NEW DELHI: The Interim Chairman of Tata Sons, Ratan N Tata, has asked Tata companies to act as leaders in their respective markets and enhance returns to shareholders.
He also advised them to focus on their respective companies and not be distracted by the changes at the top.
“The companies must focus on their market position vis-a-vis competition, and not compare themselves to their own past. The drive must be on leadership rather than to follow,” he said, addressing Managing Directors and senior leaders of Tata companies.
After attending yesterday’s eventful board meeting of Tata Sons - the holding company of Tata group - where Mistry was voted out, the Tata family patriarch met chief executives of group companies to talk about ongoing initiatives.
“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,” he said.
He asked the leadership of the companies to focus on their respective businesses, without being concerned about change in leadership. Referring to 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,” he said, according to a statement posted on the Group’s website.
Tata also reiterated that he had assumed the role of the Interim Chairman for stability and continuity so that there is no vacuum. “This will be for a short time. A new permanent leadership will be in place,” he said in a statement.
Tata Sons has already announced that a Selection Committee has been constituted to choose a new Chairman, and will complete its mandate in four months.
The meetings come in the wake of Monday’s shocking removal of former Chairman Cyrus Mistry from his post within four years of his taking over the reins of the firm. The Tata Sons board replaced him with Ratan Tata as interim Chairman.
According to reports, six of the nine members of the Tata Sons board are said to have voted for Mistry’s removal while two abstained. Mistry opposed the decision.Mistry was appointed as chairman in December 2012, only the sixth group Chairman in nearly 15 decades of its existence and the second to hold the post without the surname Tata.