For years, Tata companies have been run by non-family members. Remember Rusi Mody (Tata Steel), Darbari Seth (Tata Chemicals) and S Moolgaokar (Telco)? These high profile executives enjoyed immense powers. That was JRD Tata's style. There were also powerful advisers on Tata company boards: for example, N A Palkhiwala, the eminent lawyer, who as chairman of ACC had the temerity to declare that the cement major was not a Tata company. Such powerful men tended to get out of line-from the Tata point of view.

But that was not the nub of the problem. The sprawling Tata empire got flabby, lacked focus; no one was in overall command. The satraps ruled the roost. Some made a few conquests for the empire, Tata Tea, for one. On the flip side, Tata Oil Mills (of Hamam soap fame) was a drag. Harsh judgements will be out of place. Consider the milieu. The economy was safe from import competition. Equity stake did not matter. UTI and the FIs held substantial equity by proxy, as it were. With a small equity stake, the controlling interest-not just the Tatas-could remain in the saddle.

The story-by no means apocryphal-goes that Birlas held more equity than Tata Sons in Tata Steel, and that GD Birla had assured JRD there was no intention of take-over in the investment.

Perhaps the MRTP Act held predatory instincts in check. But note, the milieu did not guarantee survival; many large houses crumbled, Bangurs; Thapars lost their shine; and Mafatlal has lingered into near-oblivion. But the Tata empire held, expanded, though not always wisely. Its weak spots became glaring with liberalisation; the emphasis on the bottomline and shareholder value was one side of the new coin: its other side was the need for increasing equity control to ward off take-overs.

Enter Ratan Tata. He gave the empire a focus. Got rid of Tomco, for example. Extracted royalty for Tata Sons from group companies. Enhanced Tatas equity stake in them (Telco is an obvious example). He had to let go ACC, but he got Tata Tea to acquire Tetley. Pushed through Tata Steel's modernisation. Used truck major Telco's core competence to launch Indica, an export-worthy car. Groomed TCS, the software giant, to new successes.

Time to get back to the JRD style of management, but with enhanced equity control? Is backseat driving (no more satraps!) what Ratan Tata wants: just reap the fruits of restructuring? Unlikely. Ratan Tata is not one to rest on his oars. May be he will usher in professional management across the board, divorcing ownership from control. So much depends on how Ratan Tata views the empire's goals. He has yet to reveal his mind.