Mumbai: Ratan Tata, interim chairman of Tata Sons, on Tuesday asked the CEOs of group companies to act as leaders in their markets and enhance returns to shareholders. In an attempt to assuage the concerns that may have been caused by the sudden ouster of Cyrus Mistry, Mr Tata told the CEOs and managing directors that they “must focus on their market position vis-à-vis competition, and not compare themselves to their own past... The drive must be on leadership, rather than to follow”.
Mr Tata, who had chalked out a new path for himself — mentoring startups, both financially and by giving advice when asked for — returned to Bombay House Tuesday morning, making it clear it was a temporary position. He explained that he had assumed the role of interim chairman to ensure stability and continuity, so that there was no vacuum. “This will be for a short time. A new permanent leadership will be in place,” he emphasised.
A day after the board’s dramatic decision, the Tata Group moved various legal forums, including the Supreme Court, Bombay high court and National Company Law Tribunal, filing caveats against Mr Mistry moving the courts seeking relief against his sacking.
The Shapoorji Pallonji Group was, however, quick to issue a statement that said: “Tatas have filed caveats seeking notice from Cyrus Mistry fearing legal action. Cyrus has not filed any caveats. He has already made a statement that such concerns are misplaced at this stage.”
Mr Ratan Tata also inducted two new directors into the board of Tata Sons, the holding company. Jaguar Land Rover CEO Ralf Speth and Tata Consultancy Services CEO & MD N. Chandrasekaran were inducted as additional directors.
Adressing the CEOs, Mr Tata said: “I look forward to working with you as we have worked 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 the group together.”
Referring to the ongoing initiatives in the companies, he said: “We will evaluate and continue to undertake those that are required to. If there is any change, they will be discussed with you.” Mr Mistry had tried to bring in radical changes like closing down loss-making units without taking incumbent heads into confidence.
