After Ratan, who?

The business sections of the newspapers, the general news and the conversations in coffee shops and streets alike are abuzz with discussion on this question – after Ratan Tata, who? Those who are old enough to know, remind us of the early 1990s, when the reign of JRD Tata was coming to an end and the discussion centred around if Ratan Tata will be able to step into the mammoth-sized shoes of JRD.

Ratan’s period at the helm of the Tata Group has been short compared to the reign of Jamshedji and JRD, but he has nevertheless created as deep an impact as his illusory predecessors. Ratan’s quiet demeanour, dignified conduct of himself and his affairs and the able steering of Tata group laid to rest doubts on the little-known Ratan of the 1980s. True to his name, he has both been a gem and a Tata. The most recent example of the dignity with which Ratan Tata held himself and the Tata group is the Nano project at Singur. As his dream project ran into troubled waters stirred by political ambitions, Ratan Tata with a cool head worked out a practical solution to the problem. He focused on his business and refused to be stirred by the political currents swirling around the issue.

In his unique style, he has now stated that ability and not blue blood of any sort will be the consideration deciding upon his successor. The interest in the successor to the Tata group is largely due to the Tatas being a pride of India. People want someone not fancy or flashy, but someone they can trust to carry forward the shining legacy of the Tatas. And one cannot blame people for wanting a Tata to be the successor, for that is the name they have come to trust and love. They are justified in believing the humility, philanthropist mindset and devotion to the motherland that has always set the Tatas apart cannot easily be matched by an outsider. They would very much prefer a Tata groomed with the same qualities in the family to take the baton from Ratan Tata.


Noel Tata, who is touted to be leading the race faces a different scenario from what Ratan faced in 1991. Ratan’s entry was watched with suspicion, even bordering on disdain, while Noel Tata’s possible reign is being welcomed already. After Ratan established his credentials of being an able “Tata” confidence seems abound that a Tata would indeed be the best-suited for the job, and hence Noel Tata would carry forward the legacy well.

All the talk about the search committee doesn’t impress me much or inspire me with great confidence. I would very much prefer Ratan Tata sat down to think and came out with the person best-suited. But the man in question apparently prefers an all-round assessment and discussion of merits/demerits of candidates by more than one head. Frankly, speaking for myself, I am not very happy with the names making the rounds as possible successors – Indra Nooyi, Arun Sarin, etc. I hope it is just a figment of the media's imagination(very limited one at that, at times).

Steering a group as big and diversified as the Tata Sons requires, above all, setting the vision, preparing the ground to some extent and delegating the responsibility to the right man arming him with all necessary authority. And none of the names seem to me that they can create a vision – for a vision here means much more than profit margins and market share. The vision of the Tatas has always been centered on Indian society not just the Tata Sons. And delegation is as important, one should know when to step back and handover charge, for one can do only so much when managing such a diverse range of interests. For instance, someone concentrating on Steel production cannot focus on Chemical business at the same time and do justice to both with ease.

Knowing the right mix of direct and indirect leadership is the key. And I cannot but feel only someone who has firsthand experience with the Tata group can do that effectively.

As for the Parsi question, though Ratan Tata hastened to dismiss that, noone really minds a fellow Parsi succeeding him, for they would look to the Parsi values to guide the successor. And I doubt anyone will actually accuse the Parsi community of wanting to keep the Tata reigns within their community.

All said and done, a head, that is disproportionately small to the large feet to fill the huge shoes, is what will complete the definition of the Captain of the Tata ship.