RATAN TATA
When Ratan Tata was annointed as successor to the legendary Jamshedji rustomji D Tata, many eyebrows were raised for JRD believed in professional management and had deputies in the stature of Russi Modi, Dadi Seth, Dr Kohli et all were running their fiefdoms TISCO, Tata Chemicals, Voltas, TCS and a clutch of other companies admirably well. most of Tata's lieutenant were also Parsis and Russi Modi was the forerunner. Ratan had a wider role for him and he sought removal of all ageing chieftans and never hesitated to even kick Modi out of Tata Steel when Modi thought the empire was his.
Tata infact was a man in a hurry. His early attempts to make cars through Tata Estate and sierra were disasters but they did not in way diminish his enthusiam. thus Tata Motors rolled out first Indigenous Passenger Car Indica which became a runaway success just after his SUV Tata Sumo surprised the market. Later on Tata was to build his empire as a true multinational. but in the bargain, some of the principles were given a go bye.
Tata wanted to avoid take over threats because Tata Sons, the holding company of all Tata group Companies was having hardly 5-10% share capital whereas Public Financial institutions were the major shareholders. To increase the shareholding by a mere 5% Tata required to have more than 5000 crores due to the SEBI mandated pricing for preferential allotments. Tata found ingenious means of raising capital. He charged all the Companies to pay royalty for using Tata name which accrured to Tata sons. He disposed a small fraction of Tata sons holding in TCS to make it Public and charged a hefty premium of 1000 times over the face value to used this booty to increase his share holding. Later on when Tata acquired state run VSNL for a song- Tata paid hardly 1200 crores for a majority stake ina Company which had liquid cash balance of Rs.1400 crores. This money was sought to be advanced to Tatatele services which was later dropped due to adverse attention it created His spat with Mamta over his Nano project which has hidden State subsides are legendary. He has collected a cool 1000 crores as deposits all interest free for his Nano car.
Tata was in the limelight for his advocacy to relieve Du Pont from criminal liabilities arising out of the acquisiton of Union Carbide. Tata said he could take up the task of rehabilitation of the people affected byBhopal Gas tragedy.
Well even now I have a lot of respect of this man,. Ratan Tata has provided revolutionary leadership but I am sure his chosen successor Noel Tata may find it extremely difficult to liveup to the expectations. That is why Ratan who declared that he will retire when he attains 65 still continues to be heading the Tata empire even after 70 plus.
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