Lessons Of Life

Ratan Tata And Ford

This is the type of story that becomes the parable of legends, household stories that parents narrate to their kids at an impressionable age with the hope of molding them in the right direction.

The word 'great' is not the only difference in 'just people' and 'great people'. The story we have, should tell the reason. TATA group is a leading business house in India. Apart from scale of business operations, they are also known for values observed in their business practices.

Ratan Tata is another man, who continued the legacy of India's most trusted business. When someone is insulted, anger is the only outcome. However, great people can use this anger to plan business policies and goals.

Tata group launched its passenger car Tata Indica in year 1998. The group was led by Ratan Tata and it was his decision to enter in the passenger car business. Tata Indica was a failure in its first year and the experiment seemed to be failing. Many people started advising Ratan Tata that he should sell the passenger car business. Ratan Tata also agreed to this and a proposal was given to Ford, they showed interest too. Ratan Tata, along with his close team members reached Detroit to discuss the same. Detroit hosts Ford headquarter and considered and the automobile hub of United States.

While the meeting went on for 3 hours, it seemed that the behaviour of Ford people was insulting toward Tata group representatives. In the meeting, chairman of Ford (Bill Ford) said to Ratan Tata, "why did you enter in the passenger car business when you were not knowing of it. It will be favor if we buy this business from you".

Ratan Tata decided to move back home. While travelling, he was very tense as the feeling of being insulted was on his mind.

The JLR Deal – Ratan Tata

After earlier failures, Tata Motors did well with its business of passenger cars but in the same period, Ford did very bad. In 2008, when Ford was on its way of bankruptcy, Tata Group offered Ford to buy their luxury car brand Jaguar-Land Rover. Bill Ford, along with his team, reached "Bombay House". "Bombay House" is the headquarter of Tata Group. The deal was finalized for 2.3 billion US $, which amounted to 9300 crore Indian Rupees at that time. Ford was incurring heavy losses from Jaguar – Land Rover division.

In the meeting, Bill Ford said to Ratan Tata, " You are doing a big favor for us by buying Jaguar- Land Rover". 

Jaguar- Land Rover is now owned by Tata Group and is currently making profit.

This incidence was first disclosed by Pravin Kadle, who is the head of Tata Capital and was part of the team which had visited Ford headquarter along with Ratan Tata. Pravin Kadle told this story while receiving Y.B.Chavan award on behalf of Ratan Tata in Mumbai on 15thMarch 2015.

Think about remarkably successful entrepreneurs. They're logical. They're rational. In the face of crisis or danger or even gross incompetence, they remain steely-eyed, focused, and on point. They don't get angry–or at the very least they don't show their anger.

A/N: RATAN TATA BUYING JAGUAR FROM FORD IS NOT ACTUALLY A REVENGE STORY though most of people see it that way. Ratan Tata Chairman of Tata group of company, which is one of the leading business company in India. He is one of the India's most trusted business leader. And This is where Ratan Tata stands as a great business leader and he is recognized for it.