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A Promise Is A Promise


wealthymattersCredit Suisse had offered Tatas a financing package that helped it aggressively outbid its Brazilian rival for Corus Steel in the UK. Once the deal was done, two other MNC banks approached the company’s top brass with a more comfortable funding plan involving cost savings of about $400 million. As Tata Steel weighed in favour of the new funding option, Credit Suisse fetched up with a letter from the Tatas showing its commitment to $120 million in fees whether or not the financing was availed from it.Bombay House top brass was left fuming that a bank had the temerity to place a demand on them. But when the matter was taken up to the then group chairman Ratan Tata, his decision was simple: There was a commitment made to Credit Suisse which must be honoured. Having paid the European bank, Tata Steel went ahead with the cheaper financing option.

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Don’t Break Them


wealthymatters

This is Ratan Tata’s Credo

Keeping promises makes you reliable and trustworthy.It lies at the heart of your reputation as a businessperson.Don’t talk big.Do what you say you will.And soon you will find that people will fight to work for you,to work with you and invest in your businesses.

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