'Fired for working with Mistry': Nirmalya Kumar reveals Tata sons dumped him

Cyrus Mistry’s removal as Tata Sons Chairman sent shock waves in the business world. One of the individuals who felt the brunt of this move was Nirmalya Kumar, who was a member of the Tata Sons’ group executive council (GEC). In a blog post, Kumar revealed how he was unceremoniously sacked on the same day as Mistry. In a post titled I Just Got Fired, Kumar claimed he was informed by a colleague that his services were no longer needed which contrasts with previous information that Kumar had quit along with NS Rajan and Madhu Kannan. The trio were part of a six-member GEC which was disbanded on 24 October after Mistry was fired.

Kumar wrote in his blog: “Last Monday, I was on a panel in front of 100+ young students and managers who were participating in a competition that Tata sponsors annually called TBLA. The theme was big data, and since I led this group wide initiative by setting up a new company focussed on data analytics, the participants were quizzing me on its potential. Suddenly, a colleague comes and whispers in my ear that Chairman Cyrus Mistry has been asked to step down. My head jerks – what? But I am on a panel, so keep answering the questions but signal to the facilitator that we need to wrap this up early." 

He went on: "Back in my apartment trying to get information from the company with little success. At 9:00 pm, I get a call from a colleague with whom I had worked very closely and got along famously as we were often on the same side of arguments. He informs me: “it is my unpleasant duty to say your services are no longer required”. No explanation. I query does this mean I do not need to show up tomorrow morning? Receive an affirmative reply. That’s it. It’s all over in a minute. Now readers, no pity is needed. It is something that has happened to many, and there are entire reality shows on TV built around the theme “You are fired!” But, still nothing prepares you for this. I realize that I am unemployed for the first time since the age of 18.”

Kumar added that his firing couldn't have anything to do with his performance as his last evaluation was excellent. He added: “It was not as if I was fired for non-performance (my last evaluation was excellent). I always do my best – it’s the least I expect from myself and the most anyone can expect from me. I was fired for just being there at my position – working intensely and extensively with Cyrus. With three exceptions, the many CEOs and top executives I worked with closely for three years went silent.”

Kumar is a visiting professor of marketing at London Business School and Distinguished Fellow, Emerging Markets Institute at INSEAD.

Tata Sons puts new management team in place 

Tata Sons has put in place a new management team for the $100 billion steel-to-software group, days after its board ousted Chairman Cyrus Mistry and disbanded his advisory council, triggering a public spat between him and Ratan Tata.

Ratan Tata, patriarch of the Tata group who is temporarily back at the helm as interim chairman, has put together a team of five executives, including two former Mistry advisers, Tata Sons said in a statement on Friday.

The team comprises S. Padmanabhan, who currently leads the Tata business excellence group and will also be group human resources head, Gopichand Katragadda, who will continue in his current role as group chief technology officer, and Sanjay Singh, who will oversee public affairs in Delhi.

The new team also includes Mukund Rajan and Harish Bhat, formerly part of Mistry's five-member advisory council. Rajan will continue to be responsible for ethics and sustainability, and will also oversee the group's international operations in the United States, Singapore, Dubai and China. Bhat, who oversees marketing, will also be brand custodian and interim strategy and business development head.

Tata veteran Prasad Menon, who last served as chairman of Vistara, an airline venture with Singapore Airlines, has also been brought in to help Ratan Tata temporarily, a source close to the company said.

While Mistry has been removed as chairman of Tata Sons, he is still chairman of some of the key listed group companies such as Indian Hotels Co, Tata Motors, Tata Communications and Tata Steel.
Removing him as chairman from some of the companies, where Tata Sons is not a majority shareholder, might prove harder.

Independent directors of Indian Hotels, owner of the Taj chain of hotels, on Friday expressed confidence in the Mistry's leadership. The independent directors "unanimously expressed their full confidence in the Chairman, Mr. Cyrus Mistry and praised the steps taken by him in providing strategic direction and leadership to the company," Indian Hotels said in a statement to the stock exchange.

The board meeting was held to discuss the company's quarterly results. A scuffle broke out between photo journalists and security guards outside Bombay House, the Tata Group's headquarters, as the Indian Hotels board of directors were entering the building. Tata Sons apologised for the incident in a statement. 

With inputs from agencies