Expanding The Tata Way: From Indian To A Global Brand

At the end of the 60-hour siege in Mumbai, 166 people had died, 33 inside the Taj, including 11 hotel employees.

Ratan Tata vowed to look after employees’ families and rebuild the Taj to its former glory. A Tata Group employee then, I was present at the re-opening of the ‘Queen’. “We have re-opened the hotel. We have to continue to rebuild the nation,” RNT said.

That is the legacy of a (business)man who was very different from most (if not, all) others, for he believed in doing business in a way that would make the lives of those that Tata Group touched better. 

Peter Casey, author of The Story of Tata, an authorised work on the Group, wrote: “Under Ratan Tata’s leadership, a great but rather stodgy Indian manufacturer began emerging as a global brand with great emphasis on consumer goods”.

Casey also wrote that this was a man with a “stately calm and fierce discipline”. He added that Ratan Tata described himself as a “bit of an optimist”.

How it All Began in 1991, when ‘RNT’ took over as Chairman

When Ratan Tata took over the reins in 1991, he had a single-minded purpose – to not just make Tata the leader in India, but to create a global powerhouse. 

The world was shifting, India was liberalising its economy, and RNT saw a never-before opportunity. He also had worries. As a nation changed, so did its way of doing business, he didn’t want Tatas to get left behind.

However, unlike some who chased growth and expansion through overtly aggressive and quick-fix strategies, RNT had a different, muted but evolved plan; pursue things ethically and with integrity, the ‘Tata Way’, and chase the ‘inorganic’.

That is how Tetley, VSNL, Corus Steel, JLR, Air-India and many other global giants came into their own. As this illustrative list indicates, the inorganic road chosen traversed the entire world – RNT’s international ambitions.

Acquisitions Across the Globe That Transformed the Tatas

The first truly international step came in 2000, when the Tatas acquired British brand Tetley, positioning the Group in one hot sip as the second-largest tea company in the world.

At that time, the iconic British brand was three times the size of the small Tata Group firm that bought it.

The deal was ground-breaking—it wasn’t just about expanding the global footprint; it was about blending the Tata heritage with global standards. Tetley was just the beginning.

In 2002, Tata ventured into telecom with the acquisition of Videsh Sanchar Nigam Limited (VSNL), India’s state-owned international communications carrier.

The buy marked Tatas’ entry into the then sunrise telecom space, with RNT predicting that communications would be the future backbone of global and domestic connectivity.

“For the nation, the VSNL acquisition was a first step in realising the vision of Indian innovation in telecom,” a report by the Centre for Development Studies said. VSNL was rebranded as ‘Tata Communications’, soon becoming a key player in the global digital infrastructure space.

Some Controversial Purchases That Came Good Eventually

In 2007 came the acquisition of European steel giant Corus, with a deal value at $13 billion, amongst the largest in Indian corporate history.

Other than Indian ownership, analysts were sceptical of labour and debt issues plaguing Corus, leading some to question whether an “Indian company could manage a complex international merger”. But RNT didn’t just want to expand; he wanted the Tatas to increase their global presence and standing.

Corus was a deal that drew criticism. But that took a backseat just a few years later, when it began operating smoothly and emerged as a symbol of Tata Steel’s growing global dominance.

Harvard Business Review said: “The deal showcased the Tatas’ ability to navigate cultural, regulatory and economic challenges, while staying true to their ethical principles.”

A year after acquiring Corus, Tatas went into acquisition mode again, announcing in 2008 a game-changing moment in the Group’s business milestones – acquiring Jaguar Land Rover from Ford.

The move left the corporate world dumfounded. Ford saw JLR as a financial drain, but RNT saw what many missed; JLR’s rich legacy, craftsmanship and undeniable potential.

“Where others saw a loss-making entity, Ratan Tata saw a symbol of prestige, a canvas to infuse with Indian leadership,” Professor Anil Gupta, a noted expert on global strategy, said.

Under Tatas’ ownership, JLR returned to profitability. Notably, it regained its position as one of the most prestigious car brands globally; known for its innovation, design and quality.

Beyond JLR and Corus, the Tatas expanded into other sectors – hospitality with the acquisition of New York’s iconic The Pierre Hotel, chemicals with General Chemical Industrial Products in the US, and IT services through Tata Consultancy Services’ expansion into Europe and North America.

The acquisitions were not merely about increasing the global footprint, but about being celebrated as a key player across industry segments.

Getting the Maharaja to Fly in ‘Tata Airlines’ Again

In 2022, history came full circle when Tata bought back Air-India, the airline that Ratan Tata’s uncle and mentor (JRD Tata) had founded 90 years ago, in 1932.

The re-purchase was not just a business deal; it was a homecoming.

As RNT said: “Air-India is a brand India deserves (and needs) to shine again.” With this buy, the Tatas now aim to turn around the struggling airline, which began life as Tata Airlines, a predominantly airmail and passenger service.

Few know RNT was also a pioneer in revolutionising telecom in India. Other than VSNL, he monitored innovations at Tata Teleservices, which introduced the per-second billing plan, rewriting norms.

This was a bold step in a market dominated by high tariffs; it democratised mobile usage, making it accessible even to the lower-income population.

The National Institute of Industrial Engineering called the per-second billing plan “the most disruptive innovation in Indian telecom since the inception of mobile services”.

Global Ethics, Local Impact; Local Ethics, Global Impact

Tatas’ expansion into the global market was not just about acquiring companies; it was also about infusing in them the ‘Tata Way’.

Each acquisition was studded with ethical practices, sustainability and a focus on welfare.

A study by Indian Institute of Management, Ahmedabad says: “What makes Tatas unique is not just business prowess, but the adherence to values, ensuring that employees, community and the environment are all part of the success story.”

RNT’s leadership left a mark not just on business, but also with the respect and admiration he earned globally.

Analysts at McKinsey said: “Tata’s strategy was different from typical M&A playbooks. It was about partnerships that aligned with his values, and integrating those values globally.”

Success could also be achieved through integrity and long-term thinking, in contrast to the short-sighted and profit-driven practices followed at many corporations today.

RNT the man is gone. But he remains with industry, entrepreneurs and students as a bridge – one that stretches from being a national to global leader; in sectors ranging from steel and automobiles to telecommunications and aviation, and from salt to software and power to chemicals; and more… He is a bridge that spans industries and continents, one that remains as much a beacon for business as it does for humility and dignity.

(The author is a veteran journalist and communications  specialist. Views expressed are personal)