Speculations are rife over the reasons for which Ratan Tata has been appointed as the interim chairman of Tata Sons for four months and Cyrus Mistry has been asked to step down.
Was Mistry removed or he himself stepped down is yet to be known. However, experts are surprised with the development as the current chairman Mistry was reportedly making moves to make some changes in the functioning of the group.
Mistry had started taking tough decisions which some believe didn’t go well with people who have been working with the Tata Group for long. The decision to bring back Ratan Tata at the helm of affairs of Tata Group, even if for four months, experts say, shows the conglomerate doesn’t have many options for the top post. And it is not good for the health of one of the largest business groups in the country.
Mohandas Pai, a former member of the Infosys board of directors of Infosys, said told ET Now the move to bring back Ratan Tata shows there is something wrong with the Tata group.
Author Gurucharan Das told the channel that shareholders get nervous when they get surprises like this. “It is not good to have surprises for such a large group. Shareholders get nervous. But I think there should be some clarification over the move.”
Incidentaly, Mistry was appointed the chairman of Tata group after a global search.
Economist Lord Meghanand Desai was of the opinion that a break up of the current structure of the conglomerate is required.
More clarity as to why Mistry is expected to come soon.