The Future of Tata Group: Who Will Succeed Ratan Tata?
Tata Group has had one of the most prestigious and large business conglomerates in India for over more than 150 years. Ratan Tata himself, the present Chairman Emeritus of Tata Sons, had played a very vital role in building this group up into a global brand. Much speculation is currently made about who the next successor will be and who is going to replace this giant of a businessman with Ratan Tata's advanced age. This paper will delve into who is in line for this position, how the Tata Group has evolved over time, the criteria for the successor of Ratan Tata, and who the potential candidates are.
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The Line of Tata Group Chairpersons
The Tata Group was founded by Jamsetji Tata in 1868. Thereafter, the house-enterprise went on to take successive distinguished leaders through manifold phases of growth and transformation:
1. Jamsetji Tata, 1868-1904: He was the founder of Tata Group and thus laid the foundation of its diversification into different fields like textiles, iron, and steels, and hospitality.
2. Sir Dorabji Tata (1904-1932): The son, Dorabji, succeeded Jamsetji and extended the entity's reach to power generation and insurance.
3. Nowroji Saklatwala (1932-1938): He continued diversification and expansion till it emerged under his leadership as one of the foremost business houses in India.
4. J.R.D. Tata (1938-1991): He was the astute leader, and under his initiative, uninterruptedly, more than five decades of building on innovation and social welfare were continued. It was under his initiative that Tata Airlines came into being, later turned into Air India.
5. Ratan Tata (1991-2012): Took over as chairman in 1991 and he took the group onto the global platform. He was at the center of some high-profile acquisitions. The Tata Group was founded in 1868 by Jamsetji Tata. Thereafter, successive distinguished leaders have led the enterprise through manifold phases of growth and transformation:
1. Jamsetji Tata, 1868-1904: He was the founder of the Tata Group. He laid the foundation for its diversification in such sectors as textiles and steel, hospitality
2. Sir Dorabji Tata (1904-1932): The son, Dorabji, succeeded Jamsetji and further diversified the entity's reach to power generation and insurance.
3. Nowroji Saklatwala (1932-1938): The process of diversification and expansion was further carried on by him, till it emerged under his stewardship as one of India's leading business houses.
4. J.R.D. Tata (1938-1991): He was a far-sighted leader, and the group remained unbroken in his regime for more than five decades, focusing upon innovation and social responsibility. It was at his behest that Tata Airlines was formed, later becoming Air India.
5. Ratan Tata (1991-2012): Ratan Tata took over as chairman in 1991 and further pushed the group higher on the global platform. He was at the center of some high-profile acquisitions involving Tetley, Corus, and Jaguar Land Rover.
6. Cyrus Mistry (2012-2016): The first in the line outside the Tata family to assume the top position of the group, his tenure had been marked by consolidation and streamlining of operations, but it ended abruptly due to differences with the board.
7. N. Chandrasekaran (2017-Present): An old hand at TCS, N. Chandrasekaran assumed charge as chairman of the group after the exit of Mistry. He is focused on digital transformation and financial performance enhancement for the group.
Evolution of Tata Group
The Tata Group has traversed a long journey since its inception. Traditionally, this business group was focused on the textile, steel, and hospitality industries. It was during the times of J.R.D. Tata and Ratan Tata that this business group diversified into newer industries such as those related to information technology, telecommunication, and automobiles.
Under Ratan Tata's leadership, the group underwent quite a bit of change in strategy toward greater international expansion and innovation. Major acquisitions were executed under his leadership that built a strong presence for Tata in international markets. Today, the operations of the Tata Group are spread across more than 100 countries and employ more than 800,000 people globally.
How to Be a Glocal Brand
It is because of this emphasis on innovation, quality, and social responsibility that has taken Tata Group to a global brand. Noted, it has continued to invest in research and development that helps the company come up with a number of innovations over the years. Some of the major innovations include Tata Nano—the cheapest car in the world from Tata Motors—and electric vehicles.
The Tata Group has traditionally been synonymous with business ethics and social responsibility. The philanthropic activities of the Trusts—the main shareholders of Tata Sons—have been more diverse, especially in the fields of education, healthcare, and rural development.
Succession Criteria for Ratan Tata
Stepping down from his current role, Ratan Tata would look out for a person who can uphold the values of the group and be the driver of the group's future growth. It should possess the following characteristics:
1. Visionary Leadership: It should have a clear perspective about the future of the group and have the ability to steer the group toward new opportunities and challenges.
2. Global Perspective: With the group's immense presence across the globe, the successor has to be a man with a global perspective who can manage different markets and cultures.
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3. Innovation and Technology: Innovation has been the hallmark of Tata Group; the successor has to carry forward the legacy of promoting research and development and adopting new technologies.
4. Ethical and Social Responsibility: Impart the Tata Group's underlying values of ethics and business and social responsibility to the new leadership.
Case Study 1
The following names have been speculated as probable successors for Ratan Tata's post:
1. Noel Tata: Noel Tata currently chairs the company Trent Ltd and Tata International. He has rich experience in the retail and international business segments and hence can be considered a strong candidate for the post.
2. N. Chandrasekaran: He is the present Chairman of the Tata Group and battled his way through troubled times; he brings to the table, most importantly, the emphasis on digital transformation and growth. With such experience and record, he had an open case for the position.
3. Ratan Tata's Protégés: Ratan Tata has groomed many young leaders within the group. Examples are Bhaskar Bhat, who until recently was the managing director of Titan Company Ltd, and Mukund Rajan, who until recently played the role of brand custodian for the Tata Group. They are hugely talented people, many of whom could be considered for this position.
Conclusion
The Tata group succession plan thus becomes an important one and is sure to drive the course of the conglomerate in its future venture. While seeking his successor, Ratan Tata desires a person who combines values of the group with growth, innovation, and building strongly on laid foundations. The probable candidates' profiles are hugely diverse, and it would certainly be most interesting to see who finally takes over the reins at this iconic Indian business house. Much promise lies ahead for the Tata Group, and under able leadership, the house is quite capable of further growth and contributing much to the world.
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By PALAK SRIVASTAVA
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