Tata Motors today decided to keep the post of Managing Director vacant after incumbent Prakash M Telang retired after being at the helm for three years.
Instead, India's largest vehicle manufacturer appointed two Executive Directors -- Ravi Pisharody, the current president of the commercial vehicle business unit (CVBU) and Satish Borwankar, Senior Vice-President (Manufacturing Operations – Commercial Vehicles Business Unit).
56-year old Pisharody, an alumnus of IIT, Kharagpur and IIM, Calcutta, has been with the company since 2007. As executive director (commercial vehicles) he will continue to spearhead the commercial vehicle business of the company which generates about 70 per cent of the turnover at the stand-alone level. It is believed he would take over as the MD in future.
Pisharody was promoted as the head of CVBU in June 2009 from being vice-president sales and marketing (CVBU). Though the company is presently without any head for the passenger vehicle division presently at the senior most level, Pisharody is believed to be the front runner for the managing director's post. Girish Wagh, the man behind Tata Ace and Tata Nano, is the head of passenger car operation presently.
Telang was also appointed ED commercial vehicles in 2007 prior to his appointment as managing director two years later. Telang, now 65, has spent about three decades with Tata Motors after he joined the house of Tatas through Tata Administrative Service.
Meanwhile, 59 year-old Satish Borwankar has been appointed executive director - quality vendor development and strategic sourcing. He has been with Tata Motors since 1974 and was recently promoted to the senior vice-president level from being plant head of the Jamshepur plant, where Tata Motors makes trucks and buses.
Borwankar who is a mechanical engineer (B.Tech) also served as the director of HV Transmissions Limited and HV Axles, the subsidiary companies of Tata Motors.
Telang's retirement comes at a time when Tata Motors is preparing for an even more intense competition at home both in the passenger and commercial vehicle segment. Telang had been tasked to promote the Nano while also managing expansion of Tata Motors in Thailand and South Africa.
After the exit of group chief executive and managing director Carl-Peter Forster more than seven months ago, Tata Motors did not appoint anyone as a replacement. Forster, along with Kant, was responsible for the successful turnaround of operations at UK-based Jaguar Land Rover.
Frenchman Ralf Speth, looks after the JLR operations as its CEO. He was appointed as director on the board of Tata Motors in November 2010. JLR contributes to 67 per cent of Tata Motors' consolidated revenues and 90 per cent of the company's consolidated net profit.
Further, Kant who is now 68 can remain as the vice-chairman of the company only for the next two years. Last year Tata Group has lowered the retirement age of non-executive directors on the boards of all Tata Group companies to 70 from 75, a move that has reduced the tenures of several top executives in the Tata Group.
Cyrus P Mistry, deputy chairman, Tata Sons and the successor to chairman Ratan Tata was appointed a director of Tata Motors last month.
