An Open Letter to Ratan Tata
"We donot believe that there is a strategic fit between your predominanty domestic Indian hotel chain and our global portfolio of luxury hotels and unique travel experiences and we donot wish to be involved in an attempt to improve the performance of your non-Indian properties. We believe any association of our luxury brands and properties with your brands and properties would result in a reduction in the value of our brands and of our business and would likely lead to erosion in the RevPar premiums currently achieved by our properties. (emphasis mine)" )
Dear Sri Ratan Tata
The racially loaded, colonially inclined and contemptuously worded letter of the President and CEO of Orient Express Hotels Mr. Paul White has stirred feelings in me the existence and intensity of which I was not aware of till now! If this expression of colonially and racially inclined business could hurt me so much as an Indian and as a proud shareholder of Indian Hotels then the pain and anguish of our business pioneers during the colonial times, whose shadows it seems still loom large on sub-continental business, can only be guessed.
Sir, everybody says that you are a nice guy. That you do not go for hostile takeover. That you are a sensitive rather than sensational businessman. That you create opportunity rather than opposition. That you are humane rather than hard boiled. And I agree with them. But your nicety should not be mistaken for your weakness. Your opposition to hostile take over should not be mistaken for lack of killer instinct. Your sensitive nature should not be mistaken for squeamishness. Your creation of opportunity should not be mistaken for your dread of opposition. And your humanism should not be taken as a sign of oesteoporotic invertebracy.
The defining moments of the world have been preceded by insults to the pioneers. The perfume and eau-de-cologne insult by Arcelor’s chief, Guy Dolle to Mittal in not too distant a past to a very historic insult to your own grand father and an iconic name Jamshetji Nusserwanji Tata by Sir Frederick Upcott, the then chief commissioner of the Great Indian Peninsular Railway, who promised to "eat every pound of steel rail [the Tatas] succeed in making" come to mind immediately. It is a different matter that Sir Upcott did not keep his words and ate not ‘every pound of steel rail’ but only his own words.
But after these slurs come the sweet and satisfying scent of success which only an abject surrender of an otherwise belligerent and aggressive adversary can bring. And therein lies the true worth of enterprises- silent win is better than a rhetorical defeat.
Sir, for long we have suffered these racial slurs and colonial mindsets. But no more. The time has come to tell the world in a voice ringing with the cool confidence of a resurgent India that when the US economy suffered from an anaemia of exchequer due to haemophilic subprime blues, the City Bank did not consider their brand value getting eroded when they turned to an Indian to guide it safely to the shores. Or that the Vodafone or the PepsiCo did not consider it infra dig to be stewarded by Sarin or Nooyis. Or that Ford will not consider their value eroded if it sells its Jaguar and Land Rovers to Tatas as Corus did not consider their value being eroded before marrying into Tata Empire.
There comes a time in the history of big enterprises- political or business- when defining decisions, often at variance with the cultural bequeath and heritage of that enterprise, are taken. If Sri Nusserwanji had not broken the mould and traversed the path he chose to, he would also have joined priesthood like many before him in his family. But that one decision by Nusserwanji changed the business map of India and the world. Tata Group is at one such critical point of history when a path-breaking decision needs to be taken- a decision which has the potential of defining the course of this group for the next 200 years as it has been defined by a decision of Nusserwanji to venture into business some 200 years ago. This is the time to break one more mould- of allergy to hostile takeovers. And at this historic juncture my appeal to you would be to be ruthless in your pursuit of Orient Express Hotels once an initiative has been taken so that history is served a timely reminder of the fate of arrogance at the hands of elegance. And let us disregard the judgemental trivialities about being typecast as a predatory entrepreneur when in effect it is just furthering the national causes and identity.
Sir, legend has it that Jamsetji set his mind on building The Taj in Mumbai (completed in 1903 at the cost of Rs. 4.21 Crores) after being denied entry into one of the city's hotels for being an Indian. It seems divinely ordained and appropriate that another Tata should be spurred on to build on the present insult 100 years after his grand father made the most of that incident. And this time nothing less than takeover -hostile or otherwise- of Orient Express Hotels would do. One insult 100 years back gave us The Taj in Mumbai, one insult now would give us the Orient Express Hotels!
Once the take over is done, in keeping with the great Indian tradition of compassion, we would request you to retain Mr. Paul White, president and CEO of Orient Express Hotel and writer of that libellous letter as one of the functionaries of Indian Hotels so that he understands that whiteness is in deed and not in name. And this gesture of poetic justice would indicate that the wheel had turned full circle.
Sir, take your call. History is waiting to be made. And your signature is needed. Nice guys need not finish second. Not any more.
Labels: Corus, Hotels, Indian Business, Insult, Jaguars, Orient, Slur, Taj, Tata