From Indica to Jaguar: Ratan Tata's typically gentle 'revenge'

Tata Indica, the Tata Group's big passenger car hope and the first Indian hatchback with a diesel engine, was not delivering expected returns a year into its launch in 1998. Worried, the Tata Motors top brass, led by Ratan Tata, acceded to a meeting request from Ford Motors for a possible sale of the passenger vehicles division to the American auto major.

Some experts had advised Tata to sell the business, and the Ford officials came to Bombay House to hold talks. During the meeting at the Tata headquarters, the American company showed interest in buying out the business after the not-so-warm response to the hatchback over a year since its launch.

Soon, senior Tata officials, once again led by Ratan Tata, went to the US for a further meeting, which lasted about three hours. According to a person who attended the meeting, officials from Ford "humiliated" the visiting Indians at the meeting in Detroit.

"You do not know anything, why did you start the passenger car division at all?" the Ford officials asked their guests, and spoke about doing a favour to the Indian company by buying out the latter's business.

The team decided to return to India immediately after the meeting, which was described as "humiliating" by the person present. On the 90-minute flight back to New York, a sombre Ratan Tata spoke very few words.

"This was in 1999 and come 2008, the same Ford's JLR (Jaguar Land Rover) was bought by us. Ford chairman Bill Ford thanked Tata, saying, 'You are doing us a big favour by buying JLR'," Pravin Kadle, a long-time group veteran, had recounted during a public event a few years ago.

In 2008, the Tata Group bought the iconic brands making sedans and sports utility vehicles in a USD 2.23-billion deal from Ford.

Post-acquisition, the Tata Group has scripted one of the most fabulous turnarounds in the auto industry and has been able to position the marquee British brands as formidable entities in the fiercely competitive global car market. Even as Tata Motors has come a long way and gained market share in India, it continues to earn a significant part of its revenues from the JLR.

On Thursday, JLR paid tribute to Ratan Tata, saying his inspirational leadership helped the British marquee brand achieve phenomenal success across the globe.

"The entire JLR family is profoundly saddened by the death of Ratan Tata. His personal achievements and legacy are unequalled in society, and the mark he leaves on our business and brands is greater than that of any other individual," JLR CEO Adrian Mardell said in a statement.

He noted that the former Tata Group chairman has inspired new chapters in the British automaker's history. "It was thanks to his singular vision that Tata acquired JLR in 2008, and we owe everything we have become since then to his unwavering support and dedication," Mardell stated.

Tata led the automaker on an extraordinary journey, he added. Under his generous and trusting guidance, JLR felt deeply proud to be part of the Tata story, Mardell said.

With agency inputs