What Cyrus Mistry will Control

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Kolkata-Pune-Mumbai
27349 Points Joined October 2007

When Cyrus Mistry takes over on December 28, he will be navigating the future of more than 100 companies operating in more than 80 countries across six continents.

The Rs 4,75,721 crore (size be revenue) Tata Group that he will control, has interests as diverse as communications and information technology, engineering, materials, services, energy, consumer products and chemicals, and derives 58 per cent its revenue from businesses outside India.

 

Tata companies employ over 450,000 people worldwide.

There are about 30 publicly listed Tata enterprises and they have a combined market capitalisation of about $75 billion, and a shareholder base of 3.8 million.

 

 

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On 26 December 2012 at 10:00 Report
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Kolkata-Pune-Mumbai
27349 Points Joined October 2007

 

Cyrus, in reality, doesn't control Rs.4,78,659 Cr market capitalisated Tata Group Companies' fortunes.

He simply doesn't and can't and is not expected either.

So, what does he control?

He controls Tata Sons shareholders' interests; that is primarily just two groups of share holders:

1. Trusts of Parsis

2. His own family interests i.e. Shapporji Pallonji

as these two are the only shareholders in the real sense.

So, what would he do?

He calls all the CEOs of Tata Group Cos and says: 

"Folks! this is my investment in companies run by you. Now tell me how much you guys are going to give me in form of returns and increase my wealth-part dividend and part increased market capitalisation." He will take the role of a private equity investor who focusses on the returns on the funds invested as he is accountable to the Tata Sons Shareholders i.e. the two stated investor groups.

If he fails,

1. Ratan Tata as the Chief Trustee of Trust seek his removal and 

2. His own father call him back and say "Kid! run the family business and let someone earn the returns on our money in Tata sons"

Cyrus will tell the CEOs, " Folks! this is the money I am going to have from all you guys. Now tell me who wants how much and state what returns you guys are going to give me" 

Member Companies CEOs will draw plans of expansion and state the returns on addtional funds invested.

The companies that assure the highest returns will get priority.

Besides, he will do
 
- Mr. Kabeer

 

1 Reply
On 26 December 2012 at 10:12
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Accounts Manager MBA (Fin) CMA*
6450 Points Joined March 2010

Nice information... Thanks for sharing.

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On 26 December 2012 at 11:14
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Keep Smiling !!
6890 Points Joined April 2010

Really thnk u 4 sharing !!

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On 26 December 2012 at 11:32
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CHARTERED ACCOUNTANT
3350 Points Joined December 2011

Thanks Sir, for such an artile.....................................

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On 26 December 2012 at 11:45
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!..Live to Give..!
16432 Points Joined December 2010
About Him..........
 
 
Former Director
United Motors(india)
Former Chairman and Member of Committee of Directors
AFCONS Infrastructure Limited
Founder, Managing Director and Director
Shapoorji Pallonji & Co. Ltd.
Director
Forvol International Services Ltd.
Former Director
Gokak Textiles Ltd.
Director and Member of Audit Committee
Shapoorji Pallonji Finance Ltd
Member of the Board of Directors
Sterling Investment Corporation Private Limited
1990-2009
Former Director, Chairman of Nomination Committee and Chairman of Remuneration Committee
Tata Elxsi Limited
2003-2011
Former Non-Executive Director
Forbes & Company Ltd
2006-Present
Deputy Chairman
Tata Sons Limited
2011-Present
Chairman and Member of Executive Committee
The Tata Power Company Limited
2012-Present
Chairman, Member of Executive Committee and Member of Nomination Committee
Tata Global Beverages Limited
2012-Present
Deputy Chairman, Not Independent Non-Executive Director and Member of Executive Committee
Tata Steel Limited
2012-Present
Deputy Chairman
Tata Motors Limited
2012-Present
Additional Director
The Indian Hotels Company Limited
2012-Present
Deputy Chairman
Tata Chemicals Limited
2012-Present
Deputy Chairman
Tata Consultancy Services Limited
1 Reply
On 26 December 2012 at 12:00
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-
252 Points Joined December 2008

hmm....... nice one

 

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On 26 December 2012 at 12:20
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Finance Manager
9232 Points Joined August 2007

Thank you Ayush for the useful information.......Keep sharing.

Thank you Sanket for adding more to it....Keep sharing.

 

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On 26 December 2012 at 13:31
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Learner
462 Points Joined July 2012

Thanks For Shating Useful Info........................!!!!!!

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On 26 December 2012 at 14:49
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Article assistant
31 Points Joined October 2010

So we can safely assume, Ratan Tata did the same, Mukesh and Anil Ambani, Kumar Manglam Birla etc. and head of each and every  huge business group is doing the same? 

What CEOs will do?

They will call up top management and tell them that this result I want and in turn they will call up junior management and do the same and finally executives will be working to achieve he results of the whole group......  Hope that life of those people is this simple.

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On 26 December 2012 at 15:01
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employee
774 Points Joined June 2008

obviously naveen. and that's why poor remain poorer. rich will become even richersad

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On 26 December 2012 at 17:06


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