The Mysterious Expenditure

With nearly a 100 companies - 27 of them listed on the BSE - the Tata Group is one of the most respected business groups in not only India, but around the world. It is one of the conglomerates that was well established when India won its freedom and over the years, the group has been considered as an ideal example of running successful businesses. But perhaps now, the Tata Group will face its biggest test. The Tata's have a unique business structure. The principal promoter of its key companies is Tata Sons, a trading enterprise that was set up by Group founder Jamsetji Tata in 1868. But in certain cases, other group companies also act as co-promoters. For example, for Tata Chemicals, there are 15 promoters, of which there are 11 that are part of the Tata Group. As of yet, information on share pledging had never come to light, but with the unfoldi

This article was originally published on April 10, 2009.