The combined market valuation of all listed companies of the Tata Group almost doubled during the four-year tenure of outgoing chief Cyrus Mistry, but the growth was close to 57 times under his predecessor Ratan Tata who has returned to the helm for now.
The Tata Group currently commands a listed market capitalisation of more than $125 billion (close to Rs 8.5 lakh crore), with the software giant Tata Consultancy Services (TCS) alone commanding a market value of close to Rs.4.8 lakh crore.
This marks a rise from a market capitalisation for the group of close to Rs 4.62 lakh crore in December 2012 when Mr. Mistry took over from Mr. Tata as Chairman of Tata Sons Ltd, the main holding company of the salt-to-software conglomerate.
21-year tenure Mr. Tata, who was today made interim Chairman of Tata Sons after Mr. Mistry was removed from the post he held for less than four years, had earlier headed the group for 21 years, during which time the group’s market cap rose from less than Rs.8,000 crore in 1991 to more than Rs.4.62 lakh crore in December 2012.
Tata Group is the country’s most valuable group and has an estimated 4.1 million shareholders across its listed companies.
Council disbanded The Group Executive Council (GEC) set up by Mr. Mistry has been disbanded.
The GEC, headed by Mr. Mistry, was set up in April 2013 with the objective of providing strategic and operational support to him.
It included N.S. Rajan from EY, Tata brand custodian Mukund Rajan, ex-BSE chief Madhu Kannan, strategist Nirmalya Kumar and Tata veteran Harish Bhat.
Mr. Rajan and Mr. Bhat will be offered new roles within the group, sources in the know of the development said.
It is unclear what fate awaits the rest of the members in the group. Soon after making public the departure of Mr. Mistry, details related to the GEC were no longer to be found on the Group’s web site.
Ensuring ‘stability’ Taking over as the interim Chairman of the Tata Sons after the sacking of Mr. Mistry, Mr.Tata wrote to employees that he had agreed to take up the role in the interest of stability and reassurance to the group.
Mr. Tata, 78, said, “A new management structure is being put in place and a selection committee has been constituted to identify the next Chairman of Tata Sons.”
Mr. Tata, who became Chairman Emeritus of the Tata Group when he retired in December, 2012, further said, “In the interim, the board has requested me to perform the role of Chairman and I have agreed to do so in the interest of stability of and reassurance to the Tata group.”
