Friday, October 23, 2020
Home Opinions The major issues emerging from the Mistry-Tata tussle

The major issues emerging from the Mistry-Tata tussle

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

Related Articles

Trending now

US Senate Committee on Judiciary approves subpoenas for Jack Dorsey and Mark Zuckerberg asking them to testify over allegations of censorship

The senate approved the subpoenas in a 12-0 vote after both Facebook and Twitter censored a New York Post report on Joe Biden

Remembering Lalu’s Jungle Raj in Bihar: When an IAS officer’s wife was raped for two years by an RJD leader

During Lalu's Jungle Raj in Bihar, IAS Officer BB Vishwas's wife Chamba Biswas was raped for 2 years by RJD leader Mrityunjay Yadav

“Your outrage against Hinduphobic content on OTT platforms may actually be fuelling more such content”- Here is what an industry insider says

OTT platforms are not hit if a movie or a series if boycotted for Hinduphobic content as people have already paid for subscription

No, India Today, Katrina Kaif in yellow saree for Navratri is not offensive to Hindus, this is where you got it wrong

India Today tries to be holier than thou while trying to paint Hindus as trolls over Eros Now's vulgar Navratri posts

CM Yogi distributes relief amount of Rs 113.21 crore among the flood-affected farmers in Uttar Pradesh

CM Yogi distributed the relief amount to the flood-affected farmers in 19 districts of the state by online transaction.

‘Mughal Prince Tucy’ lashes out on AIMIM’s Asaduddin Owaisi, calls him ‘Bewakoof, and Gadha’

Prince Tucy said that when the people of Hyderabad are dealing with horrific floods, MP Asaduddin Owaisi is busy doing poll campaign in Bihar.

Recently Popular

France: Charlie Hebdo cartoons projected on government building to express solidarity with deceased teacher who was beheaded by Islamic terrorist

Days after the barbaric beheading of teacher Samuel Paty on the streets of Paris by a terrorist for showing the cartoons of Prophet Mohammad to his students, support continues to pour in for the deceased teacher.

Eros Now apologises for publishing vulgar Hinduphobic content on Navratri

After netizens outraged over vulgar posts on Navratri, Eros Now issued an apology.

Lucknow: Jama Mazar caretaker ‘Kale Baba’ caught running sex racket, video goes viral

The caretaker has allegedly confessed to police that he was sexually exploiting women and engaging them in illicit activities in the name of curing infertility and other ailments.

No, India Today, Katrina Kaif in yellow saree for Navratri is not offensive to Hindus, this is where you got it wrong

India Today tries to be holier than thou while trying to paint Hindus as trolls over Eros Now's vulgar Navratri posts

Complaints filed against Eros Now and Arré for vulgar social media posts related to Navratri

Both Eros Now and Arre had published social media posts linking Navratri festival with sex and vulgarity

Remembering Lalu’s Jungle Raj in Bihar: When an IAS officer’s wife was raped for two years by an RJD leader

During Lalu's Jungle Raj in Bihar, IAS Officer BB Vishwas's wife Chamba Biswas was raped for 2 years by RJD leader Mrityunjay Yadav
- Advertisement -

Canada condemns China’s treatment of Uyghur Muslims and other ethnic minorities. Read details

the Subcommittee on International Human Rights of the Standing Committee on Foreign Affairs and International Development heard testimonies of academics, civil society and victims of Chinese atrocities for 12-long hours and over 2 days.

Argentinian artist accuses Disha Patani of passing off his artwork as her brother’s: Read details

In fact, the anime artwork shared by Disha Patani claiming to be her brother's artwork was first shared by Argentinian artist 'Inhoso' in July this year.

Raza Academy threatens to move court against Maharashtra govt if Eid-e-Milad procession is not allowed

Eid-e-Milad is celebrated to commemorate the birthday of Prophet Muhammad and it falls on 29th October this year.

US Senate Committee on Judiciary approves subpoenas for Jack Dorsey and Mark Zuckerberg asking them to testify over allegations of censorship

The senate approved the subpoenas in a 12-0 vote after both Facebook and Twitter censored a New York Post report on Joe Biden

Complaints filed against Eros Now and Arré for vulgar social media posts related to Navratri

Both Eros Now and Arre had published social media posts linking Navratri festival with sex and vulgarity

Chhattisgarh police file FIR against video journalist who had reported on farmer protests based on an allegedly edited video

Video journalist Manish Soni had reported about the plight of farmers whose paddy crops were ruined due to anti-encroachment drive

Reducing Navratri to ‘mating dance’, comparing Holi with terrorism— how the Indian media has turned Hinduphobic

After Eros Now posted series of vulgar messages associated with Navratri, far-left site Arre posted a Hinduphobic tweet on Durga puja

Remembering Lalu’s Jungle Raj in Bihar: When an IAS officer’s wife was raped for two years by an RJD leader

During Lalu's Jungle Raj in Bihar, IAS Officer BB Vishwas's wife Chamba Biswas was raped for 2 years by RJD leader Mrityunjay Yadav

“Your outrage against Hinduphobic content on OTT platforms may actually be fuelling more such content”- Here is what an industry insider says

OTT platforms are not hit if a movie or a series if boycotted for Hinduphobic content as people have already paid for subscription

Mumbai Police threatens Republic TV executive editor with imprisonment for refusing to reveal source of Hansa report in TRP scam

Republic TV Executive Editor warned by Mumabi Police that he will be booked under IPC sections 174 and 179 if does not give source of Hansa report

Connect with us

245,563FansLike
466,002FollowersFollow
18,800SubscribersSubscribe