After the death of Ratan Tata ji, the Tata group is always in the news due to internal disputes and conflicts between the board members. The Tata Group is one of the prominent companies across the globe, which has 10 lakh employees with a 30 lakh crore market cap. It has a higher GDP than Pakistan with 400 companies with 30 listed companies and 370 unlisted companies. People measure Tata Group as equal to government jobs due to its reputation and standards it has maintained since decades.
The real dispute is between Tata Trust and Tata Sons, which now the government has interfered in solving the dispute. Let's clearly understand the difference between these groups. The Tata Trust is the supreme head of the company, making it the highest decision-making body consisting of 7 members. Tata Sons is the executive company which majorly operates the entire Tata group's operations, finance and all 400 companies which are under its control.
The Tata trust board has 7 members, which is headed by Neol Naval Tata along with 6 others. The recent decision to remove one of the members has created a rift on the board. The Board elected 4/3 and the Tata trust wanted the entire control over the board and members to be named, according to Neol Naval Tata. Now the main decision-making has been disputed and Tata Sons operations have been delayed. Tata Sons chairman Natarajan Chandrashekar in his tenure improved its revenue and business in large scale and making it extremely profitable.
4/3 board members frequently stop most of the decisions of Tata Sons, making it difficult to take major decisions. The board which got divided into 2 groups now, once had monopoly control of Ratan Tata for 21 years and JRD Tata for 50 years without any single dispute. The Tata group also has many disputes with RBI, Board members and stakeholders.
As long as Ratan Tata ji was alive, the Tata group worked efficiently and effectively, but after his death, the group is going through a tough time. The matter has entered the courtroom between the board members representing lawyers from both sides. The government is also trying to solve the dispute. If the dispute runs for a long time, it might have a deep impact on India, stock markets and Tata organisational conflicts. We have to wait and see who will hold the supreme control over the Tata group in the coming years.
