Things don't seem to be going too well right now...
Tata, the Indian conglomerate, is a global player and has been so for quite some time now. Its decisions affect a lot of jobs in several countries, have a lot to do with the national production of India and other countries, and all in all has a major role to play in determining the state of the global economy. And so, when the Tata holding company, Tata Sons, made the major decision of removing their chairman, Cyrus Mistry, and brought back their earlier CMD, Ratan Tata, the whole world stood still. It was definitely a major decision, which was made absolutely abruptly with no prior signs. And Cyrus Mistry has something to say about this.
Here's everything you need to know.
Just a few days back, one of India's largest conglomerates, the Tatas, decided to relieve their then chairman, Cyrus Mistry, for reasons unknown.
The decision was very abrupt and unexpected. And given the pivotal role Tata plays in the Indian and global economy, it's no surprise that the decision shook quite a lot of people of the industry.
Tata is a huge conglomerate with businesses in fields ranging from the telecom industry to the automobile industry. It has branched out to multiple nations and is now a global player.
The dismissal of Cyrus Mistry was immediately followed by the return of their ex-CMD, Ratan Tata, to act as chairman until a suitable person for the position was found. And, not surprisingly, Ratan Tata's return only added to the frenzy.
Ratan Tata is quite a celebrated name, and is very respected all over the world, for many reasons, one of which is his excellent leadership. It was under his purview that Tata became one of the biggest global players.
One of his most celebrated moves was his gamble of buying a dying business of Jaguar Land-Rover and turning it into a profitable business.
He also acquired the British tea compnay, Tetley.
Many often see the Tatas as India's answer to its former colonizer, Britain. And it is quite an interesting observation too: how the Tatas keep on acquiring British brands and make them their own. In fact, Tata is such an important part of the British economy now that when rumors of Tata shutting down Corus Steel spread, the whole of Britain went into a frenzy! Yes, Corus Steel was a British brand which Tata had bought, and recently thought of shutting down due to huge losses.
After all, for such a huge company to remove their chairman after barely 4 years of service, and to bring back a big name, is definitely a huge move. All this was quite unexpected, and Cyrus has something to say about it.
Cyrus has come on record to state that he was passed on a company that was already debt-laden and sunken in losses. And so, removing him on grounds of non-performance, without even giving him a chance to defend himself, was simply wrong.
He also said that he faced constant interference by his predecessor, which did not let him work up to his potential. Cyrus Mistry now claims Tatas to be staring at $18 Billion in writedowns.
For one, Cyrus wanted to completely scrap off the highly non-profitable business of the ambitious Nano, but couldn't due to reasons that were purely emotional. As such, it is no doubt that the removal of Cyrus Mistry from the chairmanship of the Tatas is quite controversial.