Bombay House of the Tatas is shaking after an unceremonious kicking out of its group chairman Cyrus Mistry, who was handheld and trained by Ratan Tata, its former chairman and the present interim chairman. Cyrus Pallonji Mistry is the son of Pallonji Mistry, whose company controls 18% share in Tata sons.
This seems more like a war of generations, one old steeped in traditions and one relatively young, in an urgency to grow, having different perceptions towards corporate and social values. Mistry is alleged to be for closure of many non-profitable businesses of the group. He is critical of Nano car project, its failed telecom partnership with Docomo and the steel business in Britain, which were the brainchild of Ratan Tata.
Cavalier attitude in the the group’s commitment with Docomo and the non-settlement to the overseas partner resulting in a court case that went against Tatas hurt the image of the group. Further dodging the settlement payment has not been well taken by the old timers in Tata, the company having nurtured and groomed best management practices in every sphere of their activity.
As the former Attorney General, Mr. Parasaran, an advisor to Ratan Tata has stated, Mistry could not have been unaware of the present developments dealing to his ouster and stuck on to his chair defiantly. Mistry has now openly criticised Ratan Tata over his Nano car project, Corus steel and the Vistara aviation. Notwithstanding the appreciation of share values in most of its group companies in the last 4 years of Mistry’s reign, the return from many have shrunk, reportedly affecting Tata group’s committed welfare activities of their trusts.
The once graceful Tata empire now is due to wash its dirty linen in the courts, both sides lining up who’s who in the bar of the Supreme Court. Tata is an icon on fair business dealings and respected world over for its salt to automobiles palette. I, as any other Indian would love to see that this sad phase is left quickly and quietly behind with dignity that the group deserves, and they are back in business as usual.
Sampath Kumar
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S S Kumar 