Cyrus Mistry: Here are key business decisions he took for Tata group

Cyrus was also seen as the natural heir to the Tata group as his billionaire father owns an 18.4 percent stake in Tata group, largest stake of any shareholder in the group.

Written by Kanishka Singh | New Delhi | Updated: October 25, 2016 11:54 am
cyrus pallonji mistry, cyrus mistry, cyrus mistry sacked, cyrus mistry tata chairman, tata sons, ratan tata, business news, latest news, india news Mistry holds a BE in Civil Engineering from the prestigious Imperial College in London. He followed it up with a M Sc in Management from London Business School and a Bachelor of Commerce from Mumbai University.. REUTERS/Vivek Prakash/File Photo

Cyrus Pallonji Mistry was removed from his position as chairman of the $100 billion conglomerate Tata group on Monday. Former spearhead Ratan J. Tata has been appointed as the interim chairman of the group and a selection committee has been formed to choose Mistry’s successor. The appointment committee has been accorded a time period of four months to complete the task as per the company’s article of association.

WATCH VIDEO: Cyrus Mistry’s Career Timeline

 

Mistry holds a BE in Civil Engineering from the prestigious Imperial College in London. He followed it up with a M Sc in Management from London Business School and a Bachelor of Commerce from Mumbai University.

Son of Pallonji Mistry, Cyrus served as the managing director of Shapoorji Pallonji Group from 1994-2011. During the same time he was involved with Tata group in various capacities till he was appointed as Deputy chairman of the group in 2011 and as chairman in 2012 as the successor of Ratan Tata.

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Cyrus was also seen as the natural heir to the Tata group as his billionaire father owns an 18.4 percent stake in Tata group, largest stake of any shareholder in the group.

Here are the key decisions Mistry took during his time at the Tata group at the helm:

According to Mistry himself, over the last three years, the operating cash flows of Tata group grew by over 30 percent CAGR. However, he reformed business practices in the group mandating the requirement for group companies to earn the right to be part of the portfolio and also earn “the right to grow”.

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

 

During the same period, the company’s gross debt increased by 2 per cent due to increased cash and capital expenditure from projects but at the same time the cash and equivalent assets grew at around 10 per cent. The net debt of the group also decreased by 3.3 per cent during the time, so Mistry’s tenure saw reduction in debt strain on the company.

He pruned several companies from the portfolio and even changed the structure of the company’s hospitality arm from owning properties to one managing properties across the globe. A huge 70 per cent of the group’s revenue comes from abroad. A majority of the group’s capital expenditure under Mistry has been abroad.

Grasping the need to expand the company’s digital signature in the industry, apart from having the hugely successful TCS, Mistry added the digital platform–CliQ- an ecommerce platform. He also added Tata iQ which is a big data company and is rapidly growing in the field of data analytics. Finally, the group added Tata Digital Health which expanded the group’s medical business forays into e-healthcare and telemedicine taking medical care beyond physical impediments. TCS doubled its profits during the time overshadowing all competitors.

In pruning measures, Mistry was also involved in prospective selling off of long products businesses like the ailing Tata Steel in Europe due to drop in demand and massive competition from cheap Chinese supply. Also during his time, Tata teleservices failed to come out of its negative networth.

After Mistry took the position, Tata Motors focused on passenger vehicles section aiming for two launches every year. This has in turn changed customer perception about the company and lifted Tata Motors’ sales.

The group under Mistry has also tried to expand its business in the defence manufacturing business with several key contracts in the pipeline. Material sciences has been a major fillip to their defence manufacturing business during this time.

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  1. K
    Karthikeyan
    Oct 26, 2016 at 5:33 am
    Yes rightly said by Jagan.. though we cannot compare with Great Human and leader , Mistry was in right path and positioned the group well on his own style, Business man style.. But there must be a reason for this action by Mr. TATA. . Let's hope for the best..
    Reply
    1. K
      Khushminder
      Oct 24, 2016 at 4:12 pm
      yes. Some thing is radically gone wrong. Mr Ratan Tata is not hungry for the Chairmanship of Tata and sons conglomerate.
      Reply
      1. F
        fuckislam
        Oct 25, 2016 at 8:59 am
        Good decision by Ratan Tata and his team,this was necessary as Cyrus lowered the growth rate of TATA. Cyrus was a harmful virus.
        Reply
        1. S
          Sasa
          Oct 24, 2016 at 4:44 pm
          Absolutely something would have gone wrong.lt;br/gt;1) why 'immediate effect' is something fishy.lt;br/gt;2) it's a great surprise that tataji need to come to the picture at this stage as chairmanship.lt;br/gt; That means it may be something serious ??? That is not know to outside world.lt;br/gt;3) Tataji can ONLY bring back the Tata glory lt;br/gt;4) sudden Exit of Cyrus Mistry .why sudden?? lt;br/gt;lt;br/gt;Lot of unknown questions has no answer as this closed door board meeting.lt;br/gt;lt;br/gt;Now days lot of surprises in corporate world.lt;br/gt;One thing is very clear that owner or real stakeholder like Infosys murthyj or Tata ji always Available.
          Reply
          1. B
            Bala Dutt
            Oct 25, 2016 at 4:42 pm
            RATAN TATA is the best person in the interest of TATA group, mistry is not at all competent, and good
            Reply
            1. D
              Dabur Natural
              Oct 25, 2016 at 3:53 am
              This is not Sudden Effect. This is result of 3 year performance. lt;br/gt;and Mr Govind. CEO is not an "on-roll" job. where company need to give such notice. lt;br/gt;It is a contract based ignment which can be terminated even after 2 hours.
              Reply
              1. J
                jeganathan
                Oct 25, 2016 at 5:28 pm
                Mystery of the missing Mistry:lt;br/gt;Mistry may have been doing the right thing by :lt;br/gt;1. keeping the over the hill "old guard" at baylt;br/gt;2. cut losses by disposing off badly managed companies lt;br/gt;3. reduce debts and bad investmentslt;br/gt;4. change the (in) famous lethargic work culture of the Tata companieslt;br/gt;5. being ertivelt;br/gt;lt;br/gt;Head honcho of the diversified group of companies such as Tatas, cannot be evaluated in a matter of mere 4 years
                Reply
                1. K
                  KAILASH
                  Oct 25, 2016 at 4:39 pm
                  No comparison between Sh. Ratan TATA and this kid Cyrus Mistry, who cant even take care of his tummy, comparing the 2 will be like comparing a Mountain with a sand dune. Cyrus Mistry is an incompetent man, his personality says it all, he was never able, and competent enough to be the chairman of the great TATA group, but it was a mistake which the Board of Directors did, I happy they rectified it soon by reinstating sh. Ratan Tata. Ratan Tata is a marvellous man, cant even think of comparing it with this cartoon.
                  Reply
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