India News Bulletin Desk
Ratan Tata retires to make way to Cyrus Mistry
Image: Wikimedia Commons

Internationally-recognised Indian businessman Ratan Tata, who became the chairman of Tata Group in 1991, has retired from his position after 50 years of service at the conglomerate.

He will now shift his focus on the conglomerate’s philanthropic activities and will serve as honorary chairman emeritus.

44-year-old Cyrus Mistry, the son of Irish construction magnate Pallonji Mistry, has been appointed as Ratan Tata’s successor with effect from December 28 2012. Mistry was selected to succeed Tatan Tata in 2011 by the search committee.

Mistry’s family is the largest individual shareholder of Tata Sons owning 17%. Mistry was earlier managing director of Shapoorji Pallonji Group, the large infrastructure company

Ratan Tata will not be involved in the day-to-day affairs of the company but would continue as the chairman of the charitable trusts that own Tata Sons.

The 75-year-old businessman started his career in Tata Group in 1962 and assumed the role of the group’s chairman in 1991 after JRD Tata stepped down as Tata Industries chairman.

Under Ratan Tata’s leadership, Tata Group expanded its global footprint with three significant UK acquisitions including Tetley tea, Corus - the steel manufacturing company and Jaguar Land Rover.

Under his tenure, the company’s sales rose from $5bn to $83bn today with more than half of its revenue now coming from its international operations.

Ratan Tata has been instrumental in the company’s £15bn-plus investment in the UK manufacturing sector and for reviving the premium but ailing carmaker JLR.

He is the recipient of Padma Bhushan and Padma Vibhushan – the highest civilian award in India for his contribution as an Indian businessman.

He is one of the most influential, popular and trusted businessman of India but the market has reacted well to the leadership change with little change in the stock prices on December 28, 2012, the day Ratan Tata resigned.