India’s Tata in race against time to save global image
MUMBAI: India’s largest conglomerate Tata faces one of the most turbulent periods in its long history after its shock decision to sack its chairman, analysts say, as it battles to save its global reputation.
Seventy-eight-year-old patriarch Ratan Tata dramatically returned to the helm of the family business this week after he became upset at the direction Cyrus Mistry was taking the sprawling group.
The abrupt sacking on Monday has plunged the US$100 billion (RM416 billion) conglomerate into acrimony and highlighted its divisions at a time when it faces major financial challenges.
“Tata group is going through an economic crisis and most of its businesses are not performing well,” Mumbai-based Equinomics Research & Advisory Pvt managing director G. Chokkalingam told AFP.
Tata Group’s revenue slipped 4.6% for the financial year ended March to about US$103 billion. One of its worst performers is Tata Steel, which last month reported a quarterly net loss of almost 32 billion rupees (RM1.9 billion), as it winds back its European operations. The company announced earlier this year that it was selling its loss-making British assets owing to a global oversupply of steel, cheap Chinese imports into Europe, high costs and currency volatility.