Cyrus Mistry, board member of Tata Sons, will succeed Ratan Tata next year. The board of Tata Sons appointed Mistry as deputy chairman on Wednesday. The board unanimously took a decision on the basis of the recommendation made by the selection committee set up to find a successor for Ratan Tata. The committee is said to have met 18 times before announcing the succession plan. Also watch (Cyrus Mistry to succeed Ratan Tata)
Mistry, 43, was part of the selection committee. He withdrew himself when his name was suggested. He then entered the process as a candidate.
“He will work with Ratan Tata over the next year and take over from him when Tata retires in December 2012,” a release said.
Ratan Tata praised the choice of selection committee and said that Mistry was intellligent and qualified to take on the responsibility being offered.
“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,” Tata said.
Mistry said he was deeply honoured by this appointment. “I am aware that an enormous responsibility, with a great legacy, has been entrusted to me,” he said in a statement.
He announced that he will legally dissociate himself from the management of his family businesses to avoid any issue of conflict of interest. Shapoorji Pallonji Mistry, father of the new deputy chairman of Tata Sons, owns 18 per cent in Tata Sons. The Shapoorji Pallonji Group is into construction, textile, water treatment and other businesses. Cyrus Mistry is currently the managing director of the $ 2 bn SP Group.
Born on July 4, 1968, Mistry graduated from the Imperial College, London with a BE in civil engineering. He also holds a masters degree in management from the London Business School, and is a fellow of the Institution of Civil Engineers.Mistry keeps a low profile and is considered as a professional manager. He is said to be good in financial matters. J J Irani, former MD of Tata Steel, praised the selection.
“Mistry does not speak too loudly but whatever he says people listen to,” Irani told NDTV Profit.
He was part of the selection committee appointed to select a successor for Ratan Tata. When a member suggested that why he should not be a candidate, he excused himself from the selection process.
People who have worked with Mistry are all praise for him.
Ajay Piramal, chairman of Piramal Enterprises, said that Mistry has an experience in running diversified businesses. “Cyrus has a customer-centric approach,” Piramal said.
Deepak Parekh, chairman HDFC said that he was impressed with Mistry’s work with HDFC. “Cyrus Mistry deserves to be chairman. There will be challenging times ahead though,” he said.
The selection committee comprised N A Soonawala and Shirin Bharucha representing Tata Trusts, Lord Kumar Bhattacharya and R K Krishna Kumar representing Tata Sons..
Tata Sons reported a net profit of Rs 1,629 crore for the year ended March 2010. Revenue stood at Rs 2,958 crore. The company is the holding company of the group and its assets include significant stakes in major Tata Group like TCS, Tata Motors, Tata Steel and others worth over Rs 2,00,000 crore.
Tata Sons heads in the past:
1991-2012 -- Ratan Tata
1932-1991 -- Jehangir Ratanji Dadabhoy Tata
1932-1938 -- Sir Nowroji Saklatwala
1904-1932 -- Sir Dorab Tata
1868-1904 -- Jamsetji Nusserwanji Tata