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Updated: April 15, 2013 12:05 IST

Tata group will never favour a hostile takeover: Ratan

PTI
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Ratan Tata
Ratan Tata

‘We spend a lot of time looking at the human chemistry’

The Tata Group will never favour a hostile takeover, its former chief Ratan Tata has said.

“Yes, I’ve said that and what I mean is that if a company doesn’t want us, we’re not going to take it by force,” Tata told CNN in an interview, which would be aired on Sunday.

“What we do before we acquire a company is spend a lot of time looking at the human chemistry, and the management and the work ethics and the — and the manner of working of that company,” he said.

“If there’s a chemistry problem, or a business policy deviation from us, we have walked away from companies which would be good business fits for us, but its method of operation would be too alien, so we have stayed away from it,” Mr. Tata said.

Responding to a question, Mr. Tata said it was not true that the Tatas were a family company and

that the proceeds of these industrial operations went to the Tata family.

“It does not. The family owns about 2 per cent, collectively, of Tata Sons,” he said.

“And the 60, 65 per cent that goes to charity, has always been seen as a noble usage of the wealth we have created from our companies, it goes back into education, medical, alleviation of poverty or rural development.

“So, in a manner of speaking, it has always been our driving force that what we’re doing is really for ploughing it back to the people of India,” Mr. Tata said.

Mr. Tata agreed that the group had a tough policy against corruption.

“We have 450,000 employees, and I am quite open in the statement that I can’t guarantee the integrity of every one of them,” he said.

“What we do, when somebody breaks that code, how we deal with that person, I think, is the true index of what we will do and when we have had a major rogue officer or director, we have actually prosecuted that person and the person has actually gone to jail.

“So, I think we have walked the talk in terms of what we have advocated; we practice what we have preached, as a matter of fact,” Mr. Tata said.

The article has been corrected for an editing error.

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Hats off Mr.Ratan Tata.Tata Group has been running a parallel govt. since independence for the benefit of common Indian.We need corporates like Mr.Ratan Tata.May Ambani bro's follow your foot step's.

from:  mohammed zakir hussain pallikonda
Posted on: Apr 14, 2013 at 13:38 IST

the reliance industries should take a leaf from the corporate social
responsibilities of the TATAs instead of amassing the national wealth in
an illegal and corrupt manner.

from:  satyanarayana
Posted on: Apr 14, 2013 at 10:24 IST

Ratan Tata set and nurtured the great values of TATA. Thus today it has
grown multifold and has its aura in the business world. The soul makes
a company sound and perpectual. The material gains may be available for
today and disappear tommorrow. We need a few more Ratan Tatas n
Narayana Murtys to take forward the great Indian heritage.

from:  C Deekshitulu
Posted on: Apr 14, 2013 at 08:02 IST

We fully subscribe to the statement of Shri Ratan Tata.
At the same time, we feel sorry that the world is loosing the genes of Ratan Ji while getting saddled with multiple laloos

from:  r k
Posted on: Apr 14, 2013 at 08:00 IST

Well said Mr. Ratan Tata!

from:  Sundar
Posted on: Apr 14, 2013 at 06:32 IST

Experience shows that the development of the group and also the total
corruption in Indian society goes hand in hand.If that is the basis of
growth during the 60 years of Independance then it is difficult to
foresee any Hostile take over.Any take over can come only through the
same methods they used to grow.If they are very honest they cannot be
taken over other than by honest methods!

from:  Prof.Paul.V.John
Posted on: Apr 14, 2013 at 06:09 IST

Wish more Indian businesses would operate like TATAS !

from:  Avinash
Posted on: Apr 14, 2013 at 03:15 IST

Truly an outstanding example of responsible capitalism. The world needs
millions more like him, to make this a liveable planet, with a good
chance of passing on a honourable heritage to the next generation. Alas,
Ratan is only one of his kind, and he himself has no children. How can
this tribe of responsible capitalists ever increase? maybe we should
start cloning Ratan before it is too late !!

from:  Rajamani
Posted on: Apr 13, 2013 at 23:00 IST

Mr. Tata, you are truly a MAN of values. I hope your vision can inspire
individuals in this country.

from:  Sitanshu Goyal
Posted on: Apr 13, 2013 at 22:11 IST
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