Ratan Tata's will: Why the Tata model is still an inspiration to the rich

Copyright © HT Digital Streams Limit all rights reserved. Opinion Livemint 3 min Read 02 Apr 2025, 07:30 AM IST In an era of India that produces billionaires thick and fast, the relatively modest net worth of Tata is out. (Mint) Summary Ratan Tata’s relatively modest wealth, as seen in his bequests, reflects the structural orientation of the Tata group. The commitment to charity must inspire today’s billionaires, even if the Tata structure itself looks outdated. For a business group whose market value reached more than $ 400 billion last year, it is striking that the man who has been at the helm for a long time was not even a billionaire. The personal wealth of Ratan N. Tata (1937–2024), as revealed by his will awaiting the performance, was broadly estimated at £ 3.800 crore. It works out up to $ 444 million, a slide that would barely be visible in a circular card of what the Tata group is worth. In an era of India that produces billionaires thick and fast, Tata’s relatively modest net worth stands out. However, no one who is familiar with the group would be surprised. It reflects his charity orientation that returns to founder Jamsetji N. Tata (1839-1904), although the broad structure of the group is a legacy of his successor Dorabji Tata (1859-1932), who left his interest in Tata boys, who kept in his group companies. Also read: Stock analysis: India’s billionaire boom is not a sign of a hunky-driving economy; Tata Trusts hold a majority in the holding company and the value generation for philanthropy remains the overarching purpose. Ratan Tata himself has little possession. Nevertheless, most of its bequests, once being legally valid, will go to charity affairs via the Ratan Tata Endowment Foundation and Ratan Tata Endowment Trust. This is in line with the group’s long-term values ​​and model of capitalism, one that Mahatma Gandhi presented-with a business that acts as a fountain of funds for public welfare through ‘Trustees Hip’. As reported, although Tata’s will allocates its shares in Tata Sons with its name to the foundation, its broader equity portfolio will be shared with the trust, including its investments in different startups. As for the rest of his financial interest, a third was left to his half-sisters Shireen Jejeebhoy and Deanna Jejeebhoy, and another third to Mohini M. Dutta, a former Tata employee. Ratan Tata’s brother Jimmy N. Tata gets a half-sized bungalow in the Juhu of Mumbai, with the other half over to his half-brother Noel Tata and Noel’s mother Simone Tata. An alibaug estate is willing to Mehli Mistrry. Also read: Ratan Tata has made India a better, friendly place under diverse provisions, a £ 12 Lakh Corpus will be created for its pets, some loans are waived and cash sums are allocated to people who have served him. Ratan Tata’s art and watches attracted, among other things, a little chatter online. But for all the luxury in the luxury, he owned very little in the context of his undisputed stature as one of India’s most powerful and strongest industrialists. To be sure, the structure of the Tata group may look outdated in an era of close businesses and takeover threats. Its complexity can vomit its own problems, as seen in Tata Sons’s walk -in with a regulatory detail. As the holding company was classified as a ‘top layer’ non-banking financial company (NBFC) under the Reserve Bank of India rules, in 2022 was asked to be public and acquired its shares. Also read: Manu Joseph: Why Indians who didn’t know Ratan Tata liked him, as reported, the financial assets of Tata Sons were more than half of its total assets, while financial income was more than 50% of its total revenue. It has since reduced its debt by around £ 20,000 to adjust its operating profile in an effort to drop its NBFC label, but the problem has yet to be solved. This mud can be tracedly traced to the demands of capital management, on which the group had to maintain a complicated balance. The structure of the goods can find few people these days, but its structural commitment remains exemplary. It must, above all, inspire multi-billionaires. It does not take more than $ 1 billion to live well, and although big money must re-invest in business growth, there is also enough to do for the needy. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #tata Sons #ratan Tata 2024 #tata Group Mint Special