Tata watchers give thumbs up to Cyrus Mistry

Former Tata Steel MD JJ Irani has praised Tata Sons Chairman Ratan Tata's surprise decision to appoint 43-year-old Director of Tata Sons and Tata Elxsi (India) Cyrus Mistry as his successor. This is the second time that the group will have a non-Tata at the helm of affairs in its 143-year history.

Giving a thumbs up to Mistry, JJ Irani said, "He is very open, he is correct, he is not biased. He is also fair and objective in his decisions. The plus point is he keeps corporate interests first."

Forbes India Editor Indrajit Gupta has called Ratan Tata's decision a generational change. Speaking to CNN-IBN, Gupta said that for Mistry to take over such a huge empire at such a young age is a great responsibility.

"This is a huge generational change. I think taking over the chairmanship of Tata's at this age is great responsibility. Ratan Tata when he took over was also young but it was far less complex then," Gupta said.

Gupta maintained that Mistry will have to work towards earning respect from the many senior managers in the company.

"I think he'll have to earn respect. I don't think any of the Tata managers will accept someone whom they don't respect," he said.

Tata announced his decision on Tuesday and took the corporate world by storm. Mistry will work with Tata over the next year and take over from him when Tata retires in December 2012. The Board of Directors of Tata Sons at its meeting on Wednesday appointed Cyrus P Mistry as Deputy Chairman.

Mistry is the younger son of Pallonji Mistry, the largest shareholder in Tata Sons.

A graduate in civil engineering Imperial College, London and a Master of Science in management from the London Business School, Mistry will be groomed by Ratan Tata himself over the next one year. Mistry, currently Managing Director of Shapoorji Pallonji Group, has been a Director of Tata Sons since August 2006.

In a statement Mistry says, "I feel deeply honoured by this appointment. I am aware that an enormous responsibility, with a great legacy, has been entrusted to me. I look forward to Mr Tata's guidance in the year ahead in meeting the expectations of the Group."

But can the relatively unknown Mistry wear the mantle from Ratan Tata who has been responsible for spearing heading the $ 83 billion group for the last 20 years.

In an exclusive interview to CNN in April 13, 2011 Tata had set a high standard for his successor.

In the interview Tata had said, "I think what I would like to do is to leave behind a sustainable entity of a set of companies that operate in an exemplary manner in terms of ethics, values and continue what our ancestors left behind."

The current MD of Shapoorji Pallonji Group was part of the five members panel set up to look for the new Chief. Noel Tata the half brother of Ratan Tata was the favourite in the much speculated succession story.

Ratan Tata says the appointment is a far-sighted choice. But for Mistry it will be a tough act to follow.