Why Ratan Tata is not the richest man of India? | Ratan Tata vs Mukesh Ambani | Who is Richer?

Mukesh Ambani has a net worth of 103 billion dollars according to forbes real-time billionaires list and as of august 2022 the total income of mukesh ambani’s reliance industries limited was around 233 billion dollars and on the other hand mr ratan tata’s net worth is only about 1 billion dollars but the total income of tata group was around 350 billion dollars so clearly mukesh ambani is rich but still he is nowhere near the legacy of ratan tata because the tatas and specially ratan tata has achieved something so significant beyond wealth which no other rich person or business house in the entire world was able to achieve so in this blog we’ll know what exactly is that and also in spite of ratan tata being less wealthier than mukesh ambani still has a larger than life legacy which is beyond the reach of mukesh ambani and for the matter of fact any rich person in the entire world

History of TATA group

Today tata group stands with a market capitalization of around 21 lakh crores but it all started with just twenty one thousand rupees with jamshed g tata who started his own business in the year 1868 and this journey of tatas from 21 thousand rupees to 21 lakh crore rupees sounds very inspiring but this journey was not easy so during the initial days jamshed j tata spent some time in england where he studied the textile manufacturing business and during those time england was one of the major textile manufacturing centers in the entire world and when jamshedji tata saw this business back in england he was so fascinated about textile manufacturing business and he was so inspired that in the year 1874 jamshedji tata decided to start his own textile manufacturing plant back in india in nagpur and in those days it was one of the most ambitious projects which in today’s time is equivalent to building a electric vehicle gigafactory or establishing a semiconductor manufacturing hub in india so it was that kind of a big deal back in those days and along with the vision of textile manufacturing plant in india jamshed ji tata had four other ambitious goals which he wanted to achieve in his lifetime goal

1. setting up an iron steel company in india 

2. establishing a world-class learning institution in india

3. establishing a hydroelectric power plant 

4. establishing a unique world-class hotel in india 

5.  This goal was very personal to jamshedji tata because back in 1903 jamshedji tata was on a trip to london where he tried to check in into a luxury hotel but he was denied the service just because he was an indian and also that luxury hotel in england claimed that dogs and indians are not allowed in their establishment and jamshed ji tata was angry and humiliated and that’s why jamshedji tata built his own luxury hotel back in india which is the prestigious taj mahal hotel situated in mumbai 

After jamshedji tata passed away his son durabji tata became the second chairman of the tata group and he went on a journey to fulfill his father’s vision and completed the establishment of india’s first steel plant in the year 1907 and he also established a world-class learning institution in india under the name indian institute of science in the year 1909 and these two establishments are at the core of building india where tata steel played a crucial role in building the indian infrastructure for more than 100 years and indian institute of science has contributed to the indian brain power by nurturing great scientific minds and scientific ideas and later in the year 1938 grd tata became the next chairman of tata group and he established india’s first car manufacturing company the legendary tata motors in the year 1945 and he also established the first software company of india which was the tata consultancy services in the year 1968 and in parallel mr ratan tata started his journey in the tata group as an ordinary worker in tata steel and slowly with his talent and business capabilities he worked and gained experience in a number of tata group businesses and led some of the most successful and profitable business ventures within the tata group and his capability and business talent in the year 1991 he succeeded his uncle grd tata as the new chairman of tata group and back in those days ratan tata had a vision and a dream to revolutionize the entire automobile sector in india and with that vision he introduced tata indica in the 1990s in spite of ratan tata’s dream and vision the initial model of this car failed miserably and tata group has to face a huge loss because of this failure and ratan tata was personally devastated by this failure and for the greater good of tata group ratan tata decided to give up on his dream and vision he had to revolutionize the indian automobile sector and it was decided by the tata management that they are going to sell the car division of tata motors and in the year 1999 ratan tata went to united states of america to meet bill ford who was the executive chairman of the ford motor company to sell tata motors car division but bill ford and his executive team humiliated ratan tata and told him that he knew nothing about cars and he shouldn’t have started a car division and ratan tata felt humiliated and rejected because the whole world called him a failure at that point of a time but back then ratan tata didn’t knew that this was a blessing in disguise because even destiny didn’t wanted ratan tata to give up on his dream and wanted him to continue perceiving his dream and vision and because of this humiliation rathan tata decided to continue to work on his car division and continue manufacturing cars in india and nine years later the tables had turned ratan tata’s tata motors car division was hugely successful in india and the ford motor company was on the verge of bankruptcy they had come full circle and now ford motor company needed help from ratan tata to save them from bankruptcy and so ratan tata bought jaguar and land rover which were the iconic companies of ford motor company for about 2.3 billion dollars even after that ratan tata was criticized by the western media where they pointed out that jaguar land rover is a luxury car making company and iconic automobile companies like british leyland bmw and ford motors have failed to run these companies profitably and successfully in the past and now how can ratan tata with tata motors who makes cheap and low end cars run these iconic luxury car making brands successfully and profitably but rathan tata had a plan to make these companies profitable and he never responded to critics and very soon he turned a jaguar land drawer into a profitable company and his success was sufficient to shut all the western critics and showed all of them what ratan tata and tata group is made of and if you look back the journey of tatas might look like a business journey but if you closely notice tata has stood up to something which was no less than a revolution because over this period of time tata has established core industries in india which were dominated by western monopolies and western monopolies were stopping india from achieving it but tata has stood up against these western monopolies and established these core industries in india which hugely and significantly contributed to the growth story of india because without the first steel company without the first software company without the first airlines of india without world-class research institutes without the vision of automobile revolution and many more such initiatives india could have never been where it is right now without the contribution of tata group and that’s where the legacy of tata group comes into picture which is much more larger and greater than the net worth or the wealth which other rich people or billionaires try to collect so irrespective of the net worth or the wealth what tatas have created for india is a legacy and many billionaires might come and go but this legacy of tatas is going to live on for a very long time

History of Mukesh Ambani

Let’s talk about the person who lives in the most expensive house in the world which is mukesh ambani. so reliance was started by the legendary dhirubhai ambani who used to work at a gas station and reliance came into the spotlight in the year 1966 when dhirubhai ambani entered the synthetic textile business by opening the first reliance textile mill and very soon a reliance also entered petrochemicals plastics and even power generation business so reliance was hugely successful and at the same time mr dhirubai ambani’s health was deteriorating so dhirubhai ambani handed over the day-to-day running of the company to his sons mukesh ambani and anil ambani but dhirubhai ambani continued to oversee the company until shortly before his death in the year 2002 and soon after his death brothers mukesh ambani and anil mani publicly divided the company where mukesh ambani got control of legacy flagship companies like oil refining and petrochemicals and in contrast anil ambani got newer and futuristic growth oriented businesses such as power generation and financial services and anil ambani also took over the telecom business which was basically the brainchild of his brother mukesh ambani who built the company from the scratch and expanded aggressively by providing phones and mobile connections at lower prices under his leadership and at that time this telecom business or wireless division seemed to give ani lambani more promising opportunities than mukesh ambani but anil ambani failed to see these opportunities because it was never his vision it was the vision and it was the brain child of mukesh ambani and only mukesh ambani knew the real potential of telecom business in india and that’s why anil ambani only saw reliance communication as a cash cow and failed to see the future potential of telecom business which his brother mukesh ambani had and very soon with repeated bad investment decisions and over leveraging of debt anil ambani got himself into a loan trap and within no time he tumbled from the top and hit the bottom once the sixth richest man in the world publicly declared in a quote that his net worth was zero and he was bankrupt but the legacy of dhirubhai ambani continued to live through mukesh ambani where mukesh ambani in spite of having legacy companies like oil refining and petrochemicals successfully took reliance to the next level and migrated the legacy business to the new age and futuristic businesses like telecom retail and technology and as mentioned earlier mukesh ambani already knew the potential of telecom in india and that’s why he had built reliance communication to push a reliance into futuristic business but at the time of division reliance communication was taken over by anil ambani and mukhesh ambani also had to sign a non-compete clause which would potentially ban mukesh ambani from entering telecom sector till the year 2010 but mukesh ambani knew telecom was the future so mukesh ambani waited patiently and once the non-complete clause agreement was scrapped in the year 2010 mukesh ambani quickly returned to the telecom sector and pumped in more than 2.5 trillion rupees or you may say 2 lakh 50000 crore rupees into the telecom sector and in the next seven years built india’s fastest 4g wireless network which would provide the cheapest internet in the entire world and reliance jio disrupted the whole telecom sector and by making internet cheaper than ever in india reliance jio had solved the most difficult problem of providing internet access to each and every indian at a cheaper cost and now everybody had internet which started a new revolution of internet based startup companies which built applications and platforms around the internet and started a digital boom which we are experiencing now and this way mukesh ambani changed the telecom sector of india forever and helped india to take a giant leap in the digital revolution

Who is wealthier

 So now after knowing the legacy of the tatas and the ambani’s and also about mr ratan tata and mr mukesh ambani now let’s try to understand why mr mukesh ambani is more wealthier than mr ratan tata because if you see the market capitalization of reliance group is around 17 lakh crore rupees but on the other hand the market cap of tata group is around 21 lakh rupees which clearly shows that tata group is much wealthier than reliance industries and even after that why mr mukesh ambani is worth 103 billion dollars and on the other hand mr ratan tata is worth only 1 billion dollars so to understand that we need to learn how the net worth is calculated

How net worth is calculated

Let’s say your net worth is zero right now and now you bought 100 shares of tata motors where each share has a value of around 500 rupees per share so now what is your net worth you have 100 shares and each share cost about 500 rupees so 500 into 100 is equal to 50 000 rupees so your net worth becomes 50 000 rupees and similarly if you owned 200 shares then your net worth would be 1 lakh rupees or if you owned only 50 shares then your net worth would be 25000 rupees so here your net worth depends on how many shares you own. 

This is the exact reason why mr mukesh ambani’s net worth is so high because he owns 48 percent of the shares in reliance industries on the other hand mr ratan tata owns only one percent of the shares of tata group and imagine if mr ratan tata had 48 of tata group shares then he could have easily beaten mr mukesh ambani in the net worth and now to some it might sound very unfair and you might ask a question why mr ratan tata has only one percent of the tata group and to answer this question it is so because tatas have donated most of their wealth to charity because if you see 66 percent of the tata group shares are held by charitable trust and institutions such as sir dorabji tata trust and sir ratantata trust and the dividend income these trust get from these shares is used for philanthropical activities and to give you an idea how big this charity is tata is the biggest philanthropist in the world and in the 20th century the global donations stood at around 832 billion dollars and out of these 832 billion dollars jamshedji tata alone donated around 102 billion dollars all by himself which makes him the biggest philanthropist of the 20th century and even microsoft founder mr bill gates who is one of the most respected name in the modern philanthropy ranks only second with his donations worth 74.6 billion dollars is still behind jamshedji tata in the philanthropy that means tatas gave away 66% of their wealth for charity and they are the biggest contributors for charity and philanthropy in the entire world


So now if you talk about ambani’s and tatas together then mr mukesh ambani and reliance have hugely contributed to build india and will continue to contribute for the growth of india and mukesh ambani and reliance also do charity but mr mukesh ambani is a businessman who is focused on building personal wealth but on the other hand mr ratan tata and the tatas are not businessmen but they are industrialist who focus on building essential industries which will contribute to the core growth story of india and in this process they are also focused on building a better society by pledging 66% of their entire wealth for charity and philanthropy which means tatas are building india and also giving away most of their wealth back to india in the form of charity and philanthropy and this is the legacy of tatas which is going to live forever because a lot of billionaires who claim to be number one number two number three might come and go but this legacy of giving away most of your wealth back to charity and still continue to contribute immensely and greatly for the development of the country is something no one was able to achieve except for the tatas and this is the legacy that is going to live forever

Be the first to comment

Leave a Reply

Your email address will not be published.