Cyrus Mistry, who was paying his assistance as the chairman of Tata Group since 2012, has become the talk of the town for getting ousted in a sudden move by the board of the directors. The extremely nostalgic move for Mistry was announced on Monday by the group of people led by the holding company. Further, the group has raised the name of Ratan Tata as meantime chairman for the next four months. No such reason for the change of leadership has been disclosed officially by the group, however, it is rumored that Tata Sons was unhappy with Mistry’s business approach as well as didn’t find it feasible.
Undoubtedly, it is an unexpected move for both Mistry and his family thus they have reportedly taken turns the move. Besides, Shapoorji Pallonji Group, which is Mistry’s family business empire founded by his grandfather in 1991 and is the single largest shareholder in the Tata Group, has also opposed the sudden move. As the media reports suggest, the Shapoorji group is “claiming Cyrus Mistry removal is illegal” as he didn’t get any prior notice for such removal. Well, a host of stories about this issue are breathing heavily in the market, but before leading next to the rumors, let’s have a quick glance on Mistry’s life.
A 48-year old Cyrus belongs to a Parsi family in Mumbai. Graduated from Imperial College, London in Civil engineering, he is married to Rohiqa Chagla. With information available, Cyrus joined his grandfather’s company as director and three years later, he was ordained as managing director of the said group. In his tenure, the company was reported to boost in a turnover of $20 million to $1.5 billion. Later on, on December 28, 2012, he took over as the chairman of the Tata Group after its successor, Ratan Tata, who had stepped down and proclaimed his retirement. After Nowroji Saklatwala, he was the second chairman without the Tata surname and sixth chairperson of the company.
Now talking about the possibilities behind Mistry’s removal and one of the latest triggers might be his performance during the time he commanded the post. According to sources, the turnover of the Tata group has witnessed a downfall to $103 billion in the period of 2015-16 from $108 billion in the previous year. Moreover, it was also rumored that he was also taking interest in real estate projects ideas with a view to benefit family business empire.
If the media reports can be believed, the decision of removing Cyrus Mistry from his post was taken by Tata Sons Board based on collective wisdom. In a statement, Board said, “it may be appropriate to consider a change in the long-term interest of Tata Sons and Tata group.” Apart from these, a management restructure plan by which, Mistry is thinking of bringing new faces at senior levels, might also stand as a reason behind this ousted. Read Business News.
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