Here is a Real Story of Ratan Tata - So many people around the world want to know that
- “What is the Net Worth of Ratan Tata”
or is he really the richest man in the world?
Well most of the wealth is calculated by imputing a %-age of the net worth. Which means if all the Tata companies earn Re 1 and the group gets an average p/e of 30, it will have a market cap of Rs. 30.
If Mr. Tata controlled (remember you need to control not own) 60% of this, he would be worth Rs. 18. Have not added any unit to this - you could add million, billion, or trillion...so read on...
TATA Group is running 96 businesses and out of which 28 Companies are publicly listed on the various stock exchanges.
Tata Group is world’s top 50 Group according to Market capitalization and Reputation. TATA Group’s 96 companies are held by its main Company “TATA Sons” and the main owner of this TATA Sons is not Ratan Tata but various charitable organizations developed and run by TATA Group. Out of which JRD TATA Trust & Sir Ratan Tata Trust are the main.
65% ownership of TATA Sons which is the key holding company of the other 96 TATA Group Company is held by various charitable organizations. So this 65% ownership of Tata Sons Limited is not reflected on Ratan Tata’s personal Financial Statement but on the various charitable organizations; and this is the reason why Ratan Tata is not in the list of Billionaire club.
Remember he controls the Trusts, but not necessarily the Income and Expenditure Account!
If we put this 65% ownership of Tata Sons in Ratan TATA’s own personal financial statement then Ratan Tata’s Net worth
- can become more than $85 billion
and that’s much more than the Warren Buffet’s Current Net Worth of $ 62 billion, the world’s richest person according to Forbes magazine. Of course this figure keeps changing from time to time, but Ratan Tata continues to be head and shoulder ahead of the others.
However, it doesn’t mean that Ratan Tata is poor. In one interviews he had told the reporter that, “I have my own Capital”. He is the chairman of Tata Group so obviously he earns lots of money every year as a bonus, remuneration and salary.
However, Ratan Tata’s Net worth is not $ 1 Billion. One person who would have called Mr. Ratan Tata the world's richest man is the author of the book "To have or to be" - Erich Fromm. Not sure about the spelling- though.
He is not a billionaire on paper, but in reality he is the richest person of the world. His net worth in reality is more than Bill Gates and Warren Buffet. Of course Bill Gates and Warren Buffet do a lot of Charity too. However BG and WB have not been without controversies WHEN they earn their money. BG has been taken to court over Anti Trust issues, and has been accused of hurting his competitors. WB has invested in projects that have caused a lot of harm to the people, environment, health, and in companies with very poor corporate governance. Tatas have by and large been away from controversy over such a long period. So the good thing about Tata Group is that, They do Charity out of their Money. Imagine in a country where businessmen do not like 30% income tax, here is a man who KNOWS that out of every rupee that he earns after tax 65% money HAS ALREADY BEEN EARMARKED FOR CHARITY (BY right, not as a favor as in other cases!). This brings me to another famous statement by Mr. JRD Tata. He said our Vision is 'To Do things good for the Country". He said when I do a project and I am in doubt whether I should go ahead with the project, I look at the Vision statement (drafted by Mr. Jamshetji Tata) and then decide. So simple!
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http://www.subramoney.com/2009/09/worlds-richest-man/
May I add that Ratan Tata is like the Tai-Pans of the Keswick family of Jardine Matheson Holdings Limited.
The Fleming family is associated with the Keswicks. Another famous business family is the Sasson family. Tata, and aapro Ratan-bhai, is that type. Only Sasson and Tata operated in British India, which also led them to China and Globalisation. I beleive Pakistan has an equivalent in the Habibs of Habib Bank fame who famously gave a blank cheue to Jinnah re: setting up Pakistan, or is that family from Bangladesh, itself formerly East Pakistan.
- Point being, Tata worth may be said to be x10 the bullet above - $ 85 Billion, more like $ 850 billion
I would not be shy to put Ratan Tata to be at the pyramid of at least $ Trillion or more because in PPP terms, $ 1 US = $ 10 in PPP in India where the Tatas do their thing in the majority. The reason I go beyond and say $ Trillions is simply because Indian, specially Gujarati and even more so Parsi ppl., professionals and businesses are notorious for humility and under-invoicing. And who in the entire history of the world puts down all heir stash in one place?
The reason for the Parsis, and other's to end up top-of-the-pile was Hindu India's then immigration policy whereby refugees were welcome as long as they played by the rules. One rule -no buying up local land. So they had to go into business or manufacturing. Made in India Parsi ships once ruled the seas. Jewish, Muslim and Armenian trading out of India, supplying steel, teak, silk, cotton, teaand spices made these communities rich beyond belief.
For eg. Jinnah was rich, but not many think of Gandhi as - the multi-millionaire he was. Both Gujarati, just like Ratan Tata. You can argue Zoarastrian, Anglo-Persian, Indian, Bombay-wallah etc. Never mind naivete, it's the same thing, one word - Gujarati !
Good folks, to share an idea of the kind of wealth this Gujarati part of India - The Jewel in the Crown, Pliny the elder
- ... Roman politicians and historians are on record decrying the loss of silver and gold to buy silk to pamper Roman wives
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https://en.wikipedia.org/wiki/Indo-Roman_trade_relations
The above names and families were once known as Compradore (Portuguese). The Parsis, Marwari, Scots, many Muslim and Chinese Compradore houses had their hey day in India's transition form the Mughal Empire to today's Republic of India via the East India Co., and not anywhere else. Biggest loot in the history of the world some may say. Business is business, and the House of Tata may have survived as the biggest of them all. Fearing modern India and specially it's politicians, the Sassoons moved from Bombay to Shanghai and were promptly cleaned out by the Commie's.
