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Focus On Business, Don't Worry About Leadership Change, Ratan Tata Tells Group's Top CEOs

Ratan Tata said "an institution must exceed the people who lead it" Ratan Tata told group CEOs to focus on their respective businesses Ratan Tata assumed role of interim chairman after Cyrus Mistry's exit

Tata Sons Chairman Ratan Tata (C) arrives in his office after attending a meeting in Mumbai.
Tata Sons Chairman Ratan Tata (C) arrives in his office after attending a meeting in Mumbai.
  • "An institution must exceed the people who lead it," said Mr Tata, who has taken charge of the group till it finds a new head to replace Cyrus Mistry. Mr Mistry was ousted as Chairman of Tata Sons, the group's holding company, at a meeting of its board of directors on Monday. 
  • He had assumed the role of the interim chairman, Mr Tata said, for stability and continuity. "This will be for a short time. A new permanent leadership will be in place," said the 78-year-old, who was chairman for 21 years till 2012, when Cyrus Mistry took over.
  •  "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," Mr Tata said, also adding, "I am proud of all of you, and let us continue to build the group together."
  • The Tata Sons board has asked a five-member panel, which includes Mr Tata, to find a new chairman within four months. 
  • Shares in most Tata group companies fell on Tuesday as markets reacted to Mr Mistry's removal. His team of five strategic advisers has also been disbanded.  
  • Analysts said investors are being cautious. "We are mostly seeing short-term trading on Tata stocks as traders are looking to book profit because of the situation. However, this is not likely to sustain for a long period," Mugilan. K, deputy manager of research at Cholamandalam Securities, told news agency Reuters.  
  • Cyrus Mistry's removal was announced as group company Tata Steel struggles to offload its loss-making British assets, while Tata Motors is struggling with weak sales.  
  • Mr Mistry was unable to resolve a long-running dispute with NTT Docomo, which is demanding that Tata cough up a $1.17 billion arbitration payment awarded to the Japanese mobile phone operator at an international hearing. The issue threatens to damage the group's international reputation.
  • Ratan Tata is credited with building the group into a global behemoth. During his tenure, the organisation went on a global purchasing spree, acquiring major names ranging from Tetley Tea to Land Rover and the Anglo-Dutch steel firm Corus in 2007 for $13.7 billion.
  • The Tata group has over a 100 operating companies spread across six continents. In 2015-16, the revenue of Tata companies, taken together, was $103 billion and they employed over 6,60,000 people.