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Home , Cyrus Mistry, Dorabji Tata, Naval Tata, Pallonji Mistry, Sir Ratan Tata Trust

TATA: THE MOST ADMIRED BRAND

Name : JOHN L DAVIDSON Reg No :16MA019 Dept : MECHANICAL & AUTOMATION Year & Section: 4th & MAE

INTRODUCTION

is a Indian Multinational conglomerate holding company. It is 's largest conglomerate. It was founded in the year 1868 by .  It is head quartered in , . • The present CEO of TATA Group is Mr. Ratan . • Ratan Naval Tata, (born 28 December 1937) is an Indian businessman, investor, philanthropist and interim chairman of . • He is the chairman of Tata Group, a Mumbai-based global business conglomerate from 1991 till 2012 and again from 24 October 2016 for interim term, and continues to head its charitable trusts. • He is the recipient of two of the highest civilian awards of India–Padma Vibhushan (2008) and (2000). • He is an alumnus of The Cathedral & John Connon School,Cornell University & Harvard Business School. Chairmen • Jamsetji Nusserwanji Tata (1868-1904) Sir Dorab Tata (1904–1932) . • Nowroji Saklatwala (1932– 1938) . • Jehangir Ratanji Dadabhoy Tata (1938–1991). • (1991–2012) Cyrus (2012- 2016) . • Ratan Tata (Interim Chairman, Oct 2016 onwards). TATA GROUP’S REVENUE

• In 2015-16, the revenue of Tata companies, taken together, is $103.51 billion. • These companies collectively employ over 660,000 people. • Each Tata Company or enterprise operates independently under the guidance and supervision of its own board of directors and shareholders. TATA GROUP’S REVENUE

16MU418-INDUSTRIAL ROBOT DESIGN/DINESH A RANKINGS OF TATAGROUP

16MU418-INDUSTRIAL ROBOT DESIGN/DINESH A Negative Growth

. During the reign of Rata Tata between 1991 to 2012, Tata Sons grew from $6 billion business to $100 billion business conglomerate. . was expected to fill the void created by Ratan Tata, but he failed to impress the stakeholders and Ratan Tata himself. . During his tenure, Ratan Tata bought tea maker for $450 million; Corus Group, Jaguar for $2.3 billion, besides increasing the group’s overall income. . On the other hand, with Cyrus at the help, the group’s turnover decreased to $103 billion in 2015-16, compared to $108 billion previous year.

16MU418-INDUSTRIAL ROBOT DESIGN/DINESH A Increase in Debt

. Under Cyrus, net debt of Tata Sons increased to • $24.5 billion compared to $23.4 billion previous year. . Hence, performance is one of the major issues in the case of Cyrus Mistry, and his sudden removal. . Insiders say that when Cyrus was brought in as Chairman, his first and foremost task was to bring down debts of the company, a task he miserably failed.

16MU418-INDUSTRIAL ROBOT DESIGN/DINESH A Questions over Mistry’s Management Style

. Friction was clearly visible when an article from The Economist questioned the ability of Tata Sons to ensure a respectable return for their shareholders, due to woeful performance in the last few years. . Cyrus Mistry was not known as an ‘expansionist’ within the company, and his management style was questioned by one and all, as he preferred to write down the value of an asset, and then sell them off to bring in money to the table. . An approach resented by Ratan Tata and other board members.

16MU418-INDUSTRIAL ROBOT DESIGN/DINESH A Ignoring Ratan Tata’sAdvice

. As per another set of reports, Mistry ignored Ratan Tata’s advice and suggestions on some crucial matters, and this was not taken lightly by the Board members. . His decision to sell off loss making UK Steel plants was considered a blunder, and the ongoing legal issues related with DoCOMo from Japan was something which never happened before in TataSons. . The way non-profit businesses were being killed by Mistry irked Ratan Tataand the board members. . As of now, Mistry (via family firm ) holds 18.4% equity in Tata Sons, which makes him the single largest individual shareholderof the business empire. . Sir Trust and , on the other hand, has a controlling stake of 51.6% in TataSons. . As Ratan Tata informed PM Modi about the decision, it seems that a lengthy legal battle will start on this big corporate shake-up. . Tata Sons has already hired senior lawyers such as Tata’s hiring Abhishek Manu Singhvi and .

16MU418-INDUSTRIAL ROBOT DESIGN/DINESH A Human Resource mandate • Attract Good People, Retain Better People, Advance best people – Remuneration Policy, – Potential Assessment, – Performance Management, – Work Levels, – Career Development. THANK YOU