Ratan Tata’s successor is a Mistry, the name is Cyrus

History could be repeating itself at Tata Sons. The salt-to-swanky-cars conglomerate on Wednesday announced that Cyrus Pallonji Mistry will succeed Ratan Tata, 73, as its chairman in 2012.

Mistry, managing director of construction bigwig Shapoorji Pallonji, was the last and youngest member to date to be inducted on the board of Tata Sons. He is the brother-in-law of Noel Tata, Ratan Tata’s half-brother, who many saw as the heir apparent.

Incidentally, Mistry’s company is the biggest shareholder of Tata Sons with an 18.5% stake, and he was also part of the five-man selection team that spent 15 months searching for a successor to Tata.

However, Mistry is relatively unknown in business circles, quite like Ratan Tata himself, when he was named chairman two decades ago. Mistry is younger than Tata was in 1991, and expectations from him are greater. The size of the group, under the iconic Tata, too, has swelled several times over.

Late on Wednesday, Tata Sons released a note saying Mistry has been appointed as deputy chairman of the board, to take over the reins when Tata retires in December 2012. Tata called the appointment “a good and far-sighted choice” and said, “He (Mistry) has been on the board of Tata Sons since August 2006, and I have been impressed with the quality and calibre of his participation, his astute observations and humility.”

JJ Irani, a Tata Sons veteran who retired from the board a few months ago, couldn’t agree more. “I am impressed by his thoughts, especially on financial matters. He has shown great acumen for accepting advice and being methodical in his approach, and people really enjoy his company.”

According to Irani, this is just what Ratan Tata had wanted — to have a young face at the helm of affairs. People who have long known Mistry say he is a Tata in all but name. “He is friendly and accommodating, and that is what he is largely known for,” said Jai Prakash Rao, director, corporate marketing strategy at Shapoorji Pallonji.