Published: Tue, October 25, 2016
Economy | By Melissa Porter

Tata Sons replaces Cyrus Mistry, Ratan Tata to be interim chairman

A new management structure is being in place and a Selection Committee has been constituted to identify the next Chairman of Tata Sons.

With the passage of time, the mystery surrounding this monumental change will unveil, but the swift manner in which it has been implemented will undermine the stability of the Tata brand, though how much is hard to tell.

The Brexit vote has also cast a shadow over Tata Motors' luxury auto unit Jaguar Land Rover (JLR), which has a large United Kingdom manufacturing base. "The Tata Group owes an explanation as to why such a sudden decision has been taken". "The page you are looking for has been moved or removed", said a message on the web page of GEC on Tata group's official website. This figure had risen 57 times under Tata's 21 years, but Tata had the advantage of starting on much smaller base.

Cyrus Mistry has made a decision to drag Tata Sons to Bombay High Court, moments after he was sacked from the Chairman's post.

Tata Motors rose in NY trading, while Tata Steel fell in London. Tata companies are commonly referred to as the Tata group and the Chairman of Tata Sons as Chairman of the Tata group.

The replacement of Chairman of Tata Sons, Cyrus Mistry was done keeping in mind the "long-term interest" of the company, according to a spokesperson. These included his relatively young age (he was then 43), his expertise, particularly in engineering and finance, and his personal relationship with Ratan Tata. Tata Sons will set up a committee to select the new Chairman in 4 months.

An engineer from the Imperial College of Science, Technology and Medicine in London, he began working for the group controlled by his father, billionaire Shapoorji Pallonji Mistry, in 1991. Recent additions include defence, infrastructure and financial services.

A low-profile man to the extent of being reclusive, Mistry, now 48, was a surprise choice to succeed Tata, who retired on December 29, 2012 as Chairman of the one of country's oldest business empires.

Getting into a lawsuit was not Mistry's fault, but not being able to turn around a business over four years did raise questions over his ability to compete in the telecom sector.

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