A day after Cyrus Mistry was removed as Chairman of Tata Sons, Ratan Tata on Tuesday asked leaders of group companies to focus on their businesses and not be concerned about the sudden exit.
“My appointment is for short-term and the new leadership will be in place soon. I have assumed role of interim chairman for stability and continuity so that there is no vacuum,” Tata said in a statement.
The boardroom coup, announced late on Monday, sent shares in some of Tata’s major listed entities lower on Tuesday, despite the company’s attempt to calm the waters by bringing a well-known and widely respected hand like Ratan Tata back to the helm.
Asking CEOs of group companies to focus on their businesses without being concerned about the change in the top leadership, Tata said, “Act as leaders in respective markets and focus on enhancing returns to shareholders.”
“We will evaluate and continue to undertake those that are required to. If there is any change, they will be discussed with you. The companies must focus on their market position vis-à-vis competition, and not compare themselves to their own past. The drive must be on leadership rather than to follow,” the veteran industrialist said.
He added, “I look forward to working with you as we have worked together in the past. An institution must exceed the people who lead it. I am proud of all of you, and let us continue to build the group together.”
