Ratan Tata used 'retirement' as a strategic tool to reshape Tata Group . Taking over as chairman at the age of 54 in 1991, he faced a formidable challenge from the old guard. Senior leaders like Russi Mody, Ajit Kerkar, and Darbari Seth had flourished under JRD Tata's vision, wielding power and running their respective businesses almost like personal fiefdoms, often at odds with the collective vision of the group.
Top Picks For You Visionary who led Tatas' revenue from $4bn to $100bn by entering businesses, building brand India loses a Ratan: The visionary who took India Inc global passes away at 86 With his authority challenged, Tata introduced a series of bold reforms, starting with a retirement age policy aimed at transitioning these entrenched leaders. Tata implemented a retirement policy in 1992 mandating that directors step down at 75. This change had immediate repercussions; Mody, who had dedicated 53 years to Tata Steel, was compelled to retire in 1993.
In a last-ditch effort to maintain influence, a year before his retirement, Mody promoted his adopted son, Aditya Kashyap, to deputy MD without the approval of Tata Steel 's board. Tata disapproved of this unilateral decision, forcing Mody to withdraw the promotion. Kashyap exited alongside Mody.
Next to go was Seth. He retired from his roles at Tata Chemicals and Tata Consumer Products in 1994. Before his departure, he managed to appoint his son, Manu Seth, as MD of Tata Chemicals.
However, Manu's tenure was short-liv.