Shapoorji Pallonji tightens grip over Tata
The Shapoorji Pallonji (SP) Group has tightened its grip over the $83.3 billion Tata empire. As Cyrus Mistry, the youngest son of Pallonji Mistry — who is worth $8.8 billion as per Forbes List and known as the Phantom of Bombay House (the headquarters of the Tata Group in Mumbai) — is set to succeed Ratan Tata as the head of the century-old group, the SP Group will have both management and shareholder control over the group founded by Jamsetji Nusserwanji Tata in 1868, with his selection raising several questions.
Cyrus is the second person from outside the Tata family to head the group in the last 142 years of its existence. After the death of Sir Dorab Tata, Nowroji Saklatwala was the head of the group from 1932 to 1938. However, another Tata — JRD Tata — succeeded Saklatwala, bringing the group back under the control of the Tata family again.
The Mistry family which holds around 18 per cent stake in Tata Sons is the largest individual shareholder — and non-Tata shareholder — in the Tata holding company. Tata Trusts and some of the Tata Group companies hold the remaining stake. Now the SP Group will have management control over the group as Cyrus Mistry will become the chairman of Tata Sons.
“It was clear that only a person who is approved and enjoys the confidence by Pallonji Mistry will be able to succeed Ratan Tata. It was in this context that Noel Tata’s name was speculated by
