Ratan Tata's Dilemma: The Cyrus Mistry Saga

Ratan Tata faced doubts about Cyrus Mistry’s capability as Tata Sons Chairman early in Mistry's tenure. Despite initial endorsement, conflicting values emerged, leading to Mistry’s dismissal in 2016. The decision was more painful for Tata than Mistry, sparking boardroom and legal battles.

Ratan Tata began doubting Cyrus Mistry's capabilities as chairman-designate of Tata Sons early in Mistry's apprenticeship. A newly published biography, 'Ratan Tata: A Life' by Thomas Mathew, reveals Tata's hesitations before Mistry formally assumed control in 2012.

Mistry, selected after a global search, succeeded Tata, retiring as Chairman of Tata Sons in December 2012, despite concerns from veteran colleagues. Tata endorsed Mistry with conditions: sever all ties with Shapoorji Pallonji Group and shadow Tata for a year to learn the ropes.

By the end of this 'parallel running' period, Tata experienced second thoughts. The late veteran's biography suggests Mistry's strategic interventions surprised Tata, raising doubts about Mistry's alignment with Tata Group values. Mistry's eventual 2016 ouster, instigated by loss of confidence from Tata Trust, was said to be a painful decision for Tata.

(With inputs from agencies.)