- October 10, 2024
From Tetley and JLR to StarBucks and Air India: A Look at Tata Group Deals During Ratan Tata Era – News18
Ratan Tata, who passed away on late October 9 at the age of 86, had succeeded J R D as the chairman of the Tata Sons in 1991. Since then, the company has touched new heights as it witnessed a number of major international and domestic deals under him. The deals have transformed the Tata group into one of India’s biggest conglomerates. Here are some of the major deals signed during his era:
1. Acquisition of Tetley Tea (2000)
Tata Tea (now Tata Consumer Products) acquired the British tea company Tetley for $450 million in 2000, making Tata one of the largest tea companies globally. This was one of the first major international acquisitions by an Indian company and marked the start of Ratan Tata’s global expansion strategy.
2. Acquisition of Corus Steel (2007)
Tata Steel’s acquisition of Corus, a UK-based steel producer, in 2007 for $12.9 billion was one of the largest acquisitions by an Indian company at the time. This deal made Tata Steel one of the top-10 steel producers in the world and showcased Ratan Tata’s vision of creating a global conglomerate.
3. Acquisition of Jaguar Land Rover (JLR) (2008)
The acquisition of Jaguar Land Rover from Ford was a pivotal moment for Tata Motors. The deal was valued at $2.3 billion. Despite initial skepticism, this global acquisition has been proved to be a major success, transforming Tata Motors into a global player in the automotive sector and rejuvenating the iconic British luxury brands.
4. Acquisition of Daewoo Commercial Vehicles (2004)
Tata Motors acquired Daewoo’s commercial vehicle unit in South Korea for $102 million, which significantly strengthened Tata’s presence in the global commercial vehicle market. This acquisition gave Tata access to advanced truck-making technology and helped it expand into new markets.
5. Acquisition of NatSteel (2004)
As part of the group’s global deals, Tata Steel acquired NatSteel, a steelmaker based in Singapore, for $486 million, to strengthen its presence in Southeast Asia. This was part of Ratan Tata’s strategy to expand Tata Steel’s operations globally, especially in emerging markets.
6. Acquisition of The Ritz-Carlton Boston Hotel (2006)
Tata’s Indian Hotels Company (Taj Hotels) acquired The Ritz-Carlton Boston, a luxury hotel in the US for an estimated $170 million in 2006, which helped expand the Taj luxury brand globally. This acquisition was part of the group’s push to establish a significant presence in the global hospitality industry.
7. Joint Venture with Starbucks (2012)
In a landmark deal, Tata Global Beverages (now Tata Consumer Products) signed a joint venture with US-based Starbucks to launch Starbucks outlets in India. This partnership helped Tata enter the booming Indian coffee retail market, which has seen significant growth in the years since.
8. Acquisition of Brunner Mond (2006)
At £90 million, Tata Chemicals acquired Brunner Mond, a UK-based soda ash producer. This deal helped Tata Chemicals become one of the largest soda ash manufacturers globally, reinforcing its presence in international markets.
9. Acquisition of BigBasket (2021)
Though Ratan Tata retired in 2012 as the chairman, he remained Chairman Emeritus of the Tata group. The Tata group became the owner of BigBasket in May 2021. Natarajan Chandrasekaran was the chairman of the Tata Sons.
Also Read: From Jamshedji to Ratan Tata: The Family Tree of India’s Pioneering Business Conglomerate
Tata Digital acquired a majority stake in BigBasket, an Indian online grocery platform, marking Tata’s entry into the growing e-commerce space.
10. Acquisition of 1MG (2021)
Tata Digital also acquired a majority stake in 1MG, an online pharmacy, as part of its broader push into digital healthcare.
11. Reacquisition of Air India (2022)
In 2022, Tata Sons won the bid to reacquire Air India from the Indian government for Rs 18,000 crore. The Tata group chairman was Natarajan Chandrasekaran, while Ratan Tata was Chairman Emeritus. The airline had originally been founded by J.R.D. Tata, but was nationalized in 1953. This was a landmark moment as Tata brought the iconic airline back into its fold.
12. BSNL 4G Deal (2023)
Tata Consultancy Services (TCS) secured a contract worth Rs 26,821 crore to provide 4G equipment to BSNL for its nationwide network upgrade. This deal is crucial for BSNL’s modernization efforts.
13. Proposed Merger with ThyssenKrupp (2018 – Aborted)
Apart from these deals, Tata Steel and ThyssenKrupp proposed a joint venture to combine their European steel operations in 2018. This deal was meant to create Europe’s second-largest steelmaker but was called off in 2019 due to regulatory issues.
Veteran industrialist and Tata Sons Chairman Emeritus Ratan Tata died at the age of 86 late on Wednesday. He was admitted to Mumbai’s Breach Candy Hospital since Monday due to a sudden drop in blood pressure and was in critical condition in the intensive care unit.
In his official statement, Tata Sons chairman N Chandrasekaran said Ratan Tata was a “truly uncommon leader whose immeasurable contributions have shaped not only the Tata Group but also the very fabric of our nation”. He said Tata was more than a chairperson for the Tata Group, and was a “mentor, guide and friend” to him.
