Journey of wealth creation over two decades: House that Ratan Tata built into a powerhouse

Ratan Tata, chairman emeritus of Tata Sons, passed away on Wednesday, leaving behind a vast legacy that spans over 150 years.

Tata was instrumental in transforming the Tata Group into India's largest and most influential conglomerate.

During his leadership, the group's profits surged 51 times to exceed Rs 33,500 crore. The firm’s market capitalization also saw remarkable growth, increasing 33 times.

In just the last five years, the Tata Group's market capitalization has jumped from Rs 10,74,994 crore to Rs 33,17,385 crore, adding Rs 22,42,391 crore, making it a favored choice among investors on Dalal Street.

Ratan Tata’s tenure is marked by several landmark decisions, including the public listing of Tata Consultancy Services (TCS) in 2004.

The IPO raised around $1.2 billion, making it India’s largest and Asia's second-largest at the time. Today, TCS, valued at Rs 15.5 lakh crore, stands as India’s second-largest company after Reliance Industries.

TCS has also become one of the biggest wealth creators for its investors, consistently doubling their investments every five years on average.

After he stepped back from the Tata Group, Ratan Tata became known as a prominent investor in Indian startups, backing a plethora of companies including digital payments firm Paytm , Ola Electric, a unit of ride hailing firm Ola, and home and beauty services provider Urban Company.

The conglomerate stayed strong after his second departure, with Tata in 2021 welcoming debt-laden Air India back into the family fold decades after it was nationalised.