Cyrus Mistry to succeed Ratan at Tata's

Cyrus Mistry to succeed Ratan at Tata's

File photo- 46-year-old Cyrus Mistry who will take over reins of the Tata Group from Ratan Tata in 2012. Mistry will work with Ratan Tata for one year and take over in Decembe 2012. PTI

The announcement ends fierce speculation over the long-awaited succession to the $83 billion (~379,670 crore) Tata group. Mistry, presently on the board of Tata Sons –– the biggest holding company for the 100 odd operating companies under the group, and also on the board of many other Tata companies, has been appointed as Deputy Chairman of Tata Sons.   

Mistry is the younger son of construction tycoon Pallonji Mistry and belongs to a family that is among the largest shareholders in the Tata Group. A statement from Tata Sons said: “He (Mistry) will work with Ratan Tata over the next year and take over from him when Mr Tata retires in December 2012. This is as per the unanimous recommendation of the Selection Committee.”

“The appointment of Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and far-sighted choice,” said Tata Group Chairman Ratan Tata, endorsing the appointment. “He has been on the Board of Tata Sons since August 2006 and I have been impressed with the quality and caliber of his participation, his astute observations and his humility.

He is intelligent and qualified to take on the responsibility being offered and I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the Group on my retirement.”

Forty-three-year-old Mistry, currently Managing Director of the Rs. 7,800 crore construction giant Shapoorji Pallonji group, is a graduate of Civil Engineering from Imperial College, London.

Mistry has a Master of Science in Management from the London Business School. After Wednesday’s appointment, Mistry will resign from the executive responsibilities in his family group.

The Shapoorji Pallonji Group is the single largest shareholder of Tata Sons, holding 18 per cent of the equity.

Various trusts under the Tata group hold 66 per cent, various Tata companies hold 13 per cent and the balance 3 per cent is held by some individuals.

There is also a family relation between the two groups as Ratan Tata’s step brother, Noel Tata, is married to Shapoorji Pallonji’s daughter (Mistry’s sister).

In a statement Cyrus Mistry said: “I feel deeply honoured by this appointment. I am aware that an enormous responsibility, with a great legacy, has been entrusted to me.”

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