Cyrus Mistry is someone who will cherish the Tata ethos: Gita Piramal

By Gita Piramal

He ( Cyrus Mistry) has always been in the running (to succeed Ratan Tata), so it’s not a total surprise. The most interesting thing about this selection is that they (the committee) have opted for a safe pair of hands. He is somebody who will cherish the Tata ethos, someone who knows the Tata DNA, and someone who will take forward the legacy and heritage of the 100-year-plus group.

There is enough data to show that promoters have a longer-term vision, and (considering) where the group stands now, a longer-term vision will be very important (for it).

Going back, when Ratan Tata started his career in the early nineties, he did a lot of restructuring within the group. He hived off many businesses and consolidated the group as a whole. And liberalisation enabled that restructuring. So, whoever takes over from Ratan (Tata) has this base to grow. Having that continuity while the world economy is full of uncertainty will help the Tata Group.

Amongst the major achievements of Ratan Tata have been the global acquisitions like Corus, Jaguar and Land Rover. These have been achieved and now they need a safe pair of hands. So, an insider, who is aware of what Tata stands for and can keep the identity of the group together even as they globalise into various geographies and serve different customers, will be a better bet than an outsider.

Given their size today, the large Indian conglomerates are mid-sized in a global context. So, the next chairman has to take the group which has been prepared for growth to the next level. I am delighted by the choice. It reinforces my faith in the Indian businesses.

(Author of the bestseller, Business Maharajas)