Come 2012 and the Tata family would be embracing a new member as the highly successful era of the legendary tycoon Ratan Tata, who provided the company more than it bargained for, is nearing its end. It was announced on 23rd November that the committed caretaker of one of the biggest conglomerates in the world would step down to make way for Cyrus Pallonji Mistry, as the Chairman of the Tata Empire in 2012.
Mistry, the Managing Director of Shapoorji Pallonji, the big gun of the construction arena is known to find a place in the board of Tata Sons as the youngest member till date. As a matter of fact, he is the brother-in-law of Noel Tata, Ratan Tata’s half-brother, who on the face of it was speculated among the topmost names for the chairmanship.
It must be noted that Mistry’s company is the biggest shareholder of Tata Sons with an 18.5% shareholding. He was also an integral part of the selection team that intensively searched for Tata's successor for 15 months.
However, the business circles emerge out to be somewhat new for Mistry. Similar was the case with Ratan Tata himself, when he started to lead the company two decades ago. Mistry is younger in age than Tata was when he joined in 1991, and moreover, holding the company with the same aplomb and conviction is not a cakewalk. The size of the group, under the exceptional know-how of Tata, has thrived frequently over time.
Tata Sons made the news, of Mistry being appointed as Deputy Chairman of the board, public in the form of a note which it released on 23rd November. The note read that Mistry would be taking over the proceedings when Tata concludes his journey in December 2012. Ratan Tata stated the appointment “a good and far-sighted choice” and said, “He (Mistry) has been on the board of Tata Sons since August 2006, and I have been impressed with the quality and calibre of his participation, his astute observations and humility.”
J.J. Irani, a celebrated name at Tata Sons who bid adieu to the board a few months ago, echoed Tata by saying, “I am impressed by his thoughts, especially on financial matters. He has shown great acumen for accepting advice and being methodical in his approach, and people really enjoy his company.”
According to Irani, the recent decision made by the company would get full marks from Ratan Tata as he always preferred a young mind to take the legacy forward. Those who are closely associated with Mistry reiterated that the future replacement would suit the company to a tee. “He is friendly and accommodating, and that is what he is largely known for,” said Jai Prakash Rao, Director, corporate marketing strategy at Shapoorji Pallonji.
Thus, seeing the current status and standing of the Tata Empire, Mistry would be under immense pressure as fitting himself at Ratan Tata's position, perfectly, appears to be a great challenge.
