Comments
Rising from the shop floor of Tata Steel to the Chairman of the Group, Ratan Tata had a penchant for acquiring struggling British brands and turning them around.
No wonder, when Tata Steel paid a hefty $13.1 billion to acquire Corus in 2007, Chairman Ratan Tata described it as a defining moment for the company. The deal increased Tata Steel’s capacity threefold, put the company on the global map, and spread the risks of the steel-making business.
The decision was challenging, as Tata Steel had to deal with economic downturns and fluctuating steel prices shortly after the acquisition. Once, the former Tata Steel Managing Director JJ Irani referred to the Corus acquisition as an “aspirational mistake”. Bogged by debt burden, Tata Steel failed to sell the asset and merge it with ThyssenKrupp.
However, the Corus acquisition gave Tata Steel access to advanced technology, a broader product range, and new markets, significantly enhancing its global competitiveness.
TV Narendran, CEO & MD, Tata Steel said Tata guided Tata Steel through some very challenging and transformative times. He mentored countless individuals, inspiring all with his unwavering commitment to the betterment of humanity.
“Ratan Tata was an extraordinary leader who led with great vision and who always encouraged us to push the boundaries of our aspirations. His unparalleled contribution to industry, philanthropy, and nation-building has left an indelible mark on society,” he added.
Today, Tata Steel’s UK operations are going through a complete revamp. The blast furnace will be shut down, and an environmentally friendly electric arc furnace will be installed, with an investment of pound 1.25 billion.
Having spent considerable time on the shop floor during his early years, Tata had a special place in his heart for Tata Steel. In 1963, Tata had joined Tata Iron and Steel company at its Jamshedpur facility for a training program and took over as its Chairman in 1993.
During his leadership, Tata Steel’s landmark Jamshedpur plant, which had a capacity of 2 million tonnes when he took over as Chairman, now boasts a capacity of 11 MT.
Sharing his early experience in Jamshedpur, Tata said in an interview that he was not allowed to drive his car to work, as the mandate from those at the helm was that he take a bicycle.
Angry at “being told how to live my life,” in an act of youthful rebellion, he would walk to work. At that time, Ratan Tata felt that his stint at Tata Steel was a “never-ending apprenticeship.” However, he later described it as the period’s defining movement.
Dilip Oommen, CEO of ArcelorMittal Nippon Steel India, said the country has lost a visionary leader in Ratan Tata. Tata’s contributions transcended the corporate world, and he led with integrity, compassion, and an unwavering commitment to the betterment of society.
“His work has been instrumental in shaping modern India’s progress. At a time when the world is looking at our growing nation, his guidance would have been invaluable,” he added.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.