Bigg Boss Is Back, What Ratan Tata Will Do?

Mistry's removal will not solve Tata Group's problems; but it is an opportunity to do it the family way.

- Dnyanesh Jathar and Maijo Abraham

Four years ago, when Ratan Tata decided to hang up his boots after an illustrious tenure as chairman of Tata Group, the salt-to-software conglomerate started a head hunt for his successor. Cyrus Mistry, a member of the Tata Sons board by virtue of his father Pallonji Mistry's 18.4 per cent stake, was part of the committee that was formed to find Tata's successor. During the selection process, however, Mistry impressed the other members of the committee so much so that they decided not to look any further.

Mistry had proved his mettle as managing director of his family firm Shapoorji Pallonji and Company, and had served as director of Tata Elxsi and Tata Power. His father's clout in Bombay House, the Tata Group head quarters, also helped in no small measure in his selection. Mistry was only the second chairman—after Nowroji Saklatwala, who led the group from 1932 to 1938—of the 144-year-old group to not bear the Tata surname.

Saklatwala had had the shortest term as Tata chairman, which was interrupted abruptly when he died of a heart attack in 1938. But on October 24, Mistry's term turned out to be shorter, when Tata Sons announced that its board had replaced him and given charge to Ratan Tata as interim chairman.

Few people had seen it coming. But within minutes theories started emerging, postulating the reasons for the sudden decision. Many of them attributed it to the lacklustre performance of some Tata Group companies, and some others to Mistry's handling of crucial issues like the dispute with NTT Docomo and Tata Steel's sick assets in Europe. Then there was talk on a clash of culture between the old guard and Mistry's methods.