Tata, India’s iconic and largest business conglomerate valued at $100 billion plus has been in the wars of late. With Cyrus Mistry, the previous Chairman of Tata Sons, the holding company, voted out by the Tata board, it was announced that his replacement as Chairman would be N. Chandrasekaran, who will take over officially on February 21. Having scoured the world for a successor, the board decided on an insider, so it was that their choice was someone with long years of service with Tata. Now, aged 53, Mr Chandrasekaran has been with Tata Consultancy Services (TCS) since 1987; he took the reins from S.Ramadorai in 2009. The software arm of the House of Tata, under his stewardship is today Tata’s and India’s largest and most profitable IT firm, with a global reach across continents.
This reflects the rise of India’s software industry’s rise to international pre-eminence with a total valuation of $150 billion or more. Mr Chandrasekaran’s achievement at TCS can be properly gauged against this remarkable setting. He is equipped to face the challenges he will undoubtedly encounter from his deserved elevation. To complete the story, the TCS board has appointed Chief Finance Officer (CFO) Rajesh Gopinathan as Chief Executive Officer (CEO) and Managing Director of TCS effective February 21, the day Mr Chandrasekaran takes charge of Tata Sons. TCS named N. Ganapathy Subramaniam, who presently heads TCS Financial Solutions, as TCS President and Chief Operating Officer. He has been also made a director on the company board.
Expressing his gratitude at the confidence vested in him, and appreciative of the honour, Mr Chandrasekaran said: ‘TCS’ core strength is its strong leadership talent that is collaborative and aspirational. I have been privileged to lead this company of great professionals over the last seven years. I am absolutely delighted that the board has chosen both Rajesh and NGS [N.Ganapathy Subramaniam] to lead this company into the future. I look forward to a continued relationship with TCS and the management team.’
Mr Gopinathan started his professional career with TCS in 2001. He said ‘TCS has evolved into an industry leader during Chandra’s tenure. …With continuous guidance from Chandra and the support of the TCS team, I am confident of continuing this great journey which TCS is on.’ Mr Subramaniam has worked with TCS for 34 years.
Tata’s internal troubles are far from over. TCS and JLR [Jaguar/Land Rover] in the automotive sector have done exceptionally well in recent years, and are continuing to excel, but the returns in other sectors have fallen short of expectations. That said, the Tata shake-up when completed will bring fresh faces and minds to pull the problematic companies out of their present trough. Ordeals are the stuff of business and of life. The rough comes with the smooth. This is the spur that takes the business world and life on earth forward. Life without challenges would be boring indeed, and stagnant.
Investments bigger, but big ones missing
The 2017 Vibrant Gujarat Global Summit held last week was not like earlier ones on investment promises. It looked like a shadow of its own past glory as the trademark big-ticket investment promises were missing. Several chief executive officers attending the summit praised Prime Minister Narendra Modi's "dynamic and visionary leadership" over the past two and a half years. The number of MoUs signed this summit was close to 3,000, more than the 2015 summit, and the committed investment is likely to cross £300 billion.
However, deputy chief minister Nitin Patel refused to put any figures to the investment intentions. This was an aberration from the previous summit when then chief minister Anandiben Patel had declared that the state had attracted £250 billion investment intentions. The three-day event partnered by 12 countries justified the theme “Connecting India to the world” as 2,743 international delegates from nearly 100 countries participated.
Prime Minister Modi's speech, which was at least a quarter of an hour shorter than last year's, showcased India's growth story. "Despite the global slowdown, we have registered excellent growth. India is a bright spot in the global economy. The World Bank, the International Monetary Fund and other institutions have projected even better growth in the coming days,” he added.
Listing out India's global rankings on various indicators, Modi said, "Creating an enabling environment for business, and attracting investments, is my top priority." Modi was called a transformational leader by many, including Executive Chairman of Cisco John Chambers and Chief Executive Officer of Fairfax Canada Prem Watsa. Calling Modi the Lee Kuan Yew of India, Watsa said the Prime Minister Modi can transform the country. The late Singaporean leader was the city-state's first Prime Minister and is credited with transforming Singapore into a developed nation in a span of 25 years.
Very big investment promises came only from a couple of people. Gautam Adani, chairman of the Adani Group, committed fresh investments worth £4.90 billion over five years and Lulu Group promised £1.20 billion investment. Some like Reliance Industries (RIL) Chairman Mukesh Ambani underlined their investments already made in the state. Ambani said that RIL’s investments in Gujarat were the biggest by an Indian corporate in a single state, at about £24 billion. “In fact, in the past four years, we have invested £1 billion more than what we had promised, or around £12.50 billion,” he said.
Piruz Khambatta, chairman and managing director of Rasna Pvt Ltd, justified the stance of not speaking about investments. “Once investment commitments are announced, it actually becomes a tool in the hands of the opposition and the critics to say that only a fraction of the investments comes in. This is probably why (Mukesh) Ambani spoke about the actual investments he has made in the state. So, this is a strategic decision.”
Ratan N Tata, interim chairman of Tata Sons, and the first one to speak at the event, reminisced what he had said a few years ago. “If you were not in Gujarat, you are stupid.” He ended his speech to a round of applause when he said in Gujarati, “Amey bhi Gujarati chhu; Ane aapne paachha Gujarat ma aavya chhe (I am a Gujarati too; I have now come back to Gujarat).”
Overseas Indians lauded
The 30 million Indians living abroad are a brand embodying the best of Indian culture: hard working, adapting willingly and well to the laws, practices and overall culture of their hosts. Each side accepts the essentially humanity and aspirations of the other to make happy marriage of means and ends. In a word, they have brought honour to the land of their origin.
Prime Minister Narendra Modi deserves great credit for appreciating the value as an asset to India. This recognition has been a long time coming, but late than never, as the saying goes. Mr Modi spoke eloquently to the 7000 Indian diaspora assembly of the 14th Pravasi Bharatiya Divas in Bangalore recently. Mr Modi stressed the manifold achievements and skills which the Indian now bring to the table. They could bring these to India for the benefit of the Indian people.
The most striking presence was that of the Portuguese Prime Minister Antonio Costa, whose father is Goan, hence he lived his early years here. His first cousins live in Goa and keep in close touch with their relatives in Lisbon. Mr Costa has the unique distinction of being the first Indian origin Prime Minister of a European country. In his address Mr Costa referred to Portugal as a bridge between Europe and India and appealed for greater Indian investment in his country.
Leaders from Mauritius, Surinam and other far-flung places, where ethnic Indians are now a dominating political and social force, addressed the gathering and made it a truly memorable event.
