Tatas Deny Sale, Say Report Exaggerated

A report in a section of the press has presented a distorted picture of McKinseys recommendations to the Tata Group. The report unfortunately is based on incorrect information and the conclusions drawn therefrom are far removed from the actual recommendations as well as the manner in which these may be implemented by the Tata group.

The McKinsey study evaluated Tata businesses for their current and future potential along such criteria as market leadership, profitability, economic value creation etc. with a view to meeting the Groups growth plans. A component of the study identified certain under-performing businesses, which require focused managerial attention and resources in order for them to deliver to their full potential.

 

Tatas would like to deny that there has been any suggestion by McKinsey to sell any of the Tata companies including Campbell, Forbes Gokak, Hi-tech Drilling and Voltas. With regard to Tata Steel, it continues to be core to the Groups operations and forms an integral and major part of the groups growth plans.

As a result of the portfolio study, certain businesses may get re-aligned but the measures which need to be taken to achieve the performance enhancement being sought, will be the subject of a detailed study by an in-house group which will present the action plan to the boards of individual Tata companies. It is therefore totally unjustified and misleading to pass any judgement on the change in the Groups portfolio of businesses at this stage, and any conjecturing of the kind appearing is likely to lead to unwarranted speculation and apprehension in the minds of our shareholders, employees and other stakeholders. We would therefore appeal to all our stakeholders not to be misled by such unauthenticated media leaks.