Sunday, July 5, 2020
Home Opinions The major issues emerging from the Mistry-Tata tussle

The major issues emerging from the Mistry-Tata tussle

Also Read

Ullas
Global Citizen, Kannada roots, Indian values, Man United spirit, Fiscal conservative

When Ratan Tata decided it was enough and Cyrus Mistry must be removed, he wouldn’t have predicted the turn of events. Not only has the boardroom battle come out in public, but the acrimonious differences between the two principal shareholding families was there for all to see.

If you have not, it is imperative that all aspiring entrepreneurs or businessmen read this parting shot by Cyrus Mistry. There have been many analyses. Here are some of the key points that stand out in the letter, that should lead to increased scrutiny of Ratan Tata:

Cyrus Mistry was approached by Ratan Tata in 2011 to succeed him.
The narrative fed to us was that a person who knows the famed “TATA culture” could better manage the affairs at the top. Little did we know that Ratan Tata may have zeroed on Mistry just for that, albeit with a sinister motive. With an insider at the top, Tata may have expected the successor to preserve his legacy – than to challenge status-quo and resort to drastic changes.

Come to think of it, the the biggest conglomerate couldn’t find a suitable candidate in the first part of search process. Now, the same board wants us to believe that they will find someone who will understand the “TATA culture”, create shareholder value and bla bla.

Cyrus Mistry highlights the problems he had inherited
Well! If what Mistry writes here is true, I cannot for the life of me, make out difference between this letter and the letter written by Ramalinga Raju of Satyam. If Raju has been put behind bars, the entire TATA board needs to hauled up for investigation and law-book thrown on them. At the same time, just because of the size and stature of the company, we must expect almost nothing to happen here.

Pierre New York acquisition
We were told that The Pierre was “bought“. However, Mistry explicitly writes that the property was leased. Isn’t this a clear case of misleading investors?

The wonder mini-car – Nano
There is hardly any business graduate in the last 10 years – globally – who was not asked about the marvel of Nano. How in the world can a car so cheap be manufactured? Hundreds of business cases have been written and justified the project.

One of my friends, during an MBA interview asked the candidate how he would turnaround Nano. The guy, apparently, gave elaborate analyses and steps for that. He would definitely have been hired by Ratan Tata. In business world, you either analyse and give the results. Or know what your boss expects and tailor your analysis based on that. We know the kind of analysis made in the Tata group for the Nano project.

Airlines
Mistry writes – “Without the benefit of time and experience to fully evaluate the proposal, I had to accept that Tata Sons would take 51% stake in a USD 100 million joint venture” – in reference to the JV with Singapore Airlines.

This from the Chairman of the biggest conglomerate in India. And we blame Modi for not improving business climate in India.

Do note that I do not refer to the other members of the Board in the above analysis. It is deliberate. They don’t seem to be any better than potted plants in the story. Just have a look at their names and their past on the company website. You will concur with this view.

The mainstream media, especially the business media, has come up short in this boardroom saga. Not one media house had reported the difference of opinions between two big boys in the biggest conglomerate in India. Or was the entire media complicit in this with their silence. Not one business news channel nor any pink newspaper have tried to seek views of other board members – no bytes whatsoever. If Cyrus Mistry had not written this letter, we would have been fed a completely different narrative.

That narrative would have been possibly managed by one Niira Radia…and possibly brought to life by Barkha Dutt…and possibly broadcast on NDTV.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Ullas
Global Citizen, Kannada roots, Indian values, Man United spirit, Fiscal conservative

Trending now

Kim Kardashian as First Lady? Rapper Kanye West announces he is running for US President, Elon Musk extends his support

US-based rapper Kanye West today took to Twitter to announce that he's going to run for President in the upcoming Presidential elections in America.

China’s ‘Century of Humiliation’: How period between First Opium War in 1839 and victory of CCP in 1949 shapes China’s view about the world

The Chinese claim to Vladivostok is a stark reminder of the extent to which the 'Century of Humiliation' plays a very crucial role in shaping China's foreign policy.

Tahir Hussain not only planned and instigated the mob, but was also pelting stones and petrol bombs at Hindus: Chargesheet

While Dilbar Negi was dismembered and burnt alive, Ankit Sharma was mutilated, murdered and dumped in a Chand Bagh drain by a Muslim mob spearheaded by AAP leader Tahir Hussain

Uddhav Thackeray approves purchase of expensive new cars for ministers when Maharashtra is struggling to pay salaries to the govt employees

Even as Maharashtra faces acute crisis, the Uddhav Thackeray govt in has given its authorisation for the purchase of 6 new vehicles for its ministers.

Explained: Why is China now eyeing the Russian city of Vladivostok?

The territory of Vladivostok was a part of the Qing Dynasty of China and was handed over to the Russians via the Treaty of Peking in 1860.

Beef ban Haram, Dog Meat ban Halal: Hypocrisy of welcoming ban on dog meat in Nagaland after claiming people have the right to eat...

The Nagaland Cabinet has banned the sale of dog meat in the state following protests by animal rights activists.

Recently Popular

Congress leaders and anti-BJP trolls spread fake news that Modi’s visit to Leh military hospital was staged: Here are the facts

The Conference Hall of the Leh Army Hospital has been convereted into a ward for soldiers with minor injuries, that does not mean it is fake

Amidst chants of Allah hu Akbar and ‘Jai Bheem Jai Meem’, Vinod Kashyap was murdered: The Dalit killing fields of North East Delhi

It was the 24th of February 2020 and the atmosphere was tense with anti-CAA protests turning into anti-Hindu Delhi riots

Swara Bhasker starrer web series gets record low ratings, leftist elites claim it is because she opposes BJP, not because it is bad

Swara Bhaskar starrer 'Rasbhari' streaming on Amazon Prime has got record low ratings on IMDb.

Suspended Hindustan Times reporter issues apology after Hinduphobic tweet goes viral, says her comment is being taken out of context

Suspended Hindustan Times reporter Shristi Jaiswal has issued an apology after her Hinduphobic tweet went viral on social media.

No, BJP leader Vikas Dubey is not the gangster who killed 8 policemen in Kanpur, read how Congress trolls spread fake news

Several trolls took to social media to share an image of a BJP leader along with Uttar Pradesh Chief Minister to claim that the person was the notorious gangster Vikas Dubey, to allege that he belonged to BJP.

Swara Bhaskar tries to exploit Sushant Singh Rajput’s death to label herself as an outsider: Here is how that is patently false

While Swara Bhaskar claims to be an outsider in Bollywood, her mother Ira Bhaskar was a member of censor board

Kim Kardashian as First Lady? Rapper Kanye West announces he is running for US President, Elon Musk extends his support

US-based rapper Kanye West today took to Twitter to announce that he's going to run for President in the upcoming Presidential elections in America.

On war footing: DRDO builds up 1,000 bed coronavirus facility in record 11 days

The DRDO has built up a 1,000 bed coronavirus facility in the national capital in 11 days only. The temporary structure also includes 250 ICU beds.

Latest updates and important links about COVID-19 coronavirus

Live statistics and tracking of news related to COVID-19 coronavirus with focus on India.

While Maharashtra govt threatens action against Patanjali for Coronil, state municipal corporations endorse “unani kadha” as a remedy against coronavirus

Several municipal corporations in Maharashtra have started promoting Unani Kadha to bookst immunity against Coronavirus

UK, UAE, EU, and Malaysia start crackdown on Pakistan’s official carrier PIA after report that 30% of Pakistani pilots have fake licenses

Several countries have started disallowing PIA flights after Pakistan aviation minister revealed that 30% of Pakistani pilots had fake licenses

Maharashtra Cyber Police start sending notices on Direct Message to Twitter users for posting ‘offensive’ tweets

The Maharashtra cyber police has aggressively pursued to stamp down opposing voices by dishing out notices on direct message

Guardian falsely claims China built radar tower near Pangong Tso lake in last few weeks: Read details

Satellite images and media reports show that China had built radar station near Pangong Tso lake years ago, not recently as Guardian claims

Journalists with The Wire and The Hindu indulge in brazen Hinduphobia, cast aspersions over Lord Hanuman’s sexual orientation

It appears that the only prerequisite to having gainful employment with the notorious leftist websites such as ‘The Wire’ and 'The Hindu' is to harbour and manifest Hinduphobic views.

ICMR refutes claims of unrealistic goal to release COVAXIN, says it is only cutting red tape, not any necessary clinical process

ICMR issues statement saying its expedited trial for Covaxin will bypass only red tape and files, not clinical tests

China’s ‘Century of Humiliation’: How period between First Opium War in 1839 and victory of CCP in 1949 shapes China’s view about the world

The Chinese claim to Vladivostok is a stark reminder of the extent to which the 'Century of Humiliation' plays a very crucial role in shaping China's foreign policy.

Connect with us

234,721FansLike
398,230FollowersFollow
269,000SubscribersSubscribe