Cyrus Mistry sacked, Ratan Tata appointed interim Chairman of Tata Sons

In a surprise move, Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the over USD 100 billion salt-to-software conglomerate.

By: Express Web Desk | New Delhi | Updated: October 25, 2016 12:19 pm
Ratan Tata, tata and sons, cyrus mistry, tata, tata news, ratan tata interim chairman, business news Ratan Tata (L) with Cyrus Mistry. Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the group.

In a surprise move, Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the over USD 100 billion salt-to-software conglomerate. The decision was taken at a Board meeting held in Mumbai.

WATCH VIDEO: Cyrus Mistry’s Career Timeline

 

“Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today,” a Tata Sons statement said.

Ratan Tata, who Mistry had replaced on December 29, 2012, has been appointed as interim Chairman for four months during which a search committee will look for a replacement.

The search committee comprises of Ratan Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharya. The committee has been mandated to complete the selection process in four months.

CEOs at the operating company level have not been touched in the rejig.

There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry’s approach of shedding non-profit businesses, including the conglomerate’s steel business in Europe, and concentrating only on cash cows.

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Tata Sons is the main holding company of the group.

Mistry, who was chosen by a five-member panel in 2011 to succeed Ratan Tata, took over the reins of the conglomerate when the veteran industrialist retired on December 29, 2012, when he turned 75.

After taking charge, he had to face some challenging situations such as the decision to sell Tata Steel UK in the wake of mounting losses.

WATCH VIDEO: Cyrus Mistry Removed As Chairman of Tata Sons: Here’s What Happened

 

The Tata group is also engaged in a legal battle with Japan’s Docomo over the split of their telecom joint venture Tata Docomo.

In an interview with an in-house magazine, Mistry had recently stated that the group “should not be afraid of taking tough decisions for the right reasons, with compassion” amid “challenging situations” confronted by some of the group’s businesses that would require hard and bolder decisions on pruning portfolio.

READ | ‘Cyrus Mistry replaced in long-term interest of Tata Sons’

This was in contrast to steps taken by Ratan Tata, who led the group into some notable acquisitions, starting from Tetley by Tata Tea for USD 450 million in 2000, to steelmaker Corus by Tata Steel in 2007 and the landmark Jaguar Land Rover in 2008 for USD 2.3 billion by Tata Motors.

During Ratan Tata’s tenure, the group’s revenues grew manifold, totalling USD 100.09 billion (around Rs 475,721 crore) in 2011-12 from a turnover of a mere Rs 10,000 crore in 1991.

Born on July 4, 1968, Mistry completed his graduation in civil engineering from London’s Imperial College of Science, Technology and Medicine and followed it up with a masters in Management from the London Business School.

(With inputs from PTI)

 

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  1. A
    ankit
    Oct 25, 2016 at 8:00 am
    Days back in this newspaper, a foreign newspaper's story was published. Writer's point was how tata is only expanding where much of its companies are underperforming. Next day, article was challenged by saying how company has maintained long term objectives and cash flows. Now this happens, Mr. Cyrus mistry had been a dynamic chairman in the shapoorji pallonji group as well and was responsible for the only leap frogging in the recent history of shapoorji group. To me appears to be a decision at contrast to both arguments published in the newspaper, but a mix of both.
    Reply
    1. A
      ashok s
      Oct 24, 2016 at 2:30 pm
      Being Cyrus. He is majority share holder, but one thing is that parsis accept what they are capable of .so if he realized that he is waste he must have n had himself resigned from the post . let's hope for. Another tata
      Reply
      1. A
        Ashish Biswas
        Oct 24, 2016 at 3:45 pm
        Very intolerant
        Reply
        1. R
          Raj
          Oct 24, 2016 at 11:56 am
          Meritocracy, Tata is Tata! I hope they appoint a non-family member to the helm. First in history, hopefully.
          Reply
          1. A
            avi
            Oct 25, 2016 at 10:25 pm
            TATA is the best known Indian and world b and it should do whatever to takes to be successful and profitable, even if heads have to roll.
            Reply
            1. C
              c
              Oct 24, 2016 at 12:30 pm
              C p Chandra das from Memphis , USAlt;br/gt;lt;br/gt;In India, Tatas have symbolized high professionalism all these years. During the stewardship of Ratan Tata, there was considerable expansion as well. In the management field, Tatas have shown the pathway in high professionalism and one would expect that in future as well
              Reply
              1. D
                d
                Oct 25, 2016 at 3:20 am
                It is time to get Bobby Jindal as CEO.
                Reply
                1. P
                  P SHARMA
                  Oct 24, 2016 at 12:54 pm
                  This appears that high professionalism is MUST but must continue with existing high standards of respect for its working people and ensuring their improvement in performance. The changes in global political scene must be withstood with firm commitment. All good jargon's looks attractive but perhaps difficult to hold all together.
                  Reply
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