Removal of Cyrus Mistry was absolutely necessary for the future success of the Tata Group: Ratan Tata

MUMBAI: Ratan Tata, the interim chairman of Tata Sons, said the decision to remove Cyrus Mistry was a 'difficult' one which was made after ' careful and thoughtful deliberation'. In his second email to employees in a week, he added that the tough call was 'absolutely necessary for the future success of the Tata Group'.

Tata also sought to put to rest any uncertainty that may have been created by Mistry's dismissal by saying that the group is well served by its employees and the management of group companies.

He said employees needed to concentrate on profit margins and market positions keeping competition in mind and not compare themselves with their own past. "The focus has to be on 'leading' rather than 'following'," Tata said.

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Tata Sons did not respond to an email sent by ET on the matter.

In the mail, Tata mentioned how he was looking forward to selecting the next 'world-class leader to be the new chairman of the group'.

"I am excited by the opportunity to work with all of you once again as interim chairman, to maintain stability and continuity of leadership," the 78-year-old said.


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The mail mentions how the conglomerate has positioned itself differently from others because of its 'value system'.

"During its long history, the group has faced and overcome many challenges. Our employees have displayed their spirit at all times to create great companies that have delivered value to the shareholders," Tata said.

Last week, some Tata Group companies tried to reassure employees about their future after Mistry's dramatic dismissal. Tata Communications, the telecom arm of the Tata Group, asked all employees to concentrate on their work and business goals as decided.

The mail asked employees to avoid all news and speculation about the change in leadership in Tata Sons and carry on with their business practices.

It added that there had been no change in the board composition of Tata Communications, neither has there been any change in their strategy or direction.