Cyrus Mistry’s removal from Tata Group’s Chairman post created a flutter in the corporate world on Monday. Speculations are now rife that he might meet PM Narendra Modi in New Delhi to argue his case against his dismissal. According to TOI, As chairman, Mistry was seen to be keen on building ties with the political establishment – perhaps in order to build his profile as successor to Ratan Tata, and maybe even secure his position within the group.
Yesterday, Ratan Tata, interim chairman of Tata Group, had written to PM Modi, informing him about the decision of the Tata Sons Board to replace chairman Cyrus P Mistry. “A new management structure is being put in place and a Selection Committee has been constituted to identify the next chairman of Tata Sons,” Ratan Tata informed PM Modi in the letter, adding, “The committee has been mandated to complete the process in four months,” he wrote. Earlier, Ratan Tata had written to employees of the company, telling them that he took up the role of interim chairman in the interest of stability and reassurance to the group. In a letter, Tata, 78, said the board of directors of Tata Sons in its meeting today replaced Cyrus P Mistry as Chairman, with immediate effect.
Tata on Tuesday also held a meeting at Bombay House with the Group CEOs and 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.
Meanwhile, Pepsico’s Indra Nooyi and Tata International MD Noel Tata have emerged as contenders for the post of Tata Group Chairman, reported CNBC-TV 18. 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.