Nov. 23 (Bloomberg) -- U.R. Bhat, managing director of Dalton Capital Advisors India Pvt., comments on Tata Sons Ltd. naming Cyrus P. Mistry, the son of its biggest shareholder, as successor to Chairman Ratan Tata. He spoke in a telephone interview in Mumbai today.
“Cyrus has phenomenally big shoes to fill. He is sort of an enigma. We don’t know whether he has the right credentials, except that he and his family own a significant chunk of Tata Sons. They had an illustrious search committee, so they must have done their job well.
‘‘Tatas have a very significant exposure in Europe and elsewhere in the world. India is not exactly in great shape but in Europe the problems could be quite serious. Under Ratan Tata’s leadership there’s a lot of business they sourced from outside India, so one really needs to have a global vision and experience to manage that entity now.”
On professional versus family:
“It’s a larger question. Whether ownership and management have been fully separated or the ownership confers a huge advantage in becoming a manager. These issues will end if he gives a good account of himself. If he doesn’t then these questions will probably come again.”
Mistry, 43, who will assume the role of deputy chairman immediately, will take over as head of the group in December 2012, according to an e-mailed statement from the company today.
“Ratan Tata owes it to his company and all shareholders to ensure that he hands it to the right candidate and hand holds him to ensure a seamless succession.”
--Editor: Abhay Singh
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