Kant will be retained by the company’s board as non-executive vice-chairman
Soon after Tata Motors posted a whopping decline of 50 per cent in its net profit, its board of directors in a meeting held today named Prakash M Telang as the company's next managing director.
Telang, currently the executive director (commercial vehicles), will replace the present managing director, Ravi Kant, after he retires from the post on June 1. Telang will take charge from the next day.
"Ravi Kant, the managing director of Tata Motors, will retire from his executive position on June 1, 2009, on reaching the retirement age of 65 years as per the company's policy.The board of directors of the company has decided to retain Ravi Kant on the board as the non-executive vice-chairman of the company," stated a media release.
Kant, who joined the company in July 2000 as executive director (commercial vehicle business unit), was appointed managing director on July 29, 2005.
Senior officials today, on the sidelines of the results' announcement, refused to comment as to who will head the commercial vehicle division.
The announcement of Telang as the new MD was expected, along with similar replacements at other Tata Group companies, like Tata Consultancy Services (TCS) and Tata Steel.
Telang has been at the forefront of the race for quite some time now and he seemed prominently ahead of other Tata Motors executives, including Rajiv Dube who currently heads the passenger car division.
Under Telang, Tata Motors will see the roll out of the Nano, the World Truck, launch of models from the Jaguar and Land Rover stable, new Indigo, new Safari and a range of new commercial vehicles.
Telang (now 61) has over 35 years of experience in the automotive industry and machinery manufacturing. He spent the first three years of his career with Larsen & Toubro. He joined the Tata Group more than 37 years ago through the Tata Administrative Services (TAS). He is currently on the boards of Tata Daewoo Commercial Vehicle Company (TDCV), a highly profitable South Korean subsidiary unit of Tata Motors, Tata Motors (Thailand), Telco Construction Equipment Company and Automobile Corporation of Goa.
He is also on the board of the company's joint venture with Fiat, Fiat India Automobiles Pvt Ltd. "He has anchored Tata Motors through its roughest patch and has been the architect of the company's cost reduction drive," further stated the release.
"By championing the use of e-procurement and other innovative approaches, he has played a vital role in initiating a complete makeover in the company's operations and leveraging domestic and international growth opportunities. He has led the team for many prestigious offerings under the Tata brand, including the mini-truck, Ace," it added.
