Not a Tata but in Ratan’s mould PIYA SINGH

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Not a Tata but in Ratan's mould PIYA SINGH Mumbai, Nov. 23: The Tata group has picked the person who will lead the $83.3-billion group next year — and he doesn't carry the famous name that has always exemplified in India a fine blend of wealth, ethics and gentility. Cyrus Mistry, 43, will succeed Ratan Tata when the current chairman steps down in December next year. Mistry was appointed deputy chairman of Tata Sons at a "hush-hush" board meeting held here today. The Telegraph had reported on Wednesday that the board could take a decision on Ratan Tata's successor — or at least provide some clarity about the selection process that has dragged on for over a year. But no one had anticipated today's bombshell announcement. "The board of directors of Tata Sons at its meeting today appointed Mr. Cyrus P. Mistry as deputy chairman. He will work with Mr. Ratan N. 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 group's apex holding company said in a statement. Mistry, who will be the sixth chairman of the Tata group, is virtually unknown outside the tightly knit Parsi business community and belongs to the low-profile, media-shy Shapoorji Pallonji group. The younger son of Shapoorji Pallonji, the construction magnate who is the single largest shareholder of Tata Sons, Mistry is an engineer and a management graduate who is credited with increasing Pallonji's construction business from a turnover of $20 million to $1.5 billion. "I feel honoured by this appointment," Mistry said. "In keeping with the values and ethics of the Tata group, I will undertake to legally disassociate myself from the management of my family businesses to avoid any issue of conflict of interest." The most striking aspect of this keenly awaited and widely debated appointment is that Ratan Tata has chosen a successor who is in his own mould — unassuming, shy and untested in running a mammoth conglomerate of 100 companies spread over 80 countries and spanning six continents. Ratan Tata said: "The appointment of Cyrus P. Mistry as deputy chairman of Tata Sons is a good and far-sighted choice. He 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 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," Tata added. It is only the second time in its 143-year-old history that the Tata group will have a non-Tata as its chairman. Back in 1932, Sir Nowroji Saklatvala headed the group as its third chairman till his death in 1938. Sir Nowroji was succeeded by JRD Tata, who headed the group for 53 years before handing over the baton to Ratan Tata in 1991. However, Sir Nowroji was the nephew of Tata group chairman Jamsetji Nusserwanji Tata and could, therefore, claim to have family connections. JRD Tata was not a direct descendant of Jamsetji Nusserwanji Tata either. However, he was also related to the Tata group founder through his grandfather, Dadabhoy Tata. Mistry is not a Tata descendant though his sister is married to Noel Tata, Ratan Tata's half-brother who was also in the race for the position but was passed over. Ratan Tata has often said in the past that the new chairman would have to epitomise some of the values that are deeply embedded in the Tata brandname that he firmly put on the world stage after a string of big-ticket acquisitions over the past decade. He had also hinted several times that it wasn't necessary for the incumbent to bear the family name — a trend that has been seen at several eponymous storied brands in the US and Europe. Last year, the Tata Sons board appointed a five-member committee that included Mistry to vet the credentials of several candidates both from within and outside the group. Early this year, reports suggested that the committee had found no one who fit the bill — which appeared to darken the prospects of a rank outsider heading the group. The selection committee met 18 times since August 2010 to decide on Ratan Tata's successor. "After considering candidates from within the group, outside and overseas since August last year, it struck the committee that Cyrus Mistry would fit the bill beautifully. And then the evaluation began," said a senior Tata group official. "At this point, Mistry submitted himself to the same rigorous evaluation process that the other candidates had been subjected to. At the same time, he excused himself from any deliberations whatsoever of the selection panel in making its decision," the official added. After it became clear that the selection committee had not agreed on a candidate from outside the group, speculation increased that Noel Tata was the top contender for the job. Noel Tata, who turned Trent into a successful retail operation with its Westside Stores, apparently lacked the heft that was necessary to fill the position. To give him greater exposure, the Tata group named him managing director of Tata International, which oversees the group's foreign operations. At one stage, it was conjectured that Noel would be assisted by Tata's leading managers, Tata Motors' vice-chairman Ravi Kant, Tata Consultancy Services' S. Ramadorai and Tata Steel's B. Muthuraman, who would be named as directors in Tata Sons. Sources said it was obvious that these appointments had not been made and Mistry would choose to bring his own men into the Tata Sons board. Charitable trusts control 66 per cent of Tata Sons. Ratan Tata will continue as chairman of the Sir Ratan Tata Trust and the Sir Dorab Trust — two of the biggest trusts that hold stakes in Tata Sons.

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• Against tide, court stands up for liberty   • Try biryani to kiss and make up   • If it is 999, it must be our dam   • Probe teams descend   • Not a Tata but in Ratan's mould   • UPA works on quota for Muslims   • Bureau names top council leaders  Importance of being Cyrus Mistry, Tata alike in nature PIYA SINGH Mumbai, Nov. 23: At first glance, the appointment of Cyrus P. Mistry as the future chairman of the mammoth Tata group seems to be an unusual choice but on closer inspection, Mistry and outgoing chairman Ratan Naval Tata seem to share many similar personality traits. Both Tata and Mistry have unassuming personalities bordering on being reticent. A former classmate of The Cathedral & John Connon School, from where Mistry did his schooling, says, "He was really shy, in fact humble, and never tom-tommed the fact that he belonged to the wealthy Shapoorji Pallonji family." Tata's media-shy personality is well-known. Mistry apparently avoids the media with equal fervour, says a source who has interacted with him. The Shapoorji Pallonji family itself is famous for being extremely media shy and over the years there is little reporting to be found on their business activities and plans. While Ratan Tata has trained as an architect, Mistry is a graduate of civil engineering from Imperial College, the UK (1990). Subsequently, he got a masters degree in management from the London School of Business. On his appointment as the deputy chairman of Tata Sons on Wednesday, Mistry issued a low-key statement while at the same time announcing his decision to disengage himself from the management of his family businesses. "I feel 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 guidance in the year ahead in meeting the expectations of the group," he said. "I take this responsibility very seriously and in keeping with the values and ethics of the Tata group I will undertake to legally disassociate myself from the management of my family businesses to avoid any issue of conflict of interest," Mistry added. Commenting on Mistry's appointment, veteran Tata man J.J. Irani told a television channel that Ratan Tata listened to Cyrus Mistry's views carefully during the board meetings of Tata Sons over the years. Mistry joined the board of Tata Sons in 2006 and had been a director of Tata Power and Tata Elxsi in the past. He joined the board of family-run Shapoorji Pallonji group in 1991 and was appointed managing director in 1994. A note prepared by the Tata group's public relations agency says under Mistry's guidance, Shapoorji Pallonji's construction business has grown its turnover from $20 million to around $1.5 billion. The group registered many firsts in India — construction of the tallest residential towers, the longest rail bridge, the largest dry dock and the largest affordable housing project — under Mistry's stewardship, the note added. Mistry has also dabbled in infrastructure, starting in 1995 with a 106MW power project in Tamil Nadu followed by the development of the country's largest bio-tech park near Hyderabad as well as two large road projects with an investment of $550 million. His international experience includes Shapoorji Pallonji's recent entry into agriculture and biofuels, with the leasing of 50,000 hectares in Ethiopia. The Ethiopian experience may well be a start for Mistry in international markets who will now face several challenges in stabilising and growing a global empire that is the Tata group. His set of challenges, however, will be very different from what Ratan Tata faced when he took over the reins of the group. The one-year waiting period working in close association with Tata will stand Mistry in good stead.  More stories in Business   • Industry hails choice    • Akula quits as SKS chairman   • Air India pilots threaten strike   • Importance of being Cyrus   • Global gloom engulfs stocks http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/cyrus-p-mistry-tata-sons-deputy-chairman-a-reticent-man-with-strategic-vision-humility/articleshow/10849143.cms?google_editors_picks=true 24 NOV, 2011, 06.20AM IST, ET BUREAU  Cyrus P Mistry: Tata Sons' deputy chairman a reticent man with strategic vision, humility When senior advocate Iqbal Chagla met Cyrus P Mistry for the first time, he felt there was something special about the man. "He struck me as a young man who will make it big one day," says Chagla.  Chagla had good reason to ponder over Mistry's future prosperity - the younger son of construction tycoon Pallonji Shapoorji Mistry was keen to marry his daughter Rohika.  On Wednesday, Chagla's prediction for his son-in-law couldn't have come true in grander style. In the early evening, Ratan Tata sent out an email to the top five-six executives of all Tata Group companies, informing them that Cyrus P Mistry would succeed him as chairman after December 2012. In his message, the 74-year-old chairman hoped the Tata brass would lend the same support to Mistry as it did to him.  Not all may choose to do so, but Ratan Tata for his part surely will. Top officials in the group who have worked closely with Mistry say he gets along famously with the Tata Group chairman and is very similar to Tata in nature and attitude.  Cyrus was Ratan Tata's First Choice  They add that Cyrus was the chairman's first choice right from the time the hunt began for a successor. But Tata was also keen to follow a systematic process of selection, involving shortlisting of candidates - both external and internal.  So who exactly is Cyrus Mistry, and what makes him the best man to head the sprawling Tata empire? He's low-profile, reticent and conservative, qualities he has inherited from his father. After graduating in engineering from Imperial College London, Cyrus plunged into the family-owned construction business.  His father gave him a clear mandate: grow the engineering, procurement and construction activities. Cyrus focused on the Middle East and grew the business in Oman and the region.  Cyrus' big break came when the group acquired construction company Afcons Infrastructure Ltd, which undertakes large infrastructure projects in India and abroad.  The company was acquired at a time India was witnessing a construction boom. As chairman of Afcons, Cyrus oversaw many important projects. The company was involved in the construction of Delhi Metro, and Cyrus often flew to the capital to supervise the work.  Those who have worked with him say Cyrus possesses a near-perfect blend of hands-on involvement and the ability to give long-term strategic direction. "He has excellent leadership qualities, can think on his feet and combines all this with humility," says former Unilever honcho Keki Dadiseth, who was at one time believed to be in the reckoning to succeed Tata. Another executive who has worked closely with Cyrus says he has the ability to operate both "as a telescope and a microscope".  23 NOV, 2011, 11.07PM IST, IANS  Cyrus Mistry has multi-faceted business expertise MUMBAI: Cyrus P. Mistry, the newly-annointed heir of Tata Group chairman Ratan Tata, brings to his job a rich and varied experience of managing businesses ranging from construction, to entertainment, to power, to finance.  The 43-year-old Mistry is slated to succeed the $71 billion Tata Group chairman Ratan Tata after he retires next year.  Born July 4, 1968, Mistry is the younger son of construction tycoon Pallonji Shapoorji Mistry, whose company has spread all over the country and even abroad.  Valued at $8.8 billion, Pallonji holds an 18.5 percent stake in Tata Sons, making him the single largest shareholder.  Cyrus Mistry is married to Rohika, the daughter of eminent legal luminary Iqbal Chagla. He has an elder brother, Shapoor Mistry, while one of his sisters is married to Noel Tata, Ratan Tata's half-brother.  A commerce graduate from the University of Mumbai, Cyrus Mistry went on to pursue an engineering degree from the Imperial College, London, and master the science of management at the London School of Business.  He loves to play golf, like many top corporate heads, and is a trustee of the Breach Candy Hospital in south Mumbai. He is also on the board of the Imperial College India Foundation.  After completing his academics, Mistry joined the family business as a director in 1991 and is largely credited with taking Shapoorji Pallonji Group to new heights. Today, the group employs over 23,000 people and has a strong presence in India, besides the Middle East and Africa.  However, he is not a newcomer to the Tata Group, which he joined as a board member of Tata Sons in September 2006, and was part of a five-member selection committee tasked to name Ratan Tata's successor.  Mistry is also the chairman of Afcons Infrastructure, which is into mega civil and engineering projects, that was acquired by the Shapoorji Pallonji Group in 2000. Besides serving as a director of Tata Sons, Mistry also served Tata Elxsi Ltd. and Tata Power Company. He also is a senior vice president of production, DQ Entertainment Plc.  Mistry is also on the board of various major companies. He has served as a non-executive director of Forbes Gokak Ltd. and was associated with Convergence Media Pvt. Ltd. as senior vice president, operations and planning, and UTV Toons India.  He has over two decades' experience in the Indian entertainment industry in the fields of filmmaking and animation, technical and production pipeline management. 23 NOV, 2011, 09.24PM IST, PTI  Ratan Tata scripts an enviable legacy NEW DELHI: From fighting fiefdoms to catapulting Tata Group to an over USD 80 billion conglomerate, Ratan N Tata's legacy will be a hard task to emulate.  At the helm of affairs for over two decades, Tata's journey has seen Tatas transforming itself into a global conglomerate with landmark acquisitions of Corus and Jaguar Land Rover, among others.  An architect by qualification, Tata is also credited with pioneering the world's cheapest car Nano.  Tata, who joined the Group way back in 1962, became the Chairman of its holding company Tata Sons in 1991 amid stiff resistance from within.  "We had fiefdoms that were going in different directions ... We had companies in the same business competing with one another. We had uncontrolled entry into new businesses," Tata was quoted as saying in the book 'The Evolution of Corporate Brand' that reminisces about the group in the late 1980s.  The book, penned by Morgen Witzel, was released in 2010. The 74-year-old patriarch is known for his simplicity and is credited with turning around the group, whose revenues stood at over USD 83 billion in 2010-11, with 58 per cent of the total amount coming from overseas businesses.  After serving in various group companies, he was appointed Director-in-Charge of the National Radio and Electronics Company in 1971.  Ten years later, he was named Chairman of Tata Industries, the group's other promoter holding company, where he was responsible for transforming it into a group strategy think-tank, and a promoter of new ventures in high technology businesses. 23 NOV, 2011, 11.17PM IST, PTI  India Inc welcomes Cyrus Mistry as Ratan Tata's successor NEW DELHI: India Inc welcomed the naming of Cyrus P Mistry as the successor of Ratan Tata for heading the USD 80 billion Tata Group, saying it shows the high standards of corporate governance and integrity of the country's leading industrial house.  "In the choice of Mistry, there is a clear message in the trust of the captains of Indian industry in the capabilities of young leaders in the country.  "This is also in keeping with the emerging demographics in Indian industry. CII looks forward to working closely with Mistry and the Tata group in the future," industry chamber CII's Director General Chandrajit Banerjee said.  Tata Sons today named Shapoorji Pallonji Group Managing Director Cyrus P Mistry as successor to Ratan Tata. The 43-year-old Mistry, son of Pallonji Mistry, will take over the reins when Tata retires in December, 2012.  "The announcement of Cyrus P Mistry as successor of Ratan Tata and his appointment as Deputy Chairman by Board of Directors of Tata Sons on the unanimous recommendation of the selection committee is an exemplary move and speaks volumes about the norms of corporate governance followed by this leading industrial house of out country," CII said.  Ficci President Harsh Mariwala said, "He (Mistry) is young, an Indian and from the entrepreneur family. Being a visionary, he has to show results through vision, people management and execution excellence to manage the empire of Tata Group."  Assocham said Director General D S Rawat said,"It has been a smooth transition in the Group which has worked with high integrity."  Country's biggest private sector lender ICICI Bank's Chief Executive Officer and Managing Director Chanda Kochhar congratulated Mistry on his new role.  "I take this opportunity to extend my best wishes to him for carrying forward the rich traditions of the Group and taking its businesses to even greater heights in the years to come," Kochhar said.  Tata Steel former Managing Director J J Irani, speaking to TV news channels, welcomed the selection of Mistry. He said Mistry keeps a low profile and is considered a professional manager. He is said to be good in financial matters. He also shares a good chemistry with Ratan Tata.  "Mistry does not speak too loudly but whatever he says people listen to," Irani said..  Housing Development Finance Corporation (HDFC) Chairman Deepak Parekh 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 told TV news channels. 24 NOV, 2011, 02.03AM IST, ET BUREAU  Cyrus Mistry to take over from Ratan Tata as chairman of Tata Group; to give up Shapoorji Pallonji group responsibilities What is common between Reliance's Jamnagar refinery in Gujarat, the RBI building in Mumbai and Jammu and Kashmir's Chenab bridge, which will be the world's tallest railway bridge when completed? All of these were or being built by companies that are part of the Shapoorji Pallonji group, whose relative low profile came to an end on Wednesday, when Cyrus Mistry, the scion of the Pallonji family, was unveiled as Ratan Tata's successor.  The single-largest shareholder in Tata Sons, Shapoorji Pallonji Mistry - the father of Cyrus Mistry - is the head of a conglomerate with interests in engineering, construction, real estate and textiles and having an annual turnover in excess of Rs 10,000 crore. The conglomerate, known as the SP group, employs around 23,000 people and has a geographical footprint spanning across Middle East and Africa besides India.  The family patriarch, Shapoorji Pallonji, known to be almost obsessively low-profile, is often referred to as the 'Phantom of Bombay House'. He is an Irish citizen by marriage, is both the world's wealthiest Parsi and the richest Irishman, according to Forbes magazine.  His 2011 net worth was estimated to be around $8.8 billion (Rs 45,760 crore). Shapoorji Pallonji has two sons, Shapoor and Cyrus, and two daughters, Laila and Aloo, who is married to Noel Tata, the halfbrother of Ratan Tata.  Cyrus Mistry joined the Shapoorji Pallonji group as a director in 1991. On Wednesday, he announced that he would legally dissociate himself from the SP group as he assumes his new responsibilities.  The group has a long link with Mumbai, having built a water reservoir in Malabar Hills nearly a century-and-a-half ago. In more recent times, the twin towers of The Imperial that mark the Mumbai skyline, modelled after the Petronas towers in Kuala Lumpur, or the sky scraper Sterling Tower are well-known real estate projects that the SP group has put its stamp on.  The real estate business is one of the longest surviving in India, with Manoj Namburu, the author of Moguls of Real Estate, tracing its legacy to as far back as 1865.  Afcon Infrastructure, a company that the SP group acquired in 2000, is behind some of the landmark infrastructure projects in the country, such as the Delhi metro stations and the Chenab bridge being built in Jammu and Kashmir. With a height of about 360 metres and about 1.3 kilometres long, it is expected to be the tallest rail bridge in the world when completed.  Afcons had revenues of Rs 2,900 crore for the year ended march 31, 2011, with orders of around Rs 8,174 crore in hand. The listed groups in the firm, Forbes & Company and Gokak Textiles, are relatively smaller with fiscal 2011 revenues of Rs 228 crore and Rs 397 crore, respectively.  Forbes & Company, which has interests in engineering and shipping, is one of the "oldest companies in the world that is still in business", according to its website, tracing its origins to 1767 with ownership changing hands multiple times and subsequently becoming part of the Shapoorji Pallonji group.  The well-known water purifying appliance brand, Eureka Forbes, is part of the group.