Shapoorji Mistry pays tribute to Ratan Tata: A look at the family feud

Here's a look at the complicated relationship between the Mistry family and Tata Group that spanned generations

Ratan Tata will be remembered as a transformative leader who left an indelible mark on the Tata Group, said Shapoorji Mistry, chairman of the Shapoorji Pallonji Group, on Thursday. Commenting on the passing of Tata, Mistry remarked that his death signifies the end of an era for India’s largest conglomerate.

“Mr Tata’s unfortunate passing marks the end of an era. He will always be remembered as a leader who left a lasting mark on the evolution of the Tata Group,” said Mistry, whose company holds an 18.3 per cent stake in Tata Sons.

Ratan Tata, who steered the Group for over 30 years, passed away on Wednesday at the age of 86 due to age-related illnesses. 

In a condolence message, Mistry said, “Tata’s unfortunate passing marks the end of an era. He will always be remembered as a leader who left a lasting mark on the evolution of the Tata Group. We offer our heartfelt condolences to his family, loved ones and the whole Tata fraternity. May his soul rest in peace”.

Complex relationship between Tata and Mistry families

The relationship between the Tata and Mistry families, historically strained by differences, particularly after the fallout between Ratan Tata and the late Cyrus Mistry, was often marked by mistrust and conflict. 

When Ratan Tata succeeded JRD Tata as chairman of Tata Sons in 1991, he had the full support of Pallonji Mistry, who was not only a key shareholder but also a crucial director at Tata Sons. The Mistry family’s association with the Tata Group began in 1936 when they first acquired a stake in Tata Sons, marking the beginning of an 80-year alliance between the two families.

Pallonji and Tata shared a cordial relationship, with Pallonji supporting Tata’s efforts to streamline the company’s operations, strengthen financial controls, and reduce the influence of independent power-brokers within the group. Pallonji, known for his quiet approach, never sought to challenge Tata’s leadership or pursue power for himself.
 

Tata-Mistry collaborations

Pallonji Mistry played a significant role within Tata Sons, owing to his family’s nearly 18 per cent stake, which was larger than that of Tata Trusts at the time. Tata Trusts, constrained by its charitable status, lacked direct voting rights, with their activities overseen by a charity commissioner.

In 2000, Ratan Tata successfully lobbied for legislative changes, enabling Tata Trusts to regain full voting rights, thereby restoring its influence over Tata Sons. Pallonji supported Tata’s moves, including a key rights issue in 1996 that helped reinforce Tata Sons’ stakes in core group companies.

The relationship between the Tata and Mistry families deepened further when Pallonji’s daughter married Tata’s half-brother, Noel Tata. Pallonji remained on Tata Sons’ board for 25 years before retiring in 2005, passing the torch to his son, Cyrus Mistry.

In 2011, Ratan Tata selected Cyrus as his successor but amended Tata Sons’ articles of association to grant veto powers to Tata Trusts, ensuring that the Trusts retained control over the group. Tata himself remained chairman of Tata Trusts, allowing him to supervise his successor.

The fallout and legal battle

However, the relationship between Ratan Tata and Cyrus Mistry soured, leading to the latter’s removal as Tata Sons chairman in 2016. Cyrus Mistry responded with legal action, accusing Ratan Tata of corporate mismanagement and oppression of minority shareholders. The decision to convert Tata Sons into a private limited company, which restricted the Mistry family’s ability to sell their shares, further escalated the dispute.

Once bound by shared goals, the relationship between the two families fractured completely. Despite the deep personal and professional ties between the Tatas and Mistrys, the rift was undeniable. Additionally, Ratan Tata’s silence following the deaths of Pallonji Mistry in June 2022 and Cyrus Mistry just months later in September 2022 highlighted the stark distance that had emerged between the two families.

However, with the deaths of both key figures, there is speculation that communication between the two groups may improve.