Arun Sudhaman 21 Nov 2016 // 12:30PM GMT
MUMBAI — Adfactors, India's largest PR firm, has been brought in to support investor relations for Tata as the giant conglomerate attempts to remove ousted chairman Cyrus Mistry from the boards of its various operating companies.
Adfactors founder and MD Madan Bahal confirmed the development with the Holmes Report, noting that his firm had signed a one-year mandate "for capital markets communications for Tata Sons," and began work today.
According to the Economic Times, Ratan Tata has selected two "key lieutenants" — Ishaat Hussain and N Chandrasekaran — along with several investment banks to "help garner investor support to oust Mistry from the Tata units."
While Mistry was sacked from his role as Tata chairman last month, he remains chairman or director of several group companies, including Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals and Indian Hotels.
Accordingly, Tata Sons — which owns significant shareholdings in all of the group companies — is asking these units to call EGMs to remove Mistry. Adfactors will support these efforts, which include a global investor roadshow.
Tata's public relations is being orchestrated by Edelman/Rediffusion, following the renewal of the agency alliance's contract, revealed by the Holmes Report earlier this month. Avian Media is also working for Tata Trusts, the biggest shareholder in Tata Sons.
On the opposite side, Perfect Relations founder Dilip Cherian is supporting Cyrus Mistry's PR efforts, which include several charges regarding corporate governance at Tata. The company's roadshow aims to rebut these allegations.
Adfactors recently hired former Edelman executive Roger Darashah as COO. Bahal stated that Darashah, who previously led the Tata relationship for Edelman, is not involved in the new mandate.