Ratan Tata is an employee of the TATA group of companies whereas Mukesh Ambani is the chairman of Reliance Industries. From all public accounts, the Reliance family seems to function as businessmen looking to maximize their wealth at all costs, whereas the Tata’s have been much more stakeholder friendly.
More than that TATA’s donate 66% of their profit right away. About 66% of the equity of Tata Sons is held by philanthropic trusts endowed by members of Tata family. The Tata’s are famous for their numerous philanthropic activities, the reason being this big 66%, which leaves little less for themselves.
However, Ratan Tata’s Net worth is not even $1 Billion. He is not a billionaire on paper. But in reality, he is the richest person in the world. His net worth, in reality, is more than Bill Gates and Warren Buffet. So the good thing about Tata Group is that They do Charity out of their Money and that is the reason TATA Group has generated so much of Goodwill over last 5 generations.
He might not be listed among the richest but sure is among the richest valued people of the world for he works for the betterment of all and not for the betterment of his own bank balance.
In other words, TATA’s have run their businesses on the socialistic principles and are well known for adhering to the ethics and principles for ages. TATA’s have built their empire on the base of solid trust while Reliance has built it on share market! However in the recent times TATA’s tried to play with some ‘unethical’ means to bag deals, like Nira Radia or Vistara deal (collaboration with International flyers was only available for the ‘pre-existing’ Indian flyers, Tata’s pressurized the then UPA govt to change the rule and floated Vistara to tie up with SIA!)
Reliance runs its businesses on the basis of capitalistic ideas, They don’t mind bending the rules or turning them into their own favor or even creating the environment by ‘being friendly’ with govt babus to Finance Minister of India. Problem with the capitalism is, it virtually looks like it creates huge jobs but in the core, the company takes the majority of the chunk of the revenues and the nation’s resources while employees get just the tidbits!
That’s how Mukesh Ambani grow richest while Ratan Tata didn’t! As Internet says, When the same question was asked to Mr. Ratan Tata, he smartly answered it in a single line. “We are Industrialist and they are businessmen”.
A prime focus of reliance is on profit making, they invest in the only high profitable business, the latest example is Reliance Jio, while Tata is there in different domains with smaller profit margin or lesser profit value ranging from salt, mechanical tools to Nano car for middle-class Indian people.
Tata’s has played a great role in the shaping of today’s India. In remote villages where electricity connection got quite late. Even in that era, there was only one alternative for light is a lantern. The biggest thing is the lantern was manufactured by TATA’s.
TATA has touched every part of our life. They have manufactured needle and they have manufactured heavy vehicle which rolled India and gave momentum. Today’s airlines which we see was started by TATA only.
We have respect for Reliance also but the way Tata has touched the lives of common people, hardly Reliance could do. Let us know your thoughts in the comment section below.