Mumbai : In a dramatic development that took the corporate and others by surprise, Cyrus Misttry was today sacked as Chairman of Tata Sons and was replaced by Ratan Tata, from whom he had taken over the reins of the over USD 100 billiion salt-to-software conglomerate four years ago.
The surprise announcement came after the Boar of Tata Sons met here and decided to replace 48-year-old Mystry and appoint Ratan Tata, 78, as interim head.
The board named a five-member search committee, which includes Tata, to choose a successor to Mistry within four moths.
Mistry was chosen as Tata's successor in November, 2011, and was appointed Deputy Chairman of Tata Sons, whose board he had entered in 2006. He was made chairman on the basis of his.
representation from Shapoorji Palonji, the largest shareholder in Tata Sons.
There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry's approach of shedding non-profit business, including the conglomeate's steel business in Europe, and concentrating only on cash cows.
"Tata Sons today annouced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today," a Tata Sons statement said.
Tata Sons is the main holding company of the group. CEO at the operating company level of the group have not been touched in the rejig, company sources said. The board constituted a selection committe comprising Tata, TVS Group head Venu Srinivasan, Amit Chandra of Bain Capital, former diplomat Ronen Sen and Lord Kumar Bhattachary, are on the board of Tata Sons.