Tata Sons rejig: 5 things to know about Cyrus Mistry

By : ABP News Bureau | Updated at : 24 Oct 2016 08:41 PM (IST)

New Delhi: In a dramatic development that took the corporates and others by surprise, Cyrus Mistry was on Monday sacked as Chairman of Tata Sons and was replaced by Ratan Tata, from whom he had taken over the reins of the over USD 100 billion salt-to-software conglomerate four years ago. The surprise announcement came after the Board of Tata Sons met here and decided to replace 48-year-old Mistry and appoint Ratan Tata, 78, as interim head. Let’s look at Cyrus Mistry's profile below:

Cyrus Pallonji Mistry, belonging to Parsi community, was born on July 4, 1968. He is the scion of a prosperous business family in Mumbai. He was also recognized by Forbes as the “richest person of Parsi descent”.

Tata Group chairman, Cyrus Mistry greets shareholders prior to the start of the 9th Annual General Meeting of Tata Consultancy Services in Mumbai on June 28, 2013. India's biggest IT outsourcing firm, Tata Consultancy Services, popularly known as TCS and part of the steel-to-tea Tata conglomerate, counts blue-chip companies such as British Airways, Microsoft and Sony among its main clients. AFP PHOTO / INDRANIL MUKHERJEE / AFP PHOTO / INDRANIL MUKHERJEE

Cyrus Mistry greets shareholders prior to the start of the 9th Annual General Meeting of Tata Consultancy Services in Mumbai on June 28, 2013. AFP PHOTO

Cyrus Mistry was the younger son of Pallonji Mistry, head of the Shapoorji Pallonji Group. In 1991 he entered the family business, becoming director of its construction company. Shapoorji Pallonji is the single largest shareholder of Tata Sons with a stake of 18.5%.

Cyrus Mistry gestures during the Velidictory function of the Vibrant Gujarat 2013 6th Global Summit at Mahatma Mandir in Gandhinagar, some 30 kms from Ahmedabad on January 12, 2013. The summit was inaugurated by Gujarat Chief Minister, Narendra Modi on January 11 and the two day summit is attended by a wide range of national and international corporate representatives. AFP PHOTO / Sam PANTHAKY / AFP PHOTO / SAM PANTHAKY

Cyrus Mistry gestures during the Velidictory function of the Vibrant Gujarat 2013 6th Global Summit. AFP PHOTO

48-year-old 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. In 2006 Pallonji Mistry retired from the board of the Tata Group and Cyrus Mistry took over. In 2012 Mistry became chairman of the gigantic Tata Group. Ratan Tata had stepped down to make way for younger blood.

RESTRICTED TO EDITORIAL USE, MADATORY CREDIT "AFP PHOTO / GUJARAT STATE INFORMATION DEPT" NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS - This handout photograph released by the Gujarat State Information Department shows Tata Group chairman Ratan Tata (R) and his successor Cyrus Mistry (C) talking with the Gujarat state Chief Minister, Narendra Modi (L) in Gandhinagar near Ahmedabad on December 29, 2011. Ratan Tata introduced Cyrus Mistry to the Narendra Mody as he paid a courtesy visit. AFP PHOTO / HAND OUT / GUJARAT INFORMATION BUREAU / AFP PHOTO / GUJARAT STATE INFORMATION DEPT / -

Ratan Tata (R) and Cyrus Mistry (C) talking with, Narendra Modi (L) in Gandhinagar near Ahmedabad. File Photo: AFP.

One of Cyrus Mistry’s sisters married Noel Tata, Ratan Tata’s half brother and a well-known executive in the Tata Group. In 1992 Cyrus Mistry married a daughter of Iqbal Chagla, one of India’s most prominent lawyers.

Deputy Chairman of Indian multinational corporation Tata Cyrus P. Mistry arrives at company headquarters Bombay House in Mumbai on November 24, 2011. India's salt-to-steel group Tata have appointed Cyrus P. Mistry as the new chairman-elect, ending a long search for a successor to veteran chairman and business icon Ratan Tata, who will step down next year. Mistry, a 43-year-old existing board member, was named as deputy chairman of the Tata Sons group and will take over the reins next year, the company said in a statement, ending years of speculation. AFP PHOTO/Indranil MUKHERJEE / AFP PHOTO / INDRANIL MUKHERJEE

FILE PIC: AFP

He served on the board of Tata Sons as director for five years. Tata Sons was reportedly unhappy with Mistry's approach of shedding non-profit businesses, including the conglomerate's steel business in Europe, and concentrating only on cash cows. Turnover fell to $103bn (£84bn) in its last financial year from $108bn over the previous 12 months. The loss-making Talbot works in UK is also cited a reason.