As tributes pour in following the passing of Ratan Tata, one of India’s most iconic business leaders, there has been much reflection on what truly defined his leadership. Throughout his illustrious career, Tata’s actions spoke louder than words, often revealing a quiet yet bold leader who made decisive moves without the need for ostentation.
For those who worked closely with him, like R. Gopalakrishnan, former executive director of Tata Sons, Tata’s leadership was characterized by calculated risks and a deep sense of responsibility to both his companies and the people who believed in them. “Bold leaders do the right thing at the right time, without any intent to demonstrate boldness,” writes Gopalakrishnan, reflecting on his 15 years of working alongside Tata.
This boldness, as Gopalakrishnan observed, wasn’t always evident at first glance. It was only in hindsight that many of Tata’s decisions were recognized as groundbreaking. His acquisition of major public and international companies—like VSNL, CMC, and Corus—and his foray into high-risk industries such as defence and aerospace are testaments to this. While these moves were bold by any measure, they were also strategic, positioning Tata Group at the forefront of global business.
One of the most telling examples of Tata’s bold yet understated leadership was his approach to hiring. He often recruited individuals, termed “non-lifers,” who were not traditional insiders within the Tata ecosystem. This included high-profile hires like Kishor Chaukar, Ravi Kant, and Prasad Menon, among others, at key positions in the boardroom. These appointments were bold, as they posed the risk of disrupting Tata’s long-standing corporate culture. Yet, most of these hires went on to add significant value to the company, cementing Tata’s reputation for making smart, albeit risky, decisions.
Another notable instance of Tata’s bold leadership was the relocation of the Nano factory from Singur to Sanand. The decision came at a time when thousands of crores of rupees had already been invested in the Singur plant, and shifting the entire operation seemed like a monumental task. With contractors and workers already on site, and political unrest mounting around the factory, Tata’s choice to move was a high-stakes gamble. “There was no clarity on the destination,” Gopalakrishnan recalls. Yet, Sanand proved to be the right choice, and today, the boldness of that decision is recognized as a pivotal moment in Tata’s career.
Tata’s leadership wasn’t just about taking risks, though. His values shone through in every decision, as evidenced by the pricing of Tata Consultancy Services’ (TCS) initial public offering (IPO) in the early 2000s. At a time when India’s stock markets were still reeling from the Harshad Mehta and Ketan Parekh scams, Tata had the option to price the IPO aggressively, pushing for the highest possible valuation. Instead, he chose to “leave some money on the table,” ensuring that retail investors, many of whom trusted the Tata brand, could benefit from the IPO’s success.
“Are we leaving something on the table for retail investors who bought into the IPO partly due to trust in the Tata name?” Tata asked, showing his concern for long-term value rather than short-term gain. This decision ultimately resulted in India’s largest and most successful IPO at the time, and it offered a valuable lesson in leadership for today’s more capitalistic corporate environment.
In every decision he made, Ratan Tata demonstrated that bold leadership isn’t just about taking risks—it’s about doing what’s right, even when it’s not the easiest or most popular choice. His legacy is one of integrity, vision, and a deep sense of responsibility to the people he served, both inside and outside the Tata Group. For future generations of business leaders, his life offers a blueprint for success rooted in values that transcend mere profit.
