Pallonji Mistry
From Wikipedia, the free encyclopedia
| Pallonji Shapoorji Mistry | |
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| Occupation | Industrialist |
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| Children | Cyrus Mistry |
Pallonji Shapoorji Mistry is an Indian entrepreneur and construction tycoon. With his 18.5% stake in Tata Sons, he is the single largest shareholder in India's largest private conglomerate Tata Group. He is also the Chairman of the Shapoorji Pallonji Group through which he owns Shapoorji Pallonji Construction Limited and Eureka Forbes Limited. He is also the former Chairman of Associated Cement Companies. In 2007, Forbes estimated his total fortune to be worth US$ 5.9 billion.[1] Pallonji gave up his Indian citizenship in 2007 to adopt Irish citizenship, making him the richest Irish national in the world.[2]
Nicknamed by his colleagues in Tata Group as the Phantom of Bombay House, Pallonji, despite being one of the most successful businessmen in India, is known for his media-shyness and rarely appears in public.
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[edit] Business Empire
[edit] Relationship with Tata Group
His association with the Tata Group is over half a century old and yet nowhere in the history of the Tata Group is the Mistry family mentioned by name. The Group's largest stakeholder Pallonji Mistry's father Shapoorji, muscled his way into Tata Sons by buying out solicitor FE Dinshaw's estate which was equal to 12.5% of Tata Sons. When J.R.D. Tata took over, Shapoorji took advantage of the Group's uncertainty and bought out other Tata family members - increasing his stake to 16.5%. Yet the construction contractor was always considered an outsider and his family's relations with the Tatas eased only when Noel Tata, Ratan Tata's stepbrother, married Pallonji's daughter, Aloo.
Underplaying any negativity between the Tata family and the Mistry family, Pallonji told CNBC-TV18, "There have always been very cordial relationship between the Mistry family and the Tatas. I would just say that. There has always been a very close relationship - both with the present generation and with the past generation." But that all-important stake in the Tata Group does give him enormous leverage. When asked if his sons wanted to be on Tata's board, he deflected wthe question by saying "that question should be answered by Mr. Tata, not by me." This question was ultimately answered when his younger son Cyrus Mistry joined the Tata Sons board in September 2006.
Today, Pallonji owns 18.35% of Tata Sons, while Ratan Tata himself owns less than a per cent. When TCS went public, Pallonji was the biggest beneficiary, netting more than even the Tata companies. In 2007 Forbes estimated his net worth to be $5.6 billion.[3] But ask senior Tata executives who've spent a lifetime in the Group and very few know the enigmatic person. Considering his stake and credentials, has he ever been tempted to take more of a proactive stance? He reiterated, "God alone will decide it. As I said I am very happy in the way it is. I am very happy in the way the Tata companies are being run. I am very happy with the situation and God alone knows what the future holds."
[edit] Other ventures
He's always been a silent stakeholder, choosing instead to focus on the international expansion of his own construction group, The Shapoorji Pallonji Group and the domestic expansion of Eureka Forbes. The Group has now diversified into textile and IT parks but Pallonji is as reclusive as ever. He admits, "I prefer to be in the background, and I always have been. But when it is a must, as I said when I became the Chairman of ACC, I had to be before the press and so I was there. But if left to me, I would rather be on my own."
But he's expanded the family business to build great quality buildings in the Middle East and he took this call years ago, before the competition got wise to the act. Now his firm has moved on to road construction as well. He elaborated, "This is what my initiative was because I've always wanted to do something that should leave a mark in my family. Also since that day on, we have never looked back. We have been from Muscat to Dubai, Dubai to Abu Dhabi, Abu Dhabi to Qatar and finally only less than a month ago now, we have been given a contract to build a stadium in Guyana, South America."
Having lead his family business from strength to strength, he's almost handed over the reins to his sons. But a number of factors could make Pallonji break the unwritten agreement of passive partnership between the two families. The most important variable being the possibility that his son-in-law, Noel, may soon be taking over Ratan Tata's mantle.
[edit] Personal life and wealth
In spite of being one of the richest Indians and Chairman of the Shapoorji Pallonji Group, Pallonji Mistry is a man who rarely appears in public and is often described as being media shy. His employees call him the man with no faults, his friends describe him as humble and within the Tata Group he is known as the Phantom of Bombay House.
In 2007, he gave up his Indian citizenship to become an Irish citizen.[4] His son-in-law Noel Tata is the CEO of the retail arm of the Tata Group. Noel Tata is also the half-brother of Ratan Tata.
