MUMBAI: The Tata Group’s hospitality chain, Indian Hotels Company Ltd, (IHCL) had a major restructuring plan that was to be made public on Thursday, November 10.
It was called off when the management got wind about action planned by Tata Sons, according to two people who separately confirmed the development to The Economic Times.
Tata Sons, on Thursday, asked the company to convene an extra-ordinary general meeting of shareholders to remove company chairman Cyrus Mistry from the board. Just the previous Saturday, November 5, independent directors on IHCL board had expressed confidence in chairman Cyrus Mistry.
This was the first among Tata companies where directors issued such a statement after Mistry was removed from the post of executive chairman of Tata Sons, the holding company of the Tata Group.
People who spoke to ET also indicated that the restructuring plan by IHCL envisaged a totally new brand architecture, focusing on the ‘Taj’ brand and discontinuing smaller ones like Gateway and Vivanta. An employee of the hotel, speaking on condition of anonymity, told ET that the group has identified hotels that are either unprofitable or too small and have listed them out as un-economic.