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Big changes are possible in the Tata Group, because Bhaskar Bhat’s name is in discussion for the Tata Sons board. After his entry in Sir Dorabji Tata Trust, the internal turmoil regarding his appointment in the board has intensified. This decision may affect the balance of power at Tata Trusts and the future direction of the group in the coming months.
Mumbai. The internal power balance in the Tata Group may change soon, as the name of Bhaskar Bhat, who has become the new trustee of Sir Dorabji Tata Trust, is now under serious consideration for inclusion in the Tata Sons board. Tata Trusts holds 66 percent stake in Tata Sons. The proposal to include Bhatt in the board is under discussion. According to sources, this proposal may come up in the board meeting to be held in December. Bhaskar Bhat is one of the most experienced faces in the Tata ecosystem and his entry is considered to be the beginning of a big power shift.
Power balance may change due to possible entry of Bhaskar Bhatt
71 year old Bhaskar Bhat has been one of the most respected leaders of Tata Group. His long journey with Titan took the company from a watch business to a leader in the jewellery, eyewear and lifestyle segments. Bhat was recently inducted into the Sir Dorabji Tata Trust, where he becomes a trustee along with Neville Tata. Now if he gets a place on the Tata Sons board, it could have a big impact on the balance of power within the trusts. It is believed that Bhat’s appointment could further strengthen Noel Tata’s influence, especially at a time when the possible listing of Tata Sons and the resignation of Chairman N. Discussion is going on on big issues like re-appointment of Chandrasekaran.
Vacant seat in Tata Sons board or expansion – which way?
Presently Tata Sons board has six members – Chairman N. Chandrasekaran, two nominees of the trusts Noel Tata and Venu Srinivasan, group CFO Saurabh Aggarwal and two independent directors Harish Manwani and Anita George. Trusts can nominate one-third of the members on the board, which means that for Bhaskar Bhat’s entry, one of the existing nominees will have to step down. However, another possibility is to expand the board at the end of the financial year and add an additional independent director, which will automatically create the space. Meanwhile, differences within the trusts have intensified in the past months, with disputes over information sharing between Mehli Mistry, Darius Khambata and others leading to Vijay Singh’s denial of board re-appointment in September.
Everyone’s eyes on the decision – why is this change so important?
The possible entry of Bhaskar Bhat is not just a matter of appointment, but it is also being considered an indication of changing priorities and internal politics within the trusts. Two factions have become apparent within the trusts in recent months. On one side Noel Tata and Venu Srinivasan, on the other side Khambatta-Mistry group. Amidst this tussle, Mistry’s re-appointment was stopped, and he quietly said to accept the decision. Now at such a time, Bhatt’s entry on the board, the next term of Chairman Chandrasekaran and the possible listing of Tata Sons – all three together will decide the direction of the group. This is why the board meeting of the coming December is considered very important for the Tata Group.
