 "Ratan Tata")
Ratan Tata, chairman emeritus of India’s largest conglomerate, the Tata Group, has in the past two years re-invented himself as an investor, backing nearly 25 start-ups.
He admits, however, to mistaken judgement, several times, in judging the growth of new-age companies. “There have been many occasions when I have felt this couldn’t possibly work. And, I have seen success happen and know I am wrong. Each time, I realise I’m on the learning curve,” he said at a question and answer session with Vani Kola of Kalaari Capital, on Friday.
Referring to his background in 'smokestack' industry, Tata said with the use of technology, the timelines for developing products had drastically reduced, to an extent he hadn’t seen in a 40-year career.
Asked about the right time to sell a start-up, Tata reminisced about his experience in selling the Tata Oil Mills Company. "I negotiated a very dignified sale to Unilever, which gave the shareholders a very good stock to hold. And, we had a standstill on getting rid of any employee for three years. I thought I had done a terrific thing,” he said. “But, My God, the next day the media descended on me, the stock market descended on us. I had let down employees who were second or third generation. And, with that, very quietly, my rationalisation plan disappeared.”
Despite the apparent failure of the Nano, the journey of building the little car has some of his cherished moments. He said driving it on to the stage at the turmoil of the Delhi Auto Expo in 2008 was a moment of “creative glory”.
“In the 100-odd years of the group, there wasn’t any one significant project or product that elevated the group (more) in terms of visibility than this one occasion,” said Tata.
