It’s One Man’s Ego Versus An Institution, Says Mistry Of Tata
Ratan Tata’s judgement adversely affected thousands of jobs, says Cyrus Mistry.
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The office of ousted Tata Sons chairman Cyrus Mistry released another letter, this time raising questions over business decisions taken by Ratan Tata over the years.
Mistry highlighted three instances when Ratan Tata's decisions may have adversely affected the group companies.
Tata’s decision to acquire British steel company Corus for over $12 billion in 2007, just a year after it was put up for sale at half the price, Mistry claimed made it hard for Tata Steel Ltd. to turn around the business and make it viable. According to the statement, Tata took this decision despite reservations voiced by some board members and senior executives.
The overpayment made it harder to invest in the acquired assets which had been neglected, and thereby, placed many jobs at risk.Cyrus Mistry’s Office
Mistry then went on to criticise Ratan Tata's decision to adopt the CDMA platform for Tata's telecom business, which too he claimed was against the advice of team members.
This “strategic” decision has led to a series of consequences that currently leave the company structurally challenged.Cyrus Mistry’s Office
Finally, Mistry also claimed that Ratan Tata, who then was heading the Tata Industries’ joint venture with IBM had proposed to sell Tata Consultancy Services Ltd. to IBM, only to be turned down by the then chairman of Tata Sons, JRD Tata.
It was also a near death experience for TCS at the hands of Mr. Ratan Tata.Cyrus Mistry’s Office
The statement also defended Mistry's leadership and involvement in the group's two best performing companies TCS and Jaguar Land Rover.
Here is a full reproduction of the media statement put out by Cyrus Mistry’s office.
