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Shapoorji and Pallonji Group to contest Cyrus Mistry's ouster from Tata Sons

Shapoorji and Pallonji Group said it will contest the move, adding that the decision to remove Mistry was not unanimous.

By ET Online | Updated:
Shapoorji and Pallonji Group to contest Cyrus Mistry's ouster from Tata Sons
Shapoorji and Pallonji Group, the majority shareholder in the Tata Group, has termed Cyrus Mistry's ouster from Tata Sons as illegal. It said it will contest the move, adding that the decision to remove Mistry was not unanimous. This was confirmed by senior lawyer Mohan Parasaran.

Out of the nine board members, 8 members voted. Six voted for Mistry's ouster and two abstained, according to ET Now.

Also Read: Confusion reigns at Tata Steel as Mistry steps down

A selection panel has been formed to find a successor in four months. The committee will include Ratan Tata, Ronen Sen, Venu Srinivasan, Amit Chandra. The decision has been taken after the board meeting today.

IN PICS: Was Tata Sons unhappy with Cyrus Mistry's performance?

There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry's approach of shedding non-profit businesses, including the conglomerate's steel business in Europe, and concentrating only on cash cows.
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Also Read: Was Tata Sons unhappy with Mistry's approach of focusing only on cash cows?

"Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today," a Tata Sons statement said.
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Was Tata Sons unhappy with Cyrus Mistry's performance?
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Text: Economictimes.com

Tata Sons on Monday announced that its Board has replaced Cyrus P Mistry as Chairman of Tata Sons at a meeting held in Mumbai. An insider said, there was an inherent bureaucracy in the system that has gone unchallenged for years.

While Mistry, who would have completed four years at the helm in December, or any others from the group is yet to give out a reason behind this sudden decision, here are our guesses.
Text: Economictimes.com Tata Sons on Monday announced that its Board has replaced Cyrus P Mistry as Chairman of Tata Sons at a meeting held in Mumbai. An insider said, there was an inherent bureaucr..
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In August 2016, when shareholders of Tata Motors complained that the dividend of 20 paisa a share was piddly, Mistry justified the move. "We have raised capital from all of you last year. We are now employing that capital in new products. I think the journey is going to be long and not for the faint hearted."
In August 2016, when shareholders of Tata Motors complained that the dividend of 20 paisa a share was piddly, Mistry justified the move. "We have raised capital from all of you last year. We are now ..
Read More
Much of Tata’s problems is owing to its elephantine structure. Cross-ownership of companies — Tata Sons owns stakes in businesses like Tata Motors or Tata Steel and these businesses own stakes in each other — has made it difficult for the group to make the most of its identity as a diversified conglomerate. An insider said, "There is an inherent bureaucracy in the system that has gone unchallenged for years."
Much of Tata’s problems is owing to its elephantine structure. Cross-ownership of companies — Tata Sons owns stakes in businesses like Tata Motors or Tata Steel and these businesses own stakes in eac..
Read More
Tata watchers said the group is so infatuated with a long-term vision that it has shied away from recalibrating strategy in key businesses.

It has even shown a strange reluctance to focus on the growing Indian market; the international market still accounts for two-third of overall revenues at $70 billion. The performance of the group, nearly four years into Mistry’s reign as Tata boss, has largely been listless. The head of a top investment fund says Mistry has a very tough job.
Tata watchers said the group is so infatuated with a long-term vision that it has shied away from recalibrating strategy in key businesses. It has even shown a strange reluctance to focus on the gro..
Read More
Mistry pressed companies to focus on improving the efficiency of boards, pushing for a performance-oriented culture. He created parallel teams and structures with the freedom to challenge and break hierarchical structures, according to Tata insiders.

He has shone a light on critical requirements like going digital and being agile, and has clearly placed his finger on the right issues, stressing sustainable, profitable growth."
Mistry pressed companies to focus on improving the efficiency of boards, pushing for a performance-oriented culture. He created parallel teams and structures with the freedom to challenge and break h..
Read More
By 2025, Mistry wanted the group to be in the top 25 globally by market capitalisation and he wants the conglomerate to reach out to 25% of the global population, but he he did not lay out a detailed strategy.

Even the in-house interview offered few cues. To confront the challenging situations would ultimately "entail hard decisions on pruning the portfolio", according to Mistry.
By 2025, Mistry wanted the group to be in the top 25 globally by market capitalisation and he wants the conglomerate to reach out to 25% of the global population, but he he did not lay out a detailed..
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Mistry had spent the first three years understanding the sprawling Tata empire and its complexities. Half a dozen Tata insiders say he has been building knowledge about specific domains to ask the right questions and understanding geopolitics, technology and societal issues.

Mistry often attended classrooms that have professors and academicians sharing knowledge. He recently attended a digital marketing session addressed by Facebook executives and conducted by Harvard University.
Mistry had spent the first three years understanding the sprawling Tata empire and its complexities. Half a dozen Tata insiders say he has been building knowledge about specific domains to ask the ri..
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Tata insiders say Mistry is a workaholic who is in office even on weekends. Many of them receive his emails late into the night. On a Parsi holiday a month back, ET caught Mistry walking out of Bombay House, the Tata headquarters, talking animatedly with CEO Guenter Butschek.
Tata insiders say Mistry is a workaholic who is in office even on weekends. Many of them receive his emails late into the night. On a Parsi holiday a month back, ET caught Mistry walking out of Bomba..
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What Mistry has not done in earnest yet, according to investments fund managers, is reinvigorate the leadership in various businesses.

A top investment fund CEO criticised the delay in appointing a CEO for Tata Motors after Karl Slym’s death in 2014. "Why could not the group have deployed a smart leader like Chandra (TCS boss N Chandrasekaran)? The group has to create a strong leadership pipeline."
What Mistry has not done in earnest yet, according to investments fund managers, is reinvigorate the leadership in various businesses. A top investment fund CEO criticised the delay in appointing a ..
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