Mistry to be Tata Group head - FT.com
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Mistry to be Tata Group head
By James Fontanella-Khan in Mumbai and Jonathan Guthrie in London
Cyrus Mistry, a reclusive construction
tycoon, has been unexpectedly selected
as successor to Ratan Tata, the
patriarch of corporate India and head
of the powerful Tata Group.
The 43-year-old will shadow Mr Tata,
who chairs the business and is
recognised as one of the world’s most
influential industrialists, for a year in
the role of deputy chairman. He is expected to take over as chairman in
December 2012.
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The choice of Mr Mistry, who was educated at
London’s Imperial College and at the London
Business School, is likely to surprise many
observers. Mr Tata’s half-brother, Noel, had been
seen as a frontrunner.
Mr Tata endorsed the move, saying Mr Mistry “is
a good and far-sighted choice”.
“I have been impressed with the quality and
calibre of his participation, his astute
observations and his humility,” he said.
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“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.”
Mr Mistry said of his appointment as deputy
chairman: “I feel deeply honoured by this
appointment. I am aware that an enormous
responsibility, with a great legacy, has been
entrusted to me. I look forward to Mr Tata’s
http://www.ft.com/cms/s/0/c2713afc-15ce-11e1-a691-00144feabdc0.html#axzz1ezwizfrb[28/11/2011 11:39:26]
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Mistry to be Tata Group head - FT.com
guidance in the year ahead in meeting the
expectations of the group.”
“I take this responsibility very seriously and in keeping with the values and
ethics of the Tata Group I will undertake to legally dissociate myself from the
management of my family businesses to avoid any issue of conflict of interest.”
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Mr Tata has served for almost 20 years as the group’s chairman and was the
architect of the conglomerate’s global expansion. He also sits on the boards of
Fiat, the Italian carmaker, and Alcoa, the US aluminium producer.
Reuters
After one of his group’s hotels, the landmark Taj Mahal on Mumbai’s
waterfront, was attacked by terrorists in November 2008, he helped lead the
recovery of India’s financial capital.
David Cameron, the UK prime minister, praised Mr Tata during an official visit
to India last year for playing a key role in reviving British manufacturing. Tata
is the now the UK’s biggest manufacturer.
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The 143-year-old group has more than 90 operating companies, including
India’s biggest vehicle maker, its largest IT outsourcing company and the
world’s seventh-largest steelmaker. About 60 per cent of the conglomerate’s
revenues of $83bn-plus are generated outside India.
Lord Bhattacharyya, a British peer who is a member of the selection
committee, said that Mr Mistry was “eminently suitable”.
He is the younger son of construction tycoon Pallonji Mistry, who owns 18 per
cent of Tata Group. He is a member of Tata Sons, a key group holding
company. Mr Mistry’s family is India’s seventh richest with a net worth of
$7.6bn according to Forbes Magazine.
Lord Bhattacharyya said Mr Mistry was an Anglophile likely to be supportive of
Tata subsidiaries with big UK operations such as luxury carmaker Jaguar Land
Rover and steelmaker Corus.
“He has all the required governance skills but also understands that Tata is not
just a business. It is an institution,” the peer said.
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http://www.ft.com/cms/s/0/c2713afc-15ce-11e1-a691-00144feabdc0.html#axzz1ezwizfrb[28/11/2011 11:39:26]
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