A former banker could be the turnaround man Ratan Tata Trusts

Mumbai: Pramit Jhaveri, the former Citi India boss, is being considered as a trustee in one of the main Tata Trusts, two people close to the development said.The proposal to enlist the former banker, who was Citi’s longest serving India CEO from 2010 to 2019, is significant. The timing of the possible appointment comes as Tata Trusts are trying to secure their legacy even as they face a legal wrangle with the income tax department besides the battle over Cyrus Mistry’s ouster in 2016. The latter’s family is the largest individual shareholder in Tata Sons, the holding company of the $100 billion Tata Group.Jhaveri declined to comment. Sources in the know say he’s likely to be appointed as a trustee in the Sir Dorabji Tata Trust, one of the two main trusts that holds a significant stake in Tata Sons. The appointment is likely to be formalised soon, one of the two sources said.The banker is reputed for turning around and expanding Citi India after taking charge in 2010 when the foreign lender was in bad shape.In a separate development, the Trusts have also been mulling the appointment of a CEO. N Srinath, a Tata Group executive, is said to be the candidate chosen for the post, according to reports.Some for Tata Family MemberThe new post of CEO was created to fill a crucial vacancy caused by the resignation of managing trustee R Venkataramanan from the Tata Trusts in March 2019. The appointment of the CEO is, however, yet to formalised by the Trust authorities.In the interim, a committee of trustees was set up to oversee operations and to select a chief executive for the Tata Trusts. The committee led by Ratan Tata also included retired bureaucrat Vijay Singh and the TVS Group’s Venu Srinivasan. The latter two are also vice chairmen of the Tata Trusts.Members of the Parsi community and people close to the Tata Group have been clamouring for a Tata family member to be installed on the board of Tata Trusts. ET had reported on January 9 last year that Ratan Tata loyalist NA Soonawala was among those keen to have Noel Tata on the board of Tata Trusts as was the broader Parsi community. This was seen as a way of ensuring that a member of the Tata family would continue to be associated with the group and possibly take his turn at the helm.While Noel Tata has been inducted into the Sir Ratan Tata Trust, he’s yet to be appointed on the board of the other Tata Trusts, including the Sir Dorabji Tata Trust. Ratan Tata — chairman of the Sir Dorabji Tata Trust and Allied Trusts and the Sir Ratan Tata and Allied Trusts — is 83 years, while half-brother Noel is 63. The Sir Dorabji Tata Trust owns about 28% of Tata Sons, while the Sir Ratan Tata Trust owns about 23%. Together, the Tata Trusts control a 66% stake in Tata Sons.

from Economic Times https://ift.tt/37yh2wE