- Whenever a tectonic shift happens at the top echelons of the big business conglomerates, it’s a given fact that the tussle for consolidating hold to run the empire so assiduously built follows suit. History is replete with innumerable instances of how established business houses have struggled when the power at the top changes hands to usher in a new supremo to navigate. Of course, the transition of any nature is expected to produce challenges of diverse nature, and as such, the passing away of Ratan Tata, running one of the most iconic business houses in India and beyond, also witnessed the challenges of succession. Indeed, the whole of India is bound to experience a sense of pride by a mere mention of the word Tata. Such is the respect for the brand here.
- Mind you, the goodwill enjoyed by Brand Tata in the country is enormous. Admirably, the Brand Tata has always strived to ensure to cultivate such trust reposed by people from across the walks of life. After the passing away of the revered Ratan Tata, that stability for the conglomerate seems to be returning to Tata’s top level, which is good news for all concerned. This is an opportunity for Noel Tata, at the helm now, to create his own legacy. By numbers, the Tata Group is a big part of India’s growth story. It is India’s largest private sector employer, earns $180bn in revenue, and has a combined market cap of over $300bn. More importantly, the Tata name is proof that the country can produce a world-class, trustworthy brand. None can dispute this.
PC: Newstrack English
- So, neither the conglomerate nor the country can afford disruptions at the top; stability and continuity are of vital importance. That Noel Tata has consolidated his grip on Tata Trusts, which controls Tata Sons – the group’s holding company – is therefore to be welcomed. Board-level issues should be settled quickly so that the group can get back to focusing on business. Given the multiple external challenges it faces – such as Trump’s H-1B curbs, which can impact TCS, and tariff shocks – the last thing it needs is to be distracted by internecine battles. Through the history of large entities, a transition from old to new has not always been smooth. So, the tensions with the Tata Group over the last couple of months should not come as a big surprise.
PC: Analytics Insight
- Remember how Ratan Tata’s campaign for full control three decades ago, in the face of almost open defiance from the group’s chieftains, who ran their companies as fiefdoms, took many years. By comparison, the current round of discord within the Tata Trusts board spilled into public view only about a couple of months ago when the Mehli Mistry faction broke with the tradition of unanimity by voting against a Tata Trusts’ nominee director on the Tata Sons board; the events that followed culminated in retaliatory action in the form of a majority vote against the reappointment of Mistry. Now that another Tata appears secure in the saddle, he has an opportunity to create his own legacy at the 157-year-old conglomerate. It’s win-win for all.
