In the history of Indian Entrepreneurship success story of Ratan Tata will keep Inspiring millions, Net worth of Ratan Tata is one of mostly searched question in google and it is also unanswered why Ratan Tata Net worth is not in top 10 among Indian Billionaires.
Ratan Tata was born on December 28, 1937, in Surat, Gujrat, his parents were Naval Tata and Sonoo. Ratan Tata has a younger brother by name Jimmy, When he was just ten years old his parents got separated then his brother jimmy was just seven, their grandmother Lady Navajbai Tata raised both the kids.Naval Tata later married to Simone Tata and Ratan Tata also has astep brother named Noel Tata.
Ratan Tata started his preliminary education at Campion School and continued his education at Cathedral school and finished his schooling at John Connon School. After finishing his schooling Ratan Tata went to study B.S in Cornell University where he completed his graduation degree in 1962 with structural engineering as specialization. After Completion of his graduation Ratan Tata went to Harvard Business School for Advanced Management Program and he graduated in 1975.
Though Graduated from Harvard and had passion towards Cars, Ratan Tata was not allowed to work outside the Tata group ( he had an offer from IBM) eventually he had to start his career in 1962, Ratan Tata Joined Tata Steels at Jamshedpur as a normal employee.
Ratan Tata became Director of National Radio and Electronics(Nelco) in 1971, Nelco was in poor state when Ratan stepped in as it was having 40% of loss and Nelco owned only 2% of shares in Consumer electronics market.
Ratan Tata took the assignment as a challenge and worked for building a better consumer electronics division a 2% market share to a 25% market share but due to economic recession and regular union strikes Nelco nearly reached stage of Collapse.
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In 1977,Ratan Tata was sent to Empress Mills, which was a struggling textile mill in Tata Groups called Express Mill, He proposed an Innovative plan but he was refused Rs 50 lakh (Rs 5 million) investment which was required for rejuvenation of the mill, as other Tata executives did not approve the suggestions of Ratan Tata and eventually the mill had to shut down.
Ratan Tata- Chairman of Tata Group
The year 1991 changed life of Ratan Tata and Tata Group as JRD Tata stepped down as Chairman of Tata group. He faced a lot of criticism from the Tata group as he had moved directly to the head of queue for eventual leadership of the entire Tata Group.
In the year 1991, the country’s Economy took a new turn as New Economic Policy was Introduced in the Country with focus on LPG ( Liberalization, Privatization and Globalization) which opened flood gates of investments.
Ratan Tata took this as an opportunity and removed all old Plans made during JRD Tata in 1983 and Implemented new Ideas and Plans which matches new economic policy which focussed on Technology and Global competitiveness.
When Ratan took over Tata Group had 3 Cement Manufacturing Companies, 5 Pharma Companies and 9 IT companies. Ratan Tata decided to sell all the companies which were of no use he sold Tomco and slowly sold Pharma, textiles and cements and he decided to get McKinsey on board to help with the reorganisation.
In 1998, he decided to have a single group logo and the Tata brand belonged to Tata Sons and ensured that companies needed to sign brand equity and business promotion agreements with Tata Sons before they got use of the brand name.
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Ratan Tata Journey
- 1937 Born in Mumbai on Dec 28.
- 1962 Completes BSc in architecture from Cornell University.
- 1962 Joins Tata Group.
- 1971 Appointed Director of The National Radio & Electronics (Nelco).
- 1974 Becomes a Director in Tata Sons.
- 1975 Completes management programme from Harvard Business School.
- 1977 Given charge of Empress Mills.
- 1981 Named Chairman of Tata Industries.
- 1984 Sale of Tomco
- 1991 Takes over as group chairman from JRD Tata.
Ratan Tata net worth
Ratan Tata net worth is not completely depended on the net worth of Tata as all 96 Public Listed companies of Tata groups are owned by the Tata sons and not Ratan Tata, hence the Net wort of Ratan Tata will not be same as net worth of Tata Group.
The 65% of Tata Son’s capital is owned by various philanthropic organization of Tata groups like Sir Dorabjee Tata Trust, JRD TATA Trust & Sir Ratan Tata Trust which is the key holding company of 96 Tata Groups.
Ratan Tata net worth is dependent on 0.83% of Shares owned by him in Tata Sons, It is estimated that Ratan Tata’s Net worth Today is about $1 Billion. Had he owned all 65% of Tata son’s Share Ratan Tata’s Net worth Would have been around USD 70 Billion.
Award and Recognition
Ratan Tata is the Program Board Member of Bill and Melinda Gates Foundation’s India aids initiative. He was the member of the Prime Minister’s Council on Trade and Industry. He has won several awards including Padma Bhushan in 2000 the Honorary Economic Advisor (2004), Honorary Citizen of Singapore (2007), Padma Vibhushan in 2008 ,Honorary Doctor of Laws (2010). He was awarded Lifetime Achievement Award by Rockefeller Foundation in 2012.
He also holds the membership of the international advisory board of the Mitsubishi Cooperation, the American International Group, JP Morgan Chase and Booze Allen Hamilton.
The other notable awards received globally are Foreign Associate by National Academy of Engineering, Sayaji Ratna Award by Baroda Management Association, Hadrian Award by World Monument Fund, Honorary Doctorate by University of Amsterdam, Inspired Leadership Award by The Performance Theatre, Honorary Doctor of Business Administration from Ohio State University.