In a surprise move, Tata Sons today removed Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the over $100 billion salt-to-software conglomerate.
Ratan Tata makes a comeback, taking over as the company's interim boss for 4 months.
A selection panel has been formed to find a successor in four months. The committee will include Ratan Tata, Ronen Sen, Venu Srinivasan, Amit Chandra. The decision has been taken after the board meeting today.
There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry's approach of shedding non-profit businesses, including the conglomerate's steel business in Europe, and concentrating only on cash cows.
"Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today," a Tata Sons statement said.
Tata Sons is the main holding company of the group.
CEOs at the operating company level of the group have not been touched in the rejig, company sources said.
Also read: Four years under Cyrus Mistry’s watch, Tatas march to a new drumbeat
Was it really about performance?
The turnover of India’s largest conglomerate dropped to $103 billion in 2015-2016 from $108 billion the previous year. Net debt rose to $24.5 billion in March 2016 from $23.4 billion a year ago.
Mistry, 48, born in Ireland, had taken over as Chairman of Tata Sons four years ago, in December 2012.
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