KEY HIGHLIGHTS:

  • Kohli says he was actively involved in decision to bring IBM to India.
  • Tata IBM JV was undertaken to promote a computer hardware industry in India which was non-existent at that time.

“Mr Cyrus Mistry’s comments regarding the sale of TCS to IBM at some “unspecified point in time” are not correct, Former Deputy CEO & Chairman, TCS said in a statement. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

He said, "I was actively involved in the decision to bring IBM to India. A JV for hardware manufacturing and support in India, Tata IBM, was set up in 1991-92. This JV was undertaken to promote a computer hardware industry in India which was non-existent at that time."

He said, "I would like to reiterate that at no point at that time was there ever an intention of the Tata Group to sell TCS to IBM."

"With reference to the timeline of the entire episode I would also like to point out that my “heart by-pass surgery” took place in 1984. Mr JRD Tata was interested in my health and progress after the surgery and he established contact with my surgeon at Houston. He also wanted to know when I would be well enough to return to India. He wanted to discuss Burroughs proposal for software work in India under Tata Burroughs, which might affect TCS’ business,” he concluded. 

This came as a direct reply to Mistry who had said, “Midway during the TCS journey to date, FC Kohli was suffering from a cardiac condition. Mr. Ratan Tata was then heading Tata Industries’ joint venture with IBM and approached Mr. JRD Tata with a proposal from IBM to buyout TCS.”

"...FC Kohli was still recovering in the hospital from his setback. On his return, Mr. Kohli assured JRD that TCS had a bright future and the group should not sell the company. JRD Tata turned down the offer, demonstrating true vision. But, it was also a near death experience for TCS at the hands of Mr. Ratan Tata," Mistry had said.