Tata Sons said on Monday that its board of directors has replaced Cyrus P Mistry as Chairman, in a move that caught markets by surprise. Ratan N Tata, 78, who serves as Chairman Emeritus, will have interim charge.
The Tata Sons board has at its meeting today also set up a committee to choose a new chairman. The panel includes Mr Tata and four others, and has been asked to complete the selection process in four months.
Tata Sons is the parent company of the $100-billion salt-to-software Tata conglomerate. Cyrus Mistry, 48, took over in December 2012, succeeding Ratan Tata, who retired after 21 years in the position.
CEOs at the operating company level will not be affected by the changes, news agency Press Trust of India reported.
The conglomerate's total revenues had dropped 4.62 per cent to $103 billion in fiscal year 2015-16, from $108 billion in the previous financial year. (Read more)
Mistry had attributed the fall in revenue to global political uncertainties, a steep reduction in commodity prices and volatility in currencies. International revenues at around $70 billion constituted 69 per cent of the group's revenues.
Mistry was earlier managing director of the Shapoorji Pallonji Group, before taking over as chairman of Tata Sons.
Mistry, an engineer from the Imperial College in London, began working for the group controlled by his father, billionaire Shapoorji Pallonji Mistry, in 1991.
Shapoorji Mistry is the single biggest shareholder in Tata Sons. About 66 per cent of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family.