‘His British education blinded me…’: New book details the clash that tore Ratan Tata and Cyrus Mistry apart

Ratan Tata began questioning Cyrus Mistry’s suitability as Tata Sons chairman candidate after observing him during a year of “parallel running” in 2011, even before Mistry formally took over.

According to the book Ratan Tata: A Life by Thomas Mathew and published by HarperCollins, Tata, who initially supported Mistry despite some reservations from group veterans, became concerned when he noticed what he called “sharp interventions” from Mistry that hinted at possible conflict with the group . Tata’s core values.

Tata chose Mistry after a global search, with two conditions for succession: Mistry would legally sever ties with the Shapoorji Pallonji Group, where he was previously a director, and a year of mentorship under Tata would provide practical experience in running the company. Tata Group.

However, towards the end of this period, Tata reportedly felt uneasy about Mistry’s approach, noting that while Mistry had an aptitude for identifying strategic risks, Tata questioned whether he would consistently uphold the Group’s values.

Reflecting on his choice, Tata admitted: “Cyrus Mistry’s British education blinded me. I naively thought that the DNA of someone with such an impressive education would be different.” Tata regretted staying out of the selection committee process and called his approach “very idealistic.” In 2012, Tata issued an ultimatum to the selection committee, demanding a decision by December 28. He later believed that this put pressure on the committee to make a hasty choice.

When Mistry officially became chairman, tensions increased as he pursued ventures outside the Group’s core businesses. The book reveals that Tata felt uncomfortable when Mistry steered the conglomerate into sectors sensitive to ethical issues, such as infrastructure, fearing it could damage Tata’s reputation. When Mistry stopped consulting Tata Trusts on important decisions, trust further eroded. A critical point came when Tata Power acquired Welspun’s alternative energy assets for $1.45 billion without board approval, which Tata saw as a “real flare-up.”

Tata brought in Nitin Nohria from Harvard Business School to support Mistry, hoping to bridge their differences. However, internal rumors suggested that Tata interfered. In October 2016, Tata decided to remove Mistry, realizing that this would attract criticism. “Even for me, it wasn’t our way to fire him like this. Our lawyers said if it wasn’t a surgical strike, he would go to court and there would be lawsuits,” Tata said.

In retrospect, Tata wishes Mistry had resigned voluntarily after losing the confidence of the board, noting, “Mistry should have resigned more with dignity and kindness after it became clear that he had lost the confidence of the directors.” Reflecting on the decision, Nohria said Tata “in some ways suffered more than Cyrus” because of the difficult choice, while Venu Srinivasan, director of Tata Sons, added that it “took a lot out of him.”