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Home » Business » Ratan Tata trying to save British Steel at the cost of Tata Steel: Nusli Wadia

Ratan Tata trying to save British Steel at the cost of Tata Steel: Nusli Wadia

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Nusli Wadia criticized Ratan Tata for ‘destroying’ the tradition built by JRD Tata and working to protect British Steel in a letter to Tata Steel shareholders. Wadia also claimed that Tata Steel was set up by Tata Group founder Jamshetji Tata to fight British Steel.

“Ratan Tata is trying to save British Steel (Corus Tata Steel Europe) by deploying huge resources at the cost of Tata Steel India,” Wadia said emphasizing that he had differed strongly with Ratan Tata concerning the buyout of Corus. He said his opinion was that Tata Steel was best served by expanding in India.

Wadia said he was also not in favor of providing endless financial resources to Corus since 2012. “From that date to now, the capital employed in the business has risen by about ₹25,000 crore with nil return,” he wrote. Consequently, Tata Steel has lost its premier position in India.

Wadia believes that the situation in Corus is likely to further deteriorate Tata Steel’s Indian operations. “It is not the role of your company to save jobs in the UK or to support its pension funds. The role of your board is to apply your funds to the most profitable growth opportunities…better served by in vesting in India where the returns are better.”

Wadia also pointed out that the name Tata in ‘Tata Steel’ was given to it by its founders and not Tata Sons, much before the Tata Sons was incorporated. “The products of the company have been sold since 1907 under the brand name `Tata’ almost 91 years before any licence agreement with Tata Sons was entered into by the company that too without a payment of any fee. It is only from 1998 that Tata Steel entered into a licensing agreement with Tata Sons, the validity of which needs to be examined and suitably addressed,” he added.

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