CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)

21 April 2009  


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"?

TATA Group is running 96 businesses and out of which 28 Companies are

publically listed on the various stock exchanges.

Tata Group is world's top 50 Group according to Market capitalization

and Reputation.

Have you ever thought why Ratan tata's name is not in the list of

billionaire's club? why Ratan Tata is not a billionaire on the Forbes

magazine list of billionaire people of the world?

The reason is that, 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


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


So this 65% ownership ownership of Tatasons 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.

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 $

70 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 2008.

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.

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.

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