New Delhi: In a surprise move, Niira Radia, owner and promoter of Vaishnavi Group which serviced the Tata group and Mukesh Ambani-led RIL, has announced her exit from the business of communication consultancy.
"To give precedence to my personal priorities of family and health, I have decided against renewing any client mandates and to exit the business of communications consultancy," she said in a statement.
It is a painful decision, taken after much consideration and consultations, the statement added.
Meanwhile, Tata Group has appointed Rediffusion to manage the conglomerate's public relations in place of the agency led by high-profile lobbyist Niira Radia who has quit the business.
"The Tata Group has appointed Rediffusion, led by Arun Nanda, to manage public relations and public affairs for the Tata Group of companies from November 1, 2011," the Group said in a statement.
This follows the expiry of the contract with Niira Radia-led Vaishnavi Corporate Communications on 31 October, 2011.
Niira had been in the news related to the 2G controversy in the recent past. She was in the media glare last year when leaked tapes of her conversations appeared in the media. Although there was no charge against her, she was named as a witness by the investigating agency.
Reacting to her surprise decision, Tata Group chairman Ratan Tata said, "The Tata Group respects the personal wishes of Niira Radia in not renewing any client mandates. She has built Vaishnavi from scratch into the company it is today, often subordinating her personal and family interests in favour of her clients' priorities."
Vaishnavi has had the PR mandate of the Tata Group since 2001 during which period it contributed significantly to the building of the Tata Brand, he said. Vaishnavi's engagement with the Group has been ethical and satisfactory, he added.
A Reliance Industries spokesman said, "We regret the decision of Niira Radia to discontinue her association with the business of communications consultancy and not renew any of her client mandates.
"We have enjoyed a professional and fulfilling relationship with Radia and her team over the last three years."
Watch video of Niira Radia citing health reasons for quitting
Updated Date: Oct 31, 2011 13:43 PM