Business - - Nov 17,2016
Tata saw a rise in its share price after Cyrus Mistry was removed as the chairman of the organization
The Cyrus Mistry v/s Tata conflict roared to fire again, when the board of directors unanimously decided to replace Cyrus Mistry as the chairman of Tata Global Beverages. In its regulatory filing the company said that they made the decision ‘after extensive deliberations’ and ‘keeping in mind the long-term interest’ of the company’s stakeholders. Amazingly enough, only a day after the company’s decision, Tata Global Beverages share prices saw an almost 7% rise on the Bombay Stock Exchange (BSE), the shares soared to the day's high of Rs 125.25, up by 6.83 percent.
A non-executive director of the company, Harish Bhatt, came as Mistry’s replacement; Mistry being already ousted as the chairman of Tata Sons on 24th October this year. The coup leading to a series of allegations and a heavy lawsuit by Cyrus Mistry and Ratan Tata both.
At the end of second quarter (Q2), in September 2016, Tata Global Beverages reported a rise of 68.6 percent in consolidated net profit; though, income from operations dropped 2.5 percent. While the attribution of rise in net profit was passed on to “lower commodity costs”, “lower spending on new initiatives” and “better performance by associate companies.”
"While the underlying business saw volume growth, this was offset by price reductions and adverse impact of currency translation," the company said in another statement.
The company's associate firms, alliances and joint ventures include Tata Starbucks Ltd., NourishCo Beverages Ltd., Tata Coffee Ltd., Tetley Harris, Tata Tea Extractions Inc., Zhejiang Tata Tea Extraction Company Ltd., Amalgamated Plantations Pvt. Ltd., Estate Management Services Pvt. Ltd., and Kanan Devan Hills Plantations Co. Pvt. Ltd..