Cyrus Mistry: The surprise that was quite OK
His surname is not Tata but his professional credentials and competence more than made up for that. For all the names that were doing the rounds for the job of heading one of India’s biggest and most diversified conglomerates, Cyrus Mistry being anointed as the man to succeed Ratan Tata came as a surprise to many. In as much as it was a surprise, the 43-year-old low profile, soft-spoken and relatively unassuming Mistry deserves to be the chairman-designate of the salt-to-software group. Cyrus has been named deputy chairman of Tata Sons and will succeed Ratan Tata when he retires in December 2012 as the next chairman of the $83-billion Tata Group.
Ratan Tata has for years said that he wanted someone young to lead the group and Cyrus fits the bill to the ‘T’. Mistry may not have been a Tata Group insider but he is also not a total outsider. A director on the board of Tata Sons since September 2006, he has also served as a director of Tata Elxsi Limited and Tata Power Company. Cyrus is the youngest son of Irish construction tycoon Pallonji Shapoorji Mistry who, with his over 18 per cent stake of Tata Sons, is the largest single shareholder of a firm mostly controlled by trusts.
Cyrus graduated from the Imperial College, London, with a BE in civil engineering and holds a master of science in management from the London Business School.
With many of the Tata Group companies facing the heat of the global economic slowdown and the domestic economic outlook also not looking rosy, the change in the succession at the Bombay House comes at a crucial time. The road ahead may be challenging and will have the occasional speed breakers but Cyrus has age, competence and the requisite operational experience to steer Tata Group over the next many, many years.
RUNNERS UP:
Anand Mahindra: As Vice-Chairman and Managing Director of Mahindra & Mahindra Ltd, Anand Mahindra has transformed a conservative business entity making tractors and off-road vehicles into a multinational enterprise with a presence in several sectors. The group has grown rapidly through both acquisitions and greenfield business development with several high-profile mergers in the past few years, including the acquisition of Satyam Computer Services in 2009, Reva Electric Vehicles in 2010, and a majority stake in Korea’s SsangYong Motor Company. Mahindra featured on the Forbes Global 2000 list, that has the biggest and most powerful listed companies in the world.
Venu Srinivasan: In the time of an industrial slowdown, TVS Motor Company has posted 12 per cent growth in its November sales. The credit goes to the innovations introduced by its chairman and managing director Venu Srinivasan. The third largest two-wheeler manufacturer in India has over the years grown to be the largest company in the TVS Group, both in terms of size and turnover with four manufacturing plants. TVS Motor became the leader in its category of sub-100 cc mopeds, having sold seven million units. It also introduced the TVS Scooty, which is India’s second largest brand in the scooterette segment.
Rahul Bhatia: In an industry where everything and anything right now is going wrong, Rahul Bhatia, the promoter and co-founder of low-cost airline IndiGo, stands apart. Not because his airline is only one of the two Indian carriers making money right now but also for redefining the term budget airline by offering a low-cost product that essentially is not low quality. From being meticulous in fleet and network planning to its efficiency and on-time precision, 49-year-old Bhatia’s professionalism and strong operational skills have ensured that IndiGo today is giving its full-service counterparts a run for their money. In September, IndiGo launched its international operations. As they say, only the sky is the limit for Rahul Bhatia.
Chanda Kochhar: She is the turnaround czarina, leading the charge at India’s largest private sector lender. In a field where not many women have been able to break the glass ceiling, Kochhar stands apart from her brethren. Maybe that has something to do with the meritocratic and equal opportunity culture ICICI Bank has encouraged since the times of N Vaghul and later K V Kamath. Having started her career as a management trainee in 1984 in Industrial Credit and Investment Corporation of India, Kochhar’s climb to the CEO’s office was not easy. Not only did she fight one of the toughest succession battles in corporate India, she also steered the bank through one of the biggest downturns in recent history, when she took over as CEO of the bank in May 2009. Conferred the Padma Bhushan this year, she also ranks as the 43rd most powerful woman in the world by Forbes.
Rana Kapoor: The journey of an entrepreneur is rigorous and no one knows it better than Rana Kapoor, the founder and CEO of YES Bank. Having worked with Bank of America, ANZ Grindlays’ Investment Bank and later as CEO of Rabo India Finance Ltd, Kapoor always nurtured a burning desire to set up something of his own. Established in 2004, India’s new-age private sector bank has grown at a furious pace and aims to have 750 branches and 12,000 employees by 2015. At a time when most banks haven’t focused on lending to small and medium enterprises, YES Bank has extended finance to one of the most neglected segments. It has also been quite innovative in funding the companies in food, agri and infrastructure business.
GVK Reddy: The infrastructure company he founded in 1970s has now branched into areas such as aviation, power, hospitality, manufacturing, life sciences and retail. Hailing from Nellore district of Andhra Pradesh, Reddy’s GVK Group has redefined airport infrastructure by turning the Mumbai airport into a state-of-the-art airport. It also runs and operates the Bangalore airport besides bagging contracts of two greenfield airports in Indonesia. Recently, the 74-year-old Reddy hit headlines after acquiring Australia-based Hancock Coal and Infrastructure for $1.26 billion. The company has an asset base of Rs 8,300 crore and projects worth Rs 15,000 crore in the pipeline. For his contribution in the field of infrastructure, GVK was awarded the Padma Bhushan this year.
GM Rao: Forbes-listed billionaire G M Rao has launched over 28 different businesses spanning sectors such as roads, power, banking, finance and infrastructure. A native of Andhra’s Srikakulam district, the chairman of GMR Group started his entrepreneurial stint in 1978, setting up a jute mill. Rao, with a personal networth of about $3.5 billion, pocketed a sum of $1.2 billion by selling 50 per cent equity stake in GMR’s global power entity InterGen NV in April this year. Similarly, his tryst in airport infrastructure led the Hyderabad international airport bag the world’s best airport award from the Airports Council International for two years in a row. The group also developed and operates the Delhi International airport.
A Vellayan: The 110-year-old Chennai-based Murugappa Group has set its sights higher for next year. According to its Forbes-listed billionaire chairman, A Vellayan, the group plans capital expenditure of Rs1,500 crore in 2011-12, more than thrice that in the previous year. And why not? Backed by Vellayan’s strong leadership qualities, five of the group’s companies achieved ‘best ever performance’ last year and have the cash-power to invest in expansion. The group has also forged strong alliances with leading global companies like Mitsui Sumitomo, Foskor, Cargill, etc.
Aditya Puri: He is the archetypal banker with a no-nonsense, conservative and hands-on approach. He follows a strict 8.30 am-to-6 pm work schedule. Winning has been a way of life for Aditya Puri, the 61-year old managing director of HDFC Bank, for he and his bank, invariably, find a mention in the top five list of bankers and banks. The longest serving head of an Indian bank has been single-handedly responsible for making HDFC Bank what it is today. While he doesn’t carry a mobile phone nor has a laptop, the former Citibanker’s work ethics are difficult to match by his peers. Critics feel it is this working style that has made HDFC Bank a banking behemoth that has focused on marketing its services rather than just banking.
Sanjiv Goenka: In July this year, Sanjiv Goenka, the younger son of R P Goenka, started a new chapter for the companies that were being managed by him under the RPG Group. With an asset base of Rs 14,000 crore, Rs 9,000 crore in revenues, 100,000 shareholders and 16,000 employees, the
newly-branded RP-Sanjiv Goenka Group is active in five business segments—power and natural resources, carbon black, retail, media and entertainment and infrastructure. Last year, Sanjiv and his brother Harsh had separated their business interests and family-owned assets. Sameer Gaur: If it hadn’t been for the Formula 1 race held in October, not many would have known much about Sameer Gaur. The 38-year-old managing director and chief executive officer of Jaypee Sports International Limited, a subsidiary of Jaiprakash Associates, is the moving force behind putting India on the FI Grand Prix map. Known for taking up challenging assignments and delivering on them, the management graduate from University of Wales is also involved with the construction of Jaypee Group’s flagship 165-km Yamuna Expressway Project in Uttar Pradesh. FI racetrack is just one part of Gaur’s mega dream for the over 2,500-acre Jaypee Sports City. The city will include a cricket stadium with a seating capacity of 100,000 people. One of his dreams is to host a World Cup Cricket final there. Going by the success of the first ever F1 race held on Indian soil, Gaur is sure to achieve this dream as well.