Ratan Tata, interim chairman of India’s Tata group, said on Tuesday that company leaders should not be distracted by the change in overall leadership at the conglomerate and focus on running their respective businesses.
Tata took over as interim chairman of group holding company Tata Sons after its board ousted Cyrus Mistry, who had sought to shake up the salt-to-software conglomerate’s management.
In a statement addressed to business heads, Tata talked about the ongoing initiatives at the group companies. “We will evaluate and continue to undertake those that are required to. If there is any change, they will be discussed with you,” the statement read.
Tata said 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.
Meanwhile, the single largest shareholder with 18.4 per cent stake in Tata Sons – the holding company of Tata Group, Shapoorji Pallonji said it is studying the “circumstances” and has not yet decided on taking legal recourse, a day after its nominee Cyrus Mistry was ousted as Chairman.
“Neither the SP Group nor Mr Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage. As and when a public statement becomes necessary, it would be made,” the construction group said in a statement.
In a sudden and dramatic turn of events, Mistry was on Monday sacked as Chairman of India’s largest conglomerate Tata Group. He has been replaced by his predecessor Ratan Tata in the interim, a development that can trigger a confrontation between the single-largest shareholder and the company’s founding family.
– With agency inputs