Sunday, April 11, 2010

Why Mr. Ratan Tata is poor then Warren Buffet..?


Why Ratan Tata isn't World's Richest Man


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 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 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.

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