In a bid to help Ratan Tata's successor, Cyrus Mistry, gain experience and confidence before he takes over as chairman of the Tata Group, the non-executive vice-chairmen of the group's flagship companies are likely to be promoted as chairmen of their companies.
If the new structure gets the go-ahead from shareholders, "Ravi Kant, S Ramadorai, B Muthuraman and RK Krishna Kumar will become the chairman of Tata Motors, TCS, Tata Steel and Indian Hotels, respectively, once Ratan Tata retires," said an Economic Times report today.
Cyrus Mistry, deputy chairman of Tata Sons, who takes over as chairman of the Tata group from Ratan Tata at the end of this year. To be sure, he has his task cut out.
It may be too early to jump to conclusions about how Mistry will run the group once he succeeds Tata, but it's likely that he will focus on the group's three-largest businesses: Tata Steel, Tata Motors and Tata Consultancy Services. His mandate over the next 10 years is to turn the Tata Group into a $500 billion conglomerate from the current $83 billion. Achieving this tall task is next to impossible without the group making some key, strategic acquisitions, and Mistry will need to lean on Tata's highly accomplished veterans during the process.
"Those in favour of this structure at Bombay House feel that a tryst with these stalwarts will give Mistry the required experience and confidence to take over the chairman's role at the flagships once the old hands hang up their boots, " noted the ET report.
Since the retirement age for non-executive directors at Tata Group is 75 years, Mistry will have a couple of years to work with Tata's 'gems'. S Ramadorai (67) is currently the non-executive chairman of Tata Consultancy Services while Ravi Kant(68) is vice chairman Tata Motors. Krishna Kumar (73) is the vice-chairman of Tata Global Beverages and Indian Hotels.
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Updated Date: Dec 20, 2014 08:02:59 IST