Hindustan’s great industrialist Ratan Tata has said goodbye to all of us. He is being remembered for all his philanthropic works. Meanwhile, his business skills are also being discussed, on the foundation of which Tata Group has become the country’s largest market cap group.
Ratan Tata took charge of the group in 1991 and remained chairman for a total of 21 years until 2012.
Group’s income increased by almost 17 times
During Ratan Tata’s tenure, Tata Group’s revenue increased from Rs 18,000 crore to Rs 5.5 lakh crore. That means it increased from $6 billion to $100 billion.
On the other hand, the market cap of the group also increased by about 10 times. When Ratan Tata took over the reins, the market cap of the Tata Group was about Rs 30,000 crore, which increased to Rs 5 lakh crore in 2012. That means it increased from 9.5 billion dollars to 91.2 billion dollars.
On the foundation of Ratan Tata, the group has created new records in the last decade
Due to this foundation, after just 12 years, i.e. in 2024, Tata Group was able to achieve a market cap of Rs 30 lakh crore. Tata Group is far ahead in terms of market cap compared to other entrepreneurial groups of India.
The reason for this huge growth in market cap was the tremendous rise of TCS during Ratan Tata’s tenure, the revival of strength in Tata Motors and the growth of the group at the global level. Hence, the tremendous growth has continued even in the decade after he left the post.
TCS rises and tops market cap today
Although TCS was formed in 1968 itself, the company gained real momentum during the IT boom after liberalization in India.
In 2004, the company came up with an IPO and raised Rs 4,713 crore. Today, the company has the highest market cap in the group. TCS became the first company to cross the market cap of $200 billion. Today, the company’s market cap is close to $182 billion.
Similarly, taking Tata Motors to the global level was the result of Ratan Tata’s farsightedness, which is contributing significantly to the speed of the group today.
In 2008, Tata Motors decided to acquire Land Rover and Jaguar. This $2.3 billion acquisition was a move with great potential but also great risk. Thanks to this, the company was able to gain a foothold in Europe.
The importance of this move can be understood in such a way that by 2015, JLR’s contribution to Tata Motors’ profits reached 90%. Overall, this acquisition has contributed a lot to the market cap of Tata Group in the past years.
Today Tata Steel is also an important company of the group. Ratan Tata took Tata Steel miles ahead with the acquisition of Corus in 2007. Actually before this the company was focused on the local market, with this acquisition Tata Steel became a global player and the company was included in the top-10 global players.