A family that has been ruling the construction business for years, the Mistry family has been in the spotlight in recent years for their personal losses and their controversial professional ties with the Tata Group. In 2022, the family mourned the death of Pallonji Mistry, Chairman of their legacy business, Shapoorji Pallonji Group, and the youngest son, Cyrus Mistry, the former Tata Group chairman. The personal losses were also accompanied by restructuring the business, and therefore the elder Mistry brother, Shapoor Mistry donned the leader’s role.
Who is Shapoor Mistry
Shapoor Mistry, the eldest son of Pallonji Mistry, was born in 1964 to Pallonji Mistry and Patsy Perin Dubash. He has two sisters and his younger brother, Cyrus Mistry. After the demise of his father and brother last year, Shapoor has been given the task of leading the diversified engineering and construction firm, which generates close to $30 billion in revenue and holds an 18.41% stake in the $130 billion Tata firm, as per Forbes report. “Shapoor is operating the companies by himself at a time when cash flow is insufficient to pay off debt. He has, however, reorganised the company and given his son and Cyrus’s two sons responsibility,” a senior banker told Fortune.
Sahpoor’s father, Pallonji’s wealth was frozen in a legal dispute with the Tata Group, the largest company in India. Mistry was often referred to as the Phantom of Bombay House, the Tata Group’s administrative centre. The generally media-averse Mistry family made news in 2012 when Cyrus, Shapoor’s brother was chosen to head the Tata Group. However, a disagreement followed a boardroom takeover in 2016 led by Tata Trusts, which sparked one of India’s largest commercial disputes, and brought an end to his term. The outcome was that the two families, who had been cooperating for 70 years, got into a drawn-out judicial battle.
Under Shapoor Mistry’s leadership
In FY21, the Shapoor and Cyrus brothers made the decision to restructure the company by establishing two distinct structures for infrastructure and real estate, SP Finance and SC Finance. They previously housed all of their different operations under SPCPL. The goal was to increase operating cash flows because timing issues exist in long-term investments like infrastructure and real estate. The advisory board for S.P. Finance and S.C. Finance will be composed of four family members: Shapoor, his son, and the two sons of the late Cyrus Mistry, Firoz and Zahan. The two-tier structure that the Mistry family envisions is comparable to that of the biggest businesses in Europe. The roles of management and promoters, who would serve as wealth custodians, are anticipated to be separated, according to a report by Fortune.
The SP Group, which was established in 1865, has constructed a number of notable buildings, such as the RBI building in Mumbai and the eye-catching Tower Wing of the Mumbai Taj Mahal Palace Hotel. The organisation is trying to increase its footprint in Asia, Africa, and the Middle East. It now has programmes in 40 countries.
Shapoor Mistry, as the leader of the organisation is pulling it up from the ground and helping it reach greater heights. According to Forbes, at present he has a net wroth of $7.6 billion.
