S.Jaishankar snapped up by Tatas, raising some eyebrows

On April 23, the $ 145 billion Tata Group , comprising over 100 companies that produce everything from steel to software, announced that Subrahmanyam Jaishankar, India’s top diplomat till three months ago, has a new job, would take over as its president for global corporate affairs.

He will be responsible for the Tata group’s global corporate affairs and international strategy development,” Tata Sons, the group’s holding company. Dr Jaishankar will work to grow global Tata companies, their respective business presence and positioning in their respective geographies.

Tata Group expressed confidence in 63 years old Jaishankar, retired as foreign secretary in late January 2018, for the job. He has a great record as diplomat. He served as India’s ambassador to the US, China, and Singapore, before taking charge of the ministry of external affairs in 2015, all key regions for his new employer.

He is not comfortable in taking up this job so soon after retirement, as Government rules mandate that all civil servants must stay away for a minimum of one year, after retirement, before taking up a job in the private sector. But they expect that the government may waive the requirement, in this case. As early employment in private companies creats doubts. If he is permitted and this condition is waived that also will be suspicious as earlier many have been refused for this permission. Lalit Mansingh, India’s foreign secretary from 1999 to 2001, said, if he granted this permission, it would be an ethical issue. Although leniency shown by government in this case may not be explained, but it will be a big help to Tata Group. corporation.

Jaishankar joined the Indian Foreign Service in 1977, at the Indian embassy in Moscow between 1979 and 1981. A graduate of St Stephen’s College and Jawaharlal Nehru University, both in New Delhi, he spent time in Washington DC, eastern Europe, and Japan, before taking over as India’s ambassador to the Czech Republic. A former press secretary to the president of India, Jaishankar also served as high commissioner to Singapore, and ambassador to China and the US, before leading India’s foreign ministry for three years until January 2018.

His familiarity and expertise with the corridors of power, ranging from the US and Europe to China, Japan, and southeast Asia, should be extremely valuable to a multinational corporation like the Tata group, which made more than 64% of its revenue from outside India in financial year 2017. Total revenue of Tata Group in 2015-16 was $ 98.5 billion (IN 2016-17 was $100.3 billion) and its International revenue in 2015-16 was 66.7 and in 2016-17 was 64.4.

Only three of Tata group’s firms, Tata Consultancy Services (TCS), Tata Motors, and Tata Steel make for over 77% of the conglomerate’s revenue, and nearly all its profit  (pdf).; its biggest markets for these three companies are the US, China, and Europe respectively.

“Well, obviously the Tatas must have looked at the job description of somebody who can open doors for them abroad, and is familiar with different parts of the world, and also has a pretty good idea of business abroad,” Mansingh said. “I think, on all counts, Jaishankar’s record would be quite outstanding and it will be difficult to find someone to match his kind of experience.”

Ref. : https://qz.com/1259723/the-tatas-snap-up-s-jaishankar-indias-former-top-diplomat-raising-some-eyebrows/ --- Dated: Apr'23,2018.