In a dramatic development, Tata Sons has announced that its board has replaced Cyrus P. Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held at Mumbai today.
The board has named Ratan N. Tata as interim Chairman of Tata Sons. Ratan Tata had earlier stepped aside as the Chairman of Tata Sons when he turned 75 in 2012, after a 21 year stint at the helm of India’s largest conglomerate. During his leadership, the revenue of the group had grown over 40 times, and profit over 50 times.
A new selection committee has been constituted to choose the new Chairman. It comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.
Cyrus Mistry had become the Chairman of the Tata Group in December 2012. He was the only the 2nd Chairman of the Tata Group to not carry the Tata name. Mistry is the youngest son of Indian construction magnate Pallonji Mistry.
Tata Sons had a challenging year, with its turnover dropping to $103 billion in 2015-2016 from $108 billion the previous year. Net debt rose to $24.5 billion in March 2016 from $23.4 billion a year ago.
We will update the article as more information comes in.