In a spectacular development in the corporate world that took everyone to wonder, Cyrus Mistry was on Monday dismissed as chairman of Tata Sons and was replaced by Ratan Tata, who will be the interim chairman for next four months.
The 48-year-old Mistry who had taken over from Ratan Tata in 2011 has been replaced after the meeting of board of Tata Sons took place.
A five-member search committee has been named by the board, including Tata, to choose a successor within four months.
Mistry was appointed as Tata’s successor in November, 2011, and was hired as Deputy Chairman of Tata Sons, whose board he had entered in 2006.
However, there hasn’t been any reasons given for the change of leadership of the man who brought in much fanfare, but it is said that Tata Sons was unhappy with Mistry’s approach of shedding non-profit businesses, including the conglomerate’s steel business in Europe, and concentrating only on cash cows.
“Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today,” said a Tata Sons statement.
Tata Sons is the focal holding company of the group.
Company sources said that CEOs at the operating company have not been touched in the rejig.
The board constituted a selection committee comprising Tata, former diplomat Lord Kumar Bhattacharya and Ronen Sen, TVS Group head Venu Srinivasan, and Amit Chandra of Bain Capital. All of them, except Bhattacharya, are on the board of Tata Sons.
“The committee has been mandated to complete the selection process in four months,” it added.
The Tata group is also involved in a legal battle with Japan’s Docomo over the riven of their telecom joint venture Tata Docomo.