JRD
Tata — A retrospective
Pioneer — July 29, 2004
Jehangir
Ratanji Dadabhoy Tata, JRD to the world, remains
the undisputed doyen of Indian industry, widely
respected for his contribution to the development
of Indian industry and aviation in particular.
Apart from being a businessman par excellence,
he was a patron of the sciences and the arts,
a philanthropist and yet a man with a passion
for literature, fast cars, skiing and flying.
For his unparalleled excellence in business management,
he came to be referred to as chairmen's chairman.
As an industrialist, JRD is credited with placing
the Tata Group on the international map. He proved
his mettle by saving it from disintegration in
an era when family ownership and management or
family rifts were ripping apart family businesses.
He was a redoubtable visionary under whose regime
the group entered into several new streams of
business, many of them unconventional and produced
a vast range of product. As an aviator and pioneer
flier, he brought commercial aviation to India.
He was greatly revered by artists, sculpture and
performing artistes as he generously patronised
Indian art and culture.
And as a philanthropist, he was respected for
building and keeping alive the tremendously active
Tata charitable trusts. His achievements have
to be seen through the lens of India's economic
and political history. Under British colonial
rule until 1947, India was strait-jacketed by
a foreign exchange crunch for almost 40 years
after Independence, which gravely limited industrial
entrepreneurship.
From 1964 to 1991, stiff government control through
the licence-quota regime further curbed the growth
of the group. Despite all these bottlenecks, he
expanded the Tata empire manifold and made it
India's biggest business group. JRD Tata reigned
over the Tata group for more than three decades.
He started his stint as chairman at the tender
age of 34 in 1938. Under his leadership, the Tata
assets grew from Rs 62 crore in 1939 to over Rs
10,000 crore in 1990. At the same time, the number
of companies under the group grew from 14 to 50
large manufacturing ones, besides innumerable
holding, investment, subsidiaries and associate
concerns.
This chairmen's chairman was born on July 29,
1904, in Paris. He was the second child of Ratanji
Dadabhoy Tata and his French wife Sooni. The earliest
success of JRD was in cajoling 10 rival cement
companies to merge and form the Associated Cement
Companies, run by the Tatas. And the rest, as
they say, is history. JRD was also a professional
to the core and a sensible leader. As one of his
executives, Darbari Seth, once said,"Mr Tata was
able to harness a team of individualistic executive,
capitalising upon their strengths, downplaying
their differences and deficiencies; all by the
sheer weight of his leadership".
JRD's respect for his managers bound the group.
Leadership, according to him, meant motivating
others. "As chairman, my main responsibility is
to inspire respect," he was wont to say. Be that
as it may, Tata spotted talent easily. And once
he was confident that a manager would perform,
he gave him a long rope. The supportive climate
that he built developed entrepreneurs such as
Homi Mody, Ardeshir Dalal, Jehanghir Ghandy, Russi
Mody and Darbari Seth. It was an environment where
scientists of international repute such as Homi
Bhabha, leading lawyers like J D Choksi and Nani
Palkhivala and economists such as John Matthai,
A D Shroff and D R Pendse could flourish.
A university dropout, JRD was something of a self-taught
technocract, and died long before the phrase `war
for talent' was coined. Yet, almost every senior
Tata director from the 1930s onwards, held a degree
from a foreign university. Tata willingly financed
bright young boys who wanted to go abroad for
further education. He was also a vital bridge
between the scientific establishment and the Government
through his founding of the Tata Institute of
Fundamental Research and as the longest serving
member of the Atomic Energy Commission.
According to JRD, quality had to match innovation.
He disliked the laid-back Indian attitude, and
much of his fabled short temper was triggered
by the carelessness of others. He stressed: "If
you want excellence, you must aim at perfection.
I know that aiming at perfection has its drawbacks.
It makes you go into detail that you can avoid.
It takes a lot of energy out of you but that's
the only way you finally actually achieve excellence.
So in that sense, being finicky is essential...
A company, which uses the name Tata shares a tradition..."
JRD was an expert in managing human resource.
At his behest, Tata Steel became one of the earliest
companies in India to have a dedicated human resource
department. Expressing his surprise that the company
had functioned for so long without one, JRD commented:
"If our operations required the employment of,
say, 30,000 machine tools, we would undoubtedly
have a special staff or department to look after
them, to keep them repair, replace them when necessary,
maintain their efficiency, protect them from damage,
etc. but when employing 30,000 human beings, each
with a mind and soul of his own, we seem to have
assumed that they would look after themselves
and that there was no need for a separate organisation
to deal with the human problems involved".
As the saying goes, all good things must come
to an end, and so did JRD's brilliant life. JRD
died in Geneva on November 29, 1993. He left behind
an indelible mark on the Indian business terrain
as also a huge business empire we all know as
the House of Tatas.
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