Cyrus Mistry made Ratan Tata…, his decisions were…; book reveals SHOCKING details about Mistry’s exit from Tata Group
GH News February 22, 2025 11:06 PM
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The rivalry and the rift between Ratan Tata the late Chairman Emeritus of Tata Group and the conglomerate former head Cyrus Mistry has been well documented. However a new book has unveiled more shocking details about issues between Ratan Tata and Cyrus Mistry revealing how the late industrialist regretted his decision to back Mistrys ascension as the Tata Group chairman.
Cyrus Mistry’s British education blinded me. I naively thought that the DNA of a person with such an impressive education would be different” Ratan Tata is quoted as saying in his biography Ratan Tata: A Life penned by author Thomas Mathew. According to the book Ratan Tata regretted putting the committee under pressure which forced them to act in haste and resulted in Cyrus Mistry being picked as the Chairman of Tata Group in 2012.
The famous industrialist who passed away in October last year also rued issuing an ultimatum to the selection committee to back his chosen successor or he would walk out on December 28 2012” and also rued staying away from the the selection process an approach he later realized had been very idealistic the book reveals.
As per the book Mistrys appointment was ‘circumstantial’ as the selection committee failed to pick another suitable candidate and ultimately chose Mistry to helm the top post following an interview.
Mistry made Ratan Tata uncomfortable
According to the biography several decisions taken by Cyrus Mistry after being appointed as the Tata Group chairman made Ratan Tata uncomfortable as he felt these went against the clean image and reputation of the group. The book details how apprehensions arose when Mistry drove Tata Group into new ventures outside its core areas such as infrastructure where “bribes and corruption” could tarnish the Tata name and reputation.
On the groups failed joint venture with Docomo when the Japanese telco won an award of $1.17 billion which Tata refused to pay Ratan Tata is quoted as saying: If it has (Tata Group) made a commitment it has to in good faith implement it.” The book reveals that Ratan Tata travelled to Singapore in 2017 to personally meet Docomo president and paid the promised $1.17 billion owed by Tata when N Chandrasekaran took over as the Groups chairman.
Cyrus Mistry didnt consult Tata Sons board
According to the book discontent grew between Cyrus Mistry and Ratan Tata when Mistry reportedly bypassed Tata Trusts on important decisions concerning the Tata Group. Ratan Tata admits he “misjudged Mistry’s approach to business” and how acquisition of Welspun’s alternative energy assets by Tata Power for $1.45 billion which lacked approval from the Tata Sons board was a “real flare-up”.
Additionally Cyrus Mistrys modus operandi as chairman has been commented on by several Tata Group veterans like current Chairman N Chandrasekaran who recalled how Mistrys group executive council (GEC) only comprised of youngsters and ignored veterans.
Wisdom with experience is more sustainable says R Mukundan MD of Tata Chemicals while NP Sinha former vice-president of Tata Steel puts it more bluntly saying his appointment itself I would not have done.
Ratan Tata tried to help Mistry
As per the book Ratan Tata despite his differences with Cyrus Mistry tried to help him successfully perform his duties tasked Nitin Nohria the dean of Harvard Business School to guide the then Tata Group chairman. Nitin you have one job and that is to see if there’s any way in which you can help him (Mistry) be successful Tata had told Nohria who was incorporated into the Tata Sons board.
However Ratan Tatas move as rumours began that he was stifling the new chairman’s performance and interfering in his work. Soon the ties between Ratan Tata and Cyrus Mistry took a nosedive and the internal bickering also led to a dip in the Tata Groups performance.
In October 2016 Cyrus Mistry was ousted as the chairman of Tata Group and Ratan Tata knew that he “he would be misunderstood” for the move and his reputation would take a hit but he did it anyway because it was the right thing to do to protect the Tata name and reputation the book reveals.