Vinod Kumar, Managing Director (MD) and Group Chief Executive Officer (CEO) of Tata Communications has resigned from the company, citing personal reasons.
"Vinod Kumar has submitted his resignation as the managing director and group CEO of the company, and as a director of the company and its associated companies for personal reasons," Tata Communications said in a BSE filing.
Kumar joined Tata Communications (formely called VSNL) in 2004,which was around the time the company began its international operations. "The Board of directors has taken on record his resignation, and his resignation will be effective from the close of business hours on 5 July, 2019," the regulatory filing stated.
Prior to joining Tata Communication, the 54-year-old was a Senior Vice President with Asia Netcom from 2002-2004. From 1999 to 2002, Vinod worked with WorldCom Japan as CEO. Prior to this, he held various senior positions with Global One and Sprint International in the United States and Asia. He is also a member of the Business Sector Advisory Council for UN Women.
Vinod Kumar graduated with honours in Electrical and Electronic Engineering from BITS Pilani.
Kumar is the fourth Tata CEO in the past two and a half years to quit before his tenure, which was to end on January 31, 2021. Previous CEOs of Tata Group, like Anil Sardana (Tata Power), Rakesh Sarna (Inidan Hotels) and Brotin Banerjee (Tata Housing ) had also quit much before the completion of their terms as CEOs.
His resignation comes a week ahead of Tata Communications annual shareholder meeting next month. Tata Communications' board has said that they initiate the process to identify Kumar's successor and expects to finalise the name at the earliest.
Reacting to the news, the share price of Tata Communications opened at Rs 475 against the previous close of Rs 474.75 and later dropped 4.16% to day's low of Rs 455 on the BSE platform. The stock is trading lower than 5, 20, 50, 100 and 200-day moving average and currently quotes close to its 52-week low of Rs 436.