Tata Sons core team restructuring may see entry of some new faces

New COO likely soon; in the process of appointing a CFO

Tata Sons is planning a restructuring that is likely to mean some new faces among the second-rung executives of the group, sources have indicated. To begin with, the holding company of the $103-billion salt-to-software conglomerate is expected to get a new chief operating officer (COO). It is also in the process of appointing a chief financial officer (CFO). 

Some other changes are in the offing, too, at the level of vice-president and above in the parent company, it is learnt. A few of the group companies could have new managing directors and chief executives as well, sources said. 

The rejig may take off with Suprakash Mukhopadhyay, currently company secretary of Tata Consultancy Services (TCS), joining Tata Sons as COO. If the shift happens, Mukhopadhyay would replace Tata Sons company secretary and COO Farokh Nariman Subedar, a group veteran whose two-year extension term after retirement ends this September. N Chandrasekaran, as TCS chairman, had worked closely with Mukhopadhyay. Chandrasekaran, or Chandra as he’s referred to, was appointed Tata Sons chairman in February 2017 after Cyrus Mistry was removed from that post. 

“Tata Sons does not comment on such matters,” a spokesperson told Business Standard when asked about a likely restructuring in the organisation.

Although currently there’s no CFO at Tata Sons, it is looking at appointing one soon. Recently, in a significant hiring, the group brought in Ankur Verma, former managing director (investment banking) of Bank of America Merrill Lynch, in the Tata Sons chairman’s office. Verma would have a diverse portfolio and will look into merger and acquisition (M&A) opportunities for the group.

Besides Subedar, another prominent name among the second-rung of executives at Tata Sons is Bharat Vasani, the legal head and group general counsel. Vasani was instrumental in raising the red flag over the financial wrongdoings in AirAsia with former chairman Mistry. Vasani, who was on the board of AirAsia, had quit the airline in November 2015, citing financial wrongdoings but subsequently in his affidavit to the National Company Law Tribunal, he had denied the allegations.

Among the other executives who form the core group at Tata Sons currently include Kersi Bhagat handling the finance portfolio as a vice-president, Atul Agarwal looking at the human resources aspects of the organisation and Harish Menon with responsibilities ranging from ethics to brand. Mukund Govind Rajan and Harish Bhat, who were part of the group executive council (GEC) under Mistry, were retained in different roles when Ratan Tata took over as chairman soon after Mistry’s ouster. The GEC, however, was dismantled.

Among the new appointments in the Tata group are also two directors. Aman Mehta and Deepak Kapoor were inducted on the board of Tata Steel board as additional independent directors. The two directors are taking the place of Nusli Wadia, who was ousted by Tata Sons after he rebelled against the Tatas and Subodh Bhargava, who retired after attaining the age of 75 years. Mehta is a former banker, while Kapoor was till recently chairman of PricewaterhouseCoopers India.

Chandra may want to run the Tata group with a harder corporate focus and his initial appointment of a top investment banker is a sign of things to come, as a source put it.