How Ratan Tata Took Tata Group Global: From Tetley to Jaguar Land Rover

If you had to summarize Ratan Tata’s legacy as Tata Group’s chairman in one phrase, it would be: “the leader who made Tata and Indian business global.”

Under his leadership, the Tata Group made bold international moves, acquiring big names like Tetley and Jaguar Land Rover (JLR). These acquisitions have proven successful, showing Tata’s sharp business skills. For example, today JLR accounts for nearly 80% of Tata Motors’ revenue, along with other benefits like technology sharing and brand value.

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However, there were also some mistakes, like the purchase of Corus Steel in Europe, which still negatively impacts Tata Steel’s finances.

Ratan Tata once said in 2004, “I hope that a hundred years from now, we will spread our wings far beyond India and become a global company trusted worldwide.”

Professor Kavil Ramachandran from the Indian School of Business says that one of Tata’s major moves was to “boldly explore global markets, especially in engineering.” He aimed to make Tata a major player in the automotive industry, from creating affordable cars like the Nano to buying luxury brands like Jaguar.

The Start of Global Expansion: Tetley

Tata Group’s journey to becoming global started in 2000 when Tata Tea bought Tetley. Tata Tea, one of the largest tea producers in the world, was struggling to match Unilever’s sales in India and had no global presence. They saw an opportunity when Tetley, the second-largest tea brand at the time, became available for purchase. Though Tetley was three times bigger than Tata Tea, the Indian company boldly paid £271 million (around ₹6,300 crore today) to buy it. This move marked Tata’s first major international expansion.

More Global Acquisitions

After Tetley, the Tata Group went on an acquisition spree. Tata Motors bought Daewoo Commercial Vehicles in South Korea, and Tata Steel acquired NatSteel in Singapore. While Tata Motors handled the Daewoo purchase well, the NatSteel deal didn’t work out as expected. The company had operations across Asia, but the business wasn’t very profitable, and Tata Steel eventually sold it at a loss in 2021.

Tata Chemicals and Brunner Mond

In 2006, Tata Chemicals made another big move by acquiring a major stake in the British chemicals company Brunner Mond.

However, Tata Steel’s streak of bad acquisitions didn’t stop. In 2007, Tata led the purchase of Anglo-Dutch steelmaker Corus for $12 billion, calling it a step towards becoming a global steel giant. But the deal was poorly timed, as it happened just before the global financial crisis, which severely hurt the UK’s steel industry. Even today, Tata Steel UK continues to lose money.

Jaguar Land Rover (JLR): A Historic Deal

Perhaps the most significant acquisition under Ratan Tata was Jaguar Land Rover (JLR), which Tata Motors bought from Ford for $2.3 billion in 2008. This deal put Tata Motors on the global stage and was seen as a moment of pride for India, with some even calling it a “reverse colonization.”

It was also a personal victory for Ratan Tata. A decade earlier, Tata Motors had tried to sell its struggling passenger car division to Ford. During the negotiations, Ford executives reportedly mocked Tata, and the deal was canceled. But in 2008, Tata bought JLR from the same company. Ford Chairman Bill Ford even thanked Tata, saying, “You are doing us a big favor by buying JLR.”

Through these strategic acquisitions, Ratan Tata transformed Tata Group into a global powerhouse, proving his vision of making the company an international leader.