Manu Seth quit for 'personal reasons'

Our Correspondent in Bombay

Dr Manu Seth, whose resignation as managing director of Tata Chemicals has created a storm in Corporate India, has said he quit purely for "personal reasons".

This effectively scotches media speculation that Dr Seth quit because the chemical and fertiliser major's performance was not better this year.

Gross profit in the April-June quarter was Rs 330 million, down from Rs 370 million in the corresponding quarter last year. However, sales were up at Rs 3.25 billion from Rs 2.75 billion. Net profit had steadily declined over the years, from Rs 3.95 billion in 1995-96 to Rs 1.17 billion in 1999-2000. India's largest inorganic chemicals company mainly produces urea, soda ash and sodium bicarbonate.

Reports hinted that Dr Seth was under pressure to improve the company's performance.

In a telephonic conversation with rediff.com, Dr Seth declined an interview in the immediate term. "I believe in the principle that there is a certain dignity to life. I would like to maintain that dignity."

Dr Seth said he might consider revealing his mind shortly, before which he would visit Tata Chemicals's facility at Mithapur in Gujarat. "I'd like to thank all my colleagues for their cooperation." Informed sources said Dr Seth may also visit the company's facility Babrala in Uttar Pradesh.

"At this point in time, I would not like to say anything. Much has already been written today. Let us not drag it further," Dr Seth said.

Speaking from his office at Bombay House, the Tata group headquarters, he remarked in a lighter vein that he hoped his corporate e-mail ID would not be deactivated immediately.

Dr Seth is the son of the late Darbari Seth, former chairman of Tata Chemicals.

A Bombay House insider, who had interacted with Dr Seth in the past, said, on condition of anonymity, that his resignation should not be construed as the Tata top brass's way of easing out people at the helm of underperforming companies.

"Except TCS, almost all the group companies are not exactly delivering fantastic results. At a time when the infotech industry is booming, a group company's first quarter results have been negative. If top managers have to go for bad performance of their companies, then several others too have to go," said the source.

"Frankly, I feel Manu was fed up with interference. When a big group undergoes transformation from the old way of doing business to a new way, the change has to be managed. Else, there will be natural friction and a culture clash. You can't have one marketing outfit for companies as diverse as Titan and Telco," the source said.

Hazarding a guess on Dr Seth's future, the source said he is internationally known as an accomplished and knowledgeable chemical engineering expert. "He is not the sort who will leave the country. I feel he will take on an advisory role with the government. And he has the right lineage and pedigree too."

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