Ratan Tata on Tuesday held a meeting at Bombay House with the Group CEOs after Cyrus Mistry was removed as the Chairman of the company yesterday. Sources told CNBC TV 18 that Ratan Tata assured all group companies of a stable and steady environment and told them there is no cause of concern. He even said that the selection committee will keep in mind the long-term interests of all the group companies. He even requested all the companies to not get swayed by speculations. “Strategy will be to continue focussing on core strengths of the group and diversify them,” he added. According to the channel, Pepsico’s Indra Nooyi and Tata International MD Noel Tata have emerged as contenders for the post of Tata Group Chairman.
Tata Sons has appointed a 5-member selection committee comprising Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya to decide on the new chairman of the Tata group. According to the channel the selection committee will meet for the first time today and five people have been shortlisted for the post. The Shapoorji Pallonji Group, which has a stake of 18.5% in Tata Sons, is believed to have challenged Mistry’s removal, terming it “illegal’ even as the Ratan Tata Trust is understood to have already armed itself with legal opinion from former solicitor general Mohan Parasaran. The unceremonious dismissal of Mistry — attributed to his performance — had the backing of the Tata Trusts, which hold a commanding 66% stake in Tata Sons. He, however, remains a director on the board. Cyrus Mistry had in December 2012 become the sixth chairman of the Tata Group, replacing Ratan Tata. Mistry had been the director of the company since 2006. Mistry was earlier managing director of the Shapoorji Pallonji Group.
Tata Sons has reportedly said that the decision to remove Cyrus Mistry as the chairman was taken in the “larger interest of the group”. On his part, Ratan Tata has said that he decided to assume the post of the interim chairman in the interest of stability and reassurance to the group.