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Mumbai, October 25
Tata Sons Interim Chairman Ratan N. Tata, hinting at possible changes in the group companies, on Tuesday urged them to “act as leaders in their respective markets and enhance returns to shareholders”.
“The companies must focus on their market position vis-a-vis competition, and not compare themselves to their own past. The drive must be on leadership rather than to follow it,” Tata said, speaking to the group companies’ managing directors and senior corporate leaders.
He urged the top leaders of the group companies to focus on their respective businesses, “without being concerned about change in leadership”.
This is the first reaction from Tata a day after he was named as Tata Sons Interim Chairman in the wake of dizzying developments leading to the removal of Cyrus P. Mistry as Chairman.
He added that he looked forward to working with his team as they had done together in the past.
“An institution must exceed the people who lead it. I am proud of all of you and let us continue to build this group together,” he said in his motivating speech.
Hinting at possible changes in the functioning of the companies, he referred to ongoing initiatives and said these will be evaluated and those required would continue to be undertaken. “If there is any change, they will be discussed with you,” he assured the company top bosses.
Tata reiterated that he had assumed the role of Interim Chairman “for stability and continuity so that there is no vacuum”. He assured it would be a short-term arrangement and a new permanent leadership will be in place.
In an unexpected development, the Tata Sons conglomerate on Monday announced its Board had replaced Mistry as the company Chairman, and named Ratan N. Tata as Interim Chairman. The Board also constituted a Selection Committee to choose a new Chairman for Tata Sons, comprising Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya.
The committee, set up as per the criteria in the Articles of Association of Tata Sons, has been mandated to complete the selection process in four months. However, Mistry has not reacted officially on the development leading to his removal from Tata Sons, though speculation was rife over his next course of action. Agencies
Focus on business, Tata tells top brass
Ratan Tata, who has assumed charge as Interim Chairman, today asked senior management of the conglomerate’s firms to focus on their businesses without being concerned about the top level change.
Tata Group stocks fall up to 3%
Tata Group stocks ended up to 3% lower on Tuesday after Cyrus Mistry was removed as chairman of India’s largest conglomerate, with key firms losing nearly Rs 10,700 crore collectively in market capitalisation. Shares of Tata Steel fell by 2.51%, Tata Power lost 1.5%, TCS slipped 1.20% and Tata Motors went down by 1.07% on the BSE.
No decision yet on legal recourse: Shapoorji
A day after its nominee Cyrus Mistry was ousted as Chairman of Tata Group, Shapoorji Pallonji on Tuesday said it is studying the “circumstances” and has not yet decided on taking legal recourse.
Mistry’s ouster may be ‘good’ for Tata Steel UK
London: The shockwaves over removal of Cyrus Mistry were felt strongly here with the British media on Tuesday speculating that it may be “good news” for the company’s UK operations due to interim chairman Ratan Tata’s affinity towards the business. One report stressed that the decisiveness over Mistry’s removal should have been reflected in the Group’s plans for its UK steel units, which it had announced it would be shedding in March this year.
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