Tata Sons likely to earn record Rs 27,797 crore from its listed firms

 The analysis is based on the annual dividend paid/declared by listed Tata group companies every financial year

Tata Sons, India’s biggest promoter in the private sector, is expected to earn a record Rs 27,797 crore via equity dividend and proceeds through share buyback from its listed group companies for the financial year 2021-22. This amount is up 17.6 per cent from Rs 23,663 crore that it pocketed in FY21. Nearly two-thirds of these proceeds will show up in Tata Sons’ financial results for FY22, thanks to the quarterly interim dividend by its cash cow Tata Consultancy Services (TCS). The software major also completed its Rs 18,000 crore worth of share buyback programme for FY22 …

Srinath, Tata Teleservices MD, emerges frontrunner for Tata Trusts CEO post

Tata Trusts was established in 1919, but the activities took off in a big way when Sir Dorabji Tata set up a trust in 1932

At a time when Tata Trusts is caught in a legal tangle over the cancellation of registration of six trusts, it’s set to get a chief executive officer (CEO). After a search process stretching over more than eight months, an old-timer from the group, N Srinath, managing director, Tata Teleservices, has emerged a frontrunner for the CEO’s post, according to sources in the know. Tata Trusts does not have any comment to make, a spokesperson told Business Standard on the matter.

In February, R Venkataramanan (popularly known as Venkat) had stepped down as managing trustee of Tata Trusts, which owns 66 per cent in the salt-to-software group’s holding company Tata Sons. The new CEO, likely to be appointed soon, would possibly have similar powers as Venkat, but he won’t be designated managing trustee.

A search committee, headed by the group’s chairman emeritus Ratan Tata, has over the last many months interviewed several internal employees as well as professionals from elsewhere to select a CEO. A final call on the selection of the CEO is expected to be taken by the committee before the year ends. Venkat’s resignation followed the Income-Tax Department’s scrutiny of his annual salary of Rs 2.66 crore, and the subsequent withdrawal of tax exemption given to Sir Dorabji Tata Trust, which is the largest among the clutch of trusts under Tata Trusts.

Tata Steel to cut 3,000 European jobs due to excess supply, high costs

The company says there will be no plant closures; the aim is to ensure long-term future

Tata Steel plans to cut around 3,000 jobs across its European operations as it wrestles with excess supply, a source close to the discussions told Reuters on Monday. Earlier, the group’s European chief executive Henrik Adam said Tata was planning to announce job cuts across the European business, which employs around 20,000 people, but did not give figures on job losses.

Following a meeting of Dutch employees, a source told Reuters around 3,000 jobs would go and details would be worked out over the coming weeks.

A Tata spokesman had no immediate comment on the number.Indian-owned Tata Steel, which launched a transformation programme in June to strengthen its European business, has operations including steelmaking in the Netherlands and Wales and downstream operations across Europe.

There will be no plant closures but the aim is to shield the company against the “huge number of challenges” it faces, Tata said.”We are working hard on our plans to be operationally cash positive,” Adam said. A company spokesman confirmed Adam’s comments originally made to the Financial Times newspaper.Steel making in Europe has come under strain from international competition and high energy costs, putting large numbers of well-paid jobs under threat.

European steelmakers blame China for the extent of a surplus in the market, but the world’s biggest steelmaker says it has made its own deep cuts to capacity. Britain last week said Chinese steelmaker Jingye has signed a provisional deal to buy British Steel, which went into compulsory liquidation in May.

Tata won’t sell Jaguar Land Rover, open to adding partners: Chandrasekaran

Tata Motors bought the maker of the Jaguar XE sedan and Land Rover Discovery sport utility vehicle from Ford Motor Co. in 2008

Tata Sons, the Indian conglomerate that owns Jaguar Land Rover, said it is open to finding partners for the automaker but isn’t planning on selling the embattled unit. “We’re not going to sell,” said Natarajan Chandrasekaran, chairman of Tata Sons, the holding company in an expansive business empire that includes Tata Motors Ltd. “Auto is a core business for us. From revenue terms, auto is our largest company.”

Tata Motors bought the maker of the Jaguar XE sedan and Land Rover Discovery sport utility vehicle from Ford Motor in 2008. After turning it into a cash cow with booming sales in countries like Russia and China, JLR waned to such an extent that it’s had to launch a 2.5 billion-pound ($3.2 billion) savings program and slash thousands of jobs worldwide.

Losses at Tata’s automotive business have mounted with a slump in India’s car market, as well as trouble overseas, including an economic slowdown in China, where auto sales are sliding, and uncertainty over Brexit. JLR is closing its UK factories for a week in November to guard against disruption to supply chains from a possible no-deal Brexit.

Chandrasekaran said China sales have “collapsed” with a 50 per cent drop last year, though 2019 is showing some improvement. Some problems were self-inflicted, including vehicle quality and dealer issues, he said, noting that the auto industry is “going through difficult times.” “Getting the right portfolio, which one we invest in for electric vehicles, and how do we cut cost” are issues that need to be resolved, he said…

TCS spend on employees is justified: Tata Sons chairman N Chandrasekaran

Chandrasekaran said sometimes specialist skills don’t depend on the qualifications but on the employee’s experience

Tata Consultancy Services (TCS) shareholders cheered the company’s movement to the spot ahead of IBM in market cap at the 24th annual general meeting on Thursday, though many of them were apprehensive of the rising employee cost, especially retaining some staff beyond the age of 60 and even in some cases 72. Some of them raised concerns that the company may be splurging a lot of money given that over 100 employees now earn more than Rs 1 crore towards salary.

Tata Sons Chairman N Chandrasekaran, however, justified the employee costs. “It’s not correct to say that the company is paying too much to the top management. If you see, TCS management deserves a lot of credit across the board for producing excellent results and the company would like to reward them,” he said.

Chandrasekaran, who had a long stint at the TCS helm before taking over as the chairman of Tata Group, said sometimes specialist skills don’t depend on the qualifications but on the employee’s experience. “Some employees have been requested to work with us despite crossing their retirement age,” he said, “because of the value addition they offer to a very complex organisation”. While the company will not compromise on the industry leading employee cost to revenue ratio, they will seek to optimise cost further, he said.

Among other top concerns the shareholders raised were about the need to have more clarity on digital revenues and various technology areas within the new technology services to which the company attributes 28 per cent of its revenues.

N Chandrasekaran walks into Tata corner room

King-size headaches face new chairman, with no quick or easy solutions in sight

N

latest News | Chandrasekaran, new chairman of Tata Sons, walks into the corner room in Bombay House on Tuesday. Amid uncertainties at almost all group companies due to global challenges, litigation and legacy issues. 

Chandra, who will succeed the ousted Cyrus Mistry, will have to take an immediate call on loss-making Tata Teleservices. The company requires fresh fund infusion of Rs 10,000 crore by the financial year starting April 1. This is apart from Tata Tele facing the prospect of losing another $1.2 billion to NTT Docomo, which has sued Tata Sons in US, UK and Indian courts to force the latter to buy back its 26.5 per cent stake in Tata Teleservices. 

With the Reliance Jio launch and Idea-Vodafone merger, fringe players like Tata Tele would face more heat and Chandra will have to decide how much more of Tata Sons’ money should be poured into the company, said an analyst.

The legacy issues, noted by Mistry in several letters after his ouster to Tata Sons’ board members, would continue to dog the group in the coming years. There are no quick solutions for these, say analysts. 

One example is the decision Chandra will have to make on Tata Steel, losing substantial money in its British operations. The latter is in talks for a merger with Thyssenkrupp to cut the losses. A recent ballot by British worker unions has paved the way for pension reform that could lead to a merger with the German giant.

Tata Motors is another big hurdle, though the company is taking several steps to revive its passenger car business in India. A border tax promised by US President Donald Trump could upset the finances at its Jaguar Land Rover arm, as the company does not have any plant in the US, say analysts.

 

"Apart from managing the companies, how Chandra takes care of the Tata satraps and their friends would be a key challenge," said a former official. Mistry had complained on former chairman Ratan Tata's friends having signed profitable deals with Tata companies resulting in huge losses to, for instance, Tata Capital and Tata Power. The Tatas have denied the allegations. 

The good news for Chandra will be that Tata group numbers look good at the consolidated level. These are among the best financial ratios and one of the lowest leverage ratios in the country's top family-owned conglomerates. The bad news is that if Tata Consultancy Services (TCS) and Tata Motors’ JLR are excluded, the picture becomes hazy for group finances| READ MORE..

Lack of communication cost Cyrus Mistry his job?

Ratan Tata arrives at Tata group's head office Bombay House in Mumbai.

In keeping with the practice of promoting Tata group company CEOs to the board of Tata group holding company, Tata Sons, Jaguar-Land Rover CEO Ralf Speth and Tata Consultancy Services (TCS) CEO & Managing Director N Chandrasekaran were on Tuesday appointed additional directors on the TSL board.

ALSO READ: Chandra, Ralf Speth join Tata Sons board

Ratan Tata, interim chairman of Tata Sons, said: “This is in recognition of their exemplary leadership at their companies.” 

Earlier, during the tenure of Ratan Tata, RK Krishnakumar, MD of Tata Tea, and JJ irani, MD of Tata Steel, had been promoted to the Tata Sons board. Similarly, late JRD Tata had appointed late Sumant Moolgaokar and late Darbari Seth on the board TSL.

PM According to media reports, lack of of communication is the reason behind Cyrus Mistry's replacement. CNBC-TV18, quoting sources, said that Ratan Tata & Tata Sons were not informed about major business decisions. Ralf Speth, CEO of Jaguar Land Rover and N. Chandrasekaran, CEO & Managing Director of Tata Consultancy Services (TCS), have been appointed as Additional Directors on the Tata Sons Board.

Why was Cyrus Mistry sacked? Top possible reasons for his exit

Ratan Tata, patriarch of one of India's most influential families, will take over as interim chairman of Tata Sons after the salt-to-software conglomerate's board ousted Cyrus Mistry, who had sought to shake up the firm's management.

Tata, who had stepped down as chairman and was replaced by Mistry in late 2012, will head the group for four months while the company seeks a replacement.

Tata Sons is a large shareholder in a string of listed Tata Group companies - a business empire ranging from Jaguar Land Rover cars and steel mills to aviation and salt pans.

The board said in a statement on Monday it was decided "it may be appropriate to consider a change for the long-term interest of Tata Sons and Tata group."

While the board gave no detailed reason for the change, some media reports said there has been discontent with some of Mistry's actions, including asset sales.

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Cyrus Mistry's stint as chairman the shortest ever at Tata group

India's largest conglomerate, Tata Sons, saw a major overhaul on Monday, with incumbent Cyrus Pallonji Mistry being replaced as chairman. Former chairman Ratan Tata returned as interim chairman and a five-member selection committee was set up to bring on board a new chairman within four months.

Earlier, on December 28, 2012, Cyrus Mistry had succeeded Ratan Tata as the chief of India’s more than a century old multinational company, which had begun its operations in 1868.

Mistry’s stint at the helm of affairs at the Tata group was the shortest among the chairmen so far. Business Standard lists all the previous chairmen of the group and gives a timeline of their term at the top:

1868-1904: Jamsetji Nusserwanji Tata, who founded the group that would eventually become one of India’s biggest conglomerates, led the group for its first 36 years.

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Cyrus Mistry's removal: How the tables turned

In this file photo of Ratan Tata (Left) with Cyrus Mistry. Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly 4 years after he took over the reins of the group. Tata makes a comeback, taking over as the company's interim boss for 4 months.

It took less than half an hour at a full-strength board meeting on Monday afternoon in Mumbai to replace Cyrus Mistry as the chairman of the Tata Group, it is learnt.

The meeting was attended by all 11 board members, including Nitin Nohria, the dean of Harvard Business School, and top-ranked investment strategist Farida Khambata, both of whom are based in the US and who usually attend meetings through video-conferencing. This was no ordinary meeting, where even Ratan Tata was present as chairman emeritus, as a source pointed out. The 78-year-old Tata left the meeting as interim chairman of Tata Sons.

Several resolutions were put to vote, but there were three that would eventually decide the future of the salt-to-software conglomerate. The board members voted in favour of those resolutions — replacing Mistry as chairman, inducting Tata as interim chairman, and relaxing the age criterion for the chairman’s post. But sources told Business Standard two board members abstained when the resolution on Mistry was put to vote and one abstained in the case of the other two.

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