The fall of Cyrus Mistry: How Ratan Tata's hesitation shaped their conflict, revealed in new tell-all book!
Ratan Tata and Cyrus Mistry is well-documented, marked by a series of pivotal moments that ultimately led to Mistry's dismissal as Chairman of Tata Sons in 2016. As reported by TOI, a newly released biography, Ratan Tata: A Life, authored by Thomas Mathew, sheds light on the intricate dynamics that characterized their professional relationship.
Early Doubts and Mistry’s Appointment
Cyrus Mistry was appointed as Tata's successor after a global search and was officially named Chairman-designate in 2011, following Tata's retirement in December 2012. The decision was not without its reservations; Tata had two significant stipulations for Mistry. First, he expected Mistry to «severe all relations» with his family's company, Shapoorji Pallonji Group, ensuring a «legal and tenable» separation. Second, Mistry was to engage in a year of «parallel running» alongside Tata to gain insights into the operations of the Tata Group before taking full control.
However, by the end of this apprenticeship, doubts began to surface regarding Mistry’s suitability for the role. According to Mathew, Tata noted that some of Mistry's «sharp interventions» during board meetings caught him off guard, leading him to question whether Mistry's values aligned with those of the Tata ethos. “Mistry had a particular talent to identify potential pitfalls in strategies,” Tata reflected, but he remained uncertain if Mistry would apply those qualities for the benefit of Tata Sons and uphold the fundamental values of the group.
The Painful Decision to
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