 "Mehli Mistry's interests go beyond paints and Tatas")
Mehli Kersasp Mistry, who finds himself in the crossfire between cousin Cyrus Mistry and ‘friend’ Ratan Tata, runs about a dozen companies, with interests ranging from paint distribution to logistics, travel and automotive dealership.
According to ministry of corporate affairs (MCA) records, the 56-year-old was on the boards of 14 companies till recently.
In August, he stepped down from the board of PNB MetLife Insurance, where his group owns a minority stake, records showed. A communication to the insurance company dated July 31 from Mistry said he wished to resign “due to pre-occupation with other responsibilities”. The move came two weeks after the insurer had moved a notice for annual general meeting, where it proposed to re-appoint Mistry as a director. Mistry had a 15-year-old stint in the life insurance venture, which was originally launched as MetLife India Insurance, a joint venture between the Mistrys, Jammu & Kashmir Bank and MetLife. The Mistry family, which was the largest shareholder at the time of the launch, has since cut its stake to 18 per cent. In 2013, Punjab National Bank picked a 30 per cent stake in the firm.
Mistry’s younger brother Pheroze continues on the PNB MetLife board. A PNB MetLife spokesperson confirmed the resignation, but did not divulge further details.
Although Mehli Mistry has stepped off the key financial services venture of his group, his first board stint started in finance. MCA records showed that he was appointed as director of Pallonji Investment and Finance (PIF) in May 1976. He would have been 16 then. PIF was initially established to look after the finances of the group, but has since started manufacturing coating materials under licence from global brands such as Aquaepoxy (Acme) and Kenitex.
Three years later, in 1979, he came on board at M Pallonji and Company (MPC), the group flagship. While Mehli and Pheroze Mistry hold 49 per cent each, their mother Maki holds two per cent.
MPC describes itself as the largest contracting firm which carries out blasting, painting, anti-corrosive lining, epoxy lining concrete repair, guniting and dredging work. “We’re the main contractors for the entire Tata Electric Group of Companies as well as many other fertiliser, petrochemical and chemical complexes in India,” the company says on its website.
The six-decade-old company counts Tata Power, Tata Motors, Rashtriya Chemicals and Fertilizers, ONGC, Reliance Industries, HPCL, and Reliance Infrastructure among its key clients.
MPC’s top line has grown nearly five times during his cousin Cyrus Mistry’s tenure at the helm of Tatas.
From Rs 42.6 crore in FY12, the company’s total revenue shot up to Rs 206 crore in FY15, according to the last financial statement filed with MCA. From a net loss of Rs 38 lakh in FY12, MPC reported a profit after tax of Rs 43.7 crore in FY15.
The earliest balance sheet available on the MCA site was that of 2005-06. This was filed as an annexure to change of objects that year that facilitated the company to give corporate guarantees. There are several references to Tata Power in this balance sheet. Of Rs 60 crore profits from contracts brought to profit and loss account that year, Rs 51.2 crore came from Tata Power. It earned profit of Rs 5.5 crore on contracts with Reliance Industries and Rs 1.8 crore from Vikram Ispat. MPC had booked a net profit of Rs 47.2 crore that year.
It also had an outstanding advance against contracts of Rs 15.7 crore from Tata Power. On the assets side, it had inter corporate deposits of Rs 4.1 crore with Tata Power as on March 31, 2006.
Sterling has dealership establishments covering sales, services and spares in Nasik, Ahmednagar and Solapur districts in Maharashtra.
