Tatas have zeroed in on the right choice, say veterans
From heading companies at the Shapoorji Pallonji (SP) Group ($2.5 billion) that has only one listed company and relatively less public interface, he will take full responsibility of Tata Group which has several large listed entities, post Ratan Tata’s retirement in December 2012.
However, people who know him agree with the decision.
“He is capable, young and has familiarity of the group. I have seen him grow over the last 10-15 years,” said Deepak Parekh, chairman, HDFC Group. “He still has around a year under Ratan Tata to understand the complexities of the business.” There are others who agree to this.
“He is a good choice,” said Jamshyd N Godrej, chairman, Godrej & Boyce.
The move to appoint Cyrus may also be a technically sound as Mistry, being the single largest shareholder and also the chairman of the group, going forward, will be central to the decisions of raising equity for the group’s growth and expansion.
“The promoter should have some skin in the game,” said Parekh. “If Tata Group wants to expand further and acquire companies, it will need capital and let the largest shareholder also decide whether he wants to dilute and put money.”
The managing director at Shapoorji Pallonji Group and younger son of Pallonji Shapoorji Mistry has a wide experience of running
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