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What’s a 1000 Crore between friends?

The impairments and write downs at Tata Sons were due to legacy issues, largely relating to TTSL.

There were also other investments of questionable nature such as Nagarjuna refineries (Rs. 400 Cr.) and SASOL JV.

One investment in Piaggio Aero, a company in the aerospace sector with a friend of Mr. Tata, was especially distressing. Tata Sons decided to exit the company at a commercial loss of Rs 1,150 Cr. This was after the efforts of Mr. Bharat Vasani and Mr. Farokh Subedar who managed to recover Rs. 1,500 Cr., overcoming the objections of Mr. Ratan Tata who in contrast favoured increasing investments in that company.

Today, the company is, for all practical purposes, nearly bankrupt. 

from ET

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