Ratan Tata has , recently ,returned as Chairman Tata Sons. He again faces the same No. 1 challenge as he faced when he first took charge as the Tata chief 1991- to reign in chiefs of the various Tata Companies. The chiefs had a tendency to grow more powerful and independent for Tata Sons' comfort.
In 1991 , it was Rusi Mody in Tata Steel, Darbari Seth in Tata Chemicals , Ajit Kelkar in Indian Hotels etc
Ratan Tata rose to the occasion. SATRAPS , as they were then called in corporate jargon were neutralised and the writ of the paent Tata Sons was made to run supreme.
In 2016 , again , Tata Sons may have felt uncomfortable about losing their supreme role.
Companies in the fore , being mentioned , are Indian Hotels , Tata Chemicals .
But this this time Ratan Tata 's task is not as simple.
( a )He , now , has to contend with two financially Juggernaut fellow Parsi families of Pallonji Mistry and Nusli Wadia ( of Bombay Dyeing group ).
( b )Pro- active mindset of the minority public shareholders with Internet / E Voting etc.
The parallels with Mughal times are striking ( block buster Mughl-e- Azam movie was produced by Cyrus Mistry 's father ) .
Mughal's Central authority was centred around Agra/ Delhi. Mughl-e-azam , Akbar represented the centripetal forces and his writ reigned supreme.
Mughals after Aurangzeb saw the rise of centrifugal forces. Erstwhile governors of Bengal , Deccan ( Nizam ) were becoming independent.
Tata s are , also ,facing the challenge of controlling individual Tata Companies with small ( below 50% equity
Probably , they have yet to shed off completely their mind sets of Managing Agency times .
Cyrus Mistry , it seems , represented the present times when , for example , it is more important to first share informationwith SEBI / Stock Exchanges than with Bombay House.
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OLD POSTS.
Earlier , Tata Sons , exercised their control over Tata Companies through Managing Agency concept. This concept was abolished in 1969.
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