Client:
Source:
Date:
Page:
Reach:
Size:
Value:
University of Warwick
Mint (Main)
24 November 2011
24
0
474cm2
0
Surprisepick CyrusMistry to succeedRatan Tata
Morgen Witzel, the management discussions.
Shapoorji Pallonji and Co. Ltd
writer
who authored
as director in 1991 and was appointed
"It was probably
against
Tata: The Evolution of a Corporate general expectations
to his current post in
of Tata
good and far-sighted choice.
Brand,
said he never
Sons bringing a global chief executive1994. A media statement said
"He has been on the board of
that under Mistry's guidance,
officer as a bulk of Tata
Tata Sons since August 2006 thought of any of the other external
candidates
mentioned
Shapoorji Pallonji's construction
group's
revenue
is coming
and I have been impressed
business
has expanded
from overseas markets," said
with the quality and calibre of in media reports as likely successors
revenue
from
$20 million
to Ratan Tata.
K. Sudarshan, country head of
his participation, his astute observations
"One of the key tasks of the
(around ^105
crore today) to
London-based
EMA Partners
and his humility,"
leader of the Tata group is to
International
Ltd, a global executiveapproximately $1.5 billion.
he said. "He is intelligent and
The $83.3 billion by revenue
search firm. "However,
qualified to take on the responsibilityact as guardian of the group's
traditions and values and reputation,the Tata group is very much an
Tata group comprises
more
being offered and I will
which are in turn a powerful Indian conglomerate
then 100 operating companies
at heart.
be committed to working with
part of its brand. An internal Therefore, it was quite a cultural in seven businesses—communications
him over the next year to give
candidate will already have
and
information
challenge to bring a global
him the exposure, the involvement
technology, engineering, materials,
CEO. In that aspect, the Tata
and the operating experience absorbed all of this, and be
much more connected with the
services, energy, consumer
group played safe."
to equip him to undertake
group," he added in an email.
products,
and chemicals.
Mistry will have to decide
the full responsibility
of the
In August 2010, the Tata
The group has operations
in
which approach he wants to
group on my retirement."
more than 80 countries across
take while managing the group,
JRD ran the group as a federation;group created a five-member
committee to find a successor
six continents, and its companies
said
Kavil
Ramachandran,
Ratan Tata has been
to Ratan Tata. Since then, speculation
export products and services
Thomas
Schmidheiny
Chair
more
hands-on
and
has
has ruled large about
Professor of Family Business
to 85 countries. Tata companies
changed the strategic direction
the identity of the individual
employ
more
than
and Wealth Management at the
of almost every large firm in the
425,000 people worldwide.
Indian School of Business.
group. Mistry has the task of and whether he (or she) would
be from outside the group,
There are 31 publicly listed
His "biggest challenge will be
consolidating what has become
even from outside the country.
Tata enterprises and they have
to strike a balance between decentralizing
a multinational
conglomerate.
The committee
comprised
the group, empowering a combined market capitalization
Mistry's elevation to the role of
of about $77.44 billion (as
individual chief executives
Ratan Tata's designated
successorMistry; Tata Sons director R.K.
of 17 November) and 4.3 million
Krishna Kumar; lawyer Shirin
in a more entrepreneurial
also comes at a time
Bharucha; Lord Kumar Bhattacharya,
shareholders
among
role or holding a more central
when most of the group's large
founder of UK-based
them. Despite its global presence,
role like Ratan Tata did, when
firms—Tata Motors Ltd, Tata
academic
organization
WMG
though, the conglomerate
he took over", Ramachandran
Steel Ltd and Tata Consultancy
(formerly Warwick Manufacturing said. "As the group grows bigger,
remains
quintessentially
Services Ltd (TCS)—have
Group; and Tata group
Indian in character.
a centralized
command
seen or are seeing a change at
veteran N.A. Soonawala.
"Tata does derive much of
might not work very well."
the top, with a new generation
It had around 18 meetings,
its revenue from overseas. Yet,
Mistry, currently managing
of leaders having taken over or
according to a Tata group insider director of Shapoorji Pallonji
its brand is very much rooted
in the process of doing so.
familiar with the matter
in its Indian heritage and values.
Group, has been a director of
"I feel deeply honoured by
who did not want to be identified. Tata Sons since August 2006.
Appointing
an internal
this appointment,"
Mistry said
Somewhere
along the
He is a graduate in civil engineeringcandidate sends a strong signal
in the release. "I am aware that
way, the other members of the
that Tata will continue to
from Imperial College,
an enormous
responsibility,
committee turned their focus
London, and has a masters degree stay true to its core values,"
with a great legacy, has been
on to Mistry, who subsequently
Witzel said.
in management
from the
entrusted to me."
recused himself from further
pr.sanjai@livemint.com
London Business School.
Mistry joined the board of
The obvious choice
FROM FRONTPAGE
è
Client:
Source:
Date:
Page:
Reach:
Size:
Value:
University of Warwick
Mint (Main)
24 November 2011
24
0
474cm2
0
è
Tata group chairmen:legaciesand challenges
J.R.D. Tata: The longest-serving chairman Ratan Tata: The current incumbents stint coincidedwith India'sCyrus P. Mistry: The 43-year-old
economic liberalization, which unleasheda period of unforeseen
of the group was at the helm from
is at once both an insider and an
growth for both the group and the country. When he outsider. His immediate challenge
1938 to 1991. His stint was marked by
consolidation of the conglomerate'svarious took over, Ratan Tata's biggest challengewas to establish his
will be to learn the ropes
authority over the headsof some Tata companieswho ran their
operations and its entry into several
quickly, graduating from running
new businesses.He establishedTata Airlines units as personal fiefdoms. Tata eased out some of these the real estate and construction
in 1932,but the carrier was nationalized chiefs,consolidatinghis hold over the group, then spearheaded firms of the Shapoorji Pallonji
its expansion into new sectors such as telecommunications, Group(he will quit this role) that
in 1953 as Air India.JRDalso set up
cars, insurance,water, low-cost housing and food. History will
Tata Chemicals,Tata Engineeringand Locomotive
are based in the country and
best remember him for the acquisitionsthe group made:NatSteel,keep a very low profile, to managing
Co. (renamed Tata Motors in
Tetley, VideshSancharNigam Ltd, GeneralChemicalIndustrial
2003), Tata Industries, Lakme (sold to
a complex group that derives
Products,Corus,Jaguar Land Rover,the heavy-vehicleunit
Unilever in 1997), Voltas, Tata Finlay
58% of its revenue from
(now Tata Tea),Tata ConsultancyServices of Daewoo Motors and several hotels around the world. His legacy overseas.
also includesthe development of the Tata Indica and the
and the first 500 megawatt thermal
Compiledby JohnSatishKumar
power unit in the country at Trombay.
Tata Nano cars.
n