The crisis in the Tata group is not just a boardroom battle between Ratan Tata and Cyrus Mistry. It is a conflict between two ideas of doing business, between the old “Tata way” of taking a long-term perspective on investment and a new brash way of seeking quick returns.
The 148-year-old house of Tatas, the pioneering industrial conglomerate that is widely admired for its brand of classy capitalism and the panache with which it conducts its business, is in the throes of its deepest-ever leadership crisis. The swift, sudden and unceremonious eviction of Cyrus Pallonji Mistry as chairman of Tata Sons, the holding company that controls a hundred business entities belonging to the group, on October 24 shocked not just the world of business but the wider public too. In a terse statement, the group announced that Mistry, who was at the helm for less than four years, would be replaced by Ratan Tata, his predecessor, as the interim chairman, with a tenure of four months during which a successor to Mistry would be found.
The eviction of Mistry threatens to engulf the House of Tatas in an unseemly battle which threatens to draw its attention away from the business end of its interests. Mistry, who succeeded Ratan Tata at the helm, first as an understudy to him in 2011 before assuming full-scale responsibilities as chairman in December 2012, also controls the largest single block of shares in Tata Sons.
This is by virtue of him being the representative of the Shapoorji Pallonji group, an industrial conglomerate whose interests are primarily focussed on the construction business. Incidentally, the group traces its origin back to the time the Tatas established their empire in 1868. But, more germane to the current fracas is the fact that this large block of shares, constituting 18.4 per cent of Tata Sons, can create a few headaches for Ratan Tata.
This story is from the November 25, 2016 edition of FRONTLINE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 25, 2016 edition of FRONTLINE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How Not To Handle An Epidemic
The lockdowns were meant to buy time to put in place appropriate health measures and contain the coronavirus’ spread, but they have failed to achieve the objective and heaped immense misery on the marginalised sections of society. India is still in the exponential phase of the COVID-19 infection and community transmission is a reality that the government refuses to accept.
Tragedy on foot
As the COVID-19-induced lockdown cuts the ground beneath their feet in Tamil Nadu, thousands of migrant workers are trudging along the highway to the relative safety of their upcountry homes.
Sarpanchs as game changers
Odisha manages to keep COVID-19 well under control because of the strong participation of panchayati raj institutions and the community at the grass-roots level under the leadership of Chief Minister Naveen Patnaik.
Scapegoating China
As the COVID-19 death rate spikes and the economy tanks in the United States, Donald Trump and his advisers target China and the World Health Organisation with an eye to winning the forthcoming presidential election.
New worries
Kerala’s measured approach to the pandemic and lockdown has yielded results. But it still has to grapple with their huge economic impact on its economy, which it feels the Centre’s special financial relief package does little to alleviate.
No love lost for labour
Taking advantage of the lockdown and the inability of workers to organise protests, many State governments introduce sweeping changes to labour laws to the detriment of workers on the pretext of reviving production and boosting the economy.
Capital's Malthusian moment
In a world that needs substantial reorienting of production and distribution, Indian capital is resorting to a militant form of moribund neoliberalism to overcome its current crisis. In this pursuit of profit, it is ready and willing to throw into mortal peril millions whom it adjudicates as not worth their means—an admixture of social Darwinism born of capital’s avarice and brutalism spawned by Hindutva. .
Understanding migration
When governments and their plans are found to be blatantly wanting in addressing reverse migration, exercises such as the Ekta Parishad’s survey of migrant workers throughout India can be useful to work out creative long-lasting solutions.
Waiting for Jabalpur moment
The Supreme Court’s role in ensuring executive accountability during the ongoing lockdown leaves much to be desired. Standing in shining contrast is the record of some High Courts.
An empty package
The Modi regime, which has been unable to control the COVID-19 infection, restore economic activity and provide relief to millions exposed to starvation, trains its sights on Indian democracy, making use of the panic generated by fear and a lockdown that forecloses paths of resistance.
