Cyrus Mistry's exit as the Chairman of the Tata Group was quite sudden and surprising. The same can be said of bringing back Ratan Tata as the chief out of retirement – he had hung up his boots on December 29, 2012 at the age of 75 years.
Cyrus Mistry’s exit as the Chairman of the Tata Group was quite sudden and surprising. The same can be said of bringing back Ratan Tata as the chief out of retirement – he had hung up his boots on December 29, 2012 at the age of 75 years. Mistry’s stint at Tata group as Chairman has become the shortest of them all at just 4 years. Here are some noteworthy news and numbers about the organisation that is respected across the world for its ethical ways in conducting business.
1. According to reports, Ratan Tata had met Cyrus Mistry as well as written letter to him about how the management of the group was being handled. The process continued for a year. However, Mistry was not very welcoming of the opinions voiced by Tata and did not act on them.
2. Tata Group had brought in young blood in the shape of Mistry and he was expected to fill Ratan Tata’s oversized boots, but that is not what happened. On the other hand, Ratan Tata had led from the front since his initial appointment itself by the iconic corporate czar JRD Tata himself. He remained the chairman for over two decades (1991 to 2012) and the Tata Group revenues soared from $6 billion to $100 billion. While he was boosting revenues, Tata had bought foreign biggies like tea maker Tetley in 2000 (for $450 million), Corus Group Plc in 2007 and Britsh luxury auto major Jaguar Land Rover (JLR) in 2008 (for $2.3 billion). However, the major part of the profits for the group came from Tata Consultancy Services (TCS) and later JLR.
2. Cyrus Mistry’s biggest job was to service the pile of debt Ratan Tata left behind as he expanded the group. Mistry was appointed Tata’s successor in November 2011 and chairman in December 2012. Cyrus Mistry on the other hand was not really expansionist at all. In fact, there was a lot of friction in the group and even Mistry’s management style was questioned as he preferred to sell assets and that too after writing them down.
4. An article in The Economist newspaper that questioned Tata Group’s ability to script an outstanding return for investors brought into the limelight the woeful nature of its performance over the last few years. Also, there were no significant achievements to its name, indicating that the conglomerate was more interested on resting on its laurels rather than chalking an aggressive agenda, something that Ratan Tata had never let happen. Also, Mistry was not able to chalk an effective plan to get rid of UK steel plants.
5. Today, after Mistry’s exit, the Tata Group has almost 700,000 employees and some 100 companies stretching from cars, hotels, salt, steel, watches, tea, leather goods, trucks and buses, software, electricity, undersea cables, shopping chains and even mobile telephony. Tatas have also expanded into defence, infrastructure and financial services over the recent years.