As the Tata group has begun the process to appoint a successor to Ratan Tata, the current chairman, who retires in 2012, I think the difference between now and 1991 is that this time the man who takes over will find a smoothly running house.

In 1991 as Ratan was appointed there were very powerful satraps. People like Ajit Kerkar (the former chairman and managing director of Indian Hotels), Russi Mody (former chairman and managing director of Tisco, now called Tata Steel) and Darbari Seth (former chairman of Tata Chemicals).

The new chairman will have to have his own equations with new people, which I think is all right. But the fact is he will start with better conditions than Ratan did.

When Ratan took over from him, I remember asking JRD whether Ratan was appointed because of his integrity. And he said, “No”. “It would mean others don’t have integrity.”

“Not because of integrity but Ratan has a very good memory. You need to have very good memory in my job.” At the time Nani Palkhivala was a contender for the top Tata job as was Russi Mody.

Under the new chairman there will be change in leadership. However, I think the one thing Ratan will be very insistent on is that the ethics of Tatas is maintained. He will not be bothered about only sales figures. In fact, in September 2003, this is what he wrote in the epilogue to my book The Creation of Wealth: The Tatas from the 19th to the 21st Century:

“I would hope that my successors would never compromise and turn to soft options to meet their ends, and never allow the Tata group to join the growing number of companies in India which have shed their values, forgotten about their integrity, and closed their eyes to maintaining ethical standards. If JRD Tata was able to uphold the values of the firm and if I have been able to carry on that tradition through my tenure, I hope the future generations in Tatas will recognise these traditions as being critical to the fabric and the fundamentals on which our group was built and grew so successfully for over a century.”

Who will succeed Ratan? I am a historian and not an astrologer. Therefore, I can’t predict who Ratan’s successor is going to be. But let me tell you what Narottam Sekhsaria, now chairman of ACC, told me years ago. He said, “It is very important to have a Tata after Ratan.” I am not giving my view. This is Sekhsaria’s view, which I think may be the perception of the industry.

What is most important is tradition. We all have been very lucky the Tatas have had five chairmen of high calibre. They have performed beyond expectations of anybody.

If you are from the family they either grow in office or they swell. If the successor grows in office like Ratan did, there’s no problem. The successor will have a very well-oiled machinery when it comes to starting this time, which Ratan did not have. It took probably three or four years before he could set about his work.

I have suggested to Ratan that he should write his autobiography when he retires. I told him that it should spell out not only his successes but also his mistakes. Therefore, people in higher management can learn from him. He has done many wonderful things. But I am sure only he knows what mistakes he thinks he has made.

(as told to Reji John)