highly-respected, media-shy mogul, who spent 50 years with the company, is likely to mark his last day at the helm in the unassuming manner in which he took over from his uncle J.R.D. Tata in 1991.
That same year saw India unleash radical free-market reforms that transformed the country’s economy and Tata took full advantage.
“Ratan Tata came with zilch expectations and in an environment where the group was headed by people who thought they could perhaps ‘manage’ him,” financial consultant R. Balakrishnan said.
“The transition today is amazing,” Balakrishnan told reporters.
Tata companies include India’s largest IT firm, the biggest vehicle maker and a ritzy hotel chain.
In one of the group’s most successful moves, Tata Motors turned around the fortunes of loss-making British luxury brands Jaguar and Land Rover just a year after buying them from Ford Motors for US$2.3 billion in 2008.
Jaguar Land Rover now contributes nearly 80 percent of Tata Motors’ earnings and the deal has vaulted the Tata firm from a commercial vehicle and small-car maker into a global player.
Tata Consultancy Services (TCS) went public in 1994 under Ratan Tata’s leadership when investors were unsure about the future of technology stocks. It is currently growing faster than rivals Infosys Technologies Ltd and Wipro Technologies Ltd.
Tata is exiting with the group’s total combined sales at US$100 billion in 2011 to 2012, nearly 60 percent of which came from business outside India, mainly the US and UK.
“His reign has been outstanding,” fellow industrialist Rahul Bajaj said.
However, Tata could not escape controversy: He was one of the business leaders questioned last year by an Indian parliamentary watchdog probing a multi billion-dollar telecoms licensing scam that rocked the government.
India’s Federal Police Agency later cleared the Tata group of any wrongdoing.
Mistry, the current vice-chairman, was announced as Tata’s successor more than a year ago, and Tata has said the group will be “in the hands of somebody who understands the business environment better” than he did.
The pair, both from India’s tight-knit Zoroastrian community of Parsis, do have a family connection: Mistry’s sister is married to Tata’s younger half-brother Noel, who was initially tipped to be the group’s next chairman.
Mistry, who has not spoken to the media since being appointed, is the son of Pallonji Mistry, whose construction firm Shapoorji Pallonji is the biggest shareholder of the group’s main holding company Tata Sons Ltd.
Educated at London’s Imperial College and the London Business School, the new chairman takes charge when some of Tata’s senior management are also heading into retirement.