Tata Motors Ltd is experiencing a notable exit of numerous senior executives amid a restructuring that will carve out its commercial and passenger vehicle operations into two separate companies. Departures include several high-ranking figures who have secured positions at rival firms. The company is implementing a talent mapping strategy to manage the transition effectively, but the changes have caused some executive dissatisfaction.
Tata Motors Ltd has experienced a significant turnover among its senior executives as the company embarks on a major restructuring initiative. This restructuring involves a separation of its operations into two distinct publicly traded entities: one focusing on commercial vehicles (CV) and the other on passenger vehicles (PV). Reports indicate that at least six senior figures have departed since August, mostly at the level of team heads or above.
Among the notable departures are Biswaroop Mukherjee, former head of human resources for the CV business; Anurag Mehrotra, vice-president for international business and strategy; and Vinay Pant, chief marketing officer for passenger vehicles. Other notable exits include Vinay Pathak, head of product planning for commercial vehicles; Sampada Inamdar, head of training and development; and chief safety officer Devendra Katiyar. Senior general manager Ashish Tandon also left during this time.
Several departed executives have already secured positions with competitors. Anurag Mehrotra is now the managing director of JSW MG Motor India, while Ashish Tandon has taken up the role of global head for customer excellence at Euler Motors. Biswaroop Mukherjee has moved to Aker Solutions as vice president for people and transformation.
In response to the impending split revealed in March 2024, Tata Motors has initiated a talent mapping exercise aimed at reorganizing its top executives. The process is intended to categorize executives handling common business operations to allocate them appropriately to either the CV or PV segments. The company engaged Egon Zehnder and consultants from Boston Consulting Group and McKinsey for this evaluation.
The restructuring process has led to dissatisfaction among some senior executives regarding their new roles, contributing to the exits. A consultant familiar with the situation commented, “After the split was announced, if you were holding a senior post for both businesses, now you will hold for either one. The team size and the portfolio will get reduced. Hence, some of the exits.”
A representative from Tata Motors characterized these transitions as a natural progression within a large corporation seeking growth amid a dynamic market. They stated, “Transitions are part of the natural evolution of a large organization like Tata Motors that strives to grow and adapt in a dynamic business environment.”
While some departures may stem from personal career aspirations, the company also recognizes that parting ways with some individuals may serve the best interests of both parties involved. The representative also mentioned that these changes could provide opportunities to attract fresh talent with diverse experiences and perspectives.
On the stock market, Tata Motors shares increased by 1.33%, closing at ₹689.9 per share. However, it is worth noting that the stock has plummeted by more than 30% since the demerger announcement on March 4, 2024. The designated date for the demerger is set for July 1, 2025, and preparations are already underway for the reorganization of shared business functions.
As part of the restructuring strategy, the CV division will be separated into its own company, while the PV business, including electric vehicle operations and Jaguar Land Rover, will be integrated back into Tata Motors. This step marks a continued evolution of Tata Motors, which previously assigned different CEOs to its CV and PV divisions in 2021 and formed the PV unit as a subsidiary in 2022. The company aims to finalize decisions regarding employee allocations among the two divisions before the scheduled demerger date.
Tata Motors is undergoing a critical restructuring phase with a significant turnover among its senior executives, coinciding with the planned separation into distinct commercial and passenger vehicle entities. The recent exits have raised concerns about the reallocation of roles, as executives face reduced portfolios post-demerger. The company seeks to adapt to these changes by implementing talent assessments and aiming to introduce new talent to foster growth and innovation in each business division.
Original Source: www.livemint.com
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