What does it mean to retire at the age of 75? For Ratan Tata, who spent more than two decades at the helm of the iconic Tata group before hanging up his boots in 2012, it means the beginning of a very active phase as an investor.
Within a short period, Mr. Tata has invested in nine new-age companies that have huge growth ambitions.
On Sunday Mr. Tata, 77, made his latest investment, an undisclosed amount, in Chinese smartphone maker Xiaomi (to be pronounced as ‘show-mee’), which he acknowledged in a statement as ‘one of the fastest-growing companies in the world.’
The Chinese company has emerged as the world’s third largest smartphone manufacturer in five years with a valuation of $45 billion.
It now wants to crack the Indian market, and believes roping in Mr. Tata, the first Indian to invest in the company, could help grow its brand.
Xiaomi’s founder and CEO Lei Jun said, “Mr. Tata is one of the most well respected business leaders in the world. An investment by him is an affirmation of the strategies we have undertaken in India so far.”
Shivani Nagpaul, Partner, BMR Advisors, pointed to a new trend. She said, “Investing in India business with global plans or global businesses which have significant India plans are two sides of the same coin. It demonstrates (the) coming of age of the Indian investor to bet on India market albeit through global ventures.”
Mr. Tata, the Chairmen Emeritus of Tata Group and who heads the Tata Trusts, has made all the nine investments through his investment company RNT Associates. He is also involved as a mentor to young entrepreneurs who run these companies.
Some of the companies where Mr. Tata has invested in recent months include US-based high-altitude wind energy generator Altaeros Energies, e-commerce firm Snapdeal, online jewellery retailer BlueStone, online furniture retailer Urban Ladder, auto portal CarDekho.com, affordable health service provider Swasth India, financial advisory firm Grameen Capital India and mobile internet firm One97 Communications that owns mobile commerce platform Paytm.
More than the financial investment and advice, it is Mr. Tata’s name and reputation that adds value to these start-ups. In February this year, he tied up with Kalaari Capital to guide its portfolio companies.
“Mr. Tata is entering the brave new world of e-commerce and e-commerce enablers. One can only wish that a few of his investments fructify to full bloom as IPO candidates. In the meantime, his advice (to these companies) will be invaluable,” said Shailesh Haribhakti, Chairman, DH Consultants.
Mr. Tata isn’t the only high-profile businessman in the country who has turned an avid investor in recent years.
There have been a few others, including most notably Infosys co-founder N. R. Narayana Murthy, who set up Catamaran Ventures with a Rs.600 crore fund in 2010, and Wipro’s Azim Premji, whose PremjiInvest is said to have invested in over 40 companies since starting in 2006.
A graduate in architecture and engineering, Mr. Tata takes keen interest in automobiles and is a frequent visitor to Coimbatore’s automobile development and design firm Jayem Automotives.
An avid flyer himself, he took active interest in the formation of two new airlines — AirAsia India and Vistara — where the Tatas are joint venture partners.
Besides, he is a member of the Global Ocean Commission, an organisation working toward reversing the degradation of the oceans.
