Indian conglomerate Tata Group has announced a family member as the successor to current chairman Ratan Tata, as it continues to keep control of the company management in family hands.
Cyrus Pallonji Mistry, who has been on the board of the family’s holding company since 2006, has been named the group’s deputy chairman and will take over as chairman of the Tata Group in December next year, according to a statement.
Speculation about who would succeed Ratan were rife since a five-member committee was formed more than a year back to find a suitable candidate. By appointing Mistry, who is the son of the single largest shareholder of the business, the Mumbai-based company has tapped a family member by marriage to head Tata Group.
The future chairman’s sister is married to Ratan’s half-brother Noel, who had appeared to be the frontrunner for the position.
Mistry is expected to work with Ratan before taking the helm of the $83 billion (€61.9 billion) family business, whose operations span from salt production to software.
“[Mistry] is intelligent and qualified to take on the responsibility being offered and I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the group on my retirement,” said Ratan in the statement.
Founded in 1868 by Jamsedji Tata as a small company trading in cotton, fifth-generation Ratan, who was one of CampdenFB’s top 50 family business leaders, has led the company since 1991.