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

Ratan Tata began to question Cyrus Mistry’s suitability as Tata Sons chairman-designate after observing him for a year of “side work” in 2011, 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 veterans in the group, became concerned when he saw what he called Misty’s “dramatic interventions” that hinted at potential conflicts with Tata Core Values.

Tata selected Mistry after a global search with two conditions for succession: Mistry had to legally sever ties with the Shapoorji Pallonji Group, where he previously served as managing director, and a year of mentorship under Tata would provide hands-on experience running the company. Tata Group.

By the end of this period, however, Tata reportedly felt uncomfortable with Mistry’s approach, noting that while Mistry had the ability to identify strategic risks, Tata doubted whether he would consistently uphold the Group’s values.

Reflecting on his choice, Tata admitted, “Cyrus Mistry’s British education blindsided me. I naively thought that the DNA of a person with such an impressive education would be different.” Tata regretted staying out of the selection committee process, calling 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 forced the committee to make a hasty choice.

After Mistry officially became chairman, tensions rose as he sought ventures outside the Group’s core business. The book says that Tata was uncomfortable with Mistry steering the conglomerate into sectors vulnerable to ethical issues, such as infrastructure, fearing it could damage Tata’s reputation. When Mistry stopped consulting the Tata Trust on important decisions, trust further eroded. The critical moment came when Tata Power acquired Welspun’s alternative energy assets for $1.45 billion without board approval, in what Tata saw as a “real flash”.

Tata brought in Nitin Noria from Harvard Business School to support Mistry, hoping to bridge their differences. However, internal rumors suggested Tata was getting involved. By October 2016, Tata decided to remove Mistry, recognizing that it would lead to criticism. “Even for me, it wasn’t our style to release him like that. Our lawyers said that if it is not a surgical strike, then he will go to court and legal proceedings will follow,” Tata said.

In retrospect, Tata wished that Mistry had voluntarily resigned after losing the confidence of the board, noting, “Mistry should have been more dignified and gracious in resigning after it became clear that he had lost the confidence of the directors.” Noria, reflecting on the decision, said Tata was “in some ways hurt more than Cyrus” by the difficult choice, while Venu Srinivasan, director of Tata Sons, added that it “took a lot out of him”.