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Journalism of Courage
On Wednesday, Tata Steel announced that Kumar Mangalam Birla, chairman of Aditya Birla group, has tendered his resignation as a director of the company with effect from August 14. Tata Steel did not give any reasons but Birla officials say that due to increasing commitments within the group, Kumar is unable to allot time to other boards.
The Birlas earlier held a sizeable stake — at one stage even more than Tata Sons held — in Tata Steel.
Corporate watchers say ever since both group fought over the valuation of Idea Cellular — with the Birlas complaining to the government against the Tata group saying the latter broke licensing norms — relations between the two groups have not been very cordial.
Kumar later bought Tata group’s shares in Idea Celular after paying Rs 4,406 crore for the latter’s 48 per cent stake. The Tatas and the Birlas are now competing with each other in the wireless telephony space.
In July, Birla had quit from the automobile firm Maruti’s board after a three-year tenure. Birla is also on the board of Reserve Bank of India and many government appointed committees.
