Patriarch of India’s Tata Takes Back hi…

The fallout from the Oct. 24 sacking by Tata patriarch Ratan Tata of his chosen successor Cyrus Mistry as chairman of Tata Sons, the group’s holding company, continues: In an email to the company, leaked in the media, Mistry has warned that the conglomerate may face $18 billion in write-downs because of five unprofitable businesses he inherited from Ratan Tata. He describes Indian Hotels, Tata Motors’ passenger-vehicle operations, Tata Steel’s European business, as well as part of the group’s power unit and its telecommunications subsidiary as “legacy hotspots,” – plus Tata’s favorite Nano car. The email says that despite deploying more than the net worth of the group, the businesses still face challenges and could result in writing down about 1.18 trillion rupees over time.

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