Tata Group’s holding company Tata Sons has ousted its chairman Cyrus Mistry in a surprise move that has brought former leader Ratan Tata back to the helm.
Tata Sons, which owns Jaguar Land Rover parent company Tata Group, gave no reason for the change. But the company has suffered a slow down in recent months, with annual turnover decreasing by £4 billion to £84 billion in the last financial year.
Ousted leader Mistry has lead Tata Sons since 2012, when he replaced the now 78-year-old Ratan Tata. Tata Sons said returning chairman Ratan Tata would only temporarily fill its leadership role while a new chair is found.
In an announcement made to his board today, the interim chairman said: “I look forward to working with you as we have worked together in the past. An institution must exceed the people who lead it. I am proud of all of you, and let us continue to build the group together.”
Ratan Tata asked the leaders of the group’s companies to remain focused and suggested the change in chairman would largely have no effect on business. “If there is any change, it will be discussed with you,” he added.
Tata’s British brand Jaguar Land Rover has suffered from the fall in value of the pound following the Brexit vote, reporting a 37% decline in its pre-tax profits for the last quarter. But it has also achieved large growth in sales in recent months so is not expected to be impacted by the change in Tata leadership.
Ratan Tata and board members Venu Srinivasan, Amit Chandra and Ronen Sen will be responsible for finding the new Tata Sons chairman.