Why Ratan Tata Does Not Make It To List Of World’s Richest People?

Ratan Tata, the esteemed Chairman Emeritus of Tata Sons, a renowned Indian business magnate and philanthropist, is set to celebrate his 85th birthday on December 28. Widely respected in India and internationally, he boasts a significant Twitter following of 11.8 million.

As per the IIFL Wealth Hurun India Rich List 2022, Ratan Tata, despite being the most followed Indian industrialist on social media, experienced a 118 lakh increase in his Twitter followers this year. While renowned for his business achievements and admired work ethic, it’s noteworthy that his name is absent from the list of the country’s wealthiest individuals.

With a net worth of Rs 3,800 crore, Ratan Tata holds the 421st position on the IIFL Wealth Hurun India Rich List 2022. Notably, this reflects an advancement from his 2021 ranking of 433rd place with a net wealth of Rs 3,500 crore. The bulk of his wealth is derived from Tata Sons, and a significant factor in his lower ranking is the admirable practice of allocating 66 per cent of Tata Companies’ profits, managed by Tata Sons, for philanthropic initiatives through Tata Trusts.

https://www.iiflwealth.com/sites/default/files/2022-09/IIFL%20Wealth%20Hurun%20India%20Rich%20List%202022-Full%20Release.pdf

Indeed, Tata Sons serves as the primary investment holding company and promoter of various Tata entities. Notably, 66 per cent of Tata Sons’ equity share capital is under the stewardship of philanthropic trusts. These trusts play a pivotal role in advancing causes related to education, health, and livelihood generation, as well as supporting initiatives in art and culture.

The Tata Group has diversified its business interests across a wide spectrum, ranging from salt to IT. As of March 31, 2022, there are 29 publicly-listed Tata enterprises, boasting a cumulative market capitalization of $311 billion (Rs 23.6 trillion), as per the official website. Ratan Tata and his family have been actively engaged in philanthropy for over 50 years, a tradition initiated by his great-grandfather, Jamsetji Tata. In the fiscal year 2021-22, Tata companies collectively generated a revenue of $128 billion (Rs 9.6 trillion) and employed over 935,000 individuals, according to the group’s official website.