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| Tata Sons in new attack on ex-chairman Cyrus Mistry | |
| (35 minutes later) | |
| Tata Sons has deepened the row between it and former chairman Cyrus Mistry. | |
| In a strongly worded statement, Tata said Mr Mistry presided over falling income and rising costs and "dismantled" the company's structure. | |
| Tata Sons, the holding company for Tata Conglomerate, a group of 100 companies whose interests include steel, Jaguar Land Rover and Tetley Tea, removed Mr Mistry as chairman last month. | Tata Sons, the holding company for Tata Conglomerate, a group of 100 companies whose interests include steel, Jaguar Land Rover and Tetley Tea, removed Mr Mistry as chairman last month. |
| His removal shocked the business world and no reason was given at the time. | His removal shocked the business world and no reason was given at the time. |
| The statement said that in the four years of Mr Mistry's chairmanship, the three main problem companies - which include Tata Steel Europe, owner of Port Talbot - had not improved. | The statement said that in the four years of Mr Mistry's chairmanship, the three main problem companies - which include Tata Steel Europe, owner of Port Talbot - had not improved. |
| The two others singled out as problem groups are Tata Teleservices/Docomo and the Indian operations of Tata Motors. | |
| Tata's statement said the group's figures as a whole looked good because of the "excellent performance" of two companies, Tata Consultancy Services (TCS) and the UK subsidiary of Tata Motors, Jaguar Land Rover. | |
| Tata's statement says Cyrus Mistry changed the culture at the 150 year old group: "Insiders in Bombay House who have been with the group for many years silently and helplessly watched the conscious departure from old, proven and successful structures within the group and the induction of very senior executives from outside the group with little or no experience of running large companies and being paid [large] amounts... for purely functional positions at the very top". | Tata's statement says Cyrus Mistry changed the culture at the 150 year old group: "Insiders in Bombay House who have been with the group for many years silently and helplessly watched the conscious departure from old, proven and successful structures within the group and the induction of very senior executives from outside the group with little or no experience of running large companies and being paid [large] amounts... for purely functional positions at the very top". |
| Mr Mistry had led Tata since late December 2012, and was the first chairman in nearly 80 years to come from outside the Tata family. | Mr Mistry had led Tata since late December 2012, and was the first chairman in nearly 80 years to come from outside the Tata family. |
| Shortly after his ousting, he sent a highly-critical letter to the company's board, saying he had become a "lame duck" chairman and alleging constant interference, including being asked to sign off on deals he knew little about. | Shortly after his ousting, he sent a highly-critical letter to the company's board, saying he had become a "lame duck" chairman and alleging constant interference, including being asked to sign off on deals he knew little about. |
| Control | Control |
| Separately, TCS on Thursday removed Cyrus Mistry as chairman. As the former chairman of the conglomerate's holding company, Mr Mistry holds that same role in a number of Tata subsidiaries. | Separately, TCS on Thursday removed Cyrus Mistry as chairman. As the former chairman of the conglomerate's holding company, Mr Mistry holds that same role in a number of Tata subsidiaries. |
| Tata Consultancy Services is the biggest software services firm in India and its income is central to the whole Tata empire. | Tata Consultancy Services is the biggest software services firm in India and its income is central to the whole Tata empire. |
| Tata Sons wrote to TCS nominating Ishaat Hussain as chairman: "In view of this, Mistry has ceased to be the chairman of the board of directors of the company, and Hussain is the new chairman of the company." | Tata Sons wrote to TCS nominating Ishaat Hussain as chairman: "In view of this, Mistry has ceased to be the chairman of the board of directors of the company, and Hussain is the new chairman of the company." |
| Tata Sons holds more than 70% in TCS, but its control is weaker over other companies. | Tata Sons holds more than 70% in TCS, but its control is weaker over other companies. |
| Despite the outpouring of criticism by Tata Sons, some of these businesses may wish to retain his services. | Despite the outpouring of criticism by Tata Sons, some of these businesses may wish to retain his services. |
| Indian Hotels, which owns the Taj chain, has called an extraordinary general meeting to consider a resolution to remove Mr Mistry as director. | Indian Hotels, which owns the Taj chain, has called an extraordinary general meeting to consider a resolution to remove Mr Mistry as director. |
| He received unanimous support as chairman from Indian Hotels' independent directors at a board meeting last week, where he was praised for providing strategic direction and leadership. | He received unanimous support as chairman from Indian Hotels' independent directors at a board meeting last week, where he was praised for providing strategic direction and leadership. |
| Mr Mistry is also chairman of Tata Steel, Tata Motors and Tata Chemicals. | Mr Mistry is also chairman of Tata Steel, Tata Motors and Tata Chemicals. |